grumpy-old-man Posted December 5, 2009 Report Share Posted December 5, 2009 You just don't get it at all. I DON'T CARE. I think Goldfinger is roughly in the same area as me. Gold could drop to $600 in 1 second of trading on Monday and I wouldn't bat an eyelid (other than to buy more PHYSICAL). You allow your trading thoughts to get mixed in with gold - which in neither an investment nor a trade. agreed Errol. physical gold/silver are not for traditional investment or trading, it is held for times exactly like right now imho. Link to comment Share on other sites More sharing options...
Errol Posted December 5, 2009 Report Share Posted December 5, 2009 Another point is that as gold goes higher (much higher) we're going to see massive volatility. When we are getting $100 swings up and down a day are we going to have threads like this each time? Link to comment Share on other sites More sharing options...
G0ldfinger Posted December 5, 2009 Report Share Posted December 5, 2009 Maybe Bubb has a repeating pattern of getting out too early? He got out of UK property in 2001, 3 years before the property peak in gold and 6 years before the nominal peak. If he does the same with gold, he might lose out on another 500% gain or so. Link to comment Share on other sites More sharing options...
G0ldfinger Posted December 5, 2009 Report Share Posted December 5, 2009 The Biggest Gold drop in almost 30 years, and you want to BUY it?? I very much doubt this. Also, you're looking at a paper proxy/derivative (GLD) only. EDIT: I indeed think this is an utter misinformation. If it relates to anything else than a percentage fall, then it is strongly misleading anyway. Just to back this up: The chart below is a 1-day percentage change London Fixing (not including Friday's drop): http://gold.approximity.com/since1968/Gold_USD_AMAM.html The drop in gold on Friday was 4% only. There were many drops like this in the last 30 years. I conclude that Bubb has gotten this @$$-backwards. Who really is the Pied Piper here? Doesnt the heavy volume signal anything for you? Again, who cares about GLD? Who can tell us about the volume in the LBM? Link to comment Share on other sites More sharing options...
Errol Posted December 5, 2009 Report Share Posted December 5, 2009 Again, who cares about GLD? Who can tell us about the volume in the LBM? Another good point. What was the volume of PHYSICAL traded I wonder? Link to comment Share on other sites More sharing options...
G0ldfinger Posted December 5, 2009 Report Share Posted December 5, 2009 Another good point. What was the volume of PHYSICAL traded I wonder? Bubb always stares at GLD like a deer in the headlights. GLD is irrelevant when Sovereigns move markets, and when even hedgies 'take delivery' from the ETFs (as we have seen recently). Forget GLD. Link to comment Share on other sites More sharing options...
Manual labourer Posted December 5, 2009 Report Share Posted December 5, 2009 Gold drops in price, oh I THOUGHT IT ONLY EVER WENT UP IN PRICE !!!!!! Joking aside, I am really glad I decided to average in. Even as a newbie to this gold game I could see a correction coming, even said so in a post" see gold back at 980, even 780!!!!" However saying that, witnessing the power of the move from 1000-1227 I would say the real Momentum is to the upside. Gold is being taken from everyday people via TV adverts, the people with more resources buying are buying for a reason? All I CAN SAY IS , even though I am in a losing position on my last purchase, it feels better than being all in Sterling. I think the GBP will strengthen against the Dollar the more obvious it becomes that the Conservatives are going to win the next G.E. Although in reality, with the scorched earth, it will be difficult for anyone to revive the British economy for years to come, therefore things will be very uncertain!! Thanks Bubb for the warning of the comming fall ,It was your post that stopped me from going all in !! However you are looking at it from a different but valid perspective, of trading both the upwaves and the down waves. Where most on here are looking for safety of being out of paper money and also following the gold trend. Which given the power of the move above 1000, would have to be viewed as up? All I can say is that from a personal perspective is it feels better to be buying gold at the moment than not! Although buying at $980 after the weak longs have been shaken out would be much better!! Regards ML. Link to comment Share on other sites More sharing options...
drbubb Posted December 5, 2009 Author Report Share Posted December 5, 2009 Maybe Bubb has a repeating pattern of getting out too early? He got out of UK property in 2001, 3 years before the property peak in gold and 6 years before the nominal peak. If he does the same with gold, he might lose out on another 500% gain or so. Dont count on it, GF. You should be so lucky I made a 300% return on my UK property. Sold it, and but the money into Gold shares. where I made about 400% profit before many here even got onboard the bus. I dont mind getting out early, so long as I find something else that is truly cheap. Link to comment Share on other sites More sharing options...
drbubb Posted December 5, 2009 Author Report Share Posted December 5, 2009 The drop in gold on Friday was 4% only. There were many drops like this in the last 30 years. I conclude that Bubb has gotten this @$$-backwards. Who really is the Pied Piper here? Again, who cares about GLD? Who can tell us about the volume in the LBM? From the high to the low was over $60, and that's a big move. Are you looking to take over the PP role from JS? You are welcome to it Link to comment Share on other sites More sharing options...
Errol Posted December 5, 2009 Report Share Posted December 5, 2009 Dont count on it, GF. You should be so lucky I made a 300% return on my UK property. Sold it, and but the money into Gold shares. where I made about 400% profit before many here even got onboard the bus. I dont mind getting out early, so long as I find something else that is truly cheap. And this is my point - you are a trader. You have that mentality (which, to clarify, is perfectly ok. I'm not denigrating it or saying anything is wrong with it. It's just a different mentality). Many of us are concerned with REAL gold only - not paper GLD or other suspect products. Gold is not an investment or a trade. Long term gold is going to many thousands of dollars. Gold - the sort you can hold in the palm of your hand - is the ultimate insurance which is what is required at this moment in history. Link to comment Share on other sites More sharing options...
drbubb Posted December 5, 2009 Author Report Share Posted December 5, 2009 And this is my point - you are a trader. You have that mentality (which, to clarify, is perfectly ok. I'm not denigrating it or saying anything is wrong with it. It's just a different mentality). Many of us are concerned with REAL gold only - not paper GLD or other suspect products. Gold is not an investment or a trade. Long term gold is going to many thousands of dollars. Gold - the sort you can hold in the palm of your hand - is the ultimate insurance which is what is required at this moment in history. In the end, we will see whether it will be better to get out late or early. I actually think it is easier to pick bottoms than tops. So I'd rather get into a new investment at the bottom and miss the top of the old one Link to comment Share on other sites More sharing options...
Manual labourer Posted December 5, 2009 Report Share Posted December 5, 2009 Dont count on it, GF. You should be so lucky I made a 300% return on my UK property. Sold it, and but the money into Gold shares. where I made about 400% profit before many here even got onboard the bus. I dont mind getting out early, so long as I find something else that is truly cheap. That is an excellent record. Would you mind sharing what you think is now truly cheap? by Pm if you want ? I genuinely want to learn. Regards ML. Link to comment Share on other sites More sharing options...
Perishabull Posted December 5, 2009 Report Share Posted December 5, 2009 You just don't get it at all. I DON'T CARE. I think Goldfinger is roughly in the same area as me. Gold could drop to $600 in 1 second of trading on Monday and I wouldn't bat an eyelid (other than to buy more PHYSICAL). You allow your trading thoughts to get mixed in with gold - which in neither an investment nor a trade. Read what you have just written. Your investment drops in half and you don't care? You sound like someone who has been brainwashed. I love the way Jim Sinclair works, people think gold is a currency despite it not being used as such - he's a clever guy. You have been MOPED by Jim Sinclair. Personally I think oil is a currency. Just for clarity; currency |ˈkərənsē; ˈkə-rənsē| noun ( pl. -cies) 1 a system of money in general use in a particular country : the dollar was a strong currency | travelers checks in foreign currency | figurative he was rich in the currency of love. 2 the fact or quality of being generally accepted or in use : since the Gulf War, the term has gained new currency. • the time during which something is in use or operation : no claim had been made during the currency of the policy. Link to comment Share on other sites More sharing options...
Errol Posted December 5, 2009 Report Share Posted December 5, 2009 Read what you have just written. Your investment drops in half and you don't care? Gold is not an investment. Its value does not change. The amount of paper required to purchase an ounce merely goes up and down. Link to comment Share on other sites More sharing options...
Manual labourer Posted December 5, 2009 Report Share Posted December 5, 2009 Read what you have just written. Your investment drops in half and you don't care? You sound like someone who has been brainwashed. I love the way Jim Sinclair works, people think gold is a currency despite it not being used as such - he's a clever guy. You have been MOPED by Jim Sinclair. Personally I think oil is a currency. Just for clarity; currency |ˈkərənsē; ˈkə-rənsē| noun ( pl. -cies) 1 a system of money in general use in a particular country : the dollar was a strong currency | travelers checks in foreign currency | figurative he was rich in the currency of love. 2 the fact or quality of being generally accepted or in use : since the Gulf War, the term has gained new currency. • the time during which something is in use or operation : no claim had been made during the currency of the policy. Surely gold has been a currency a lot longer than Jim Sinclair has been alive!! It is 38 years since the gold standard backed paper was dropped I believe, yet when our finest and bravest boys where sent into Iraq behind emeny lines was it gbp the western governments gave them for emergencies or gold coins? Regards ML Link to comment Share on other sites More sharing options...
Errol Posted December 5, 2009 Report Share Posted December 5, 2009 I can see we're going to be having these pointless debates all the way up to gold $5000+ ... Link to comment Share on other sites More sharing options...
WorstCaseScenario Posted December 5, 2009 Report Share Posted December 5, 2009 Gold is not an investment. Its value does not change. The amount of paper required to purchase an ounce merely goes up and down. Can't argue with that. Same goes for tulips, myrrh, glass beads, etc... Link to comment Share on other sites More sharing options...
Methinkshe Posted December 5, 2009 Report Share Posted December 5, 2009 Gold is not an investment. Its value does not change. The amount of paper required to purchase an ounce merely goes up and down. Beg pardon, but may I differ? Any value that gold may or may not have is assigned by people - it has no intrinsic worth or life-sustaining properties, it merely reflects a current preference for a store of wealth. Other assets that have no intrinsic worth apart from that which people place on them are works of art and antiques. Some have rarity value, and fashionable appeal can make one asset more preferable than the next for a time. But none has intrinsic worth (its value does not change) as you seem to claim for gold. If you were marooned in a desert with no food or water, what would be more valuable to you? A pint of water and a loaf of bread or 10,0000 ounces of gold? Or a Rembrandt, for that matter. Link to comment Share on other sites More sharing options...
Manual labourer Posted December 5, 2009 Report Share Posted December 5, 2009 Which paper asset is MOST recognised and valued around the world? Dollar 70% of countries ? Is gold valued around the world, well yes everywhere !! Do you like the state of the USA economy and debt ? No!! Which would you prefer to hold as an insurance of wealth? Gold simple as that at the moment and for the forseable future! Regards ML. Link to comment Share on other sites More sharing options...
Schaublin Posted December 5, 2009 Report Share Posted December 5, 2009 Over the last year or so, people that I know in The former Soviet Union have been converting their dollar savings into Euro and gold - some into Roubles. Having seen one empire go down, they know the signs... For all the intellectuals out there that posture that gold is just an abstract idea, I challenge you to go to a bullion dealer and ask to hold a lump of gold - then you will understand - it is not just 'cultural' it is visceral and in your bones. Try it. Link to comment Share on other sites More sharing options...
romans holiday Posted December 5, 2009 Report Share Posted December 5, 2009 For all the intellectuals out there that posture that gold is just an abstract idea, I challenge you to go to a bullion dealer and ask to hold a lump of gold - then you will understand - it is not just 'cultural' it is visceral and in your bones. Try it. I agree with you on this one S.... and half agree with Keynes when he said gold was a "barbarian relic". Gold has nothing to do with modern pure reason, but exercises more a power over our basic instincts, and is in that sense barbaric. Yet I don't think that gold is a relic belonging to the past.... just as barbarianism isn’t. Barbarian instincts are there lurking just below the thin veneer of civilization. And one of those instincts is to place a high value on gold. PS... I am not a gold bug. Gold bugs are, on the face of it, very rational with their fundamental arguments as to why gold is money. I just think gold exerted an "irrational" primeval power over the collective imagination.... and will do so again. I wonder if gold was the condition which made civilization between tribes and then nations possible. Link to comment Share on other sites More sharing options...
wren Posted December 5, 2009 Report Share Posted December 5, 2009 Another point is that as gold goes higher (much higher) we're going to see massive volatility. When we are getting $100 swings up and down a day are we going to have threads like this each time? Probably. It seems any drop, even if only for a few hours (e.g. the Dubai drop), elicits a new thread or at least a flurry of "gold is done here" posts. At least Friday's drop prevented a new weekly closing high which I guess was the main objective. Next week may provide latecomers with a reasonable buying opportunity or will it be like the Dubai drop followed by new highs? I remember at HPC there were repeated new threads from RB saying "Gold back below $800". I think the latecomers may if they're lucky get one more "Gold below $1000". But probably not for long and even that is not guaranteed 100%. Link to comment Share on other sites More sharing options...
Methinkshe Posted December 5, 2009 Report Share Posted December 5, 2009 Over the last year or so, people that I know in The former Soviet Union have been converting their dollar savings into Euro and gold - some into Roubles. Having seen one empire go down, they know the signs... Sure, but if we're speaking of the dollar, we are speaking of the world's reserve currency not of an outpost currency. There is a difference. Gold may well come to the aid of the holder of a stressed fringe currency but I am not at all sure that it will perform the same for a holder of the world's reserve currency or those closely linked. For all the intellectuals out there that posture that gold is just an abstract idea, I challenge you to go to a bullion dealer and ask to hold a lump of gold - then you will understand - it is not just 'cultural' it is visceral and in your bones. Try it. I think you could be succumbing to "gold-fever." Anyone who is provoked to such a visceral response as you describe is, imo, at the mercy of their emotions and has abandoned reason - a state that is frequently evidenced in the postings of gold-bugs. Link to comment Share on other sites More sharing options...
Schaublin Posted December 5, 2009 Report Share Posted December 5, 2009 Sure, but if we're speaking of the dollar, we are speaking of the world's reserve currency not of an outpost currency. There is a difference. Gold may well come to the aid of the holder of a stressed fringe currency but I am not at all sure that it will perform the same for a holder of the world's reserve currency or those closely linked. I think you could be succumbing to "gold-fever." Anyone who is provoked to such a visceral response as you describe is, imo, at the mercy of their emotions and has abandoned reason - a state that is frequently evidenced in the postings of gold-bugs. - I really am laughing out loud! I wondered how long it would be before someone came along with that predictable response. I do not have gold fever. I trust my guts more than I trust anything else. Of course I have the ability to reason - and do so but only a fool ignores the wisdom of countless generations. BTW, Do you have any idea where this 'gold fever' comes from? Link to comment Share on other sites More sharing options...
drbubb Posted December 5, 2009 Author Report Share Posted December 5, 2009 That is an excellent record. Would you mind sharing what you think is now truly cheap? by Pm if you want ? I genuinely want to learn. Regards ML. Sadly, not much looks cheap. I am nibbling at a few Uranium shares, while thinking they may get hit if stocks selloff. And I have a similar idea about some food stocks and Corn and Wheat. Natgas maybe, but there's good reason for it to be cheap. Land and property in Detroit, but I'm not so sure it will come back in 1-2 decades Link to comment Share on other sites More sharing options...
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