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Looks like a giant A-B-C is nearly complete.

A big jump in Gold coming ??

 

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<bigblush>

 

My Dutch is wanting.

 

Would you explain the joke?

 

That little bit of paper in the corner of the window has "Klopper humps for turnips" written on it. What on Earth is one of those? lol

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Looks like a giant A-B-C is nearly complete.

A big jump in Gold coming ??

 

Or, if you reverse it and do the silver gold;ratio we could be on wave III of V up?

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Or, if you reverse it and do the silver gold;ratio we could be on wave III of V up?

I really think we could see gold $1,200 and silver $30 before year end.

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Lot of talk this week about 10 yr Treasuries yielding over 4%. Lots of analysts pricing in a Fed Funds rate increase before year end to tackle inflation. Theoretically this would not bode well for gold but is the spectre of serious US inflation enough to keep it immune to anything short of 200 b.p. increases or more ?

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Hello all, I've been stuck without access to the internet for a few weeks and although I've managed to periodically keep track of gold I've been effectively out of the market during that period. I have to say it's been absolute torture!

 

In a strange way it's nice to see gold pretty much back where it was when I left, it confirms my suspicion that it will be more profitable to trade PMs for the foreseeable future rather than buy and hold. On that front though I still think I'll continue to drip feeding into my core position on the pullbacks (I was lucky to miss drip the feeding into the surge over $900 over the last 2 weeks though ;) ).

 

As for where gold goes next, I'm pretty sure we'll get a brief bounce to the $900+ level and then restest $850. After that I'd say the balance of probability is towards a test of the 200dma (around the $830 level at the moment I believe). I honestly can't see gold dropping any further than that, but will stay on the lookout for clues as we get closer to those levels, if we get there too quickly I'll be fearing the worst and will save my cash for some potential sub $800 bargain hunting.

 

Despite all of this I'm actually feeling more bullish now than at any time in the past 2 months, the buyers have been totally washed out of the market by the repeated false dawns, and the shorters have loaded up to the max in expectation of 'the big one'. That's a potent mix for rocket fuel in my opinion. Give it a couple of weeks and we'll be on our way back to $1000 for real, it just may not be as quick a journey as some people want it to be.

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Hello all, I've been stuck without access to the internet for a few weeks and although I've managed to periodically keep track of gold I've been effectively out of the market during that period. I have to say it's been absolute torture!

 

Nice to have you back, Marceau.

Id wondered where you were

 

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Hello all, I've been stuck without access to the internet for a few weeks and although I've managed to periodically keep track of gold I've been effectively out of the market during that period. I have to say it's been absolute torture!

Good to have you back.

 

Pluto hasn't been in for a few weeks. Did he say something about being offline for several weeks?

 

I still think gold could be in the doldrums until the end of the summer. After that it could be rocket time.

 

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Lot of talk this week about 10 yr Treasuries yielding over 4%. Lots of analysts pricing in a Fed Funds rate increase before year end to tackle inflation. Theoretically this would not bode well for gold but is the spectre of serious US inflation enough to keep it immune to anything short of 200 b.p. increases or more ?

The US economy would just fall off the cliff. Helicopter Bernanke won't do this.

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The US economy would just fall off the cliff. Helicopter Bernanke won't do this.

 

Even if they did raise a quarter point here and there isn't going to stop the dollars decline they would need to increase rates to at least 6% to do this and like you say there is no chance of that happening.

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The loonies have taken over the HPC-asylum. Glad that I am not wasting my time over there anymore. Just look at this response to Errol's remark. :lol:

QUOTE (Errol @ Jun 1 2008, 08:35 AM) *

ALL fiat currencies ultimately become worthless. This is the way of things.

Absolute rubbish. 1 currencies loss is anothers gain.

 

Gold is a bad investment. If you want to protect yourself buy a basket of currencies and you wont lose.

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Old news, and not very surprising to those in the UK, but Northern Rock 2 is now imminent.

 

http://uk.news.yahoo.com/rtrs/20080601/tts...ey-a8bf950.html

 

Monday's update from Bradford and Bingley, Britain's largest buy-to-let mortgage lender is likely to warn on 2008 profits, rekindling concerns about short-term prospects for the bank and the wider UK mortgage market amid rising arrears and bad debts. "We can confirm that, due to a serious cardiovascular condition, Steven Crawshaw is stepping down as chief executive with immediate effect," the bank said in a statement.

 

Rats fleeing the sinking ship. While Bradford and Bingley is a global stickleback, who knows what other dominoes it will knock over as it falls.

 

PS Good to see you back Marceau!

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Even if they did raise a quarter point here and there isn't going to stop the dollars decline they would need to increase rates to at least 6% to do this and like you say there is no chance of that happening.

 

Like toothpaste, inflation is not easy to 'get back into the tube' once it has come out.

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The loonies have taken over the HPC-asylum. Glad that I am not wasting my time over there anymore. Just look at this response to Errol's remark. :lol:

 

Absolute rubbish. 1 currencies loss is anothers gain.

 

Gold is a bad investment. If you want to protect yourself buy a basket of currencies and you wont lose.

 

Yes and there was an excellent response that went some thing like this:

 

if 100 years ago you had a basket of currencies, a pound,a franc a dollar etc it would have been allot of money back then. But look how much they would be worth now.

 

With the same money you could have bought a few ounces of gold and look at the value of that now.

 

An excellent illustration of how all currencies have and will be inflated away.

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Merryn in this weekend's FT was promoting gold...

 

 

 

I have a very decent chunk in a gold etf so watching it slide back down to 8xx doesn't help but then again summer time is not really a trading time - it all come at the end of the calender year and financial year - Fall/Autumn should see some more moves

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A lot of people on HPC seem to see gold as an investment. Of course, it can be, under the correct circumstances but the primary reason for owning gold is as a store of wealth.

 

Gold is the ultimate currency. It protects the value of your money. Personally, I am not 'invested' in it.

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Yes and there was an excellent response that went some thing like this:

 

if 100 years ago you had a basket of currencies, a pound,a franc a dollar etc it would have been allot of money back then. But look how much they would be worth now.

 

With the same money you could have bought a few ounces of gold and look at the value of that now.

 

An excellent illustration of how all currencies have and will be inflated away.

 

 

 

 

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Yet more inflation...

Dow Chemical Hikes Prices 20 Pct

 

NEW YORK (Reuters) - Dow Chemical Co , the biggest U.S. chemical manufacturer, said on Wednesday it would raise prices for all products by up to 20 percent, the latest signal that escalating energy prices were stoking inflation.

 

Chief Executive Andrew Liveris, long a critic of U.S. energy policy, said the U.S. government's failure to push through new energy policy is hurting domestic manufacturing and killing demand.

 

"For years, Washington has failed to address the issue of rising energy costs and, as a result, the country now faces a true energy crisis, one that is causing serious harm to America's manufacturing sector and all consumers of energy," Liveris said in a statement.

 

Dow said the price increases will take effect on June 1 for all its chemicals and plastics, used in thousands of products from paints and adhesives to insecticides and packaging.

 

The move came as little surprise to industry watchers since prices for natural gas, a key chemical industry feedstock, have jumped by 56 percent since the end of 2007, and crude oil prices have risen 32 percent to above $125 per barrel.

..coming to a shop near you. :(

http://abcnews.go.com/Business/WireStory?i...5735&page=1

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Michele and Jim Willie discuss the deceptive messages coming from the economic "powers-that-be" and take a look at how things REALLY are with the economy.

 

More like a speech from Willie than a discussion http://www.contraryinvestorscafe.com/broadcast.php?media=117 he expounds his very candid views on many important and thought provoking issues He includes why the juniors have been left behind and why he calls G&S ETF's a fraud. He reckons the Chinese are upset as they've figured out that the US's currency debasement is "an unfair, illicit, repudiation of debt through hidden inflation mechanisms"....wow! sounds like quote from the annals of history.

 

Well worth a listen IMHO.

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Steve,

 

A few months back you posted a chart of the gold price with the COT position on a mini graph underneath. Do you have a link to the source?

 

Thanks,

 

CC

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So, B&B is doing a NR now (this time secretively)? A&L next? Then HBOS and RBS, of course. :lol:

 

Up to their eyeballs in UK mortgages. Oh dear.

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