... same arguments still rage. Fundamentals still haven't changed. ....Glad to hold my gold.
.......and well-timed sell orders. Down 20 right on 11?
general consensus opines on QE:
gold is going up because (a) Fed is running QE
gold is going up because (a) Fed is ending QE
gold was 1900 now close to 1200 .......hows that working, exactly?
FOA (8/22/01; 05:18:54MT - usagold.com msg#98)
The war between gold and the dollar has been over for a while now. The action, today, is between the dollar and the euro arena and this is what will break the price lock on gold. Leaving gold bugs with a lot of questions that ask why this: both systems will strive for a higher currency price for gold; one doing it because they have to; the other doing it because they want to! The casualty on this battlefield will be the world gold market as we know it.
None of the above? The Fed is running QE to proportionally take up the job of recycling USD from countries where the current account surplus is declining!
in your opinion, of course ......how exactly does that enable a trade, up or down?
IMHO, of course, since that is what you asked for.
It doesn't enable a trade, but it does enable an understanding of the market, which allows you to trade as you please.
i.e.
1. Prior to launch of the Euro in 1999, Europe ran a current account surplus and used this real productivity to provide structural support for the USD (recycling those USD into USD denominated financial assets)
2. After the launch of the Euro this structural support was wound down, but the Asian/EM economies picked up the slack, using their real current accounts surplus to buy and recycle into USD.
3. Current account surplus are declining in Asian/EM economies since the GFC, even becoming deficit in some cases. So there is less real productivity with which to recycle USD.
4. But still, some of these Asian/EM block are still deferring consumption, but into physical gold, not USD (these CBs have been large buyers for the last 5Y)
5. The Fed has proportionally taken up the job of recycling those USD.
6. Since the recycling is not being done on the back of real productivity anymore, along with some real global productivity being deferred into physical vaulted gold, all of those USD are heading home, whether the Fed likes it or not.
This is simply a Balance of Payments/accounting fact.
"Trade" off this basis as you wish. My play is relatively simple, and that is to defer some of my real productivity into physical gold, ala "The Central Bank of Sinner".
ah, so, you'd agree that, if we throw all that supposition aside, a trade can be made.....
trade opinion or trade price
Awesome, here I was thinking we were trying to have a real discussion, but actually you just wanted to make a generic point at the expense of goldbugs.
I'll leave you to it.
lol....thanks....the point is for the gain of someone who is thinking about trading gold as opposed to someone emotionally tied to the logic of holding gold.....
So does JPM have a gold delivery problem or not?
link http://au.businessinsider.com/gold-open-interest-shows-bubble-2013-6
The Chart That Best Illustrates How Gold Was A Bubble
Matthew Boesler Today 4:55 AM
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