That makes a good case for not being long cash explod, but acknowledging that gold can't even keep up with the price of a meat(I use that term fairly loosely) pie isn't really helping the case for being long gold in the long term due to it being a store of value.
LOL! I had 2 for lunch
That makes a good case for not being long cash explod, but acknowledging that gold can't even keep up with the price of a meat(I use that term fairly loosely) pie isn't really helping the case for being long gold in the long term due to it being a store of value.
Previous resistance of 952/3 will turn as strong support. Why the support is so strong? Because it was passed with ease. IMO, last night/today was the last buy at US$960-970 before it reaches 1000.
Gold is not going to put in a lower low and gold is not going to go away in May (or July or August for that matter). What gold is going to do is rally. Last Thursday and Friday’s break out to the upside left what was strong resistance at 945 in the dust and will challenge the 999.40 resistance without any significant setbacks.
IMHO gold will reach a minimum price target of $1200 with no more than 8% correction reaction.
DYODD
I now have pies to throw too.I have my eggs ready josjes.
You need to start using words like; 'could', 'should', probably', 'unlikely' and 'perhaps' when describing market movements.
Only three things are certain in life. Death, taxes, and first year phys ed chicks.
I'm obviously hoping it recovers.
Putting the Gold Price in Perspective
A note from James Turk – I wrote the following article for “Information Line”, published by Michael Checkan and Glen Kirsch, the proprietors of Asset Strategies International, Inc. in Rockville, Maryland, http://www.assetstrategies.com/index.php
The first thing people usually consider when buying gold is its price, but unfortunately, they are grabbing the wrong end of the stick. Price is of secondary importance. To explain why, one has to examine the reasons for buying and holding gold.
The motivation to buy gold is usually driven by the pursuit of some defensive financial strategy. For example, gold is a proven and time-tested inflation hedge, so people acquire gold if they believe inflation is likely to worsen. This defensive strategy aims to protect your purchasing power because with gold you hold sound money instead of some inflating national currency.
Another defensive motivation to acquire gold is its unique attribute of being money with no counterparty risk. This significance of this risk was highlighted by the bank-run at Northern Rock in the UK last year and more recently, Bear Stearns in the US. People withdrew their money from those banks because they recognized that their ‘money’ was only as good as the financial capability of those banks to make good on their promise. In contrast, gold is not dependent upon a promise because it is the only money that is a tangible asset, and not an I.O.U. of some financial institution.
Another reason people focus on the price of gold is because they consider it to be an investment, but it’s not. Investments generate rates of return because you put money at risk, for example, by lending it or buying equity in a company. If the investment is successful, you will generate a return, increasing your wealth. But gold doesn’t do this. Gold preserves wealth; it doesn’t increase it.
For example, one ounce of gold purchases approximately the same amount of crude oil today as it has at anytime over the past 60 years. Who would want an investment like that? Gold hasn’t generated any rate of return. It hasn’t given its holders the opportunity to buy more crude oil. But because you can still buy essentially the same amount of crude oil, an ounce of gold has done exceptionally well at protecting wealth by preserving purchasing power, which is what money is supposed to do.
Money is a temporary store of value where we place a portion of our wealth while we decide whether to spend, invest or save (hoard) it. So when we hoard gold, we are in fact saving money until that moment in time when we decide to spend or invest it, which brings me back to my basic point.
Does one question the price (i.e., purchasing power) of dollars before choosing to open a savings account? No, of course not. Savings represent the portion of one’s accumulated wealth held as liquidity (i.e., money) either for a rainy day, to accumulate before spending or investing it, or just to safeguard this portion of your wealth safely and securely. But an inflating dollar doesn’t achieve these aims. The dollar – and indeed every other national currency – has severe problems that undermine their usefulness. In contrast, protecting wealth is what gold does exceptionally well by preserving the purchasing power of one’s liquidity, not necessarily from day-to-day or week-to-week, but consistently and reliably over longer periods of time.
So instead of focusing on gold’s price when buying it, focus on what gold is, what it offers, and what it accomplishes for you. Gold is a form of savings that securely preserves that portion of your wealth that you choose to hold as sound money.
I recognize that it is difficult to view gold in this way and to give little regard to its price, particularly because we are so used to looking at prices of goods and services in terms of dollars and not gold. Also, we have been trained to think of gold as an investment instead of what it really is – money. But we can overcome these biases and incorrect conventional wisdoms.
One way to do that is to consider accumulating gold on a regularly monthly basis. In other words, save some money every month, but don’t save dollars, the purchasing power of which is being inflated away. Save sound money instead. Save gold.
When gold is viewed in this way, it is clear that even with the four-fold increase in the gold price since 2001, no one has ‘missed the boat’. Building savings by accumulating gold is always a good thing.
explod, the problem with his position is that he is saying gold never loses it's value.This one from James Turk is (pwhew) minus the meat pies.
So instead of focusing on gold’s price when buying it, focus on what gold is, what it offers, and what it accomplishes for you. Gold is a form of savings that securely preserves that portion of your wealth that you choose to hold as sound money.
explod, the problem with his position is that he is saying gold never loses it's value.
This position is very wrong and deceiving:
Today, gold is not a constant value but goes up and down according to perception of it value. It is perceived to be a hedge against inflation. It does not securely preserve your wealth at all. People who bought gold in 1987, or recently at over $1000 have lost money. It does not matter right now if gold is going up in the long term, or not. It has gone down in value to this point. And, when inflation is curbed, the world economy recovers eventually, and when (if) the USD recovers, then the perception that gold is a hedge will mean it will tank. Might take 20 years, but gold is not a secure, constant, reliable store of wealth.
Who would have thought a correction in oil would have effected POG.
explod, the problem with his position is that he is saying gold never loses it's value.
This position is very wrong and deceiving:
Today, gold is not a constant value but goes up and down according to perception of it value. It is perceived to be a hedge against inflation. It does not securely preserve your wealth at all. People who bought gold in 1987, or recently at over $1000 have lost money. It does not matter right now if gold is going up in the long term, or not. It has gone down in value to this point. And, when inflation is curbed, the world economy recovers eventually, and when (if) the USD recovers, then the perception that gold is a hedge will mean it will tank. Might take 20 years, but gold is not a secure, constant, reliable store of wealth.
Inflation drives the prices of goods up? I am confused.It's only wrong or deceiving if your understanding of inflation is that it is prices going up, whereas I understand that prices go up because of inflation.
The game is not over, so what flavour pie do you prefer
Inflation drives the prices of goods up? I am confused.
A pie because I don't think we still have the gold standard?
Throw away.
Well, I'm no Monetarist, or Keynesian, and I'm certainly no Economistian, but I know we have inflation, and the perception in the market is that if we have inflation (well, the US) then you go to the mint. And since this perception is strongly inculcated into our psyche, that gold is some sort of 'go to' when the world turns pear shaped, I'm in.Inflation is the expansion of money (as distinct from its value.) Zimbabwe, billions of paper notes are worthless, that was hyper-inflation. In the US today the printing presses are starting to work overtime and they too are entering the era of hyper-inflation.
On top of that the problems are being componded by a shortage of supply. If you could buy and store a heap of coffee and oil rice you would have a great hedge and store of wealth for awhile. You can of course trade these tangibles but that market is being distorted by considerable manipulation.
Gold is also increasingly in short supply and so is a more practical item in which to hedge against the current financial ravages.
Wealth is a financial concept.explod, the problem with his position is that he is saying gold never loses it's value.
This position is very wrong and deceiving:
Today, gold is not a constant value but goes up and down according to perception of it value. It is perceived to be a hedge against inflation. It does not securely preserve your wealth at all. People who bought gold in 1987, or recently at over $1000 have lost money. It does not matter right now if gold is going up in the long term, or not. It has gone down in value to this point. And, when inflation is curbed, the world economy recovers eventually, and when (if) the USD recovers, then the perception that gold is a hedge will mean it will tank. Might take 20 years, but gold is not a secure, constant, reliable store of wealth.
Who would have thought a correction in oil would have effected POG.
Author: Dan Norcini
Dear Friends;
The following is a series of headline alerts and a stories that came down my wire this AM. The reason I have included them is to reinforce what we have been saying about “CHART PAINTING”. You would be a bit surprised to learn that I receive emails from people out there who categorically deny such a thing is possible or that it even occurs in the US markets. They condescendingly assert that our claims about the tactics of the short sellers, both in the Comex gold arena and in the stocks, is merely a case of sour grapes from a frustrated bull. That is naïve at best and just plain ignorant at worst.
While this story deals with the oil market, the tactics employed are identical and reasons behind them are the same in all cases. Why is that? Because today’s markets are dominated by technicians who pride themselves on having no fundamental view whenever they approach a market but claim that all that is necessary to make money is a knowledge of technical analysis. Some of them actually go so far as to boast about their ignorance of the markets that they trade and revel in the fact that they could care less!
We have maintained that those who have no fundamental view are rudderless ships on the ocean of the trading floors. They can be easily blown about by every wind of price behavior. When prices move lower during a price retracement in a bull market, they become morosely bearish. When prices move higher, they are wildly bullish buying blindly into upside strength. Price action alone dictates what they believe! Since this is now the vast majority of traders/investors, it takes little imagination to understand why chart painting on the close is so important to market manipulation schemes.
It is a fact that the closing price is the most important price in any commodity or stock for that day’ session as nearly every single technical price indicator or oscillator uses the closing price in its calculations. Move that strongly in one direction or another, push it as far as possible off the session highs if you are attempting to force price downwards, and all of the technical analysis programs that millions of investors are using will register your efforts. The result is that those software programs then do your work for you as they HERD the INVESTING PUBLIC in the direction you wish them to go.
Manipulation such as is charged above, “banging the closing period”, has ONE PURPOSE in mind – to move the closing price in the direction that the perpetrators desire so as to AFFECT THE MAXIMUM technical damage or effect to a market and to psychologically devastate those on the other sides of the trade.
Now do you see why it is necessary when trading gold to understand the tactics of our trading enemies and to also get a grip on your emotions when trading as well as having a firm fundamental view? Once you understand how the game is played you can also spot the tipoffs that alert you to their activities and protect yourselves accordingly. You can also profit accordingly by using the inevitable lemming like response to your advantage.
Dan
And examples of it going on in other areas are footnoted, go to www.jsmineset.com/It is a fact that the closing price is the most important price in any commodity or stock for that day’ session as nearly every single technical price indicator or oscillator uses the closing price in its calculations.
I have noticed the end of day moves on many of our gold stocks of late and have no doubt it is becoming common across the board.
comments? cheers explod
The vaste majority of traders and investors are technicians are they? Interesting.And examples of it going on in other areas are footnoted, go to www.jsmineset.com/
I have noticed the end of day moves on many of our gold stocks of late and have no doubt it is becoming common across the board.
comments? cheers explod
The vaste majority of traders and investors are technicians are they? Interesting.
Can you clarrify for me, is he saying technicians are manipulating the market EOD to TA?
This is one of the better 'media' articles I have read on gold by another self proclaimed guru.
Seems when anyone here says POG is definately going in some direction, it turns about. Must keep an eye on those contraindicators for trading opportunites.
Must keep an eye on those contraindications for trading opportunities.
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