Errol

I honestly don't get why people are worried. Unless you are on margin or have been otherwise trading gold for quick profit, these moves are irrelevant. As I've always said, hold physical. In your own hands.

I'm still waiting for the price to drop as low as possible before guying more. $4 would be fine!

Clearly there needs to be a distinction between traders, investors and people who buy regardless of price. I would maintain that gold and silver markets are not the place for traders unless you really know what you are doing. Investors should enter the gold/silver markets for the long haul (5-10yrs minimum). Those who buy regardless of price (me) do so to store value. Gold is not an investment to this group. Perhaps there should be different threads/forums for the different groups?

Don't apply any of this to me. Since 2000 I've been buying gold/silver. I continue to buy. But remember, unlike lots of others on this board I'm not buying as an investment. I'm buying as a store of value with a 30yr+ time scale. It can drop to any price it chooses right now and I won't bat an eyelid. The lower the better for gold and silver. It simply means you can exchange fiat for more metal.

Yes, actually. Just as I envisaged gold pulling back a long way as well. Silver going back to $6 would be very good indeed. A perfect opportunity to purchase more. I operate in terms of decades and generations only. I buy gold now and would buy it at $100. Price is virtually irrelevant.

Buy physical. Hold it. Free yourself from worry. Quite simple really.

Just thought I'd add ... They want to keep it below $800 but they can't.

Can't you two (Wren, Magpie) continue your discussion in your own thread thread?

Is the gold monthly thread really the place for this discussion on deflation/inflation etc. ? I find it rather distracting myself and largely irrelevant to the thread title.

One of the main themes running through all these discussion about the gold price seems to be a short term perspective. People are too focused on short time-spans: a week, a month or even a year. Gold should be purchased as a store of value for decades.

Precisely. Gold is a store of value. I'm not buying it as an investment.

Take a look at Jim Sinclair's website at jsmineset.com for some ideas of how gold might rise. Gold will be at or around $1650 (probably a lot more) by 2011.

re-taking $800 was certainly positive. The peformance by gold from the lows of the day showed some strength.

Just put in an order for more Krugerrands.

Yeah, sorry, this was me. Just got to find a place to keep them now ...

That Independent article is a little confused. It keeps on talking about the price of gold going up and down. Gold's price does not move. The number of fiat units required to purchase it go up and down. Gold's price does not.

In this country, yes. In places like vietnam gold is the unofficial currency. They even have mortgages denominated in gold ounces.

From a technical point of view it would have to drop below around $600 for the bull to be over.

Who's buying it all though? That's the question ...

I'd be happy for it to drop near the very bottom of the bull trend line (around $600 or so). Christmas really would come early!

Why would anyone have silver (or gold) on margin? You'd have to be insane. Gold is still going to $1650++ by 2011. From now until then we will see monstrous swings. Do not attempt to trade unless you are an expert. Even then, be prepared to get burned. Hold physical.

He sounds like a Sinclair fan. Both are spot on, however. Hold physical gold. Do not trade on margin (or at all, frankly). We will see $1650++ by 2011.

For me, no. Gold is gold. I didn't buy it for an investment.

These efforts are doomed to failure. They will only succeed in making the situation worse.

I kept on saying this over and over again on Hpc.co.uk but nobody listened. Gold is a currency - the ultimate currency by which all others are judged.