Rollover is the story of faded Hollywood siren Jane Fonda who inherits a multi-million dollar company after her powerful bank president husband is murdered. While trying to find her dead love's killer, she runs his corporation with the help of charming banker Kris Kristofferson in the weeks before a worldwide currency and financial collapse. It was the 1981 movie Jane Fonda "got made" after her exploration of the dangers of nuclear power in the "China Syndrome" back in 1979. She was driving to tell the story of real money - gold and how people throughout the world value gold as real money while most Americans and people in western societies don't understand gold and have forgotten its importance and value. The plot line is about wealthy Arab investors not rolling over their certificates of deposits (CDs) in American banks and buying gold in order to hedge themselves against a fall in the dollar and paper currencies ... and what the loss of those foreign investments means to the financial establishment in New York and the international financial and monetary system. Rollover: Financial Apocalypse This movie was a "financial thriller" and there are not many of these movies made. Movies need bank financing, and banks usually won't finance anything that makes them look bad or stupid. They show "It’s a Wonderful Life" with Jimmy Stewart on TV only once a year now because it shows "run on the bank" at the Bailey Savings and Loan - not something the financial establishment wants Americans to even think about.
Gold continues to surprise to the downside on the COMEX and the futures markets in spite of huge physical demand, increasing supply issues and surging premiums on bullion products. Speculative paper players using huge leverage continue to exit positions for the relative safety of cash due to margin calls on other bets and some investment banks continue to short gold despite the incredibly strong fundamentals for bullion itself.
Gold rose nearly 2% yesterday as the Federal Reserve decreased the fed funds rate by 50 basis points to 1.00%. Other central banks internationally are also slashing interest rates and there is increasing speculation that the Bank of England and the ECB may cut interest rates aggressively as early as this week and possibly even today in an effort to prevent international financial contagion causing a sharp global recession. NB Please note that our Performance Table is in euros (EUR) today.
Seeking Alpha has an interesting article regarding Silver Bullion premiums, though this is at the moment somewhat irrelevant since the market for 100oz bars is nearly non-existent.
Gold continues to tread water after its recent sharp falls and there are very determined sellers in the futures market at the $740 to $750/oz level. The Gartman Letter, expressing some respect for gold's relative performance, points out that there "...
After rising yesterday, gold is up some 1.5% again today and has continued to consolidate in the $700/oz to $760/oz range. Further consolidation is likely necessary after the sharp fall in recent days. Bearish sentiment towards gold remains at extremely high levels with the usual uninformed suspects calling for further falls in the gold price.
It was déjà vu in the Comex gold market yesterday as the recent sharp selloff continued. Bearish sentiment remains at extreme levels and all notions of fundamental value are being thrown out the window as the financial crisis morphs into a global economic crisis. Stock, commodity and many currency markets internationally are in meltdown on panic selling. Both gold and silver are off another 4.3% and 8% today on massive deleveraging and wholesale panic selling in financial markets.
COMEX gold's recent sharp selloff has continued and even the most ardent gold bulls are getting nervous. Bearish sentiment is very prominent and the level of fear in the precious metal markets suggests that a low is likely in the coming days.
COMEX gold continues to stink up the room after sharp falls in recent days as the dollar has strengthened considerably and oil prices fallen sharply.
Today's Daily Mail has a rare picture of the Bank of England's Gold Reserves You are looking at the room most likely to weather the credit crunch, a vast vault filled with the final word in financial security: gold. As stocks and shares tumble, house prices crash and previously unassailable institutions crumble into dust, the sight of several thousand 28lb bars of 24-carat gold stored in the Bank of England's massive underground
COMEX gold continues to surprise to the downside despite the incredibly strong fundamentals of gold bullion itself with increasing shortages, delayed deliveries and premiums soaring for physical bullion in Asia, Europe, the US and internationally.
In a very interesting video about the gold market today, Stephen Flood of Gold and Silver Investments is interviewed by Javier Blas of the FT .
Gold has rallied 2.5% this morning after falling some 8% last week as the "dash for cash" and the deleveraging of the international financial system gathered pace. In the process, gold gave up most of the gains of the last 5 weeks in just one week. Gold was trading at some $740/oz on September 11th and subsequently surged to over $924/oz as Lehman Brothers collapsed and the global financial crisis deepened. Gold is wrongly being treated as just another commodity akin to pork bellies or lead.
It's only Thursday and the Treasury has gone to the credit markets for $194 Billion so far this week for short term paper alone. Let's say they only borrow another $6 Billion tomorrow and end up at 200 Billion. Let's do the math. 200 Billion times 52 weeks is ..........$10 Trillion 400 Billion Dollars. This coincidentally equals the amount of the current national debt.
Gold fell some 4% yesterday with forced selling being seen as hedge funds continue to deleverage and pension funds and other passive investors sell the various commodity indices.
Gold has remained resilient despite stock markets collapsing again internationally. Asian stock markets have fallen sharply with the Nikkei collapsing by more than 11%.
Gold continues to consolidate after its 3% rise last week. Given the scale of money creation and digital money printing taking place in the US and internationally, gold looks set to surge in the coming weeks as physical demand is unprecedented and supply remains lacklustre at best. While the gold price has not been as strong in terms of US dollars in recent weeks as some have expected, it is important to remember that the dollar has been the strongest currency in the world in recent weeks.
Government bailouts of the financial system will destroy the dollar, euro and sterling because of hyperinflation, Martin Hennecke, senior manager of private clients at Tyche told CNBC. But Todd Everts, president & CEO of Wall Street Global, disagreed. "The privatization of the banks is the first step down the road to hyperinflation," Hennecke said Monday.
Gold experienced sharp falls on Friday but was still up by more than 3% on the week.