Gold Price - Where is it heading?

[>Apocalypto<]

Ah yeah Apocalypto, you sure told us!

Wanna buy physical silver right now? Spot price ~10USD/troy oz, try and find me any .999 bar less than 40AUD!

Wanna buy physical gold right now? Used to be able to go to any coin store in Wynard and pay standard price of $250 for a sov. Go walk down there now and we are talking $400-450 a sov! Same on eBay RIGHT NOW.

If you were curious, $450 a sov at ~7.7g at 22kt = $2000+ AUD per troy ounce for physical gold!

Sinner,

that was not aimed at u so don't get up tight..... that was a war that went on from june this year with a select few...

Funny that since the AUD dropped so much gold vale increased so much in comparison to it aye.....

 

[Nyden]

What I fail to understand is why gold-bugs are still proclaiming this a victory? Granted, in terms of AUD gold has been a good performer; but gold on it's own has been a terrible performer, and for many months now.

... surely gold bugs understand that it's the USDs strength that's been helping their positions - and not that of Golds? I just don't get it

 

[cuttlefish]

What I fail to understand is why gold-bugs are still proclaiming this a victory? Granted, in terms of AUD gold has been a good performer; but gold on it's own has been a terrible performer, and for many months now.

Maybe because the AUD price of gold has risen while just about every other asset has stayed steady or fallen. And the USD gold price is actually still higher now than it was in mid 2007.

... surely gold bugs understand that it's the USDs strength that's been helping their positions - and not that of Golds? I just don't get it

Yes, thats probably why I acknowledged exactly that fact in the post I made only an hour ago.

But all digs aside I'd have to acknoweldge being suprised by the USD strength this year.

(which is to some extent the bigger driver for the AUD gold price rise, and yes the irony is that a direct USD investment would actually have been the best way to go this year).

 

[sinner]

If you are considering the price and demand for physical gold and silver, the curve has long ago departed from the paper price and its close relationship with the USD.

 

[sinner]

What I fail to understand is why gold-bugs are still proclaiming this a victory? Granted, in terms of AUD gold has been a good performer; but gold on it's own has been a terrible performer, and for many months now.

... surely gold bugs understand that it's the USDs strength that's been helping their positions - and not that of Golds? I just don't get it

What victory? We are proclaiming small holdings of gold as a hedge against hyperinflation and any other currency debasements (of which there are many) currently taking place.

Personally I would prefer no victory for us "goldbugs", as that would spell a very dire situation for everyone involved. I would much rather we all go back to our funny-money "everything is fine" illusion so 'cos everyone seemed much happier then.

 

[Ageo]

Ah yeah Apocalypto, you sure told us!

Wanna buy physical silver right now? Spot price ~10USD/troy oz, try and find me any .999 bar less than 40AUD!

1 month ago i picked up 10 1kg silver bars (pure .9999) for $3500 (35c per gram). The market price at the time was around 55c p/g (once you include the spread)

Thats the benefits you have when dealing in the 2nd hand market.

Today was interesting, market price for gold is around 1130p/o (including the spread at the time) which is around $36.30p/g, picked up about 300 grams for $34.51 of fine gold.

As they say when investing you money is made when you buy not when you sell.

 

[Glen48]

One comment I read expects it to drop another $100.
Thanks.....NOT

 

[Wysiwyg]

1 month ago i picked up 10 1kg silver bars (pure .9999) for $3500 (35c per gram). The market price at the time was around 55c p/g (once you include the spread)

Thats the benefits you have when dealing in the 2nd hand market.

Today was interesting, market price for gold is around 1130p/o (including the spread at the time) which is around $36.30p/g, picked up about 300 grams for $34.51 of fine gold.

As they say when investing you money is made when you buy not when you sell.

A$350 per kilogram?

Silver sold at A$486/kg (+ or - ) today.

 

[explod]

Gold 5K by the end of next week!

Yeh, good stab at it but probably some some more (unwinding) lows yet. Maybe close in 2 years prof.

And Yaaaaawwwwnnn, the long term holders have had few problems in this.

The frustrations speak volumes.

 

[>Apocalypto<]

Yeh, good stab at it but probably some some more (unwinding) lows yet. Maybe close in 2 years prof.

And Yaaaaawwwwnnn, the long term holders have had few problems in this.

The frustrations speak volumes.

Explod!!!!!!!!!!!!!!!

edited to try and allow the discussion to stay on topic

but on a different note I think the usd is cluttering up and due for a decent pull back. to 75.

I will say that spot held up well in the usd rally. i have never seen such a butchering like what happened to the AUD/USD

i hope the cancer issue is resolved for u

 

[professor_frink]

Yeh, good stab at it but probably some some more (unwinding) lows yet. Maybe close in 2 years prof.

And Yaaaaawwwwnnn, the long term holders have had few problems in this.

The frustrations speak volumes.

you still think we are heading for higher inflation explod? The situation is still looking like longer term deflation rather than inflation at this stage. Honestly can't see gold breaking back up above 1k for quite some time the way things are going now

Would be nice of you are right though. I don't keep much cash and have some debt over a house so hefty inflation would work a little better for me

 

[cuttlefish]

The US is still looking like its in a very bad way ... while I agree that at the moment it looks deflationary, I still see risks of hyperinflation in some of the scenarios that could pan out.

 

[cuttlefish]

Though I'm slightly less confident about how gold will go in an inflationary scenario - it really depends a lot on what actions china and the middle east take in the event of a loss of confidence in the USD. Gold may feature, or oil could come back into the picture, or they may have other ideas altogether.

 

[Whiskers]

Though I'm slightly less confident about how gold will go in an inflationary scenario - it really depends a lot on what actions china and the middle east take in the event of a loss of confidence in the USD. Gold may feature, or oil could come back into the picture, or they may have other ideas altogether.

I'm still confident China will stay in reasonable growth. I think it was RIO that I read were winding down iron ore production slightly on weaker orders but expect China to gear up in the first qtr next year.

Oil, I think will go down further into the 40's, probably early next year. When that happens and most major countries will be at pretty low interest rates at the same time, there has to be good potential for increased consumption (by volume at least) of all the basic commodities... and inflationary pressure as well.

With a country the size of China (not to mention India) and it's increased priority over the last year or so to increase local consumption, it's not difficult to see continued strong growth and an exponential shift in the world economic dynamic... ie China growing at around 10% for another three years and the US averaging 2 or 3 if theyre lucky. Not sure what the GDP no's are off the top of my head, but if China grows 25% more than the US in three years, that's gonna make them a force to be reckoned with.

I can't imagine oil going beserk again in that time. I got a feeling, what from all those 'star' signs, that we've probably got another month or two of lack lustre performance since gold is trending down in EUR and GBP but up in JPY, before something breaks substantially to the upside.

From my experience those 'star' signs are often good for 2 or 3 maybe up to 6 months.

 

[jeflin]

Hmm, gold prospects not looking bright in the short term. Futures drop as much as $16 in market pullback.

http://www.marketwatch.com/news/story/Gold-futures-drop-much-16/story.aspx?guid={AB36D21B-E980-4C96-B92A-916C3816B8BC}

 

[amory]

I am reading where Martin D. Weiss reckons hundreds of billions more will be needed to save GM, Fannie etc. any number of deductions can be drawn about the economy present & future, but what we are discussing is ... Gold Price - Where is it heading?

Jim Sinclair ... don't worry not an unkind word I promise ... reminds us that Gold is not a commodity, it's a currency. if that is so, all I want to know is what's keeping the USDollar (the fiat-currency as one likes to describe it) up & gold sliding down?

even on a day like this ... when the Dow is getting ready to finish down 200 points or more ... what has the POG got to say for itself? $16 down ...

I came across an interesting story on the above-named guru Mr Sinclair. apparently, he has been picking the highs & lows of the yellow metal successfully & profitably for several decades past ... no one knows more about gold than he does ... the last time gold was $1000 he sold right out, knowing that this was a peak for quite some time to come ... or so it says. proving beyond a doubt that he is gifted with enviable prescience.

maybe I ought to leave it there ... but there's a nagging feeling that when gold was over a thousand, the message to his disciples was ... This is it, CAGA's, you ain't seen nuttin' yet!

I may be mistaken, perhaps my memory is playing tricks ...

 

[cuttlefish]

Hmm, gold prospects not looking bright in the short term. Futures drop as much as $16 in market pullback.

http://www.marketwatch.com/news/story/Gold-futures-drop-much-16/story.aspx?guid={AB36D21B-E980-4C96-B92A-916C3816B8BC}

AUD fell as well so AUD gold price largely steady. So did gold fall or did the USD rise?

 

[cuttlefish]

Oil, I think will go down further into the 40's, probably early next year. When that happens and most major countries will be at pretty low interest rates at the same time, there has to be good potential for increased consumption (by volume at least) of all the basic commodities... and inflationary pressure as well.

While USD remains strong but their economy continues to decline I'd agree that the outlook for oil is to continue downward. But if the US starts to get debt related systemic problems continuing to appear in spite of the massive bailouts and credit loosening, capital injections etc. then we might see a significant new phase that could include hyperinflation.

 

[Ageo]

A$350 per kilogram?

Silver sold at A$486/kg (+ or - ) today.

Correct....... buying at a discount is always a good thing, i bought it off a pawn broker (1 of my customers) and alot of the time i come across pure bullion in both silver and gold.

 

[Wysiwyg]

Correct....... buying at a discount is always a good thing, i bought it off a pawn broker (1 of my customers) and alot of the time i come across pure bullion in both silver and gold.

Look at the price on ebay for a kilo of silver bullion.


You can buy it in a few minutes.