Gold, bonds yield and USD

I just got my latest shipment of gold Eagles a few weeks ago. Now I need to find a stylish safe to store them in.

Safe Deposit Box works very well. We're in the early innings of the dollar/gold realignment. Geithner has been saying how serious he is, but isn't able to back up any of his words with deeds. Story out yesterday on oil producing nations getting more serious about not taking dollars. Key will be China.

Safe Deposit Boxes have their problems. Like if the government decides to confiscate gold again (as the gold bugs believe they may, I am not a true gold bug), they could make you open the box in the presence of their agents (though it is only a rumor they did this before).

http://en.wikipedia.org/wiki/Executive_Order_6102

Same if you die, the government is there to take a look and share.

its nice of the govt to keep you company when opening your saftey deposit box.

Modern, remember if you buy more than 10,000 of Gold, you'll be documetning your purchase anyway. There's a limit to what you can do...

I think the purpose of taking physical delivery is you don't trust the custodian. I would think a safety deposit box solves that problem. The gov't takes very seriously not reporting income or hiding assets.

i hate gold -- fear investment. weak dollar good for earnings.... us mfg.... last year in june 08 the rate was $1.60/euro with swing to $1.20. when panic subsides... so will gold. UD still watching for the 1100 irrational breakout you spoke of... you get full credit for that.

Short yen?

The Spanish debased their currency to pay for a war and lost their global leadership as a result: Below form Wipipedia.

While Spinola and the Spanish army were focused on the Netherlands, the war seemed to go in Spain's favor. But 1627 saw the collapse of the Castilian economy. The Habsburgs had been debasing their currency to pay for the war and prices exploded, just as they had in previous years in Austria. Until 1631, parts of Castile operated on a barter economy owing to the currency crisis, and the government was unable to collect any meaningful taxes from the peasantry and had to depend on revenue from its colonies. The Spanish armies, like others in German territories, resorted to "paying themselves" on the land.

Central bank of Australia raised rates. This would be the 2nd country this year to do this; Central bank of Israel was the first.

"UD still watching for the 1100 irrational breakout you spoke of... you get full credit for that."

well, in fairness, I did get the sustainability of this equity run very wrong 4-5 months ago. I must say, part of me is very confused as I feel equities have detached from fundamental reality and are trading on liquidity and reflation type confidence right now. What happens when liquidity is taken away? China plunged 23% in 3 weeks when they mentioned 1 blurb about tightening bank standards.

U.D. equities may be reacting more to liquidity than to the fundamentals of the companies numbers... Seems that when ever liquidity goes up, The stock market follows suit.

absolutely...stocks are a proxy for everything right now. the fed has successfully uber inflated bids for residential and commercial MBS!

I don't see the Fed having the courage to sop up excess liquidity. We'll probably go the dollar depreciation and inflation route instead...

U.D. What scares me, is the banks look profitable on current cash flow , but that ignores the massive write-downs they have put off. The fed hasn't inflated so much that there are no more losses to take, I've heard estimtes of 50% write-downs taken(probably focused on securitized products). 2010 could be a very dangerous year...

I'm very wary of gold long-term & short-term. I first started reading the news in 1981 (gold - $300ish/ troy ounce). Just a few years earlier at the height of the Iran hostage taking crisis, close to $1k/ounce. How can you possibly call it?

did you all hear about the second extension/stimulus today... they are saying it as if it is a fait accompli and that nobody should be surprised. The "labeling" appears to be important as democrats do not want to lose the majority.... WHAT???!!!!

Markets up/gold soaring/DB says housing rebound/bottom is here/ and the government continues to steal from the haves for the havenots...

In my view, gold is not a directional bet, it is a hedge. If the dollar collapses, having 3-5% of assets in gold will be good. Israel nukes Iran, war breaks out, oil to $300, all good for gold too. (I have energy stocks too).

Everything settles down, dollar comes back markets go up, I lose on gold but make it up elsewhere.

I'm tired of hearing about war in the Middle East; it's so ovah. My ultranerdy Kempler & Strauss W PhoneWatch -- http://www.kemplerusa.com/wphonewatch/demo.html -- says it's about time for another big intra-European ... they hate each other. Europeans and Europeans, that is, not Europeans and Kempler & Strauss W PhoneWatches. The Lisbon Accord, or whatever it's called, should hurry that along nicely.

Do you get a pocket protector with that watch? I'll stick with my Panerai.

Don't you at least appreciate that it's thinner than a tectonic plate?

I think they bundle it with a propeller beanie instead of the pocket protector -- they try not to run with the rest of the pack.

"'I immediately felt when I saw the watch that it had star power' Stallone said. . . . 'Besides, it's perfect for people who are over 45 years old,' he added in reference to the ease of reading large-format watches."[3] http://upload.wikimedia.org/wikipedia/commons/d/d8/Sylvester_Stallone%2C_66%C3%A8me_Festival_de_Venise_%28Mostra%29.jpg

I need me a Hamilton Electric.

i actually think gold may rise even if the dollar rises. Afterall that is exactly what happened for a period in 2008.

i think other forces are at play, but the common thinking is gold as a dollar hedge. Its hard for me to argue that, very hard, but maybe just maybe it is a global anti-fiat currency trade? Currency strength or weakness is relative, so what will the dollar collapse against? At the very least, gold proved that it could rise as the dollar rises if confidence erodes in a mysterious place (Jan-March 2009)

i've heard that gold is a hedge against inflation, maybe the more accurate expression is gold is a hedge against currency.

I could easily see Gold doubling in the next 3-5 years.