As for the action in gold priced in AUD: a nice kick in USD price gold combined with some indecision in the AUDUSD markets provided a moderately bullish test/bounce from the 40 day breakout event earlier this week. Event test/bounce can be a good low risk swing entry (especially combined with the inside bar present), if you are into that sort of thing. Otherwise it is only a modest bullish confirmation, without penetrating the prior days high. Resistance at 1673-5ish only leads to more resistance. A lot of work to push into the 1760-1830 range, where even more work is required to generate a serious breakout without faltering. Supports remain unchanged, aside from short term support/swing low which developed last night on the event test.
But Tinhat that is actually my point. Just because something is a reasonable investment, super, gold, whatever doesn't make it a better investment than what I'm doing.
You think paying money from my business capital which is taxed @ 30% yet completely free for me to do as I please, into a restricted fund for 30 years which I cannot use for my business to be taxed at 15% and earn a reduced return is wise? Its not, not on the numbers alone let alone the fact that the money is not mine for 30 to god knows how long years.
And thats my point about gold/silver "investment" it may be/may have been a good investment, its just that I believe it will not be the best investment for my business capital.
Not yet.
Gold fell as much as $100 to below $1,700 an ounce on signs that that the Federal Reserve will refrain from offering more monetary stimulus to bolster the U.S. economy.
In testimony before Congress today, Fed Chairman Ben S. Bernanke gave no signal that the central bank will take new steps to boost liquidity. The dollar rose as much as 0.8 percent against a basket of major currencies, eroding the appeal of the precious metal as an alternative investment. Yesterday, gold reached $1,792.70 an ounce, a three-month high.
“People were expecting that the Fed would loosen policies, even if the perception is that the economy is doing well,” James Dailey, who manages $215 million at TEAM Financial Management LLC in Harrisburg, Pennsylvania, said in a telephone interview. “The investor sentiment changed as the Fed committed to nothing. This is the manic nature of the market.”
In electronic trading on the Comex in New York, gold futures for April delivery fell $91.40, or 5.1 percent, to $1,697 at 4:39 p.m., compared with yesterday’s settlement. Earlier, the price tumbled as much as $100, or 5.6 percent, to $1,688.40, the lowest for a most-active contract since Jan. 25.
I cannot be super bullish GOLD while thinking the AUD is still in a long term uptrend. To me one and the same trend.
The charts are misleading to a degree. A commodities will double/triple etc with ease relative to a currency. The fact that AUD has held up against "a basket" of products is the important thing to me. As I don't need to buy gold with my AUD but I certainly do need to buy a basket of other products.The AUD isn't in a long term up trend against everything, in fact AUD has been in a long term down trend of the very asset class this thread is about!
You can see that while gold and the AUD used to be "one and the same thing" (high component correlation=narrow trading band of the component ratio), that has long since changed.
The charts are misleading to a degree. A commodities will double/triple etc with ease relative to a currency. The fact that AUD has held up against "a basket" of products is the important thing to me. As I don't need to buy gold with my AUD but I certainly do need to buy a basket of other products.
Thats the trend that important to me. Which I still think there is a correlation of sorts there.
As I don't need to buy gold with my AUD but I certainly do need to buy a basket of other products.
As I don't need to buy gold with my AUD but I certainly do need to buy a basket of other products.
Thats the trend that important to me. Which I still think there is a correlation of sorts there.
Oh I got some of the action. Just without the cost or risk of holding long term bullion. Thats is my point. Not holding bullion up to this point could be the best way to trade the gold trend.Yes, but if you were looking at a chart or the price action and didn't know or care that it was gold and you didn't get some of that action then you have missed the trend because of your aversion to g-o-l-d?
This is where my " aversion to g-o-l-d" comes from. The reporting of "events" just never ring true in fact ring closer to BS than real events. So in that hour there was 90,000 contracts sold, just so happens that thats about 31 tonnes. So there was only 1 seller? LOL!!!Wednesday’s sell off is being attributed to one massive sell trade of 31 tonnes on the Chicago Mercantile Exchange during Bernanke’s speech. There are rumours of a large US fund selling and also that the selling may have been by JP Morgan – rumoured to be acting on behalf of an Asian fund.
Well this I can agree on technically long term nothing much has changed. And open interest hardly moved, just a decrease of 1% (just 13 tonnes).Absolutely nothing has changed regarding the fundamentals of gold which remain as sound as ever with broad based demand from store of wealth buyers, institutions and central banks internationally and especially in Asia. Good volumes have been seen on the Shanghai Gold Exchange in recent days.
TheAppleInvestor has a look at Gold and Silver futures + risk....
Gold and Silver Hedge Too Risky
http://goldsilver.com/news/guest-post-warren-buffett-priced-in-gold/ ---> LOL!
Gold is a managed market... period, end of story. It is the political metal, to think otherwise is tooth fairy stuff
'Not yet' maybe closer than you think - time to lock in your gains in fiat with some hot & heavy physical?And thats my point about gold/silver "investment" it may be/may have been a good investment, its just that I believe it will not be the best investment for my business capital.
Not yet
How can it be "Peak Capitalism" when we have not had "Capitalism" for many, many decades?
This is Crony Capitalism failing due to too much political influence in the economy, these failures ultimately lay at governments feet.... LOL, the US is closer to a Fascist State than it is a Capitalist one!
Maybe you need to look at some better charts.That chart was interesting in that I continually come across several similar charts that seem to indicate that 'peak capitalism' occurred around the year 2000-2001 and that what we have had since is just an attempt to keep the fiat ponzi scheme continuing. It also coincides with the rise of gold as an alternative?
And TH, that bit at the end of one of your posts -
'Not yet' maybe closer than you think - time to lock in your gains in fiat with some hot & heavy physical?
Well that would make a good discussion. But what would be a sign to swap from paper gold(COMEX) with tiny cost, easy trade-ability ,leverage and a perfect correlation to physical?? All things that bullion have not got and with spreads like these will lock you into a trade.
View attachment 46324
look at the spread on silver!! Is that a joke?
Not sure where your prices are from, but if you know the right people/companies you can get better ie 500gms @ 2.8%?
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