warpig Posted May 11, 2010 Report Share Posted May 11, 2010 Can a currency form a bubble? If gold were to go bubble, then this is what it might look like (although I'm thinking the "New Paradigm" might refer to a de facto Gold standard of some sort)? Anyway, looks like tonight could be an interesting night in the yellow metal: xx Link to comment Share on other sites More sharing options...
harvipark Posted May 11, 2010 Report Share Posted May 11, 2010 I think it's $1226/t oz. Ok ta Link to comment Share on other sites More sharing options...
romans holiday Posted May 11, 2010 Report Share Posted May 11, 2010 Can a currency form a bubble? Good point. Bubbles can only form in asset prices. Due to increased currency instability, gold will once again have to become the means by which we not only value stuff, but also value [fix/ stabilize] currencies. No need to worry about bubbles and when to "exit". Link to comment Share on other sites More sharing options...
50sQuiff Posted May 11, 2010 Report Share Posted May 11, 2010 Good point. Bubbles can only form in asset prices. Gold will once again have to become the means by which we value stuff, namely, a currency. No need to worry about bubbles and when to "exit". Last time it was Volcker that made the key Central Bank 'get religion'. Who is the next Volcker and where is he coming from, in our far less Western-centric world? The only thing that can stop this train is a new global exchange rate system presided over by the IMF. The level of international agreement required means gold can't just be stopped in its tracks, as it was in the 80s. Perhaps the Chinese and Middle East could declare a new gold-backed currency, but they've got a lot of gold to buy first. Link to comment Share on other sites More sharing options...
GTG Posted May 11, 2010 Report Share Posted May 11, 2010 Looks to me we're in a third wave which is further subdividing(third of a third), if that's the case then we're in for a negligle retracement/consolidation followed by a fast and furious move higher next week... is it 1979 again? Right on cue, this is looking like it's going to be one HELLUVA run up, the third wave appears to be subdividing again today!! Let the power of third waves be with you. Link to comment Share on other sites More sharing options...
romans holiday Posted May 11, 2010 Report Share Posted May 11, 2010 Last time it was Volcker that made the key Central Bank 'get religion'. Who is the next Volcker and where is he coming from, in our far less Western-centric world? The only thing that can stop this train is a new global exchange rate system presided over by the IMF. The level of international agreement required means gold can't just be stopped in its tracks, as it was in the 80s. Yep, ideological objections made by a small but vocal minority in the west...about how useless gold is... won't even be heard. Gold is what cuts across all cultures and what pragmatically will work. It will also sort out a lot of the current imbalances between exporting and importing countries, debtors and creditors, by fixing the currencies at the appropriate levels. I imagine the Chinese would be quite relieved to de-peg from the dollar, and allow their currency to [relatively] appreciate, if they can at the same time fix to a new gold reserve currency. Like any anxious creditor, they'll accept a haircut on their reserves if the bulk of those reserves are guaranteed/ secured by the new currency system.. Link to comment Share on other sites More sharing options...
50sQuiff Posted May 11, 2010 Report Share Posted May 11, 2010 Silver has just gone vertical. May the thrust be with you, silver bugs. Wish I was with you. Link to comment Share on other sites More sharing options...
romans holiday Posted May 11, 2010 Report Share Posted May 11, 2010 Right on cue, this is looking like it's going to be one HELLUVA run up, the third wave appears to be subdividing again today!! Let the power of third waves be with you. Good call! I'm thinking it might do a "parabola" and retrace again. Link to comment Share on other sites More sharing options...
Happy Nihilist Posted May 11, 2010 Report Share Posted May 11, 2010 Can a currency form a bubble? Well, perhaps not. However, i suspect it might be a useful roadmap to keep in mind, if only in terms of relative value. Obviously, if Gold were to become a de-facto currency, then it can't have a blow off phase in nominal terms. Also, by implication, by that stage, there would be very little debt left in the system that could threaten to push down the nominal price of Gold, a la deflating bubble. But at some point there will be more attractive investments. Anyway, what gave me the idea is the sneaking suspicion that we are about the move into the next phase of this bull market. I.e., moves in a different order of magnitude. Maybe its just me, but while all the attention is on Greece, the Euro and the Euro bail-out, there seems relatively little mention in the MSM about Gold making another move towards new all time highs? Link to comment Share on other sites More sharing options...
Happy Nihilist Posted May 11, 2010 Report Share Posted May 11, 2010 Right on cue, this is looking like it's going to be one HELLUVA run up, the third wave appears to be subdividing again today!! Let the power of third waves be with you. Absolutely! I'm thinking that Gold at 1000 Euro might act as a catalyst for the next wave of investment demand in Gold. Obviously we are already seeing flight from the Euro into Gold, but I think the 1000 mark will do a lot to register this idea in the public consciousness? Link to comment Share on other sites More sharing options...
50sQuiff Posted May 11, 2010 Report Share Posted May 11, 2010 Maybe its just me, but while all the attention is on Greece, the Euro and the Euro bail-out, there seems relatively little mention in the MSM about Gold making another move towards new all time highs? It's not just you. See my post above on Google Search and News volume. We've been in a steady decline on both fronts since the late 2009 high. The 2010 upleg in gold has not captured the MSM's attention in the same way. Link to comment Share on other sites More sharing options...
harvipark Posted May 11, 2010 Report Share Posted May 11, 2010 HUI up 18 points on opening... Link to comment Share on other sites More sharing options...
Schaublin Posted May 11, 2010 Report Share Posted May 11, 2010 It's not just you. See my post above on Google Search and News volume. We've been in a steady decline on both fronts since the late 2009 high. The 2010 upleg in gold has not captured the MSM's attention in the same way. Replace MainStream Media with Controlled media and it makes sense that the sheeple would not be informed. Link to comment Share on other sites More sharing options...
warpig Posted May 11, 2010 Report Share Posted May 11, 2010 Personally, I'm not convinced the only solution is to reincorporate gold in to the monetary system, in either the form of a new Bretton Woods or through SDR's, but at least for the conceivable future, it is gaining favour as the currency of choice. I agree, you can feel the tension building and the main beneficiary will of course be gold. BTW - I like rocket pictures... Well, perhaps not. However, i suspect it might be a useful roadmap to keep in mind, if only in terms of relative value. Obviously, if Gold were to become a de-facto currency, then it can't have a blow off phase in nominal terms. Also, by implication, by that stage, there would be very little debt left in the system that could threaten to push down the nominal price of Gold, a la deflating bubble. But at some point there will be more attractive investments. Anyway, what gave me the idea is the sneaking suspicion that we are about the move into the next phase of this bull market. I.e., moves in a different order of magnitude. Maybe its just me, but while all the attention is on Greece, the Euro and the Euro bail-out, there seems relatively little mention in the MSM about Gold making another move towards new all time highs? Link to comment Share on other sites More sharing options...
harvipark Posted May 11, 2010 Report Share Posted May 11, 2010 BTW - I like rocket pictures... Rockets are forbidden on this thread! Link to comment Share on other sites More sharing options...
Happy Nihilist Posted May 11, 2010 Report Share Posted May 11, 2010 Interesting to note that this recent upleg in gold has not been matched by an uptick in Google search or news reference volume: Google Trends: "buying gold" http://www.google.com/trends?q=buying+gold...=all&sort=0 So far we've only had a small spike in this, presumably as we made new highs in Euros and Sterling: Google Trends: "gold price" http://www.google.com/trends?q=gold+price&...=all&sort=0 Indeed. Also, there is very little mention of the fact that since the February lows, Gold has been correlated with the USD not Euro! Larry Pesavento remarked on this a few weeks ago and suggested it was a sign there was something very wrong in the Eurozone. Pretty spot on. Link to comment Share on other sites More sharing options...
warpig Posted May 11, 2010 Report Share Posted May 11, 2010 Superstition has no place on this thread! Rockets are forbidden on this thread! Link to comment Share on other sites More sharing options...
Happy Nihilist Posted May 11, 2010 Report Share Posted May 11, 2010 Personally, I'm not convinced the only solution is to reincorporate gold in to the monetary system, in either the form of a new Bretton Woods or through SDR's, but at least for the conceivable future, it is gaining favour as the currency of choice. I agree, you can feel the tension building and the main beneficiary will of course be gold. BTW - I like rocket pictures... Well, I'm not suggesting that it definitely will be formally reincorporated into the monetary system. But regardless, it is sufficient that it is assuming this role de facto. The moment the "Gold is Money" idea becomes accepted in the mainstream, I suggest it is time to move on (?) As for rockets ... Link to comment Share on other sites More sharing options...
The Mad Hatter Posted May 11, 2010 Report Share Posted May 11, 2010 I know I've seen it a hundred times on here, but has anyone got a link to the asset bubble graph, you know, the one with euphoria, return to normal, despair on it? Link to comment Share on other sites More sharing options...
LauraB Posted May 11, 2010 Report Share Posted May 11, 2010 THIS ONE ? BTW Gold fell minutes after that rocket was posted Link to comment Share on other sites More sharing options...
warpig Posted May 11, 2010 Report Share Posted May 11, 2010 I promise you it wasn't because of the pictures on this thread. THIS ONE ? BTW Gold fell minutes after that rocket was posted Link to comment Share on other sites More sharing options...
ologhai Posted May 11, 2010 Report Share Posted May 11, 2010 The chances of a Lib-Dem/Labour coalition seemed high. Gold went up. Gordon is seen packing holdalls into his Jag behind Downing Street and rumours abound that talks between the Conservatives and Lib-Dems are going well and there'll be an announcement today. Gold can now fall again... Link to comment Share on other sites More sharing options...
Guest Dramatic Exit Posted May 11, 2010 Report Share Posted May 11, 2010 I promise you it wasn't because of the pictures on this thread. Maybe we should try posting, I don't know, submarine pictures. In the interests of science. Link to comment Share on other sites More sharing options...
LauraB Posted May 11, 2010 Report Share Posted May 11, 2010 The chances of a Lib-Dem/Labour coalition seemed high. Gold went up. Gordon is seen packing holdalls into his Jag behind Downing Street and rumours abound that talks between the Conservatives and Lib-Dems are going well and there'll be an announcement today. Gold can now fall again... Except it is falling in Euros too. The Brown creature's departure to the safe haven of Goldman-Sachs surely can't be that significant?! Link to comment Share on other sites More sharing options...
Jake Posted May 11, 2010 Report Share Posted May 11, 2010 Except it is falling in Euros too. The Brown creature's departure to the safe haven of Goldman-Sachs surely can't be that significant?! ''Charity work'' Link to comment Share on other sites More sharing options...
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