Gold Price - Where is it heading?

[CamKawa]

the fact that the AUD has been consistently climbing against the USD at the same time the USD Gold Price has been climbing, means an exponential profit bonanza for our Aussie miners right?

How about an exponential break even?

like a double whammy of good price and currency conditions?

You make more money in gold when your currency is falling against it not rising. Which is why every man, woman and child in the US should be buying it.

 

[MRC & Co]

How about an exponential break even?

You make more money in gold when your currency is falling against it not rising. Which is why every man, woman and child in the US should be buying it.

Absolutely, US Citizens should have well and truly jumped on the gold bangwagon by now! They could ride it right to the front of the head office of their bank and retire there!

 

[CamKawa]

Absolutely, US Citizens should have well and truly jumped on the gold bangwagon by now! They could ride it right to the front of the head office of their bank and retire there!

Conversely it’s barely worth while for us Australians with the AUD staring down the barrel at parity. Term deposits at 7-8% may look good to some in comparison.

Buying into GOLD or the gold miners will get you a better return when the AUD starts to fall. This may occur when the RBA cuts rates possibly latter in the year when the US recession hits us.

 

[MRC & Co]

Not sure if I am arrogant/ignorant or just educated, but I think with the property market still to feel these latest economic dramas, they are just at the start of their problems.

Not to mention, as you say, US flow on effects and economic indicators in general, have not even shown the latest dramas. Stockmarkets are always the first to take the wrath of any slowdown (including our gold equities )!

I could well and truly see rates left on hold in the short-term and possible cuts over the next year or so. Remember, the majority of their recent cuts are yet to even be seen. Surely the RBA will not just shoot now, consider damages later!

I think gold in AUD will do quiet well in the medium-term. I am definately bullish on gold and my portfolio positions confirm that. One on a good run at the moment is EQI which appears very seldom talked about on these boards but one I like, both technically and fundamentally.

Cheers

 

[explod]

Not sure if I am arrogant/ignorant or just educated, but I think with the property market still to feel these latest economic dramas, they are just at the start of their problems.

Not to mention, as you say, US flow on effects and economic indicators in general, have not even shown the latest dramas. Stockmarkets are always the first to take the wrath of any slowdown (including our gold equities )!

I could well and truly see rates left on hold in the short-term and possible cuts over the next year or so. Remember, the majority of their recent cuts are yet to even be seen. Surely the RBA will not just shoot now, consider damages later!

I think gold in AUD will do quiet well in the medium-term. I am definately bullish on gold and my portfolio positions confirm that. One on a good run at the moment is EQI which appears very seldom talked about on these boards but one I like, both technically and fundamentally.

Cheers

Good observations. There is a long way to go in playing out the effects from financial dramas that began to uncover about 12 months ago now. The Wall Street crash is yet to come and it will, very big time IMHO. (I await trawling eg. BHP for less than $20) My view is that it may be 12 months away as the PPP will do all in its power to hold things together till the end of the Presidential election late this year. By now most followers of this thread know well the power of the W/S spin on the markets.

Part of the tactic will be to allow the $US dollar to continue to weaken which will be positive for gold. Because few in the US pay attention to it, that is not a problem to them. It will be then that we will look to diversifying our gains from gold into the blue chips at the right time.

I may well be wrong, but that will be the rough script.

We will watch with great interest

 

[habs]

those 2 posts are a couple of the best ive read on this forum, thanks guys for sharing the info, its certainly opened my eyes to many more things.

 

[cuttlefish]

If we get a true breakout of inflation, including strong wage inflation, then all asset classes and relative prices will need to be viewed in terms of an inflationary environment. This would apply to property prices as well. Inflationary environments devalue cash.


Interesting start to the night for gold.

 

[MRC & Co]

Remember, the majority of their recent cuts are yet to even be seen.

Sorry, this was meant to read "rises" as opposed to "cuts".

Cheers

 

[refined silver]

Conversely it’s barely worth while for us Australians with the AUD staring down the barrel at parity. Term deposits at 7-8% may look good to some in comparison.

Buying into GOLD or the gold miners will get you a better return when the AUD starts to fall. This may occur when the RBA cuts rates possibly latter in the year when the US recession hits us.

Short term, different currencies can not notice rising POG, but this secular Gold bull is not currency based. Yes, its tied to the US dollar at the moment as that is global reserve currency, but Au is making all time highs in every currency now. Yes its going up faster in USD, and has been for longer, but its going up against all, and soon that will be plain for everyone to see.

Aus monetary growth is around 16% so there is no way in the world, gold will not appreciate in AUD also.

 

[MRC & Co]

How are gold futures doing tonight so far boys.

 

[explod]

How are gold futures doing tonight so far boys.

Answers for itself. Had felt it may sit below 950 for awhile but this bull is very stong. Of course $US weakness is the key driver. Both at respective records tonight.

 

[Miner]

Hi

Where are you Kauri and your commentary in this thread ?
Are you on holiday or just taken step aside to have a bit of fun ?

 

[Mellow77]

Short term, different currencies can not notice rising POG, but this secular Gold bull is not currency based. Yes, its tied to the US dollar at the moment as that is global reserve currency, but Au is making all time highs in every currency now. Yes its going up faster in USD, and has been for longer, but its going up against all, and soon that will be plain for everyone to see.

Aus monetary growth is around 16% so there is no way in the world, gold will not appreciate in AUD also.

just FIY, AUD is not making all time highs against CZK (czech koruna), unfortunately for me as I live in Prague but chosen to invest half of my hard earned money in Au...

 

[rederob]

Answers for itself. Had felt it may sit below 950 for awhile but this bull is very stong. Of course $US weakness is the key driver. Both at respective records tonight.

The Market is trying to price-in another 50 basis point US interest rate cut.
And it's anticipating another one after that.
Given the next rate cut is still a few weeks away, gold should continue higher over the next week or so before settling down.
I expect the Fed to pare interest rates ultimately below 1%, so POG has a good medium term future.

 

[Muschu]

And, for the novice, where is/are the better/best places to buy into gold please?

 

[explod]

And, for the novice, where is/are the better/best places to buy into gold please?

For physical I go the A J MATHEYS, they have a direct sales desk in most Capital cities. My nearest is Collins st melb. Google the web site and bullion prices are under the jewerlry sector at the top of the page.

Have not done it but understand you can buy online with Perth mint and they store it.

 

[Kauri]

Hi

Where are you Kauri and your commentary in this thread ?
Are you on holiday or just taken step aside to have a bit of fun ?

trading on a 1min timeframe is keeping me pretty busy.. by the way AIG just announcing an 11.5 bill unrealised loss on its super senior default swap portfolio may have helped gold... but I guess it will weigh on stocks somewhat today...
Cheers
.........Kauri

PS
the triangle i pencilled in a whiles back has all but hit its projected target... but where to from here???

 

[Uncle Festivus]

Marc Faber is a big fan of Bernanke & the $US . See the Lateline Business interview

http://www.abc.net.au/reslib/200802/r228349_908822.asx

 

[MRC & Co]

What a day, market tanks, my portfolio is green!

Gotta love those metals at the moment! Copper and Gold are my two money spinners!

Rick, as for how I invest, I simply buy equities which have similar patterns to the underlying commodity. Also ensure they have stable fundamentals (my most important thing) and use TA to time my entries, exits.

Cant wait for a bounce from this recent punishing! Overreaction by the ASX, hopefully US moves up overnight and Monday will give us a real treat!

As for the AUD, surely the RBA will have to factor in property, along with the trade balance and current account. Rising dollar must just be pushing our debt levels through the roof!

 

[trtkjd1]

Glad your portfolio is green mine was for about an hour now its awash with red ink, i still can reason why when the price of gold goes up and the market falls it takes gold along with it. you would reason that it should at least hold steady.