Gold Remembers It Is A "Flight To Safety"

Submitted by Tyler Durden on 02/16/2011 12:06 -0500

Perhaps it is time for Doug Kass to reevaluate his "gold to triple digits" thesis? 

 

 

 

 

 

 

Chinese Demand For Gold "Explosive"

Submitted by Tyler Durden on 02/16/2011 11:19 -0500

According to an executive of Industrial and Commercial Bank of China, the world's largest bank by market value, demand in China for physical gold and gold-related investments is growing at an "explosive" pace and its appetite for the yellow metal is poised to remain robust amid inflation concerns, reports Reuters. In other words, what was previously repeatedly reported on Zero Hedge, and by the World Gold Council, is starting to be appreciated by everyone else. Yet in a market in which supply and demand are completely disconnected from price discovery thanks to global central planning, and courtesy of precious metal price suppression by JPM, China investors are able to accumulate gold and other non-dilutable metals at prices that no longer reflect surging global demand. And just like in the US, China is also starting to fall for physical substitute investments: "There is also frantic demand for non-physical gold investments. We issued 1 billion yuan worth of gold-price-linked term deposits in 2010, but we managed to sell the same amount over just a few days in January this year," Zhou said, adding that such deposits would easily exceed 5 billion yuan ($759 million) this year." Although in China, unlike in London, these deposits may actually have real coverage behind them.

 

 

 

Brent Crude Passes $104

Submitted by Tyler Durden on 02/16/2011 11:52 -0500

This is not the $104 brent crude you are looking for. Ignore everything and just BTFWW3. 

 

 

 

 

 

 

Israel Foreign Minister Warns Two Iranian Warships To Transit Suez Canal Headed For Syria, Israel To Respond

Submitted by Tyler Durden on 02/16/2011 11:31 -0500
Two Iranian warships planned to sail through the Suez canal en route to Syria on Wednesday, Israel's foreign minister said, calling the move the latest "provocation" by Tehran and hinting at an Israeli response. "Tonight, two Iranian warships are meant to pass through the Suez Canal to the Mediterranean Sea and reach Syria, something that has not happened in many years," Foreign Minister Avigdor Lieberman said in a Jerusalem speech distributed by his

Hezbollah Says Ready For Another War With Israel

 

How Higher Interest Rates Could Trigger Another 2008-Type Event

In The News Today

Posted: Feb 16 2011     By: Jim Sinclair      Post Edited: February 16, 2011 at 11:53 am
Filed under: In The News

Dear CIGAs,
What would it mean if your business lender no longer wanted your paper? That is what China has said here.
The Chinese are not captive by the US dollar. They could pare with vigor and not hurt themselves. Don’t kid yourself.
China is totally dollar hedged by all the dollar deals they have done for minerals and other business entities in the past six years. I know because I am doing business with Chinese corporations that are both publicly and government owned.
Expenses and operating capital are in dollars.
The difference with what you read here is that we are doers, not simply commentators. We are on the front lines in all subjects of your interest.

China pares U.S. Treasury holdings in December Feb. 15, 2011, 11:32 p.m. EST
By Chris Oliver
HONG KONG (MarketWatch) — China reduced its holdings of U.S. Treasury securities for a second straight month in December, though it maintained its position as the largest holder of U.S. government debt, ahead of Japan. China’s holdings of Treasurys in December totaled $891.6 billion, compared to $895.6 billion in November, according to the Treasury International Capital report, released Tuesday. The drop is the second straight month China has reduced its holdings from October’s recent high of $906.8 billion. Japan, the second-largest holder of U.S. government debt, raised it holdings of U.S. government debt to $883.6 billion in December from $877.2 billion in November.
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