G0ldfinger

IMO the manic daytraders react to a price formation like this like technically trained Pavlov Dogs, without any appreciation of the fundamentals. So, there is some sort of self-fulfilling prophecy at work. I have no doubt that the gold haters and manic traders will nicely shape a double top (in fact, it is there already), only to fail spectacularly within a reasonable amount of time. It's buy & hold that takes the Pavlov Dog woof-woof and drooling out of the equation - something I am quite happy about. The sophistication shows through in this remark... Not!

The headless chickens (read: paper bugs) are still running from one fiat currency to the other. It is so pathetic. http://www.bloomberg.com/news/2011-09-08/-desperate-haven-rush-to-boost-norway-krone.html

Hey Cuthy, I can't believe your most recent one provoked 60 comments! http://www.moneyweek.com/investments/property/uk/britains-secret-house-price-crash-13701 I hope MoneyWeek pays you 10 bucks a comment, even if there are class acts like: So, watch out you gold bugs, apparently the price of gold in Sterling rises and falls. Now, to me, it seems that house prices are flawed because they move up and down, sometimes they cost 720 ounces, sometimes less than 100 ounces. I think we should fix house prices at 50 ounces to get that nasty flaw out of the system once and for all.

Don't sweat the small stuff. What you have to get right is the fundamentals. Given that the U.S. is like a person on $22,000 a year with a credit card balance somewhere between $142,000 and $2,100,000, there is no question what they will do with their printing press.

Gold is in a bubble, you know.

The "double top" painters are now at work. Very amusing to watch.

Do your new neighbours work for RBS? Because these bankrupt entities still pay bonus (from taxpayers money, I suppose). Brave new world!

Only if you think that gold was not ridiculously undervalued in the late 1980s and 1990s. Also, that M3/gold chart will look very different in the log version, which should be considered here.

Further to PE's explanation below: http://en.wikipedia.org/wiki/Margin_%28finance%29#Initial_and_maintenance_margin_requirements And, yes, it is all on credit. It's a levered paper shuffle game. 100% margin would mean that you'd as well could buy the real deal, i.e. actual bullion, which would be sort of the end of the paper shuffling COnMEX. 100% guaranteed. On the COnMEX, all the gold and silver trading youy see is according to chris_ct's post 95%-96% on credit (as the margin is 4%-5%). So, the banks who provide the credit control it all. Therefore: buy physical!

Hmmm, +$60T in worldwide money start trying to squeeze into gold. Nothing speculative about it, just a precautionary measure. We haven't seen anything yet. Gold is just doing what it has always done. I think the spectacular correction will be the one from $5,000 to $2,500, before taking off towards $10,000. After that, we'll see. Maybe they'll try to peg the Dollar again, but $10,000 is still way too low for that. So, it's going to be very interesting to watch this pan out. Popcorn.

Margin: I hope it will be at 100% soon and COnMEX turned into a cash markt. Or even better, just delist all PMs from the COnMEX. Then we'll soon have a proper price discovery process.

The idiot shorters just get burned every time they try. So, they have less and less money to fool themselves with. Meanwhile gold is rising, so the fools' impact gets smaller and smaller, until they'll have completely died out.

Oh, yes. And remember this one here: http://gold.approximity.com/Fortune_gets_it_wrong_on_gold.htm We are not sure what the people at Fortune Magazine smoke,... These people are outright dangerous, because they they talk other people out of their only financial insurance.

Gold has gone up by a factor(!) of 6.2 (5,200%) or so since 1999. HOWEVER, had you bought gold at every London AM Fixing and sold it directly at the PM Fixing the same day, you would have made -0.81% a month(!) every single month since 1999. Expressed differenly, you would have turned $1.00 into $1.00*(1.0-0.0081)^(12*12+8) = $0.29, i.e. -71.0%!! Tell me there is no manipulation!! Everytime COnMEX in New York wakes up, it is bad news for gold. http://gold.approximity.com/since1999/Gold_USD_AMPM.html But then, overnight, Asia and then in the morning Europe turn it all around and make good for it: http://gold.approximity.com/since1999/Gold_USD_PMAM.html

The markets are very calm, by the way. Just compare this with 2008, 1999, and the whole 70s and early 80s. We have seen nothing yet. http://gold.approximity.com/since1968/Gold_USD_AMAM.html

25 years, I would say. And only if you had your capital invested in gold. Keep in mind that this is the biggest financial crisis ever. We could easily see prices below previous lows, while interest rates might still be absurdly low at the time. This will be the time to buy on a fixed rate.

Ouch. 150 oz broken. Only another 100 to go! http://gold.approximity.com/gold-silver_watch.html http://gold.approximity.com/since1930/UK_House_Prices_in_Gold.html

Recently at the Chavez mansion. Secretary: Mr President, a phone call for your excellency. Chavez: Who could it be? Secretary: The JPMorgue, your excellency. Chavez: The JPMorgue! Always nice talking to them, put them through. JPMorgue: Hello Mr President. How are you doing? Chavez: Fine, fine. What's up? JPMorgue: Mr President, regarding your gold... Chavez: Oh, yes, yes. Just ship it back to us as soon as you can. JPMorgue: Errh, Mr President, the gold... Chavez: Is there a problem with our gold? JPMorgue: Mr President... Chavez: This is the gold of the people of Venezuela. I want you to ship it back to us right now. JPMorgue: Mr President, the gold... Chavez: You still have it, right? You have it right there in your vault in Manhattan, right? JPMorgue: Mr President... Chavez: You gross little bastewards, you immense morons, are you trying to tell me that the gold of the Venezuelan people is not there anymore? JPMorgue: Errrh, Mr President, let us explain... Chavez: I'll sent my agents over with the next flight! JPMorgue: Mr President... Chavez: I can't fudging believe it. What have you morons done to my people's gold? JPMorgue: Mr President, your gold is still on deposit with us. Chavez: Good, good. Just ship it on the earliest flight tomorrow morning. JPMorgue: Mr President... Chavez: I know that I am the President. Just ship the gold, okay? JPMorgue: Mr President, "on deposit" does not mean that it is immediately available for physical delivery. Chavez: WHAT? Who do you try kidding here? I'll sent my agents over! JPMorgue: Mr President... Chavez: I knew it, you bl00dy morons have sold it! You simply SOLD the gold of the people of Venezuela? JPMorgue: Mr President... Chavez: Admit it! JPMorgue: Mr President, it is not... Chavez: Admit it, or my agents will visit you tonight! JPMorgue: Yes, but, ... Chavez: What BUTT? I will spank your butt! Give us back our gold NOW! JPMorgue: Errh... Chavez: Why have I paid all these storage fees to you crooks? JPMorgue: Mr President, errh, the JPMorgue would like to offer you a deal. Chavez: A deal? JPMorgue: Yes, a deal. Chavez: WHAT deal? JPMorgue: Mr President, we offer you to pay back the gold in freshly printed U.S. Dollars. Professor Bernanke is down in the basement right now, cranking up the press for you. Chavez: You bl00dy morons, I want my GOLD! JPMorgue: Mr President... Chavez: You better give me the gold soon, or... JPMorgue: Mr President, why would you not take our freshly printed Federal Reserve Notes? Chavez: You insane morons, because I want gold!! JPMorgue: Mr President, we don't have the gold. Chavez: Then buy it back! JPMorgue: Mr President, this would cause a huge price spike in the market, since there is not much physical gold around these days. Chavez: I don't care. You idiots buy it back for us, no matter what the price is. JPMorgue: Mr President, are you sure you would not like to take our freshly printed Greenbacks? You would not even have to take physical delivery, because we would store them electronically for you at the Federal Reserve... Chavez: You IDIOTS! JPMorgue: Mr President, please... Chavez: BUY BACK THE GOLD NOW, OR...! JPMorgue: Mr President, this could mean a huge financial loss for the JPMorgue, a massive upward correction in the price of gold, and a further weakening of confidence in the global financial system and the U.S. Dollar. Chavez: YOU IDIOTS, I WANT MY GOLD! JPMorgue: Mr President, please... Chavez: Anything else? JPMorgue: Mr President... Chavez: HASTA PRONTO! JPMorgue: Mr President? Secretary: Can I help you...?

We have a little spike here. Hmmm, shall we bring it down by posting a certain image?

This is the problem: not only are all shorts exposed now that the tide is going out, but some of the CBs are calling their gold back or are simply buying more. This will become stronger and stronger the higher gold goes, because people and institutions will simply panic. Meanwhile, all this is supported by the China Gold Put, i.e. the fact that any sizable conversion of a part of China's $3.2T reserves into gold (I am only talking a few billions here!) would mean the price going times 10 overnight. Of course they won't do it, instead they buy wherever and whenever possible without too big of a market distortion, which is why there is and will be a huge buyer under each and any correction.

http://www.bloomberg.com/news/2011-08-18/chavez-emptying-bank-of-england-vault-as-venezuela-brings-back-gold-hoard.html Yeah, I am sure these guys were just storing the gold, and not doing anything bad to it, like selling it at $400 into the market, or similar. :lol:

The Venezuelan gold was "on deposit" - we all know what this means: it is not there, and it has to be bought back in the open market.

Marceau, I understand where you're coming from, and I think similar. In short, "show me the dividend!" If I am a fantastic producer with ever higher gold prices, I should be able to pay a fantastic dividend, and maybe keep some back for production growth. I hold Silver Wheaton, and might add more in the future. In the gold area, I don't hold royalties yet but as I have written before, I am aiming at producers (with a dividend to expect). I might get some Royal Gold too. EDIT: Regarding catching up with bullion, I think the good companies will, and I think it won't be too long of a wait anymore. That's why I am getting active now (better late than never...). There might be some downside risks in correlation to the general markets, but I see this now as the time to average in.

You don't have to rub it in. I have admitted before that I am a very latecomer to the gold shares, and I still kick myself for not having prepared my brokerage accounts before 2008. In any case, back then I felt more the need to accumulate bullion. Also, the inflation tiger is out of the sack for good now, which is why I believe there won't be a 2nd 2008, so I rather get in now at still fairy low valuations. John Doody murmured something about triple digits regarding GORO, and this was with gold at $1,600, not $3,000, $5,000 or $10,000. Yes, also keep in mind that I don't want to trade and hence prefer less speculative more advanced stocks.

Thanks everyone for the input. Marceau you're right with the management issues and dilution. It is like a minefield out there. That's why I appreciate analysts like John Doody, Brent Cook, but also our very own Frizzers to see through the fog. Anyway, that's most likely also why I will stick with mid Tier producers and won't go too risky. Although, I just bought Gold Resource Corp. (GORO), but given that Doody and Frizzers recommend them, I thought I could risk it. After all, they are obviously producing.