Errol

We have entered the most favourable era for gold prices in our lifetime, and the share prices of the great mining companies will eventually outperform bullion prices...central banks are printing money and creating liquidity beyond the forecasts of all but the most paranoid goldbugs a year ago

Don Coxe, Strategy Advisor BMO (Bank of Montreal) Financial Group

He probably does post elsewhere. I post in other places as well. Hopefully he'll come back to GEI at some point.

This only works if you are thinking in terms of armageddon happening any time soon.

I'm expecting paper money collapse. Total paper money collapse. In a matter of years.

I don't think GF was up to anything at all. He was always one of the best/most prolific posters on this forum.

The only thing that will matter is how many ounces you have. Think in terms of ounces.

They would have achieved more if they had aimed to lose a quick buck. Haha

Irrelevant. An ounce of gold is an ounce of gold. They still have what they paid for. They haven't lost (or made) anything.

A couple of folks who I previously worked with. And who had previously derided Gold (despite being relatively 'sophisticated' investors)...bought at around 1800 (equiv sterling sum) (sept 2011) an ounce and are now tamping!

 

They said that I'd said to buy some Gold.

 

My reply was 'yes I said to buy it years ago when it was 600 quid an ounce not over 1000!.' (Some People Tsk Tsk)

If they are worried they purchased it for the wrong reason (i.e. to make a quick buck).

Still waiting for a bottom. Itching to buy though.

But WHAT IF Mr Sinclair is WRONG about the Dollar? (Could he be peddling horsefeathers... again?)

Suppose the Dollar rises instead?

Er ... we buy more gold at a cheaper price.

And seriously, can't you mention Sinclair without the needless insults/attacks on his character?

The lower it goes the better. I'd love to pay less than £1000 an ounce. Who wouldn't want cheaper gold?

The easy money in Gold has been made.

Depends what you mean by 'easy'. I believe gold is going to $4000+ - possibly as high as $12000.

I will be posting any news/updates ONLY in this thread moving forward. I can't keep track of two threads and this one is where I go to keep uptodate with news and discussion/mood etc.

edit - I see the old thread isn't deleted.

Not sure why it has been moved though. Everyone should just continue to use the old one and ignore the new one. lol.

Latest from Detlev Schlichter -

This is why gold remains so attractive. If they stop printing money, the gold price will correct. But then banks and governments will be in serious trouble. So you still cannot put your money there. My guess is that they won’t stop printing money, and what the ECB did this week – although it was already anticipated – further confirmed this. Gold got a considerable beating yesterday, supposedly because Bernanke did not hint at additional easing measures. Well, we will see. Given the aggressive measures we have seen since October from the Fed (swap lines), Bank of England (2 rounds of QE), the ECB (2 rounds of LTRO), and the Bank of Japan ($129 billion in QE), we may see another manufactured rise in financial asset prices and in certain economic indicators over coming months. Maybe we can all enjoy a spring ‘recovery’. The hangover can wait — we just opened another bottle of the really strong stuff.

Let’s see how long it lasts.

In the meantime, the debasement of paper money continues.

http://papermoneycollapse.com/2012/03/ecb-money-injection-not-a-reason-for-optimism/

Would be good if it did go that low though. The lower the better really. Gold would be on sale!

The Volume says: IMPORTANT

Yes, I'm sure 'they' would like to give that impression. Serves their purpose very well.

I proved over many months that I could beat Buy & Hold in the Silver market,

We know that. Nobody questions your ability to beat buy and hold. The point is that it takes skill and time to do that - and most people either can't be bothered or simply don't have the time/wherewithal to do it.

(1)'Please keep in mind that this is not a dress rehearsal but rather the real thing. There is no practical means to handle the problems at hand. We are at the dead end of the road the can has been kicked down.'

This is not ramping. I see no incompatibility with the above statement to falling prices. The closer we get to total meltdown the more TPTB will try and control the gold/silver prices. I believe this is 'the real thing' but still expect savage price drops (and rises) - i.e. volatility.

(2)Volatility in gold is going to go wild so just keep your head down and hold your insurance close to your chest

Again, this does not imply either prices going exclusively up or down. It says that there will be volatility - i.e. prices moving in both directions in an unpredictable and extreme way. No ramping here. It is entirely consistent with what Jim has been saying for the best part of 10 years.

(3)There's nothing clear-headed and thoughtful in what JS, just bullish nonsense.

Nothing 'clear-headed' in the man who owned the gold market in the 70/80s, has run numerous brokerage/clearing firms and made a gold price call 10 years out that missed in price by a few months only? Really?

As Client Eastwood would say, 'Do you feel lucky?' ...

(4)What a BS artist

See my response in (3). Really?

(5)You have to stand on your head to see a $60 drop in what he said

Not at all. See my response to (1). Volatility implies savage moves both ways - something that Sinclair has been taking about for years. Nothing inconsistent here. In any event, these sorts of moves are only an issue for traders.

You read too much into it. I don't read 'ramping' (if indeed that is even applicable to the gold/silver markets) into what Sinclair said.

He explicitly warns of imminent volatility - Volatility in gold is going to go wild - something he has been saying for a long time and something I've been expecting as well. We will see days with $200+ moves in the future.

As for the bit about 2012 ("2012 is the year the dollar falls as a result of a significant drop in dollar contract and settlement utilization. Imagine the demand for gold as the dollar closes below the antiquated measure of .7200 on the redundant USDX. When this occurs you will be looking back at $2111 from higher levels") - I would expect Gold to go above $2000 in 2012 as well. There's a long way to go in 2012.

People need to cut Mr. Sinclair some slack. He's always advocated NO TRADING and that gold is insurance/protection against what is coming. In that context you can't really 'ramp' as people should buy regardless of price (although again he generally advises people to buy on the 'fishing lines' and sell on the 'rhino horns').

I see this drop, which will hopefully grow, as an excellent time to add ounces.

No more, no less.

Gold represents a little less than 1% of the total value of global investments [stocks, bonds, money markets]. Think about what will happen if that percentage moves up to 2 or 3%. In 1968 it was 5%. In 1980 at the last peak in gold it was 3%. - Felix Zulauf, Swiss money manager

http://GoldStock.co.uk remains a very useful website for a quick look at relevant charts. When I am in a hurry, I go there first.

Good site. Will add to my favourites!

Not Buying Yet - Gold and Silver To Dip A Little More? - http://www.tfmetalsreport.com/blog/3372/no-buying-yet-gold-and-silver-dip-little-more

And also, this interview is a good read:

Peter Schiff Speaks to James Rickards: Author of Currency Wars - http://www.321gold.com/editorials/schiff/schiff021012.html