Gold Bulls - "Clawing the Sky" as prices fall

[InSilverWeTrust 0]

Plenty of bullish moves at the moment today.

 

But if the Bears want some comfort today, they should look at Goldman and the financials

 

I'm calling it a night, and will look again in the morning

 

He's seen enough for one day!

[Errol 0]

Trying to pick tops and bottoms is futile and just another form of gambling. Vegas is a much better place to be gambling; free drinks and pretty girls to amuse you while you pockets get lighter.

 

I know, I know. I'm not trading anyway. Just hoping.

[fitkid 0]

He's seen enough for one day!

 

 

 

[fitkid 0]

I know, I know. I'm not trading anyway. Just hoping.

 

[Ret45 0]

He's seen enough for one day!

 

 

It seems to be a law of nature that whenever someone sticks their neck out, there's always someone willing to smack them down.

 

 

 

 

[Vedantafxtrader 0]

It seems to be a law of nature that whenever someone sticks their neck out, there's always someone willing to smack them down.

 

I agree. Dr Bubb has been getting alot of stick and from what I see it seems unjustified. It seems all very juvenile, but at times seems to be bordering on quite nasty.

 

[allyjcambo 0]

It seems to be a law of nature that whenever someone sticks their neck out, there's always someone willing to smack them down.

 

Probably not the most popular comment (!), but this run in gold keeps reminding me of oil's ascent to $147 last year.

 

And we all know what happened next

 

I don't think it will come to that, what with Chinese demand and so forth, but I would not be surprised to see a nasty correction within the not too distant future.

[d2thdr 0]

I agree. Dr Bubb has been getting alot of stick and from what I see it seems unjustified. It seems all very juvenile, but at times seems to be bordering on quite nasty.

 

 

I agree.

[Vedantafxtrader 0]

Probably not the most popular comment (!), but this run in gold keeps reminding me of oil's ascent to $147 last year.

 

And we all know what happened next

 

I don't think it will come to that, what with Chinese demand and so forth, but I would not be surprised to see a nasty correction within the not too distant future.

 

 

Hey you never know. I remember the commentary from FSN on oil and many other internet outlets last year that the Indians and the Chinese would be buying 500 million cars over 10 years, so demand would keep rising, and the only possible way oil could fall back to 80 USD would be if there was a severe global depression, and that every country outside the developed western had increasing demand and oil ever increasing consumption and the list went on. I don't expect that also, but a 20-30% is not out of the question.

[aardvark 0]

I agree. Dr Bubb has been getting alot of stick and from what I see it seems unjustified. It seems all very juvenile, but at times seems to be bordering on quite nasty.

 

yep, i agree

[InSilverWeTrust 0]

I agree. Dr Bubb has been getting alot of stick and from what I see it seems unjustified. It seems all very juvenile, but at times seems to be bordering on quite nasty.

 

nasty??

 

You either need to lighten up or grow a pair, i'm not sure which.

 

If he makes a call and get's it right he will get a pat on the back i'm sure, but Gold expensive over $1000??

 

Get with the times!!

[Vedantafxtrader 0]

nasty??

 

You either need to lighten up or grow a pair, i'm not sure which.

 

If he makes a call and get's it right he will get a pat on the back i'm sure, but Gold expensive over $1000??

 

Get with the times!!

 

Maybe I need a pair of "golden balls" Nothing to lighten up about as I have not been involved in any of these playground spats...Perhaps nasty is not the word...juvenile perhaps is better. Its not about lightening up, this thread, 13 pages and many others are filled with repeated I told you so, your not laughing now, eh?, stick that up you,your a liar, no your a liar,,your a lunatic, 950 USD gold-idiotic type stuff. Just dribble and very clicky, I m sure most people who stop by would think this is playground stuff and move on. I wasnt involved remember, it is only an observation...one that many others have made also.

 

As an example: I made a post today saying I m waiting for a USD rally. Thats my opinion....the reply was well don't expect any sympathy from GEI members to other GEi members who have been warned. I m not looking for sympathy. As a gold holder and silver, it doesnt matter to me if the USD goes up or not. My point is that it seems that if you suggest the USD will rally and gold will go down its blasphemy...and when gold goes up, then its countless pointless posts of I told you so's in the evening.

 

The goldbugs say they are in for the long haul and are not selling...so if it goes down to 600 USD never mind 900USD whats the problem if you are not selling. It seems these longterm planned investments are approached with a shortterm outlook by posting charts multiple times a day of gold moving up another 5 USD...Seems pointless if holding something for so long.

 

Its not being uptight by making an observation that things are juvenile and at times "hostile" (relatively speaking), it is only saying that it would be much better to have some stronger debates rather than 10 pages of dribble. For lighhearted entertainment , just caught four back to back episodes...classic stuff IMHO, try

 

Nathan Barley on Demand

 

[Pluto 0]

Maybe I need a pair of "golden balls" Nothing to lighten up about as I have not been involved in any of these playground spats...Perhaps nasty is not the word...juvenile perhaps is better. Its not about lightening up, this thread, 13 pages and many others are filled with repeated I told you so, your not laughing now, eh?, stick that up you,your a liar, no your a liar,,your a lunatic, 950 USD gold-idiotic type stuff. Just dribble and very clicky, I m sure most people who stop by would think this is playground stuff and move on. I wasnt involved remember, it is only an observation...one that many others have made also.

 

As an example: I made a post today saying I m waiting for a USD rally. Thats my opinion....the reply was well don't expect any sympathy from GEI members to other GEi members who have been warned. I m not looking for sympathy. As a gold holder and silver, it doesnt matter to me if the USD goes up or not. My point is that it seems that if you suggest the USD will rally and gold will go down its blasphemy...and when gold goes up, then its countless pointless posts of I told you so's in the evening.

 

The goldbugs say they are in for the long haul and are not selling...so if it goes down to 600 USD never mind 900USD whats the problem if you are not selling. It seems these longterm planned investments are approached with a shortterm outlook by posting charts multiple times a day of gold moving up another 5 USD...Seems pointless if holding something for so long.

 

Its not being uptight by making an observation that things are juvenile and at times "hostile" (relatively speaking), it is only saying that it would be much better to have some stronger debates rather than 10 pages of dribble. For lighhearted entertainment , just caught four back to back episodes...classic stuff IMHO, try

 

Nathan Barley on Demand

 

Girls, put your handbags down for a second.

 

The US is has a 12T deficit; it has another circa 36T of unfunded liabilities; the tax base has collapsed; it is about to embark on a healthcare plan and escalate the war in Afghanistan costing more Trillions. These bills are unpayable. This is all you need to know. Gold is going much higher.

 

[wren 0]

Some of DrBubb's earlier posts were quite provocative towards the gold bulls.

That is a poorly written article, full of logical flaws.

(I would be embarrassed if my name was on it - Want examples?)

 

I think the Gold Bulls are about to get CREAMED.

They have stopped using their brains (if this poor article is any indication) and are operating on pure emotion.

 

Bring on the Truth detector !

 

[romans holiday 0]

If this market momentum carries on gold could truly go parabolic here. I'd ask the following questions of the parabola though.

 

Out of what sort of stuff are the market participants made and why are they buying? Have they read, digested and understood the copious amount of various arguments for the "fundamentals" of gold, as posted on this site, or are they jumping on a mere momentum trade? How fragile do the wider markets remain? How fragile do investors remain? What would another round of deleveraging do to investor confidence and the price of gold? Is gold being being bought by hedge funds as an [hyper] inflation hedge?

[Justin Thyme 0]

If this market momentum carries on gold could truly go parabolic here. I'd ask the following questions of the parabola though.

 

Out of what sort of stuff are the market participants made and why are they buying? Have they read, digested and understood the copious amount of various arguments for the "fundamentals" of gold, as posted on this site, or are they jumping on a mere momentum trade? How fragile do the wider markets remain? How fragile do investors remain? What would another round of deleveraging do to investor confidence and the price of gold? Is gold being being bought by hedge funds as an [hyper] inflation hedge?

 

All very valid questions, RH. I've maintained that the inverse correlation twixt the dollar and gold is not as close as so many believe. The last $120 of gold price rises simply cannot be explained by the latest few downward dribbles in the DXY. Gold's $50 drop last week was in response to a full point rally in the DXY where once that would've meant a LOT more . . . especially if it was perceived as "toppy".

 

Deleveraging could be a problem but what do investors hold instead; a battered dollar in the throes of having record bond issuance strapped across its shoulders on a weekly basis right about the time the Fed's supposedly bringing its buyback program to an end ??

 

[markinspain 0]

Girls, put your handbags down for a second.

 

The US is has a 12T deficit; it has another circa 36T of unfunded liabilities; the tax base has collapsed; it is about to embark on a healthcare plan and escalate the war in Afghanistan costing more Trillions. These bills are unpayable. This is all you need to know. Gold is going much higher.

 

Sanity at last!

[Walktothewater 0]

yep, i agree

 

When gold goes parabolic, then implodes, these people will disappear back into the woodwork. Like the buy-to-let guys in my office. Shameful behaviour.

[romans holiday 0]

All very valid questions, RH. I've maintained that the inverse correlation twixt the dollar and gold is not as close as so many believe. The last $120 of gold price rises simply cannot be explained by the latest few downward dribbles in the DXY. Gold's $50 drop last week was in response to a full point rally in the DXY where once that would've meant a LOT more . . . especially if it was perceived as "toppy".

 

Deleveraging could be a problem but what do investors hold instead; a battered dollar in the throes of having record bond issuance strapped across its shoulders on a weekly basis right about the time the Fed's supposedly bringing its buyback program to an end ??

Gold has been rising in all currencies at the moment and, as you suggest, is now more than a weak dollar story.

 

Investors with cash are under pressure to sell the dollar and buy equities and commodities. Then others are leveraging up borrowing dollars. As far as they are free to choose their investments [or under pressure to invest], gold could keep going higher here as it attracts more attention. Deleveraging round 2, if it comes, would not involve investors asking what to sell their investments for, but would involve the automatic buying of dollars. This would see the dollar higher not because investors want to buy the dollar, but because they are forced to cover dollar short positions. It would involve a swift dynamic process rather than a deliberation about "fundamentals"... we might see the shortest carry trade in history.

 

No certainties of course, which is why I'd feel exposed here if I wasn't overweight in gold.

[lowrentyieldmakessense(honest!) 0]

I agree. Dr Bubb has been getting alot of stick and from what I see it seems unjustified. It seems all very juvenile, but at times seems to be bordering on quite nasty.

Bubbs original post deserved what he got

 

anyway lets move on as it is just Noise, and good luck to those that want to trade on the Noise

 

 

[sash777 0]

When gold goes parabolic, then implodes, these people will disappear back into the woodwork. Like the buy-to-let guys in my office. Shameful behaviour.

Buy-to-let lasted far longer than anyone expected and a lot of people made small fortunes. Or would have, if they'd got out at the right time. That's the key - and I've seen nothing to suggest that the time to be out of the market isn't a very very long way off for PMs.

 

I find it interesting that for months now we've been reading all the articles, watching the fundamentals, posting rockets, discussing what will send Gold beyond $1000, $1100, $1200 - and when it actually looks like it's happening we all seem stunned by just how aggressive and fast the move up has been.

[HPCSucks 0]

I love reading all the comments on this site. Just imagine what it will be like when people who really don't know what they are talking about start joining in.

[sash777 0]

Yes, I think gold has been rising in all currencies at the moment and, as you suggest, is now more than a weak dollar story.

 

Investors are under pressure to sell the dollar and buy equities and commodities. As far as they are free to choose their investments [or under pressure to invest], gold could keep going higher here as it attracts more attention. Deleveraging round 2, if it comes, would not involve investors asking what to sell their investments for, but would involve the automatic buying of dollars. This would see the dollar higher not because investors want to buy the dollar, but because they are forced to cover dollar short positions.

 

No certainties of course, which is why I'd feel exposed here if I wasn't overweight in gold.

 

Are you still accumulating at these prices RH or have you still got that little bag of dry powder?

[jamesspeed 0]

Not sure if this has already been posted

 

"The following information may be the most important we have ever published. One of our Intel sources, highly placed in banking circles, tells us that on 1/1/10 all banks that have received TARP funds have been informed by the Federal Reserve that they must further restrict any commercial lending. Loans have to be 75% collateralized, 50% of which has to be in cash, which is a compensating balance."

 

"We have been told that the FDIC not only is $8.2 billion in the hole, but they have secretly borrowed an additional $80 billion from the Treasury. We have also been told that the FDIC is lying about the banks in trouble. The number in eminent danger are not 552, but a massive 2,035. The cost of bailing these banks out would be $800 billion to $1 trillion. That means 2,500 could be closed in 2010. Now get this, the FDIC is going to be collapsed before the end of 2010, which means no more deposit insurance. This follows the 9/18/09 end of government guarantees on money market funds. Both will force deposits into US government bonds and agency bonds in an attempt to save the system.

 

This will strip small and medium-sized banks and force them into shutting down or being absorbed. This means you have to get your money out of banks, especially CDs. We repeat get your cash values out of life insurance policies and annuities. They are invested 80% in stocks and 20% in bonds. Keep only enough money in banks for three months of operating expenses, six months for businesses.

 

Major and semi-major banks are being told to obtain secure storage for new currency-dollars. They expect official devaluation by the end of the year.

 

We do not know what the exchange rate will be, but as we have stated previously we expect three old dollars to be traded for one new dollar. The alternative is gold and silver coins and shares. For those with substantial sums that do not want to be in gold and silver related assets completely you can use Canadian and Swiss Treasuries. If you need brokers for these investments we can supply them.

 

The Fed also expects a meltdown in the bond market, especially in municipals. Public services will be cut drastically leading to increased crime and social problems, not to mention the psychological trauma that our country will experience. Already 50% of homes in hard hit urban areas are under water, nationwide more than 25%. That means you have to be out of bonds as well, especially municipals. "

 

from http://www.marketoracle.co.uk/Article15412.html

 

[romans holiday 0]

Are you still accumulating at these prices RH or have you still got that little bag of dry powder?

Big bag of powder thankyou very much.

 

No, definitely not accumulating here. I think there is a very real risk of a fickle market piling in then piling out of gold here.... first buying for the wrong reasons, then not having the luxury of reason when they sell.

 

imo it really comes down to ones personal risk levels:

 

no exposure to gold? can't afford not to buy a little here

at least 50% in gold? can afford to wait

100% in gold? can afford to sell a little