Found this report for you Skol, facts on the US manufacturing economy.
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Found this report for you Skol, facts on the US manufacturing economy.
Here's what Warren Buffett said about gold at the lastest Berkshire Hathaway meeting:
'That view of the world was typically upbeat, with Mr. Buffett reporting that all of Berkshire's businesses, with the exception of residential housing, were continuing to recover, and repeated disparagement for the continuing enthusiasm for gold.
"There is something peculiar about an asset that only really goes up when the world really goes to hell", said Mr. Munger.'
Price of gold has gone down, on the news.
Hi Colin, yes, it's still dropping, although did try to rally. But as oil is still climbing, I have not lost faith in the yellow metal. The US$ gold-oil ratio averages out at about 16 to 18, so any oil increase will bring gold with it eventually. Oil sales income is often converted into gold, as a hedge against inflation. So until a replacement energy source for oil is found, and while output drops, gold bulls are fairly safe.
I think the gold-oil ratio is some kind of random thing someone's thought up, someone's 'good idea'. What happened to the gold-oil ratio in 2008 when oil crashed from $147 to $32?
Did gold drop to $512? No. In August 2008, the month of the crash, its lowest was $790 a gold-oil ratio of 24.6.
Are gold bulls safe? Don't think so. Reported in the WSJ that George Soros has pushed the sell button which may have precipitated the latest selling. One poster says it's Soros's fault he's losing money.
The goldbugs say it's all the 'manipulators' fault that gold and silver are declining or crashing depending on how it pans out, not their fault. I wouldn't miss this for anything.
ETF SLV down 6% overnite, 21% in the last 5 days.
According to the data, the central bank of Mexico bought 93.3 tons of bullion over the two-month period, vastly increasing its total reserves from just 6.9 tons in January.
"Prior to this, they held very little metal, so it is a decent size change," Mr. Spall said. "People are going to view this as bullish, and will now be closely watching other countries in the region, and elsewhere, for further changes."
May IMF data also show continued buying by Russia, of 18.8 tons, and Thailand, of 9.3 tons.
The official sector was a net seller for around two decades before becoming a considerable buyer last year, according to the World Gold Council.
"Mexico seems to be following the trend established by several other central banks recently and is moving toward restoring a prior balance between gold and currency reserves," said George Milling-Stanley, managing director of government affairs at the WGC.
The Bank of Mexico traditionally holds most of its reserves in U.S. dollar-denominated investments.
Since selling more than $30 billion in the exchange market to shore up the peso between October 2008 and October 2009 during the global financial crisis, the central bank has been building reserves to record levels as protection against future bouts of global financial turmoil.
The main source of reserves is oil revenue, as the bank changes dollars for state oil monopoly Petroleos Mexicanos. The bank also uses put options to buy up to $600 million a month from commercial banks when the peso is appreciating against the dollar.
The peso is currently trading at its strongest level against the dollar since early October 2008, closing Tuesday at 11.5620 pesos after dipping below 11.50 pesos in recent sessions.
Foreign reserves were a record $125.8 billion as of April 29.
I've got a few books here the Mexicans should have read before their latest purchase. I guess it's someone elses money so they don't worry too much.
Extraordinary Popular Delusions and the Madness of Crowds.
Tomorrows Gold.
Manias, Panics and Crashes.
Contrarian Investing.
To name a few. Hard to believe educated people would speculate at these levels but it takes all types I suppose. Even the 'experts' confound themselves with their own BS.
Do you think the dudes at Texas University that bought $1b in gold recently are feeling a little nervous?
Might be, with the July silver contract 7.5% lower overnite, only a matter of time before the rot sets in.
There's nothing wrong with using those rose-tinted glasses every now and then.