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Was he on margin? Or did gold plunge to zero in his currency? :unsure::rolleyes:

 

 

He was a couple of years too early for the move. But moreover, he had spent years obsessing about hte collapse of the economy, and most critically, he did not have a diversified investment strategy.

 

Read a bit of Markovitz. I think it's worth understanding gold's potential role, and be nimble enough to rotate into it if necessary, but the deflation we are seeing with gold is really unexpected and it just goes to show that is really has been rather dangerous to be overcommitted.

 

The bottom may be at $300, or below. Who knows? Nobody on here can predict the future, and a lack of diversification on the basis that you clearly see the future is a question of faith and conviction rather than cold hard logic.

 

 

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The bottom may be at $300, or below. Who knows? Nobody on here can predict the future, and a lack of diversification on the basis that you clearly see the future is a question of faith and conviction rather than cold hard logic.

 

Don't say that...I read my horoscope everyday and Mystic Meg does know the future!!!

 

:P

 

 

 

 

 

 

 

I think... :unsure:

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The price of gold in GBP (at least on BV's chart) is wild!

 

As the price in USD has been sliding down this morning, GBP is zig-zagging -- so far, with the peaks and troughs getting increasingly extreme.

 

It looks like there's a fight going on!

 

Or BV's charts are bugged... :huh:

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Great article here: http://www.moneyweek.com/investments/why-t...Money%2BMorning

 

Quote I like:

The flaw with paper money is, it's portable, durable, homogeneous, and divisible... but it's not valuable. It's only paper. So there's always a temptation to print money out of thin air. And that's what always happens. Paper-money systems always end up collapsing.

 

That's what's happening now. We're coming to the end of the largest paper-money experiment the world has ever seen. It may take a few years, but when it ends, whoever is in charge will implement a gold standard. Gold is the perfect foundation of a currency system. It's the only material we have that meets all five essential characteristics of money. It's the only available alternative.

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Another good article:

http://www.moneyandmarkets.com/important-c...r-outlook-27711

 

Quote I like:

This is why …

 

We have been recommending

that this is a time for several

important steps:

 

1. It’s a time to lay low. Invest much more selectively. Take less risk.

 

2. It’s a time to build cash. If we’re right about deflation, cash will buy you great bargains as soon as the deflationary forces have exhausted themselves.

 

3. It’s a time for income — ideally steady, recession-proof income.

 

4. It’s a time to hedge. To the degree that you continue to hold special situations that we feel will buck the trend, hedge against the downside risk in this new environment with investments that are designed to go up while these markets are falling.

 

5. It’s a time to look forward to the next major bargain-hunting opportunities. The more markets decline now, the better the bargains will be.

 

6. It’s also a time to be patient. Don’t expect the declines to be over in a day or a week or even a month. It could be several months or more.

 

One word of warning: When we do hit bottom, buying will require courage. Once we get down there, the negative commentary about the U.S. economy, gold and oil, India and Brazil, mining and agriculture … will be deafening; and the negative sentiment, downright depressing. To get to the other side and take full advantage of the new opportunities, you will need to walk calmly and resolutely across the aftermath of that bloody battlefield.

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This should help put a floor under gold, at least for a while: (please ignore if you think Indian jewelry demand is irrelevant)

 

India gold demand rises as price fall sharply

 

Fri Oct 24, 2008 4:33pm IST

 

MUMBAI (Reuters) - India's gold demand rose on Friday as retail buyers rushed into the market to cash in on a sharp fall in prices, dealers said.

 

"Prices have broken the pshycological level of 12,000 rupees...demand has improved significantly ahead of Diwali and Dhanteras," said Ashwin Choksi, partner at Jamnadas M. Choksi Jewellers.

 

The benchmark December contract on MCX fell more than 300 rupees per 10 grams on Friday tracking weak overseas markets.

 

It has lost more than 1,500 rupees so far in October.

 

Overseas gold extended losses and fell 4 percent to touch its weakest level since September 2007.

 

If the prices fall below 10,000 rupees, it will be difficult to meet the demand, said a dealer with a large private bank.

 

 

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Excellent article here...

 

The metal's highest and best investment use is as insurance policy against a currency collapse.

 

snip

 

Gold isn't even a reliable hedge against inflation. It reached $850 an ounce in January 1980, a price not seen again until January 2008. During those intervening 28 years, gold plunged and reared but lost more than half of its purchasing power. For a 1980 investor to break even after inflation, gold would have to reach $2,200.

 

It might, but how long did you plan to wait?

 

For the average investor, gold boils down to a speculation on higher prices. The latest run-up started in August 2007, when the housing market visibly started falling apart. From $652, it raced up to $1,003 an ounce last March, zig-zagged back to $747 in September, jumped to $905, then slid to $772 as of yesterday.

 

Hedge funds drove the market but individuals jumped in, too. So far this year, investors have purchased 611,000 newly minted, one-ounce U.S. gold coins, compared with 315,000 in all of 2007.

 

 

Some interesting chatter about the physical article in there also..

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This should help put a floor under gold, at least for a while: (please ignore if you think Indian jewelry demand is irrelevant)

 

India gold demand rises as price fall sharply

 

The India jewelry demand story just cracks me up. One week I have this image of thousands of Indians walking past jewelry shops turning there noses up and the next an image of masses of them running into shops in the same manner as they squeeze onto public transport. What to believe hey?

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Gold making a serious come back out of the gates. $713

Didn't last long. I was beginning to think it might be a good exit point for those who cannot stand any more pain. Maybe others felt the same and acted. :)

 

$704 now.

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He was a couple of years too early for the move. But moreover, he had spent years obsessing about hte collapse of the economy, and most critically, he did not have a diversified investment strategy.

 

Read a bit of Markovitz. I think it's worth understanding gold's potential role, and be nimble enough to rotate into it if necessary, but the deflation we are seeing with gold is really unexpected and it just goes to show that is really has been rather dangerous to be overcommitted.

 

The bottom may be at $300, or below. Who knows? Nobody on here can predict the future, and a lack of diversification on the basis that you clearly see the future is a question of faith and conviction rather than cold hard logic.

We'll see. Gold is now very volatile. Fundamentally I still see better chances of $3,000 than $300 over the medium term. Markovitz is nice for pension funds and elderly people who have to lose a lot. But Hank's and Ben's commodities deleveraging (as genius as it was) went wrong and now the stock markets do even worse than before.

 

The sheeple get herded into the US-Treasuries slaughterhouse at the moment. Those who can call the point of no return and can get into physical gold in time, I admire them. But where are they? Maybe they have missed the time to get into physical already. As for paper gold, there seems to be more than enough around.

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Actually I am very worried after watching this:

http://www.pbs.org/newshour/bb/business/ju...lman_10-21.html

http://www.pbs.org/newshour/video/module.h...02008&seg=5

 

I do think we have more pain to come our way...

 

My plan for the moment is to stay out of GoldMoney for the short term...

Keep any eye out for any physical gold on sale from distressed sellers...

Pray...

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685 was such an obvious bottom and launch pad.

Just up from here <fingers crossed> :D

 

Careful Steve, you don't want to be jinxing this again do you! (keep them r******s tucked away for now!) :D

 

 

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Wow... Jim Sinclair issuing a bit of a war cry...

 

Dear Comrades In Golden Arms,

 

Gold is a currency.

 

Paper currency insures nothing.

 

Gold is insurance.

 

Gold is not a commodity.

 

Gold will trade at a minimum of $1650 MUCH SOONER THAN I HAVE ANTICIPATED.

 

The shorts in gold shares will get what they deserve - financial decimation.

 

Your friend,

Jim

...is this desperation, or does he really know something?

 

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Wow... Jim Sinclair issuing a bit of a war cry...

 

 

...is this desperation, or does he really know something?

 

We will all soon find out if it goes to $1650 minimum...

 

Then we can all pile in!

 

Who needs to do TA - let's just follow this guy! :unsure:

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This should help put a floor under gold, at least for a while: (please ignore if you think Indian jewelry demand is irrelevant)

Indians buying, or Indians whinging and not buying.

 

Same old, same old.

 

Do you honestly believe that Indians outweigh institutional investors?

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He was a couple of years too early for the move. But moreover, he had spent years obsessing about the collapse of the economy, and most critically, he did not have a diversified investment strategy.

 

Read a bit of Markovitz. I think it's worth understanding gold's potential role, and be nimble enough to rotate into it if necessary, but the deflation we are seeing with gold is really unexpected and it just goes to show that is really has been rather dangerous to be overcommitted.

 

The bottom may be at $300, or below. Who knows? Nobody on here can predict the future, and a lack of diversification on the basis that you clearly see the future is a question of faith and conviction rather than cold hard logic.

Assuming US dollar-based and not margined, this would not happen unless he were broke outside his gold holdings and desperately needed the cash.

 

This gold bull is not for wimps. I believe it will get harder, as needed to break weak hands and let the TPTB get their nibs.

 

This is a wild bull and will get crazier. In keeping with the unprecedented extrementies now being seen in the financial world, unprecedented extrementies in the gold market are to be expected. History might even be made, i.e. exceeding the circa 50% drop of the mid 70s.

 

If I'm not mistaken the cost of gold production at present varies typically from $300 to £600. I should be very grateful if anybody could provide more accurate information, and especially on the weighted cost.

 

About the bit I bolded. Well, I forget who it was who said about the market being solvent longer than...

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