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View Poll Results: Do you think the US Dollar will recover soon.
Yes, I'm positive. 5 14.71%
No, I'm sure of it. 15 44.12%
I couldn't predict it. 14 41.18%
Voters: 34. You may not vote on this poll

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Old 11-25-2009, 04:10 AM
 
Location: western East Roman Empire
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For what it's worth, the USD has dropped to an all-time low, or close to it, against the JPY, below 88, though so far it has managed to maintain resistance against the EUR at around 1.5050 (all-time low around 1.60 last year before the financial crisis broke out in September).

In relative fiat currency terms, perhaps the JPY is considered the safest haven at the moment.

Gold has also rallied to new all-time highs.
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Old 11-25-2009, 05:10 AM
 
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yes, gold rises despite the IMF gold sale and despite attempts at manipulation. i wonder if the market, which loves the falling dollar, will love the falling dollar when / if the euro rises further.
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Old 11-25-2009, 05:35 AM
 
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The normal secret gold price suppression schemes put forth by the central banks isn't working this time. There is a general belief that gold has been oversold. (I mean the same gold bar sold several times via paper stocks, futures, etc) People are demanding physical delivery now and this is really throwing the whole business as usual schemes out of whack. The rumor is that some depositories are scrambling to cover their obligations for physical gold delivery. There has also been a rumor floating around the internet about a number of 400 oz good delivery gold bars (think gold bar shown on TV & movies) turning out to be gold plated tungsten.

It's not clear that any of the fiat money, i.e. The Euro, in the world is that safe a haven. Ultimately people will accept currency if they believe there will be a real government behind it to back it up. Case in point and a little history. In 1864 it was not clear if the USA or the CSA was going to win the Civil War. Both sides had printed paper money that was essentially an IOU stating that it would be repaid once the war had concluded. People started to worry the paper money would become worthless and moved to convert their paper into some sort of real money, which at the time, meant gold and silver coins. There were stories that a silver dollar or gold dollar was worth up to 10X it's face value in paper. At the end of the war, the CSA paper was worthless and anyone holding these dollars was out of luck. Big lessons here. BTW, today a $50 American Eagle coin is now worth $1180.

The problem with The Euro is that it is not backed by a sovereign government. It is backed by a treaty between a dozen or so sovereign governments and we all know what treaties are worth. (Ink on paper). All it will take is for one of the countries to get pissed off and withdraw and The Euro is history. Japan simply isn't big enough for the Yen to takeover the role of the $, and even if the Chinese let the Yuan trade openly it is still a currency from a communist government and nobody wants communist money. As screwed up as the USA is at the moment, there are two things you can count on. The USA will be here tomorrow. The political system still works in terms that everyone on all sides still supports it and no country could successfully attack us and live to tell anyone about it. This is why the world still revolves around the $ though everyone holding $s hates it. The only viable alternative is Gold and that is why it's price is zooming to the stratosphere.

It's not to late to buy some gold coins. I recommend American Eagles, Buffaloes and the lesser known $10 First Spouse Gold coins put out by the mint. Only coin collectors know about the Spouse coin but they have become a great way to get into gold ownership. I saw a blog post yesterday that said they were running out of some gold coins at the moment because of demand. The Krugerrand supposedly is one of these. It just leads to the stories there isn't enough physical gold to cover all demand.

Last edited by lumbollo; 11-25-2009 at 05:45 AM..
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Old 11-25-2009, 01:29 PM
 
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Goodness, since I posted that this morning, the news has broken that the US Mint has suspended sales of it's 2009 American Eagle 1oz gold coin. This is its bread and butter bullion coin that is mandated by Congress. They are saying they can no longer get the gold blanks to satisfy the demand. Better get those orders in with the dealers while they still have them.
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Old 11-25-2009, 03:04 PM
 
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Quote:
Originally Posted by lumbollo View Post
Goodness, since I posted that this morning, the news has broken that the US Mint has suspended sales of it's 2009 American Eagle 1oz gold coin. This is its bread and butter bullion coin that is mandated by Congress. They are saying they can no longer get the gold blanks to satisfy the demand. Better get those orders in with the dealers while they still have them.
Calm down.

There's no shortage of gold it's just a crowded trade thats all.

What the US Mint really said was demand has depleted their inventory of coins. So they'll buy some more gold and sales will resume in early Dec. No biggie.

UPDATE 1-US Mint to suspend American Eagle gold 1-oz coins | Funds | News | Reuters
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Old 11-25-2009, 03:35 PM
 
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Quote:
Originally Posted by Traderx View Post
...There's no shortage of gold it's just a crowded trade thats all.
"no biggie..." LOL They are making a huge amount of money on these. If they could continue to make them, they would. Actually the Mint has already canceled the proof version of this coin due to shortages of gold. From their website.
Production of United States Mint American Eagle Gold Proof and Uncirculated Coins has been temporarily suspended because of unprecedented demand for American Eagle Gold Bullion Coins. Currently, all available 22-karat gold blanks are being allocated to the American Eagle Gold Bullion Coin Program, as the United States Mint is required by Public Law 99-185 to produce these coins “in quantities sufficient to meet public demand . . . .”
The United States Mint will resume the American Eagle Gold Proof and Uncirculated Coin Programs once sufficient inventories of gold bullion blanks can be acquired to meet market demand for all three American Eagle Gold Coin products. Additionally, as a result of the recent numismatic product portfolio analysis, fractional sizes of American Eagle Gold Uncirculated Coins will no longer be produced.
Update: Due to the continued, sustained demand for American Eagle Gold Bullion Coins, 2009-dated American Eagle Gold Proof Coins will not be produced.


It's the first time in 23 years they have not produced this coin. We shall see what happens with the above news. Gold is getting ready to hit $1200/oz and people are buying out gold coins from everywhere in hopes of staying ahead of the rise.
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Old 11-25-2009, 03:43 PM
 
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Quote:
Originally Posted by lumbollo View Post
"It's the first time in 23 years they have not produced this coin. .
Nah, they suspended sales just last year.

"Last year, the Mint had also briefly suspended sales of its
American Eagle gold and silver coins due to high demand and a
lack of coin blanks."
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Old 11-25-2009, 04:17 PM
 
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When A Confidence Game Is Being Run
Nothing Is More Important Than Confidence
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Old 11-25-2009, 05:00 PM
 
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Quote:
Originally Posted by Traderx View Post
Nah, they suspended sales just last year...
Try reading it again. There were no 2009 American Eagle Proof or uncirculated coins produced this year. The program was canceled in Oct as my post above indicates. There will not be any 2009 coins of this type produced, which is the first time in 23 years.
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Old 11-25-2009, 05:23 PM
 
975 posts, read 1,038,080 times
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Quote:
Originally Posted by lumbollo View Post
Try reading it again. There were no 2009 American Eagle Proof or uncirculated coins produced this year. The program was canceled in Oct as my post above indicates. There will not be any 2009 coins of this type produced, which is the first time in 23 years.
okay, i see what you mean.
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