GOLD

[romans holiday]

Roubini:

 

This rules him out instantly for me as a credible source of opinion.

Gold, as priced by the market, has just as much to do with perceptions of the fundamentals as it has to do with the fundamentals themselves. In this sense, Roubini's opinion is significant because people listen to him.

[Steve Netwriter]

Gold, as priced by the market, has just as much to do with perceptions of the fundamentals as it has to do with the fundamentals themselves. In this sense, Roubini's opinion is significant because people listen to him.

 

The Price of Gold is Arbitrary

http://neuralnetwriter.cylo42.com/node/3409

 

"Roubini's opinion is significant because people listen to him." On that, I agree.

 

 

[nicejim]

The Price of Gold is Arbitrary

http://neuralnetwriter.cylo42.com/node/3409

 

"Roubini's opinion is significant because people listen to him." On that, I agree.

You might prefer something like this then, but wouldn't it be confuse people if Roubini started talking about the gold price of the dollar? The fact that people listen to him both means and stems from his language being framed in terms they are familiar with.

 

http://www.nysun.com/editorials/the-gold-audit/87065/

It strikes us that it would not be a bad thing were an audit to keep our national mind focused on our gold holdings — particularly at a time when the value of the dollar has collapsed to less than a 1,200th of an ounce of gold.

[DoctorSolar]

Gold Speculation During the Great Correction

 

And if we’re right about how this period of Great Correction ends, the price of gold in dollar terms should go up much, much more.

 

But here’s the important thing. Gold is money. You can use it to buy things. In terms of what gold will buy, it does not seem undervalued to us. Much has been written on the subject. But as near as we can tell, gold is now fairly priced.

 

Go ahead; buy all you want. It is a good way to maintain your wealth and protect it against the monetary and economic calamities that are doubtless coming. And if you expect to make a lot of money on it, you’ll probably succeed. When the Bernanke Fed loses its grip – which it will – and when the public gets on board the gold bull market – which it will – gold speculators will probably make a lot of money.

 

And this from Adrian Ash of Bullionvault:

 

Speculating in Gold

 

Bill Bonner's bang on the money, in short. Gold from here is a speculation, but a speculation only on academics getting their inside man (whether Mervyn King in London or Ben Bernanke in Washington) to apply their latest hare-brained scheme – massive new money inflation.

 

So gold is now fairly priced but fiat money should continue to erode so gold will continue on up. Getting on now won't make you more wealthy but it will maintain your existing wealth. I'm not so sure... technical and historical superemo Bob Hoye and Ross Clarke both show the potential for gold to easily hit 2000USD in 2011.

 

I wonder what Bill would make of G0ldfingers MZM equilibrium chart?

 

 

 

[nicejim]

I like that term, "Great Correction". It's the best I've seen so far to describe the "event" we're living through.

[Steve Netwriter]

You might prefer something like this then, ....

http://www.nysun.com/editorials/the-gold-audit/87065/

 

Yes, I saw that. Spot on

 

[romans holiday]

Bill Bonner's bang on the money, in short. Gold from here is a speculation, but a speculation only on academics getting their inside man (whether Mervyn King in London or Ben Bernanke in Washington) to apply their latest hare-brained scheme – massive new money inflation.

 

How is the swapping of a weakening currency for a strengthening one speculation?

 

Changing a good chunk of your local currency into gold could be about the most conservative thing you could do because you are conserving that nebulous thing called money [purchasing power]. I wonder if some who view this as "speculative" are laboring under the form of money illusion known as monetarism, and can only conceive of a currency depreciating against gold due to a local "inflation"/ QE [the mathematical illusion here involves the assumption that an increase in the number of the denominator, ie, the amount of units in existence, must automatically lead to a decrease in the purchasing power of each unit/ the numerator]. They can not conceive of gold appreciating in its own right as a prime currency, against all currencies, in a global deflation/ contraction*. Just a thought.

 

I guess Bonner thinks it is speculative because he thinks higher prices are dependent on whether CBs inflate the money supply. But there are other reasons gold could continue to go higher such as the non-performance of developed economies, increasing public debt, and continued instability in the international currency system. Whether governments continue to "print" or not is not necessarily the defining factor in gold prices.

 

 

*From a theoretical perspective, this doesn't necessarily entail that only gold is money. I'd argue instead that it is the most powerful symbol of money. Money, the thing in itself, remains an idea.

[romans holiday]

 

 

Gold looking strong to take out the all time high. The price looks fairly solid here after having had a period of time to consolidate at these levels.

[d2thdr]

[warpig]

Nice move(s)... I think we're going to push through to new all time highs in USD over the next couple of days. £821/t oz, just £40/t oz off the all time GBP high as well.

 

It was about time something interesting happened!

[fitkid]

MORE BARGAIN HUNTING AT $1,259.80 an ounce

 

Gold Rebounds on Bargain-Hunting and Safe-Haven Buying Interest

 

7 September 2010, 8:55 a.m.

By Jim Wyckoff

Of Kitco News

www.kitco.com

 

Comex gold futures prices have rallied from lower price levels seen in early trading Tuesday, and are now trading higher and near the daily high. December Comex gold last traded up $8.70 at $1,259.80 an ounce. As has been the case recently, gold traders took the opportunity to do some bargain hunting and "bought the dip" in prices Tuesday. Safe-haven buying interest is also evident in gold Tuesday, as the U.S. dollar index and U.S. Treasury prices are rallying, while the U.S. stock indexes are weaker.

 

 

 

 

 

 

Editor’s Note: Meet the Kitco News Team at the upcoming

 

 

[Errol]

Matterhorn Asset Management Sets Three Gold Price Targets: $6,000 – $7,000 – $10,000

 

http://www.zerohedge.com/article/matterhor...%E2%80%93-10000

[grumpy-old-man]

Matterhorn Asset Management Sets Three Gold Price Targets: $6,000 – $7,000 – $10,000

 

I bet we will find out next year that a lot of the large hedge funds have been buying metals........whilst publicly stating they are doing otherwise.....h'mmm

 

there was that huge US Uni hedge fund that have just gone public & invested $500,000 iirc in paper gold (which is a start I suppose)

 

 

[d2thdr]

Matterhorn Asset Management Sets Three Gold Price Targets: $6,000 – $7,000 – $10,000

 

http://www.zerohedge.com/article/matterhor...%E2%80%93-10000

 

 

Looking at the above graph, the price mentioned (6000 0r 7000 or 10000) should be the current price. Because once inflation catches up, the price could be many multiples of the mentioned price.

[Steve Netwriter]

 

 

Gold looking strong to take out the all time high. The price looks fairly solid here after having had a period of time to consolidate at these levels.

 

I'll reword that for you

 

US$ looking WEAK to take out the all time LOW. The price looks fairly WEAK here after having had a period of time to consolidate at these levels

 

[Steve Netwriter]

Looking at the above graph, the price mentioned (6000 0r 7000 or 10000) should be the current price. Because once inflation catches up, the price could be many multiples of the mentioned price.

 

Yes, the US$ has a long way to fall to reflect pre-existing inflation. Then further to fall, to reflect future inflation or increase in velocity due to a loss in faith in the currency.

 

[romans holiday]

I'll reword that for you

 

US$ looking WEAK to take out the all time LOW. The price looks fairly WEAK here after having had a period of time to consolidate at these levels

Sure, it's all relative. Saying gold is looking strong against the dollar is the same as saying the dollar is looking weak against gold [it has to be problematic though to say the dollar is weak per se when Rio Tinto has just had iron ore prices renegotiated downwards].

 

 

[marmite]

Jim is bullish here. Anyone jumping in ?

 

http://jsmineset.com/

 

Strapping In For The Big Move

Posted: Sep 07 2010 By: Jim Sinclair Post Edited: September 7, 2010 at 10:28 pm

 

Filed under: General Editorial

 

Dear CIGAs,

 

Now that expectations for Gold at very significant prices are being offered by various rational sources, there is one thing you can be sure of. That one thing is $1650.

 

I am getting many emails asking how it is possible for the gold price to reach $1650 by early January.

 

I suspect these are far out in time, out of the money call option buyers that have done exactly what I have warned against. That is the using of options with an investment outlook.

 

Options are speculations that you never hold past the half way to expiry point, but instead switch to further out months if you believe in what you are doing.

 

Those that pre-offer gold cannot trade it at $1650 in January because of the short time versus the big moves. They clearly have never experienced the gold run in late 1979 and early 1980.

 

I will stand with what I have said for nearly 10 years. Gold will trade at $1650 on or before January 14th, 2011. That never made me want to buy expensive in time call options.

 

It has given me the courage to invest in gold without margin both in shares and bullion.

 

There is no doubt in my mind that $1650 will occur in early 2011. I have told you that Martin Armstrong, a master timer, feels that gold will trade higher and face a reaction in middle to late June of 2011.

 

The gold banks are throwing blocks to the price as we approach $1262. This is a major waste of time and money as gold is going to and through that price. The only argument is whether gold will hit $1650 in January 2011 or $3000-$5000 in June 2011.

 

Do you have any idea how much money has been made by those that bought gold modestly and in cash only on every reaction and sold into the rhino horns? It sounded stupid when I suggested this tactic for the wannabe traders.

 

I ran 22,000 long gold contracts in the New York and London markets in 1978 to 1980. Back then that was a big number. Today if I have a conviction, I simply play with everything I have and screw credit. The only credit I would use as a pro trader is options.

 

Those of you who follow me closely know that I am NOT kidding. This is the time when PRICE and TIME meet each other.

 

This is the time now as it was in 1979 that I went throttle to floor.

 

This is the time now as it was in 1979 that I am committing 100% of all the cash I can accumulate to what I believe in.

 

This is the time when all I have planned for is falling into place for the final and enormous pay day. However, I will not and you should not violate discipline, as I have always tried to teach you.

 

Option are never held past 50% of time left when you purchased them.

 

If I am wrong about gold at $1650 on or before 14/01/11 it only means gold will trade much higher than $1650 five months later.

 

As far as being long and wrong, that is something I definitely am not.

 

Respectfully,

Jim

[romans holiday]

Jim is bullish here. Anyone jumping in ?

I would, but practically already fully in.

 

I will stand with what I have said for nearly 10 years. Gold will trade at $1650 on or before January 14th, 2011. That never made me want to buy expensive in time call options.

 

Wow, that's quite bold of Jim to stick with his original prediction. Bold because it involves a rather large explosive parabolic move in gold [or a crash in the dollar for steve], where instead gold has showed itself to be slowly strengthening against the dollar at a steady pace these past few years.

 

At least Jim's sticking to his guns. He may be right, but if he isn't, and gold is only around 1300 early next year, will that mean the hyper-inflationary hypothesis might be up for questioning.... besides Jim's forecasting abilities?

 

I propose a less dogmatic stance on hyper-inflation if Sinclair's 1650 isn't reached by January 14th 2011.

[warpig]

Have you just blown 40% of your net worth on gold..?

 

Gold 50%

Silver 10%

Dollars 40%

 

http://www.greenenergyinvestors.com/index....st&p=180972

 

I would, but practically already fully in.

[grumpy-old-man]

Have you just blown 40% of your net worth on gold..?

 

 

 

http://www.greenenergyinvestors.com/index....st&p=180972

 

 

must.......resist.......urge........to............get.........involved..........

......arrrrgggg.............this ...............is................extremely............difficult.

[lowrentyieldmakessense(honest!)]

must.......resist.......urge........to............get.........involved..........

......arrrrgggg.............this ...............is................extremely............difficult.

due another downturn methinks

 

patience

[romans holiday]

Have you just blown 40% of your net worth on gold..?

 

http://www.greenenergyinvestors.com/index....st&p=180972

No, with 60% in bullion I consider myself practically fully in [will not be buying any more gold].

 

I'll hang onto the 40% in dollars, which I may trade against silver/ volatility in the near future.

 

Fully in because I don't expect dollars to blow up overnight, think diversity in the strongest currencies is a good idea, and have no certainties.... though some theories, which have served well thus far.

[grumpy-old-man]

No, with 60% in bullion I consider myself practically fully in [will not be buying any more gold].

 

I'll hang onto the 40% in dollars, which I may trade against silver/ volatility in the near future.

 

Fully in because I don't expect dollars to blow up overnight, think diversity in the strongest currencies is a good idea, and have no certainties.... though some theories, which have served well thus far.

 

 

well I must be fully, fully, fully in then, if 60% means fully in.

[warpig]

So you're saying you're fully in to cash or something else... Me too... 

 

No, with 60% in bullion I consider myself practically fully in.

 

I'll hang onto the 40% in dollars, which I may trade against silver/ volatility in the near future.

 

Fully in because I don't expect dollars to blow up overnight.