RE: RE: After the Super BowlNow the scared nellies step out LOL Just look at them dumping at .56
The stock is worth at least 3X the current SP. AVR with POG $1050 is making $600/oz
So I'd say roughly $5mil/month with current production ? But thats good!
Let the fools sell and take this opportunity to add.
At these levels you can only buy. 56 cents for a 100k oz/annual gold producer LOL unbelievable.
Let them play their little games and scare the little cocroaches out of their positions.
I will just watch and laugh in a few months from now s the US dollar gets slaughtered.
Art27
Ps. Chinese will prolly dump a big chunk of their US $ reserves and buy more gold a "cold war"
NO MORE MR NICE GUY
China and U.S. heading for a cold war? What impact on gold?
Someobservers feel that China may be looking to retaliate over recent U.S.political statements and moves and a recent Chinese poll suggests itand the U.S. may be moving towards a ‘cold war'. Such politicaluncertainties could have a positive impact on the gold price.
Author: Lawrence Williams
Posted:Sunday,07 Feb 2010
LONDON -
Chinese and U.S relations are at a low ebb and continuing to deteriorate fast so it seems and an article in today's Sunday Timesin London says many Chinese hawks are promoting a cold war. Indeedthings appear to have got so bad that military leaders in China arepreparing for the possibility of a limited armed conflict, possiblyover Taiwan or Korea, although this seems very unlikely.
China has always been unhappy with U.S. criticisms over its humanrights record, but a number of recent diplomatic disagreements haveescalated the feelings within China that it should be taking moreaction against the U.S. if only to show its displeasure.
The Sunday Times report noted that just under 55% of Chinesequestioned in a recent poll by a state-run newspaper felt that a coldwar would break out between China and the U.S. China has been beset bymajor criticisms from the U.S. on Taiwan, Tibet, internet freedom,global warming and trade - and most recently the U.S decision to sell$6.4 billion worth of arms to Taiwan may have really brought matters toa head. Indeed some Chinese feel that the country should retaliate byselling arms to states hostile to the U.S. in return.
Should matters deteriorate further one suspects that it will alsonot have escaped Chinese politicians' thoughts that their country maycurrently hold the whip hand with the U.S. in the economic sector.While China has hereto relied on western exports for much of its trade,the past year has seen a sea change with exports falling because of thewestern financial crisis, but in part being replaced internally as moreand more Chinese become part of a consumer society. China's huge tradesurpluses and foreign reserves give it a substantial cushion with whichto ride out any ensuing economic battle between the two superpowers andwhile the U.S. may still be a richer and more technologically advancedsociety, its economy is perceived as weak, and China's dollar trillionsin its reserves suggest that if it wishes to, say, destabilise thedollar by switching an ever growing proportion of its reserves intoother assets, including gold, it could do so relatively simply.
The first step in such a move, at least as far as gold is concerned,could be another announcement of a substantial increase in Chinese goldreserves. It is assumed by most analysts now that China is putting thecountry's gold production - and China is the world no. 1 gold producer- into its reserves, but does not announce this externally until andunless it is politically expedient to do so. An announcement of say a500 tonne increase in reserves would give a revival fillip to the goldprice and could knock the dollar. If China were also to buy up theremaining IMF gold on sale, this would do likewise. China has kept outof purchasing IMF gold so far as it has not felt the need given its owngold production, but to cock a political snook at the U.S.Administration it may perhaps re-enter this market given a gold pricerise is seen as a de facto devaluation of the U.S. dollar and adeclining dollar would be yet another inflation trigger to add to thatcreated by the pumping of huge amounts of paper money into the U.S.domestic economy. While inflation has yet to rear its head, mosteconomists feel this is inevitable at some stage and an accelerateddollar fall would just bring the inevitable closer.
Of course selling a significant number of U.S. dollars for otherassets than gold would also be effective in destabilising the dollar,but could be seen as a more direct attack on the greenback which maynot appeal to the same extent, at least at this stage. Buying gold isjust a neat way of achieving the same effect, and given the smallproportion of gold in China's reserves compared with the U.S. and majorEuropean nations, could be presented as a logical move.
While destabilising the dollar in this manner wouldn't in itself bea declaration of a cold war, it would serve as a warning shot acrossthe bows to try and persuade the U.S. Administration to take an easierline on its dealings with China. But the U.S. may well not beprepared to do so. President Obama has been almost treated withdisdain by the Chinese and will feel the need to demonstrate that he isa strong leader by overtly standing up to their pressures. This is notperhaps conducive to warding off tit-for-tat moves by the twocountries' governments and relations may well get worse in the nearfuture before they start to get better. Ironically the Communist powermay have found it easier to work with a far more right wing regime likethat of President Bush, than with the current U.S. Administration.
A growing political and economic dispute between the U.S. andChina, coupled with all the other financial problems affecting theglobal community, could bring gold into focus again, particularly ifthe yellow metal is also seen as a real, or potential, economicweapon. But, bear in mind also that severe U.S. dollar devaluation maynot be in the best interests of the Chinese given that so much of thecountry's huge reserves are in U.S. dollar denominated assets. Even soflexing its economic muscle could be attractive to China just to make apoint. When one has reserves in trillions of dollars, losing a littleas a political bargaining point is no big deal.