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Blimey - gold just shot up by about 2% in USD, and GBP.

 

Any ideas why?

 

 

From a technical perspective POG in USD and GBP have tested their MT moving averages and uptrendlines, coupled with the charts showing them slightly oversold, means that they're pretty ripe for a bounce here, we'll have to see if that follows through to form the "bottom" of this correction.

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From a technical perspective POG in USD and GBP have tested their MT moving averages and uptrendlines, coupled with the charts showing them slightly oversold, means that they're pretty ripe for a bounce here, we'll have to see if that follows through to form the "bottom" of this correction.

Yes, I thought something else though - I bought in GBP at 144 dma heavily, and earlier too at £828, so been lucky I suppose. I didn't expect it this quickly though.

May be it's Egypt; it's making alot of hot news.

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May be it's Egypt; it's making alot of hot news.

 

And then on to the rest of the area. Oil spikes up, agricultural costs spike up. People begin starving. The west invades to keep oil flowing. Russia moves South. China moves west. My family heads back to NZ. Definately a possibility even for somebody as conservative as me.

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Double post...

 

Great Howestreet.com interview with Ross Clark and some great charts if you are into that sort of thing:

2011 Positive for Precious Metals

 

http://howestreet.com/2011/01/2011-positive-precious-metals/

 

$2155 MINIMUM upside target for gold within 6 to 18 months!

 

Eric Sprott's "best technical adviser" also thinks gold is on its way to $2150:

 

Our best technical advisor, he thinks (gold) it’s going to $2,150, and he thinks it is going to $2,150 this spring.

 

http://kingworldnews.com/kingworldnews/KWN..._by_Spring.html

 

I wonder if their technical adviser is also Ross Clark?

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What I found most impressive in this latest sell off, is that GLD sold 50 tons of gold at the bottom of this correction, yet the price did not move to the downside, as much as one would expect. That is apart from the SHK gold futures liquidation equivalent to another 19 tons, on Monday. These are big numbers for the space of 1 week! Yet gold finishes

-0.14% for the week. Paper gold pressure absorbed presumably by physical demand.

 

If the same amount of paper gold is to be rebought , this could lead to a big rally.

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One for the Jim Sinclair fans, I got a buy signal on my system on 26th January for Tanzanian Royalty Exploration Corporation (TRE)

 

TRE signal chart in black with TRE superimposed in blue

Screenshot2011-01-29at151717.png

 

There was also a buy generated for Central Fund of Canada Limited (CEF) and ElDorado Gold Corp (EGO) on the same day and a buy on GDX was also signalled on 27th Jan.

 

DYOR

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Interesting musings at FOFOA blog

 

http://fofoa.blogspot.com/

 

Who is Draining GLD?

 

There seems to be a misunderstanding in the gold market that when you buy or sell shares of GLD you are putting pressure on the price of gold. That selling shares of GLD into the exchange is somehow analogous to selling physical into the marketplace. Or that buying shares of GLD is somehow, somewhere down the chain, removing physical gold from the marketplace.........................

 

 

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That relates to a thought I had recently: people who get out of GLD possibly just go into the real thing after all.

 

To put this into context, since December 21st alone, 2.2M ounces have been sold from the ETF, basically a bit more than an entire quarter of production from Barrick gold (the world's largest producer). The normal run rate of global recycling plus mine production is approximately 2.95M ounces per month. So in the same period, assuming GLD was the only source of outflow, total global absorbed gold supply was 5.15M ounces. If outflows continued at the current rate, the GLD ETF (the largest investor depository of gold by far) would have no gold in 18 months.

 

Not at all applicable to the man in the street though even if he was anything like AWAKE to what is happening.!!

 

And for those of you GLD fans that think you will simply hold onto your shares until the bitter end, I have a warning for you. These Giants don't need to over-bid your shares away from you. They can always buy them at the price of paper gold trading in London and New York. And there will come a point when you are watching the premium on physical coins jump from 5% over GLD to 50% on its way to 500% over the paper gold price. How long are you going to stubbornly hold onto your precious paper before you finally relinquish it to that last Giant's delivery "basket?"

 

Remember, unless you've got $13 million, you've only got paper

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Just ordered a little more in case it should all go tango uniform early next week.

I did the same this evening too.

 

I grabbed some ounces at £834 and £824 last week. I doubt any of my pyramid of buy orders below that will get filled now that we have bounced off the 200 day moving average.

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http://www.bloomberg.com/news/2011-01-31/l...beat-davos.html

Lonely Analyst Warns of 2015 Bank Crisis Amid `Upbeat' Davos

...

“The fundamentals haven’t been addressed at all,” Wilkinson, a London-based partner at consulting firm Oliver Wyman, said in an interview at the Hotel Morosani Schweizerhof. “The things that caused the previous crisis -- loose monetary policy and trade imbalances -- they’re actually bigger now than they were then.”

...

“I came into this dinner somewhat pessimistic and worried about the assignment we are here to discuss,” Simon Johnson, a professor at the Massachusetts Institute of Technology’s Sloan School of Management and a Bloomberg News columnist, said halfway through the evening. “I am now terrified. There is an incipient sovereign crisis here mixed in with the bank crisis.

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Birth of Britain

Season 1 Episode 3 of 3

 

Tony Robinson goes in search of the UK's gold, visiting mines in Wales and Northern Ireland, and trying his hand at panning for the precious metal in Scotland. He also explores the geological events that came together to produce the deposits. Last in the series.

 

Documentary

 

Channel 4 8:00pm-9:00pm (1 hour ) Mon 31 Jan

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Gold Stumbles As Refuge Demand Keeps Shriveling.

 

JANUARY 31, 2011, 2:15 P.M. ET.

 

Gold market participants have been "a little disappointed that the fear factor didn't come into play more," said Stephen Platt, an analyst with Archer Financial Services in Chicago.

 

But the gains are proving short-lived during the metal's broader correction.

 

Gold has lost 6.3% this year as cautious optimism about the global economy and strength in equities markets erodes the appeal of the precious metal as a refuge asset. Gold is bought by some investors because it isn't as tied to economic cycles as other investments like industrial metals or stocks.

 

"As long as the oil supply doesn't get cut off, the Egypt situation isn't going to greatly impact the world's economy," said Ira Epstein, director of the Ira Epstein division of the Linn Group.

 

Stronger than expected U.S. economic data further undercut investors' desire for gold.

 

Monday's data also provided evidence that U.S. inflation remains subdued. The core price index, which excludes volatile energy and food prices, was up 0.7% compared with the year-earlier period, after rising 0.8% in November. Gold is sometimes purchased as a hedge against inflation.

 

http://online.wsj.com/article/BT-CO-20110131-714313.html

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