Russell Comment -- The public is hardly bullish about gold. If they were, they'd be buying gold now instead of selling it a the "new, fat price" of over $1,000 an ounce.

I attended a party yesterday, and at a gathering of seven people at my table I was asked, "Russell, what should we buy now?" I answered, "Gold coins." Every face looked blank. It was as if I had told them to buy a hippo. Nobody at the table owned an ounce of gold.

-END-

And that’s the bottom line as to "frenzy over gold" talk. It is anything but a frenzy yet. What HAS changed is gold is now the "in" play among the biggest money in the world. They get it and many have acted upon their intuition. However, the general public has not reached first base yet … not even close.

What has also changed dramatically, and almost overnight, is that we "gold bugs" have become respectable, as are gold investments. The tide has turned and will lead to a mania one way or another. Should the market turn lower and financial turmoil kick in once again, the general investing public will be MUCH more inclined to turn to our sector to protect themselves financially. Crisis bid demand for gold and silver is lurking around the corner…..

Bloomberg Asia TV moderator Bernard Lo, interviewing Kiener about gold, asked him what he thought of GATA. Kiener replied that he supports what GATA is saying about manipulation of the gold market. "Central banks will always try to keep the currency up and keep the alternative down," Kiener said. He added that it is "impossible" for two banks to hold most of the short position in the silver futures market without it being manipulation.

Lo announced that he will have GATA Chairman Bill Murphy on his program this month.

You can watch Lo's interview with Kiener at the Bloomberg Internet site here:

http://www.bloomberg.com/avp/avp.
htm?N=av&T=Kiener%20Says%20Gold%27s%20%...

Or try this abbreviated link:

http://tinyurl.com/yg36uj9

But do not watch this interview if you live in North America. You're not supposed to see stuff like this within 3,000 miles of New York and Washington…..

From Tim Iacono at

http://themessthatgreenspanmade.blogspot.com…

GLD adds a little metal

Monday, November 09, 2009

It's funny that, for about four or five months earlier in the year, news outlets like Reuters would cite any changes to the inventory at the SPDR Gold Shares ETF (NYSEArca:GLD) in their morning report on the gold market, sometimes in the headline.

That doesn't happen much anymore for reasons that should be clear in the chart below.

(Chart won't post)

The "tonnes in the trust" did tick up earlier today, the 6.1 tonne addition being the biggest increase in over a month, following an addition of 4.9 tonnes four days ago.

Maybe this is the start of some serious "catching up" for the world's most popular gold ETF as the holdings now sit at the same level as when the price of gold was almost $200 lower….

The paradigm shift to which owning gold and silver is now held in high esteem is enormously constructive for the price of gold. Not only are major players like the Central Bank of India in the hunt, but so are other major financial institutions. I heard of one today who previously had 1 to 3 % of its assets in gold. It is going up to 5%+, which is quite a percentage leap. Think if just a fraction of the financial institutions out there do the same thing.

Over the past months it has been noted here how the character of the gold trading during the Comex hours has changed dramatically. The Gold Cartel is just not getting the bang for their buck as they used to so easily in the past (Outside of silver closing poorly, PLAN B and their share selling failed too). Winning raids which used to last from weeks to many months, don’t last for days … and that’s because this surge in demand has surfaced as their available supply is severely strained.

Gold’s ability to close higher today and make another all-time high close in the US was powerful. We now have a double top around $1010. Should that top be taken out, the price of gold is likely to explode.