Gold Price - Where is it heading?

[Uncle Festivus]

Also putting faith in the BDI.

Have seen lots of articles recently pointing out weaknesses in the recent rally on the BDI. Here is one

http://in.reuters.com/article/businessNews/idINIndia-37917720090209

Snippet

Yes, rebounding briliantly to ...... about where the shipping companies are breaking even? World trade has fallen off a cliff.

 

[Page]

Gold prices are still to move towards their lifetime highs as this movement in Gold is going to affect the Dollar price.

 

[explod]

Tut tut there guys. It has been a long haul and maybe a bit to go yet and who knows anyway, the chart (end result will determine all)

On an inflation adjusted basis gold is about US$2,500 below its average price of 1980, so I think with the institutional interest in gold now taking place that Sinclair will probably win his bet hands down.

Anyway the fundamental information has indicated to me for 12 months now that gold is going to big heights starting about mid March this year.

We will wait and see, and of course follow accordingly.

 

[Page]

If we talk about Gold it is soon going to touch the $1000 mark after touching the 1000 mark we can see dip in this precious metal, which might come till $850-$890/oz.

 

[Uncle Festivus]

New record? Just touched $AU1500! Woo Hoo

 

[Glen48]

With China in recession and Japan in depression Gold can only keep going up.

The AUD down as they are our 2 biggest trading partners.

 

[electronicmaster]

New record? Just touched $AU1500! Woo Hoo

This is just the beginning

yeahaw

 

[GumbyLearner]

This is just the beginning

yeahaw

Just wait!

 

[explod]

Just wait!

No

$1503.37


Yeeeeeeeeeeeeeeeeeeeeeeeeee Haaaaaaaaaaaaaaaaaaaaaaaaa


I'm with you Uncle

 

[electronicmaster]

There has to be some sort of correction later. It will go up past $1500 AUD again later. So enjoy the ride.

 

[sinner]

Hi guys,

We have liftoff out of the gold trading range top side again like mid-Dec but last time this happened profit takers stepped in. We will see whether this is the bottom of the super cannon I mentioned earlier (which means enough steady hands who aren't interested in selling have moved in) or just more of the same.

Gold is having a beautiful correlation to USD/JPY tonight. I do not have time to post charts of this evenings action but if you go check out Mish's recent article "You can't fool gold" he has included some candlesticks to demonstrate this! Full credit to amory for spotting it earlier! Fast movers could make a buck tonight using one as the leading indicator for the other. Just don't pick the wrong one!

I am very concerned about the price action I have seen on a lot of currency pairs since waking up at about 2pm. There is extreme volatility in the moves and have seen those more knowledgeable than I warning of this on other forex sites tonight.

The move up in gold outside the trading range last occurred during the Israeli/Hamas conflict if I am not mistaken, so tonight's move through technical constraints worries me further.

I will probably be taking a long on the VIX tonight in anticipation of some crazy market action in the next few weeks/months. If there is, this should hopefully hedge against any negative action against the gold miners if there is a "baby out with the bathwater" type scenario happening. Also tempted to take some shorts on the more exotic instruments like LQDE and similar but will probably concentrate on a good entry into VIX.

 

[Wysiwyg]

Hi guys,

We have liftoff out of the gold trading range top side again like mid-Dec but last time this happened profit takers stepped in. We will see whether this is the bottom of the super cannon I mentioned earlier (which means enough steady hands who aren't interested in selling have moved in) or just more of the same.

Yer right on the gold grab going off.Remind me never to short sell against gold fanatics.Ouch.

 

[electronicmaster]

I think people know that the cash is trash now. I think most will hold.

And yea, people in the know are getting very worried about the currency movements. Some are shaking in their boots. I'm not kidding.

 

[arminius]

I think people know that the cash is trash now. I think most will hold.

And yea, people in the know are getting very worried about the currency movements. Some are shaking in their boots. I'm not kidding.

sorry to ask this, but could someone explain, in laymans terms, why this is so?
what are the wider ramifications?

 

[aleckara]

sorry to ask this, but could someone explain, in laymans terms, why this is so?
what are the wider ramifications?

Well cash isn't bad yet.... but there is a possibility that it could be so. It all depends on what the central banks do, and a lot of people are predicting more cash to be printed particularly by the US and the UK in order to "inflate" their debts away. This means of course the erosion of cash holders wealth.

Since houses the traditional inflation hedge has been overbuilt the best next thing would be precious metals.

Not to mention that as something tangible it is a safe haven in these times.

I'm not sure now where the price will head in the short or long term. I think the markets are pricing in increased risk of this scenario.

 

[electronicmaster]

Well cash isn't bad yet.... but there is a possibility that it could be so. It all depends on what the central banks do, and a lot of people are predicting more cash to be printed particularly by the US and the UK in order to "inflate" their debts away. This means of course the erosion of cash holders wealth.

Since houses the traditional inflation hedge has been overbuilt the best next thing would be precious metals.

Not to mention that as something tangible it is a safe haven in these times.

I'm not sure now where the price will head in the short or long term. I think the markets are pricing in increased risk of this scenario.

This is correct. The USA has over 2 Trillion Dollars cash injected into the money supply. And the interest rates is now extremely low. The whole world is printing money as well at the same time. This makes currency worthless over time.

Currently we are in the deflationary stage, and that is when you buy PM's.

Also, we are living in uncharted territory. Never before has the World experienced anything like this economic crises.

Germany before WW2, was forced to do the same thing under a treaty agreement. A treaty agreement that destroyed them. And now, We are seeing the USA volunteering to do same idea without having any such treaty

The whole world is going to be effected one way or another.

No one can predict the future.

So people are buying PM's

 

[electronicmaster]

Well both Gold and Silver have had a massive run in the last 24 hours.

I have never seen big moves like this this year at all. See for yourself.

gold-price

silver-price-per-ounce

I'm expecting a correction, but the fundamentals might win the day in the end.

 

[cuttlefish]

Hello everyone, I have no interest in Gold other than a few mining companies in my index fund but when I read this I thought of this thread so here it is. Please read with open mind and don't shoot the messenger.

Shorting Gold: 12 Reasons Making The Case For This Contrarian Investment

But for those of you with an open mind - especially after my last three contrarian predictions proved dead accurate, read on.

Because it’s time to start shorting gold!

You won’t find many, if anyone else, making this case. But as the first reason of 12 below reveals, that’s precisely why you should give it more credence.

CLICK HERE FOR THE FULL ARTICLE

My view is that if we are in for a 'gold rush' then it hasn't even started yet. It is dangerous to stand in front of stampeding bulls. The time to short gold is when its clearly broken this bullish run - blow off tops on massive volume created by 'mum's and dad's' selling their house and putting it all into physical gold etc. I agree we're starting to see it mentioned more in the financial media and that analysts are starting to become bullish on it, but we don't have Jamie Durie out there on prime time with his metal detector yet doinig 'gold prospectors blitz' so still a ways to go imo. And a lot of people are 'talking' about buying gold - but how many have actually gone out and bought some of the real physical stuff in any kind of quantities.

The other side to look at is the fundamentals. Governments have gone completely insane with the money printing. When a government thinks that handing out $12 billion in cash handouts is a good idea (or whatever the ridiculous figure is in Australia) then our dollar is potentially headed for serious trouble. Forget the US situation - I'd be putting some gold in the portfolio purely to hedge against a potential AUD collapse. Yen or USD are the other choices but there is only bad news coming out of both of those economies and the US is printing dollars like confetti.

Shorting gold right now is a pretty brave move imo - it is still only around 20 year old highs - it can go to the moon before coming back if people catch the fever.

 

[cuttlefish]

Had a quick look at cash4gold.com (mentioned in the article BillM posted). They are a gold buyer not gold seller - so they're encouraging people to sell gold to them, not buy gold from them.

 

[CamKawa]

I agree we're starting to see it mentioned more in the financial media and that analysts are starting to become bullish on it, but we don't have Jamie Durie out there on prime time with his metal detector yet doinig 'gold prospectors blitz' so still a ways to go imo.

LOL I like that comment.