carbon junkie

Cheers, you saved me from myth busting it appears you have already tried your best. .

Yes.

Boing its that time of the day. NIce to see a re-test - will it hold? Still got the 1260 ish previous resistance in mind.

Could we see $12,500 Dow and $1,250 Gold intraday? a quick spike back to 10:1 The Dow is looking expensive priced in gold (of course in FRNs thats another story ) Any glimpse of the 10:1 ratio would be an amazing buying op as the Dow should start to collapse after that (in real money terms).

HUI LOOKS SWEET!! Still sat in my core mining position bought some GDX this afternoon. Thanks for chart.

Not a hope in hell, Prechter is a fool who measures USD as though they were still backed by gold its a nonsense. The USD is a shadow of its former self its a devalued worth less scrap of paper that has been debased for decades but apparently a limitless amount of toilet paper is going to be worth more than gold which is hoarded getting harder to find and has only been growing at around 2% p.a. for a hundred years.

GDX is cheap in relation to farmland in the UK, but yes you must have an exit strategy. Stocks always maintain some value they have never dissapeared in Argentina, Zimbabwe or the Weimar these stocks never became worthless inspite of the fact that they never mined pure money out the ground (like my goldstocks!) and in many cases did things that were far less profitable. One should enjoy the volatility of these miners as its this thats going to make them a stellar investment going forwards. Average in and don't chase the price it will invaribly come back to you at some point.

Take a look at the gyrations of tech stocks thru the Nasdaq bubble - it's not for the faint hearted I'll grant you but Im sure GDX will be way up in a years time - no idea about next week though!

The miners are more volatile and yes they are still cheap relative to the underlying metal inspite of two stellar years. If you are bullish on gold then these represent a good opportunity IMO. Of course they aren't everyones cup of tea but thats more to do with the paper nature in general. There are of course many ways to play this bull but you can only win it if you are in it.

I would like to suggest GDX and GDXJ my reason being they cover a large no. of underlying stocks and they probably represent a lower risk way of plAying the market for the many newbies who will soon be trying to pile in to the great Golden Bull. I think the banks and financial institutions will start to become big buyers of these indexes as they want to gain exposure to these miners but not a control or dominance of any one stock so these sorts of vehicles will suit them fine. Great work BTW.

True, but as I am sure you realise we can't do a Volker this time - too much debt. IMO gold will only really start to accelerate in price when interest rates start to rise. Simply because CBs are always the last to spot inflation and always raise rates long after the geenie is out of the bottle. When the Fed raises rates we will know inflation is running riot. Can't wait to see Ben raise rates myself.

If it talks like a deflationista and walks like a deflationists then it probably is a deflationista. Having read your replies I noticed the doom gloom fantasy hyper comments (very unhelpful unless you want to have an argument rather than a debate) and noticed you clearly have no idea of my standpoint as you always spend too much time arguing with so many here and too little time learning - twas ever thus. Cheers Paul we will leave it there. edited

When did you take the road to Damascus? Should I call you Saul or Paul?

The money supply (inflation therof) has increased deramatically. Prices though which I think is where you get confused will always and have always lagged a growth in the money supply - inflation. Show me one instance where a dramatic increase in the money supply has created an instantaneous increase in prices - don't bother because it has never happened it never will as it takes time. Deflationists still barking up the wrong tree and always wanting instant gratification with respect to prices.

Absolutely, I hope Gold performs better than those useless Aussies. Shame it had to end down under! 3-1 to the Engerland and well done the barmy army.

When this forum is renamed Global Philosophy Forum you may have a point.

Failure to address any of my points as per usual. Waffle only serves a function to the waffler if the recipient does not understand it then the waffle is meaningless. Please don't bother responding as I agree it is way off topic and I don't see you accomodating other points of view or responding to specific points.

Now you are getting the point. TBH I think only you understand your posts if others don't understand them like I said then you are failing as a communicator. So its no good blaming me for not understanding waffle. I concur with GF waffle and excessive charting reiteration of ones position or successes simply covers up for a lack of knowledge and understanding. I think GF has summed up a fair amount of what happens here on this forum.

you can't help your self can you! I haven't missed Goldfingers point as he put it so succinctly! I am not even sure what your point is. Which is my point - if you get my point!

Your post sums up Goldfingers point perfectly. Well done!

Yes, this is very true.

IMO gold is holding up better than the Greek crisis of a year ago. Don't think people will fall for the same trick again I'll let George explain it better. From:

Exactly, which is why it isn't going to happen until the USD is fairly valued against gold and the Federal reserve is once again "solvent". Then they can have a Volcker moment. I think Obama having Volcker in his team is a classic, as its spooked the gold holders who don't understand history.

At least this guy knows why he is holding gold. Seems some on here think real interest rates are magically going positive sometime soon. Or they think its 1974 again which of course it isn't. The Fed stands ready to increase its quantative easing and it will. Bernanke will keep real rates negative.

Its not a bull till its a bull in Euros and GBP. Is that your thinking? So still lots of room for a run up.