wrongmove Posted November 13, 2008 Report Share Posted November 13, 2008 Does anyone know what ban is being referred to here? Gold dips as traders take more money off the table SAN FRANCISCO (MarketWatch) -- Gold futures were ready to extend their losing streak to three sessions Thursday, pressured by the overall declines in the U.S. stock market as well as by concerns that heavy selling by hedge funds is set to resume once global bans on short-selling expires. "We will not see a huge increase in the price of gold until the financial markets stabilize a bit," said David Beahm, a vice president at precious metals retailer Blanchard & Co. "Until then, investors will continue to hide dollars in their backyards." Gold for December delivery was down $5 at $713.30 an ounce in electronic trading on Globex. It climbed as much as $7 earlier in the session to trade as high as $725.90. On the Comex division of the New York Mercantile Exchange, the contract has lost more than $28 over the past two sessions and was poised to extend its losing streak. Traders "learned that hedge funds lost a further $100 billion in assets last month," said Jon Nadler, a senior analyst at Kitco Bullion Dealers. "While some funds have halted redemptions, the expectation is that when the bans are lifted, the selling will resume," he wrote in a note. Does the ban on short selling include gold? Or are they predicting that funds will sell gold to short financials? Link to comment Share on other sites More sharing options...
kernull Posted November 13, 2008 Report Share Posted November 13, 2008 READ THIS! http://www.moneyandmarkets.com/the-g-20s-s...-solution-27996 WOW!! Now if only they would stop using the $ and instead use a basket of 'strong' currencies to price gold in... excellent article, I will be looking for patterns in the charts to time the explosion Link to comment Share on other sites More sharing options...
Pixel8r Posted November 13, 2008 Report Share Posted November 13, 2008 http://arabianmoney.net/2008/11/13/saudi-a...d-in-two-weeks/ Saudi Arabia buys $3.5bn of gold in two weeks There has been an unprecedented surge in Saudi gold purchases in the past two weeks with over $3.5 billion being spent on the yellow metal, reported Gulf News citing local industry sources. Gold market expert Sami Al Mohna told the leading regional newspaper that this buying had substantially increased the gold reserves of the country: ‘Many Saudi investors see this as the right time for making investments in gold as the price is the most reasonable one at present’. He said gold was seen as a traditional safe haven at a time of global financial turmoil. Gulf regional stock markets have fallen very sharply since early October, leading to an exodus of cash which needs to find a safe haven. Gold is currently trading at prices similar to a year ago, and 30 per cent off its March peak. Saudi investors clearly think this is the right time to buy and are piling into gold. News about the Saudi gold rush is bound to fuel speculation about the alleged large physical gold transactions that have been taking place at prices will above the spot price set in the futures market. It is very unlikely that such a large hoard of physical gold could have been bought for the depressed current price. Market analysts such as the legendary gold bug Jim Sinclair have pointed out that if less than two thousand millionaires insisted on delivery of physical gold at the end of their futures contracts, as is their legal right, then the spot gold market would jump to new highs. Saudi Arabian investors have spotted a bargain, and it may be a much better one than they think. Link to comment Share on other sites More sharing options...
FWIW Posted November 13, 2008 Report Share Posted November 13, 2008 Just when you think the level of debate has reached an all time low, something comes along and drags it that little bit lower! Just thought I'd bring in some humour... Agree that all points of view be allowed on this forum, but you can't really expect a gold investment thread to say buy USD with your GBP? Hence the reason I think you have a very apt name! Link to comment Share on other sites More sharing options...
fexx Posted November 13, 2008 Report Share Posted November 13, 2008 It is not irrelevant though. To its fans, gold is a currency. To most people, the dollar is the main currency. So if you are looking for the best currency, gold is in direct competion with the dollar, and losing rather badly. You don't have to buy gold with your pounds, you can buy dollars. I look as gold as a store of wealth, but if gold is a 'currency' that is in 'competition' with all the others, then which other one could you have put under the mattress in Roman times that would still be worth more or less the same today? So I belive the dollar price is very important in gauging sentiment in the gold market, although, of course, any individuals bottom line will depend on their local currency. And that's the crux of the matter. The recent differences between XAU/USD and XAU/GBP (and many other currencies) are no longer a slight disparities, the charts are moving in two completely opposite directions! For anyone trading in GBP, that makes looking at gold prices in USD irrelevant. It has now become defunct (just like the comex price). (Given the above statements, I clearly must be wrong, as everyone else on this forum uses USD! Why do all you TA/chartist types use XAU/USD in preference to XAU/GBP?) Link to comment Share on other sites More sharing options...
ziknik Posted November 13, 2008 Report Share Posted November 13, 2008 Does anyone know what ban is being referred to here? Gold dips as traders take more money off the table Does the ban on short selling include gold? Or are they predicting that funds will sell gold to short financials? There's a ban on short selling some (most?) financials and banks. It does not apply to gold, other stock and indices Link to comment Share on other sites More sharing options...
wrongmove Posted November 13, 2008 Report Share Posted November 13, 2008 Just thought I'd bring in some humour... So did I! Link to comment Share on other sites More sharing options...
wrongmove Posted November 13, 2008 Report Share Posted November 13, 2008 There's a ban on short selling some (most?) financials and banks. It does not apply to gold, other stock and indices Cheers ziknik, that's what I thought. I do not understand what they mean in the article. Why should the end of the short ban affect gold? Link to comment Share on other sites More sharing options...
wrongmove Posted November 13, 2008 Report Share Posted November 13, 2008 Just thought I'd bring in some humour... Agree that all points of view be allowed on this forum, but you can't really expect a gold investment thread to say buy USD with your GBP? Hence the reason I think you have a very apt name! I was trying to explain why I considered the dollar price to be important, even if dollars are not your local currency. I didn't actually say buy dollars as such, just that if hedging a strong dollar was your aim, buying dollars would be a more logical (and successful) strategy. I think it's quite funny that gold is being used (in retrospect) to protect against a strong dollar! Link to comment Share on other sites More sharing options...
cgnao Posted November 13, 2008 Report Share Posted November 13, 2008 I was trying to explain why I considered the dollar price to be important, even if dollars are not your local currency. I didn't actually say buy dollars as such, just that if hedging a strong dollar was your aim, buying dollars would be a more logical (and successful) strategy. I think it's quite funny that gold is being used (in retrospect) to protect against a strong dollar! My, what a sucker you are. Link to comment Share on other sites More sharing options...
nicejim Posted November 13, 2008 Report Share Posted November 13, 2008 Does anyone know what ban is being referred to here? "While some funds have halted redemptions, the expectation is that when the bans are lifted, the selling will resume," he wrote in a note. I took it to mean the ban on redemptions from hedge funds. If not then there is no point in the author mentioning the halting of redemptions in that sentence. Agree that all points of view be allowed on this forum, but you can't really expect a gold investment thread to say buy USD with your GBP? That's not how I read it. Link to comment Share on other sites More sharing options...
ziknik Posted November 13, 2008 Report Share Posted November 13, 2008 Cheers ziknik, that's what I thought. I do not understand what they mean in the article. Why should the end of the short ban affect gold? The link doesn't match the pasted text, have you posted the wrong link? I think the article is saying that hedge funds are keeping money safe as gold until they can use it to short financials again (sell the gold and use the money). I don’t believe that myself. There’s plenty of other companies to short. Link to comment Share on other sites More sharing options...
wrongmove Posted November 13, 2008 Report Share Posted November 13, 2008 My, what a sucker you are. Oh dear Link to comment Share on other sites More sharing options...
wrongmove Posted November 13, 2008 Report Share Posted November 13, 2008 The link doesn't match the pasted text, have you posted the wrong link? I think the article is saying that hedge funds are keeping money safe as gold until they can use it to short financials again (sell the gold and use the money). I don’t believe that myself. There’s plenty of other companies to short. I agree - I don't get the connection. Sorry about the link - they have changed the article since I posted. The link still has the old title on Kitco, but it now links that new article. Link to comment Share on other sites More sharing options...
whoops_apocalypse Posted November 13, 2008 Report Share Posted November 13, 2008 All I know is an ounce of gold is fast turning into a monkey for Cockney traders... Trade a little folks, going long and staying long in this environment is soul destroying no matter what you're into, though this weekend's meeting may be an exception to the rule, but who knows... VOLATILITY = OPPORTUNITY Link to comment Share on other sites More sharing options...
TheSnake Posted November 13, 2008 Report Share Posted November 13, 2008 Do you know where I can find charts like these live spot & historical for silver in GBP? Have you had a look at http://goldprice.org/live-gold-price.html ?? Yes, I've always found it odd that on this forum, where most buy in GBP, that there in so much focus on the price in USD, which is clearly irrelevant. I'm another that always wondered about this, I just put it down to more members being based in the US. Possibly an incorrect assumption Link to comment Share on other sites More sharing options...
wrongmove Posted November 13, 2008 Report Share Posted November 13, 2008 "While some funds have halted redemptions, the expectation is that when the bans are lifted, the selling will resume," he wrote in a note. I took it to mean the ban on redemptions from hedge funds. If not then there is no point in the author mentioning the halting of redemptions in that sentence. Seems reasonable, but it still doesn't make much sense to me. Maybe it is just badly written. Link to comment Share on other sites More sharing options...
id5 Posted November 13, 2008 Report Share Posted November 13, 2008 .... Why do all you TA/chartist types use XAU/USD in preference to XAU/GBP?) The majority of Forex brokers have XAU/USD as a currency pair but not XAU/GBP. There are other sites where you can get XAU/GBP charts but they are hard to add the analysis lines, etc, so if you want to chart XAU/GBP you often have to make your own. Link to comment Share on other sites More sharing options...
FWIW Posted November 13, 2008 Report Share Posted November 13, 2008 The majority of Forex brokers have XAU/USD as a currency pair but not XAU/GBP. There are other sites where you can get XAU/GBP charts but they are hard to add the analysis lines, etc, so if you want to chart XAU/GBP you often have to make your own. Or go to BullionVault... Here's one I made earlier: Link to comment Share on other sites More sharing options...
G0ldfinger Posted November 13, 2008 Author Report Share Posted November 13, 2008 What has just happened to gold? +$40 intraday. I guess it has more to do with treasuries... Link to comment Share on other sites More sharing options...
whoops_apocalypse Posted November 13, 2008 Report Share Posted November 13, 2008 What has just happened to gold? +$40 intraday. I guess it has more to do with treasuries... You don't mean - quantative easing has begun? PS. Stop putting 3 fullstops after your sentences. They'll think we're the same person and for your sake, I hope that doesn't happen... Link to comment Share on other sites More sharing options...
marceau Posted November 13, 2008 Report Share Posted November 13, 2008 All I know is an ounce of gold is fast turning into a monkey for Cockney traders... Trade a little folks, going long and staying long in this environment is soul destroying no matter what you're into, though this weekend's meeting may be an exception to the rule, but who knows... VOLATILITY = OPPORTUNITY Time it wrong and VOLATILITY = BANKRUPTCY. Unless you have no assets to preserve or protect, trading this market is insanity. Link to comment Share on other sites More sharing options...
G0ldfinger Posted November 13, 2008 Author Report Share Posted November 13, 2008 Time it wrong and VOLATILITY = BANKRUPTCY. Unless you have no assets to preserve or protect, trading this market is insanity. For the little investor pound-averaging, i.e. monthly savings put in gold is the best. Link to comment Share on other sites More sharing options...
sash777 Posted November 13, 2008 Report Share Posted November 13, 2008 I'm thinking it might be worth converting my remaining sterling into CAD using GoldMoney's facility. If gold went to $550 - I'm not convinced it will - then I don't wanna be buying it with sterling. Oh, Mother England, what have you done ? How do you mean the CAD facility on GM? Are we able to convert our GBP on there into other currencies and hold?? Link to comment Share on other sites More sharing options...
Justin Thyme Posted November 13, 2008 Report Share Posted November 13, 2008 How do you mean the CAD facility on GM? Are we able to convert our GBP on there into other currencies and hold?? Indeed we can. No one willing to field my question ? Link to comment Share on other sites More sharing options...
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