marceau Posted June 8, 2008 Report Share Posted June 8, 2008 Maybe oil will reach Mars just as gold reaches the Moon. On the historical graph maybe we are similar to around '76 to '77. I have a feeling there could be quite a delay before gold catches up to the average ratio. Of course, this would mean that now is an excellent buying opportunity. I don't think the ratio will stay that way for too much longer. I've said before that expecting the gold/oil ratio to match in the short - medium term could be dangerous thinking and I still agree with that sentiment. Just look at that chart and see how long those ratios remain wide apart for proof. However, what is making oil rise at the moment is fundamentally what makes gold rise - too much liquidity and the resulting inflationary expectation. Yes there are some serious supply/demand issues and there is certainly speculation. But the supply side isn't the main driver of this move and the speculators have just seized onto the action in the charts. Liquidity is driving oil, liquidity will drive gold, and soon. Once the gold charts have aligned the speculators will jump back in and we'll see those same meteoric rises we are now seeing in oil. Now is the time to be agressively accumulating in my opinion, even if oil does correct, it will not drop to a level most will be expecting, further stoking the opinion that this move in oil is 'real' (which we on here all know it is). Every correction from there on in will only serve the same purpose, 'raising the tide' for the oil price and debunking the myth that this will just go away when the speculators lose interest. Gold will respond to this process, as oil will be the most publicly visible and painful indicator of chronic inflation possible. Even the Fed's 'strong dollar' jawboning has lost it's power. They can't cry wolf any more and expect anyone with even half a brain to take notice (not even the market can be fooled for that long). I just can't see the negatives for gold at the moment, not only do the arguments not add up, they obviously don't add up and that's about to become a real problem for the manipulators. Link to comment Share on other sites More sharing options...
G0ldfinger Posted June 8, 2008 Author Report Share Posted June 8, 2008 An attack on Iran or Pakistan by Israel or the US would set the stage. History repeating itself. Link to comment Share on other sites More sharing options...
Magpie Posted June 8, 2008 Report Share Posted June 8, 2008 An attack on Iran or Pakistan by Israel or the US would set the stage. History repeating itself. I have to agree. Israel's sabre-rattling this week is exactly the kind of signal that might eventually lead to another major spike in oil and gold. And the neo-cons want something like that, as they think it will keep Obama out of the White House. Link to comment Share on other sites More sharing options...
harold bishop Posted June 8, 2008 Report Share Posted June 8, 2008 An attack on Iran or Pakistan by Israel or the US would set the stage. History repeating itself. Iran will be the target. But only the nuclear facilities. Russia have deliberately ( anti USA) provided Iran with missile defence systems, so, the task won't easy. Israel took out the Iraqi and Syrian nuclear bases and I'm certain they'll go after the Iranian. Remember, they have been very quiet during these Gulf wars and I think they'll show their hand soon - with the blessing of the USA. Iran has become too strong now their old enemy, Iraq, have been quashed by the USA. Its a dangerous situation and rarely commented on. If it explodes, oil and gold will rocket and the UK will face the same situation as the 1970s. Link to comment Share on other sites More sharing options...
narco Posted June 8, 2008 Report Share Posted June 8, 2008 Kingofgold from Goldtc.com has posted a gold chart with Elliot Wave counts. Link to comment Share on other sites More sharing options...
warpig Posted June 9, 2008 Report Share Posted June 9, 2008 Sorry if this has come up before, but I'm curious for those that hold their own physical (S+G) what denoinations do they hold them in, perhaps someone would be willing to offer some percentages? Own up who has £100K of half sovereigns in their loft? Cheers, Craig. Link to comment Share on other sites More sharing options...
kernull Posted June 9, 2008 Report Share Posted June 9, 2008 my count is to add another gold position when oil touches 135.50 that would be , 890 in gold? something like that. this should happen the help of london for sure. Link to comment Share on other sites More sharing options...
Steve Netwriter Posted June 9, 2008 Report Share Posted June 9, 2008 Just dug up this old (2000) article: Is Gold Dead? Note the gold/oil ratio in those years, it overshot the historic mean by a significant margin - 35 in 1973, 20 in 1979!!! Lovely quote at the end too: Woody That's a great article. Very interesting reading something from 2000. A few really funny typos too. In real terms, gold is currently languishing at a 28 year low. The last time this real gold price has been observed was WAY back in June of 1972, soon after Columbus discovered America. :lol: It would be nice to see a similar article written for today. Link to comment Share on other sites More sharing options...
azazel Posted June 9, 2008 Report Share Posted June 9, 2008 Sorry if this has come up before, but I'm curious for those that hold their own physical (S+G) what denoinations do they hold them in, perhaps someone would be willing to offer some percentages? Own up who has £100K of half sovereigns in their loft? Cheers, Craig. I have 20% gold to silver. Thats five silver to one gold. Its best not to say what is in my loft now we have coppers with angle grinders and tasers on their belts. Link to comment Share on other sites More sharing options...
woody Posted June 9, 2008 Report Share Posted June 9, 2008 London is open and we're off to the races Link to comment Share on other sites More sharing options...
woody Posted June 9, 2008 Report Share Posted June 9, 2008 Sorry if this has come up before, but I'm curious for those that hold their own physical (S+G) what denoinations do they hold them in, perhaps someone would be willing to offer some percentages? Own up who has £100K of half sovereigns in their loft? Cheers, Craig. I've only recently started accumulating physical but due to VAT on silver tend to hold gold personally and silver in a company. My preference is for bars but I think that is just vanity and most people seem to like coins. In the UK Sovereigns and Britannias have a privileged tax position which makes them more popular and I've picked up a few. Amongst the bars though I go for 1oz gold and 1kg silver. ne thing you'll find though is that premium bobs about from dealer to dealer and day to day so I'm tending to go with the lowest at the particular time rather than worry unduly about the type and denomination being ideal. W Link to comment Share on other sites More sharing options...
G0ldfinger Posted June 9, 2008 Author Report Share Posted June 9, 2008 Selected Gloomberg headlines (Jun 09 11:06): * U.K. Producer Prices Rise Twice as Fast as Forecast, Reach Two-Decade High * Lehman Unloads at Least $120 Billion of Assets to End Bear Stearns Stigma * Corn Rises to Record on U.S. Midwest Rain, Oil, Dollar; Soybeans Advance * Geithner Calls for More Fed Authority Over Banks to Prevent Future Crises * Stocks in Europe, Asia Fall, Led by UBS, Volvo; U.S. Index Futures Advance * Wall Street Banks Land First Blow in Battle for Clearing Derivative Trades * Wealth Evaporates in U.S. as Fuel Prices Clobber McMansions, SUV Makers * Diesel Overtakes Gasoline as Traders' Fuel Choice on Widest Spreads Ever * South Korean Tax Rebate Signals Greater Asian Fiscal Relief From Oil Surge * Teens in U.S. Find Summer Jobs Elusive as Shops, Restaurants Fire Workers and London's Luxury Homes Start Feeling The Credit Squeeze Link to comment Share on other sites More sharing options...
gwizzie Posted June 9, 2008 Report Share Posted June 9, 2008 What do yiz make of this? I'm investigating the proceedure edit: Revenue is made by the sale of seats and the lowest unique bid wins the lot Link to comment Share on other sites More sharing options...
woody Posted June 9, 2008 Report Share Posted June 9, 2008 Oil was down but looks like it is bouncing now. I'm getting a strong feeling we might have a mad session in NY again. Link to comment Share on other sites More sharing options...
warpig Posted June 9, 2008 Report Share Posted June 9, 2008 Thanks for the replies guys! I'm interested because if you are a physical hoarder then I would assume you believe the worst and if that is the case gold bars (100g+) are a lot more difficult to get rid of in a crisis than coins. My preference is for bars (London Good Delivery Bars! ) but I think this will now shift to coins only, I was just curious of other people's opinions. Cheers, Craig. I've only recently started accumulating physical but due to VAT on silver tend to hold gold personally and silver in a company. My preference is for bars but I think that is just vanity and most people seem to like coins. In the UK Sovereigns and Britannias have a privileged tax position which makes them more popular and I've picked up a few. Amongst the bars though I go for 1oz gold and 1kg silver. ne thing you'll find though is that premium bobs about from dealer to dealer and day to day so I'm tending to go with the lowest at the particular time rather than worry unduly about the type and denomination being ideal. W Link to comment Share on other sites More sharing options...
woody Posted June 9, 2008 Report Share Posted June 9, 2008 WASHINGTON, June 9 (Reuters) - U.S. President George W. Bush on Monday said a strong dollar was in the interest of the United States and the global economy and that energy prices were high. "Strong dollar's in our nation's interest. It is in the interest of the global economy," Bush said before leaving for Europe. Got to be bullish for gold Lehman results look awful and the $6bn rights issue not good. Gold seems to be trading off with the market on the back of it though. Link to comment Share on other sites More sharing options...
G0ldfinger Posted June 9, 2008 Author Report Share Posted June 9, 2008 http://www.newstatesman.com/economy/2008/0...housing-british? Even the government accepts that prices will fall by between 5 and 10 per cent this year alone, as the housing minister Caroline Flint's see-through cabinet briefing papers revealed recently (although, curiously, she didn't see fit to tell the country the news herself). Indeed, the government is still actively encouraging first-time buyers into a market that it knows is collapsing. Ministers should be doing precisely the reverse: warning young families not to take on mortgages for flats that will assuredly land them in negative equity. Someone's got to sue them. Link to comment Share on other sites More sharing options...
notanewmember Posted June 9, 2008 Report Share Posted June 9, 2008 The goverment are only allowed to give bad financial advise. Link to comment Share on other sites More sharing options...
lowrentyieldmakessense(honest!) Posted June 9, 2008 Report Share Posted June 9, 2008 BDEV getting close to 100 Pluto will be buying it soon has he eloped with RB Link to comment Share on other sites More sharing options...
drbubb Posted June 9, 2008 Report Share Posted June 9, 2008 BDEV getting close to 100 Barratt has a new symbol : BDED Link to comment Share on other sites More sharing options...
gwizzie Posted June 9, 2008 Report Share Posted June 9, 2008 Barratt has a new symbol : BDED hands up who punched in bded.L Link to comment Share on other sites More sharing options...
G0ldfinger Posted June 9, 2008 Author Report Share Posted June 9, 2008 Bloomberg: U.S. Stocks Gain as Oil Drops Heyaah! It has dropped all the way from $138 to $136. That MUST mean that everything in the US is back to normal. :lol: Link to comment Share on other sites More sharing options...
marceau Posted June 9, 2008 Report Share Posted June 9, 2008 Bloomberg: U.S. Stocks Gain as Oil Drops Heyaah! It has dropped all the way from $138 to $136. That MUST mean that everything in the US is back to normal. :lol: Crisis averted, let's all get back into the dollar and buy Lehman shares. The DOW has managed a 'massive' 24 pt rally as I write. God I wish I'd bought some this morning. Link to comment Share on other sites More sharing options...
notanewmember Posted June 9, 2008 Report Share Posted June 9, 2008 If they can guarantee another 24pt rise tommorow, get betting £1000 per point! Link to comment Share on other sites More sharing options...
kernull Posted June 9, 2008 Report Share Posted June 9, 2008 Asia shows signs of liking precious metals and dumping dollar. Expecting them to cross 900 line for tomorrow. Silver thrown on the floor, good pick. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now