It just means the price is going higher than you can imagine.  Believe it!

we seem to be in the foothills of a breakout here... compare and contrast to the dollar version. The highest goldprice in Euros was 1345 last summer, and we are just 28 Euro away from that.

Probably nothing will come of this in the short term, but if the Euro currency takes a sudden hit at current Eurogold prices, we could be in record Eurogold territory there and then. Then the entire gold market may take on a whole new dynamic.

If I were JPM, I'd be keen to do a quick smack-down in these circumstances, if FX moved against me.

Bitcoins are back at the $11 handle and look like it wants the $12 handle.

You can fool some of the people all of the time, all of the people some of the time, but not all of the people all of the time.

Just goes to show you that they're more interested in suppressing headlines than anything else. Nobody's watching bitcoins or eurogold, so no suppression.

How many fingers do they have? The dike is springing leaks...

...this is what passes for "validation" for passing new laws regarding "hate crimes".

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Before the resident "chicken littles" post their accusations that I'm anti-gay (see yesterday's accusation of "racism" against other's posts) just know that I have family members who are homosexual and I love them the same as any other member of my family. (It's a damn shame that this disclaimer needs to be posted).

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If there were no video, would this have been a teachable moment?

Another fabricated hate crime, this time by a gay man who claimed to have been beaten outside a bar.

Via NY Daily News:

A 22-year-old Montana man who told cops he was beaten up by gay-bashing thugs  while club-hopping on his birthday — igniting calls online for protest against  homophobic violence — made the whole thing up and actually injured himself, he  admitted.

Joseph Baken, of Billings, suffered the bruises and cuts to his face when he  smashed it against a curb while attempting to stick an Olympic-style backflip in  the street, he said….

Photos of Baken’s battered face were posted on Facebook, Tumblr and other  social media sites, prompting an outcry against homophobic violence and calls  for protest.

However, a tipster sent a video to the Independent that showed Baker trying  to impress his pals by doing a backflip off a curb sometime around 2:30 a.m. on  Sunday.

Baker flubbed the stunt and landed on his face.

The newspaper passed the video on to police, and Baken quickly copped to  lying about getting jumped.

Missoula police said they decided to file charges in-part because Baken’s  story caused so much outrage.

The fact that the fake hate crime was gay bashing isn’t what is important — there is a deep history of fake hate crimes based on race, sex, religion, and so on.

If there had been no video to expose the fraud, would this have been another teachable moment in which we were told to look inward to examine who we are as a nation and culture?

(language warning on video)

Thanks so much! I was tempted to try translating the whole thing but my mandarin is not up to it! A service to Turdville indeed.

I could not resist posting some more Google translated bits for those who found themselves unable to plough through the Googletreacle or who could not access the site:

Language barrier notwithstanding, it is obvious enough what the leaders of 1.33 billion people are thinking about this.

Actively build and implementation of the national gold strategy

　　Gold because of its inherent value, both the national credit money and the cornerstone of global strategic resources. 

　　In fact, since the discovery of gold, it is because of its good stability and the scarcity of people exchange labor measure of value and an important means of wealth reserves. With the deepening of global economic integration as an important international reserve asset, gold in the stable socio-economic, to protect against inflation, the national credit, stabilize the exchange rate, but also have the special status of other financial assets can not be replaced. 

In particular, the international financial crisis since the gold hedge against inflation function is to highlight the growing, the strategic position of the reserves of their wealth to regain the world's attention, central banks began to net purchases of gold. Currently, there are more and more people recognize the "golden useless" contains too many lies, in fact, have 74% of the world official gold reserves, the United States, to suppress the other currencies in order to maintain dollar hegemony design a "smoke." 

Sharp contrast with the U.S. dollar depreciated, the international price of gold continued to rise in 2011 exceeded 1900 U.S. dollars / ounce of gold assets should be preserved function and hedge the risk of depreciation of credit assets was. Naturally, the more devalued, the price of gold rose more, America's huge gold reserves, hedging is more obvious.

　　Since gold is a monetary nature, whether it is a departure from the protection of national economic security, or accelerating the process of internationalization of the RMB to increase its gold reserves should become one of the core pillars of our development strategy. 

Of course, due to the large scale of China's foreign exchange reserves, the short term, like the United States and Europe so much as gold reserves to become the main channel of foreign exchange reserves. The current international price of gold record high, also increased the difficulty of increasing the gold reserve.Always advisable to wait the amount we need to develop a clearer strategy of the national gold from the long-term interests, and make full use of the two markets and two resources, continuing the bigger the scale of gold reserves, and gradually become a gold reserves of the country commensurate with its economic strength . Current conditions, in addition to choose the international market to increase reserves of gold, the main channel for the implementation of the national gold strategy is to increase domestic gold resources integration efforts, increase gold production and its rational use to do a large reserve capacity, and build a strong all-round.

From 2007 to 2011, China's gold production for five consecutive years, ranking first in the world, and build a complete gold industry to support the implementation of the national gold strategy.

To fundamentally solve these problems, the need for national gold upgraded to a strategic resource as important as petroleum energy height from the whole industry chain to develop the industry's development planning and resource strategy. 

　　In addition, as an important component of the national gold reserve system, China should also encourage individual investment demand for gold. Practice has proved that private gold reserves is an effective complement to national reserves, is very important for maintaining the country's financial security.World Gold Council statistics show that our civil per capita of less than 5 grams of gold, compared with more than 20 grams of global per capita gap significantly.This shows that China's gold private reserve space and great potential.

Current, important is the full use of the country nearly 1,600 "China Gold" stores, expand marketing channels and improve the marketing network, and strengthen the brand promotion measures effectively to achieve "the gold in China", "possession of wealth to the people," the Gold strategic goal.

Your information is very informative and well researched no doubt.   The tone of your earlier posts were very negative and dampening to metal holders.   I for one am very confident a mania stage is coming that will make the tech bubble look mild.  Your research confirms to me that when the price is released it will be more than enough to load the coffers of miners with fiat.  By the way I am a broker and well aware of these costs.  I appreciate your research but would rather you not have such a negative conotation to mining equity holders as to prevent them from realizing the final prize.  Peace.

There is every reason to believe that if Gold does do a moonshot that gold/silver miners will become nationalized or taxed to the eyeballs as they would effectively be printing money. I don't see miners as a leveraged bet on gold (and they have not performed that way at all since 2008). I own the real thing because it is much less likely to be taxed than producers.

Additionally SRS makes a good point that miners are subject to the same rising costs as the rest of the world and they can only benefit if the price of gold/silver rises faster than their input costs AND their minable ore does not degrade.

talks about asian buyers now upped to 1600 and he will comment on costs at miners in that its positive.

I'm sure Fauxcahontas is pro-compliance with Taxachusetts Laws, including:

i think SRSrocco is a basher of continuous cheap energy

keep the truth comin.  it tastes terrible, but it's good for my health

Steve does a fantastic job at putting together thought provoking and interesting original articles.  They take a great deal of time and research and, most certainly, are a great service to this community.  I don't think you have to with agree with any position one bit, but I don't we should call a positive community contributor... a "basher"..... The exchange of ideas is not personal and is not meant to be an attack, but these ideas are meant to make all of us think... critically.

I, for one, am glad to have SRS as a contributor here in Turdville...  I hope that we can support the exploration of different aspects of our changing world from many different view points.... it will only help us prepare more effectively and keep us all on our toes.  I don't want gold and silver to the moon.  I need to see the worms and bugs that are eating away at the foundation underneath my feet....our feet.

All of you, my friends, are reason that I come here... there is not a day that goes by where I don't learn a little something different.

P.S.  I also have spent over 20 years in the oil and gas industry.  I have worked on both down hole and downstream projects in multiple countries.  If you haven't watched Albert Bartlett's lecture series, then you're missing a big piece of your understanding about the coming storm.  EROI is a real factor and the picture is looking bleak.  With 7 billion people increasingly needing more resources, the trend line towards an energy crunch based upon cheap oil is coming sooner than any of us are prepared for...imho.

Mostly people just do whatever they're told. Like those people who were told to go into the city, even though it was obvious that there was a tsunami coming in that would make whatever they were told to do - IRRELEVANT.

More and more, you need to stop doing what you're told to do, look around you and make decisions for yourself based on critical thinking and analysis.

I posted some comments a while back about XAG resembling the US 10 year yield x a steadily rising multiple (currently around 20). Hence my current speculation over a rise from 150 to 250 - in the presence of the fabled 103% debt to GDP ratio - sparking an unheard-of rise out of the downtrend, or not.

There have been plenty of comments and speculations on the long-term fate of Treasuries, but I am beginning to wonder whether this time the time may at length have come.

- The pattern we see now resembles October 2010, after which the yield put on 100 bp (and you know what happened to the metals)

- The election spells uncertainty, and we all know what international bondholders think of uncertainty

- Maybe just maybe the cash-delimited zero bound holds, 1.4 percent represents the minimum tolerable upside on a fall of yields to zero, and this is the lower bound. They have not yet brought us the cashless society.

Which - failing the not impossible scenarios of a conveniently collapsing Eurozone or a conveniently distracting war - raises an important question in my mind.

How will bondholders respond to a rise in yields of 50bp (60% there already), 100 bp or 150 bp?

Answer: it depends who they are, why they are holding and how they are leveraged. I am no expert but I would guess that there is less leverage now than in the past. 

Perhaps fancifully I imagine the stereotypical marginal bondholder as someone who is afraid of risk and therefore seeking a "safe haven", avoidant of gold and other tangibles due to credulity / peer pressure, but now anxious about the vertiginous level of prices, the limited potential for upside and the possibility of being part of the next generation of bagholders. But perhaps holding during the last burst of momentum, again due to fear of being the first mover. "I will have plenty of time to sell in such a deep and liquid market". Another glass please.

How many bondholders are there with such feelings? How many basis points does it take for such a marginal bondholder (if he/she exists) to  see that the downside exceeds the upside by a sufficient margin to overcome normalcy bias? And how many of the upcoming US events in Q4 will it take to run through that number of basis points? And how many weeks ahead of such events will the fear of them appear in the headlights? How many indeed.

CalifLawyer will get that pun. :)  Everyone else... well... it's funny to me.

Some folks have emotional attachments to the shiny stuff, and that's okay. Others have attachments to the miners. That's ok too. Some brave souls have emotional attachments to both. (Sorry, no 12 step programs for you folks). 

Lets take the emotion out of it. Call gold "hay" instead, and use "farmers" instead of miners. When hay gets too cheap, the poor sodbuster driving the John Deere can't afford to plant and harvest a crop. So he sits on the sidelines going quietly broke (or he switches to a different crop). When the price of hay skyrockets due to demand exceeding production shortly thereafter, the market reacts with higher prices, and the farmer gets back on his tractor and tries to make hay while the season lasts.

With "hay" prices currently being manipulated, the natural process is short-circuited.  If you look at the balance sheets for the farmers, you'll see they're trying to produce the same crop, with less margin, while diesel prices are going up and the soil is getting poorer.

So are we now bashing farmers? No. Ain't bashing hay, either.  It's just a set of facts we have to deal with, and I appreciate SirRocco for pointing this stuff out.

Gotta jump. The Deere is outside idling, the bank is calling about an overdue payment on their note, and I promised Obama I'd keep farming until it's all gone.

Excellent Roark!   I'll be borrowing this one.

Hay Farmers = Gold Miners   extends nicely too. 

The government keeps making it harder to produce and sell hay at a profit (even if energy costs were steady).

The government discourages 4H so the next generation is less likely to farm.

Eminent domain, crop quotas, "windfall profits tax" when Hay gets to $50 a bale.