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Hmmmm... not really impressed. I mean, isn't it just reflecting dollar weakness here... and we all know the dollar will rebound soon. :rolleyes:

 

I think gold will break out perhaps after the summer when the inverse relation between gold and dollar breaks down.

 

Good to see silver going strong today.

Turns out gold was strong today while the dollar actually gained.

 

Interesting comment about a possible large buyer from Dan Norcini tonight;

 

In a manner somewhat reminiscent of last Friday’s stunning upmove, gold shrugged off early selling pressure tied to some stability in the US Dollar and weakness in crude oil, reversing course around midmorning and tacking $13 onto its trading session low. The buying pushed price all the way to yesterday’s peak and then some.

 

I am a bit hesitant to go too far out on a limb these days when it comes to market predictions but gold seems to be trading in a fashion that is suggestive of the presence of a large scale buyer who is willing to take on the concerted selling efforts of the bullion banks. The reason I mention this is on account of the dip buying that is taking place which is coming even without much support from the Dollar at times. Whether or not this will continue is anyone’s guess, but the price action is evidence enough for me that, for now, this buying is quite substantial.

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Article in the Telegraph about pros and cons of various methods of gold investment. Article looks at: PHYSICAL GOLD, Jewellery, Allocated gold account, Unallocated gold account, Exchange-traded funds & Other unit and investment trusts.

 

I have not copied it in entirety because of copyright.

 

http://www.telegraph.co.uk/finance/persona...ng-in-gold.html

 

The pros and cons of investing in gold

 

Which is the best way to make a profit out of gold?

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No, but then I have a fair idea what it is going to say because J Turk repeats the same thing ad nauseum. :lol:

 

No disrespect meant, but it just sounds like a broken record sometimes. It is an important part of the picture but there is more in heaven and earth than is dreamt of in the money supply. :rolleyes:

 

Spot on, RH (and a nice reworking of Hamlet!).

 

I think James Turk has an important point to make but his analysis is one dimensional and ignores a whole host of other factors. I'll be interested to see what Schiff and Turk say if the USD rallies this Autumn.

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Interesting... There was a historical article/report posted here perhaps a month or so ago and it said the same thing and to my surprise it received no comments from anyone here. It basically said gold performs best in deflationary periods by a long shot. The gains in inflationary times were by comparison tiny (if at all!) and it surprised me, although it was presented in such a way it seemed credible. I kept a mental note and meant to go back and investigate it further, but I haven't managed it yet.

 

I'm interested to know what others here think of this, I don't believe this is commonly accepted. Does anyone remember the link/author, I just had a quick google and couldn't find anything.

 

Article may be a bit old but might be worth a read...

 

http://www.avaresearch.com/article_details-291.html

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Turns out gold was strong today while the dollar actually gained.

 

Interesting comment about a possible large buyer from Dan Norcini tonight;

Yes, mentioned as much in post 25.

 

It is interesting to overlay the USD index with gold and then again with silver. Whereas the inverse relation is holding up strongly with silver... it has weakened with gold.

 

Goldprice.org have an excellent facility for this and all sots of stuff if you just click on "Live gold price" [as pointed out by chris ct].

http://goldprice.org/live-gold-price.html

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Graceland Updates - Gold: French Curve Again? Or Blast Off: http://www.321gold.com/editorials/thomson_...n_s_080409.html

 

The good news is: Longterm, the bankers want gold higher, not lower! Do they want it higher now? That's a question, but not the million dollar question. The million dollar question is... Are We Prepared?

 

Interesting read - more trader than investor orientated maybe... Anyone follow/subscribe/rate Graceland Updates/Stewart Thomson?

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Why according to this chart, does gold's historical purchasing power turn negative in all inflationary periods pre 1934?

The purchasing power of money drops during inflation and rises during deflation.

 

Gold was money (and still is in my opinion and that of Central Banks who hold gold).

 

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Why according to this chart, does gold's historical purchasing power turn negative in all inflationary periods pre 1934?

Because the currency which commodites are priced in is tied to [an amount of] gold.... not the commodities themselves.... that would be price-fixing.

 

So if goods on the market become more desirable, the price of those goods will rise... which means it would take more gold to buy them. I think it is quite normal for prices to fluctuate even when there is a gold standard. A gold standard does not fix the price of something forever and write it in stone.... it fixes the unit of currency. Goods can still become more or less valued... or should I say desired. Everything is a commodity, goods, money and gold.

 

Gold backed money can "appreciate" against goods if people value money more than goods which reflects in lower prices. The laws of supply and demand still apply. Money can equally "depreciate" against goods with higher prices but I guess with a gold standard these fluctuations would tend back to an equilibrium.... and not degenerate into a self-reinforcing death spiral as with fiat.

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Heard something rather interesting on Bloomberg about 1 hour ago.

 

There are now only 3% BULLS ON THE US DOLLAR

 

That is a HISTORIC LOW, i believe they said.

This suggests an immediate rally, and maybe a sharp one.

It should take at least a few weeks to correct this extreme

 

A sharp rally in the Dollar, should be bearish for Gold, and may yield that price dip

in August that I have been awaiting.

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Heard something rather interesting on Bloomberg about 1 hour ago.

 

There are now only 3% BULLS ON THE US DOLLAR

 

That is a HISTORIC LOW, i believe they said.

This suggests an immediate rally, and maybe a sharp one.

It should take at least a few weeks to correct this extreme

 

A sharp rally in the Dollar, should be bearish for Gold, and may yield that price dip

in August that I have been awaiting.

"...that price dip in August that I have been awaiting"

You and me alike!

 

But - what if that dollar strengthenning happens because something causes a return of fear (terrorist incident, another banking failure...) and its consequential return to risk aversion. That would be good for PoG.

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So you now want back in?

 

BigT,bigT, what will you do if there is no dip in gold? I know you are up because of cable, but will you get back in atr $1050 or what?

 

Hi Guys - Sure I want back in, and have stated all along that I was waiting for a price drop (from GBP 660 where I sold) to repurchase. I thought we'd go lower than we have by now, and that makes me less certain that we'll see sub-500. I currently feel we may be at or about the bottom, and so I am perhaps going to start nibbling at these prices. But only nibbling, as I do also think its quite likely that we'll get closer to 500 before a real floor is established.

 

So if I nibble soon, it will only be with 20% of my cash. That will let me double up and more than double up again if/when the price drops further.

 

To your specific question Azazel, the total cash I hope/plan to reinvest is just the 100% profit I made upon selling - so even if I reinvested it with gold at GBP1,000,000 and it then fell to 0, I'd still not have lost anything.

 

However, like DrB, I am trying to smell autumn's bottom, and then I'll pounce on it - which, in other contexts, would probably get me arrested. ;)

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Hi Guys - Sure I want back in, and have stated all along that I was waiting for a price drop (from GBP 660 where I sold) to repurchase. I thought we'd go lower than we have by now, and that makes me less certain that we'll see sub-500. I currently feel we may be at or about the bottom, and so I am perhaps going to start nibbling at these prices. But only nibbling, as I do also think its quite likely that we'll get closer to 500 before a real floor is established.

 

So if I nibble soon, it will only be with 20% of my cash. That will let me double up and more than double up again if/when the price drops further.

 

To your specific question Azazel, the total cash I hope/plan to reinvest is just the 100% profit I made upon selling - so even if I reinvested it with gold at GBP1,000,000 and it then fell to 0, I'd still not have lost anything.

 

However, like DrB, I am trying to smell autumn's bottom, and then I'll pounce on it - which, in other contexts, would probably get me arrested. ;)

Wasn't DrB looking for an August bottom?

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Hi Guys - Sure I want back in, and have stated all along that I was waiting for a price drop (from GBP 660 where I sold) to repurchase. I thought we'd go lower than we have by now, and that makes me less certain that we'll see sub-500. I currently feel we may be at or about the bottom, and so I am perhaps going to start nibbling at these prices. But only nibbling, as I do also think its quite likely that we'll get closer to 500 before a real floor is established.

 

So if I nibble soon, it will only be with 20% of my cash. That will let me double up and more than double up again if/when the price drops further.

 

To your specific question Azazel, the total cash I hope/plan to reinvest is just the 100% profit I made upon selling - so even if I reinvested it with gold at GBP1,000,000 and it then fell to 0, I'd still not have lost anything.

 

However, like DrB, I am trying to smell autumn's bottom, and then I'll pounce on it - which, in other contexts, would probably get me arrested. ;)

 

I'm confused. I thought you sold to buy a house, selling at what you thought was the best time, and avoiding any short-term changes against you.

 

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Hi Guys - Sure I want back in, and have stated all along that I was waiting for a price drop (from GBP 660 where I sold) to repurchase. I thought we'd go lower than we have by now, and that makes me less certain that we'll see sub-500. I currently feel we may be at or about the bottom, and so I am perhaps going to start nibbling at these prices. But only nibbling, as I do also think its quite likely that we'll get closer to 500 before a real floor is established

So if I nibble soon, it will only be with 20% of my cash. That will let me double up and more than double up again if/when the price drops further.

 

To your specific question Azazel, the total cash I hope/plan to reinvest is just the 100% profit I made upon selling - so even if I reinvested it with gold at GBP1,000,000 and it then fell to 0, I'd still not have lost anything.

 

However, like DrB, I am trying to smell autumn's bottom, and then I'll pounce on it - which, in other contexts, would probably get me arrested. ;)

Sub 500 pounds?? If there is a reversal in the markets, which also looks likely, the pound will once again tank. Pounds look expensive at the moment. Yen and dollars look cheap... why not buy them with your pounds if you are waiting for a dip? :lol:

 

Sorry, couldn't resist this one... but we'll see. :)

 

From: http://www.youtube.com/watch?v=-1auRCameVY

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Sub-$500 gold ? :lol: Get a grip !

 

Who was that GEI poster calling $400 a few months back ? Produced all sorts of weird and wonderful charts to support his waffle.

 

That would have been Ker who last posted 3 May 2009. Extradry Martini bet on a huge drop in price as did Realist bear over on HPC.

 

bigtbigt is holding out for sub £500 GBP gold.

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Why according to this chart, does gold's historical purchasing power turn negative in all inflationary periods pre 1934?

When the currency is fixed to gold [a certain amount of gold], it is a truism that its purchasing power decreases when prices increase, and its purchasing power increases when prices decrease.

 

"Inflation" in prices has a much less sinister meaning than that which the word is invested with today, due to the fact we have a completely different monetary system.

 

Agree/ disagree? Or unintelligible? :)

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