romans holiday

Gold taking off again 827. Mr market is getting nervous with all the inflationary implications of the mega bailouts coming.

I would not at all be surprised to see some crash big dip in the metals some time in the next month or two. The condition being another bout of forced liquidation and a crash in the stock market. If there is a spike shortly a will sell a portion of my metal in order to buy back in on the dip. All standard stuff of course in a secular PM bull.

I see these metals as a riskier buy as they will rely on the commodity bull kicking back in [which I think it may very well do once/if China bounces back]. I would only buy semi-precious or industrial metals if they were dirt cheap and with money I could go without for quite a while. You will not find a more conservative investor than me. Actually, I think the whole model of "investment" is being called into question by current events. I see the good old days of 20% returns well and truly over. Now it is about return of capital, and preserving it... in order to buy assets once they have returned to a realistic value.

Wow... POG through 820. I did not expect to see such an explosive move so soon. I wonder if some big players in the market are getting nervous with all the news about Detroit and now Citibank, and are starting to click onto the fact that the bailout is turning into a runaway train. Another stimulus package is in the pipeline and rumoured to be near 750 billion. The goose looks cooked.

Funny you mention BHP... I am keen to buy some shares [need to diversify out of metal... but not too far ]... only when they are scraping the bottom of course ... perhaps sometime next year.

Can you buy bars or coins? But I think I will wait for it to really hit the bottom first.

Now that would be a beautiful speculative punt... much better than buying the DOW.

Yes. But only around 10% on a future spike to say 900. I know the value of gold and if I can use the deflationary period to add to my stash, all the better. My circumstances are a bit peculiar: Most of my worth is already in gold so selling a little for cash is no big deal. If the price does not dip back down no big problem. Also, I am earning Korean Won. The Won has declined from US .90 to US 1.50! If the won declines further along with a spike I will sell a few ounces. The Won could easily strengthen and gold dip for me to near double up on what I sold. If the speculative punt does not play out and I get stuck with some worth-less won, it is not too much of a worry as it has held its value relatively well against the NZ dollar, my native currency. A month ago.. when gold last spiked to 900, I could have sold a 3 ounce bar [bought 3 months earlier] for near US 1000 profit. I think this situation with Won could be seen with a lot of currencies in the near future. My core position is gold and I consider it my base currency. I am of the buy and hold type though I do not see any harm in trading 10% of my holding. As long as deflationary forces are in the drivers seat, I think there will be good opportunities to trade, but I will keep that trading light with a speculative amount that I would not miss if unable to replace.

I think now that we have seen such a big move upward in gold -in the midst of a deflationary scare - some of those nagging doubts, about how gold might perform in the coming months, are easier to put to rest. That said, if we get another bout of forced liquidation we could [hopefully] see gold down again. It would only be a great buying opportunity as it is becoming increasingly obvious, even to the sceptics, where gold is heading.

And I was just starting to get excited about the price breaking out.

Looks like new buyers are starting to outweigh deleveraging sellers. This could well signify the shift of gold as a financial asset to a real asset in the eyes of the market. [is this site slow today? ... always seems to act in inverse to gold]

I would like to diversify a little also. I don't imagine there is any hurry though. Maybe early next year.

Yes, I was going to add.... if you can find it. I bought kilo bars a few weeks back [NZ Mint]... though I have to wait until Febuary before I can collect it.

People would be doing very well to average in at these prices. Buy and hold.

Yeah.... every dog has its day! Namely, the dollar.

Big money is pouring into gold. Why hasn't the price jumped? http://howestreet.com/audiovideo/index.php...ediaplayer/1030

POG is still strong. Here it is jumping up a little. I wonder how long it will take "devaluation psychology" to set in. I mean, as the bailout nation rolls on, it can only get easier for the mainstream to put 2 and 2 together.

How is gold revalued? Aren't we just talking about currencies possibly being devalued. And then the new price, however astronomical, is kind of irrelevant due to the currency [which it is priced in] being worth-less. I mean gold will still be worth roughly the same when valued against a real asset such as a fine suit of clothes right?

People might start growing vegetables... and raising chooks?

Bob Hoye is big on gold stocks also. They have taken such a pounding surely they can go no lower. http://howestreet.com/audiovideo/index.php...ediaplayer/1027

The economy relies on spending. If consumer confidence evaporates and the economy deflates, whether we use fiat or non-fiat is besides the point. When the consumer happily starts spending again I will change my mind. Also, difficult to argue from what usually happens to what will happen. Hmmm... how to get back on topic. Ahhh but gold will do well because the paper asset of fiat itself will deflate.

Or the governments help them along with a sudden devaluation. The last refuge of these scoundrels when reflation fails.

I say that. Classic case of denial. Oh... how the mighty have fallen. He would make a good comedy act... along the lines of "The office".

When to buy? Depends. If you do not yet have a decent base position in metals, hurry out and put half your worth in them. If you already have a core base position, you can afford to wait for the dip and buy.... and then on the following spike sell a few ounces [emphasis on few... and I would imagine a strangely liberating experience.... have not managed to do so myself as yet ] in order to buy again on the next dip. The one certainty will be massive volatilty... besides going to Mars of course.

Gold heading towards 750... this isn't supposed to happen.