Gold Price - Where is it heading?

[qldfrog]

Selecting the gold producers that will more likely to go higher in this gold rally is more art than science (luck?). I initially thought that the low cost high margin producers would be the ones to buy. Heard recently, Rick Rule mentioned that the gold miners that would profit more from this gold rally would be the low margin miners. This is likely because the low margin producers will see larger percentage increases in their margins when compared to the high margin producers.

The easiest method to make sure we're holding some of the faster rallying stocks is to buy lots of different gold miners.

ETFs..often if not always better than own mix of winners/loosers

 

[barney]

the low margin producers will see larger percentage increases in their margins when compared to the high margin producers.

I own quite a few BCN (Beacon), who kind of fit the parameters of your thoughts Pete? With that in mind, I hope your analysis is correct!

 

[DaveTrade]

GLD has closed at 215.14 on Friday and as you can see on the chart, it's a long way down to the 50sma which is down around 195. It's climbed so fast that it's now flying in very thin air, the amazing thing for me is that I can't see any sign of it stopping yet. I know that a pullback is coming but this may be a situation where I rely on my trailing stop.

 

[Sean K]

GLD has closed at 215.14 on Friday and as you can see on the chart, it's a long way down to the 50sma which is down around 195. It's climbed so fast that it's now flying in very thin air, the amazing thing for me is that I can't see any sign of it stopping yet. I know that a pullback is coming but this may be a situation where I rely on my trailing stop.
View attachment 174252

Depends on short term or longer term trading / investing plans. We dived into PMs months and years ago knowing this would happen. Anyone following our longer term outlook on gold needs to make a decision. To sell at a significant profit or take risk.

 

[DaveTrade]

Depends on short term or longer term trading / investing plans. We dived into PMs months and years ago knowing this would happen. Anyone following our longer term outlook on gold needs to make a decision. To sell at a significant profit or take risk.

The evidence, much of which has been presented by members of this forum, suggests that gold should go much higher but I like to ride the individual waves. Maybe it's in my nature as I am a surfer.

 

[ducati916]

Qatar moving to sell energy for CNY and Gold: https://eastasiaforum.org/2024/01/17/chinese-yuan-gains-currency-in-the-gulf-states/

Buying gold:



The oil states want a higher gold price because it means that inflation can reprice in gold rather than energy. When the cost of energy gets too high, people start to starve, industry breaks down, etc.

The POG can never get too high as gold (other than jewellery) is not used for anything, therefore causes no issues (other than to the USD). Inflation can leak into gold harmlessly.

As more and more countries buy energy in their own currency (bypassing USD) so their own currencies inflate (lose value) but they can print more to buy gold also, which drives the POG higher. While energy is required, POG will move higher as it is absorbing the inflationary pressures.

Yellen meanwhile has an $800B warchest to fight liquidity issues with: the TGA.

Apparently, there were questions as to the legality of using this to supply liquidity:



So this is a definite BTD in stocks. That liquidity will calm the UST market at least for a short period, so Thunderbirds are go!

Meanwhile Yellen is off to China to try and talk the USD lower and the CNY higher.

But most importantly for gold, Yellen is now aware (thinking) that the US need to settle trade deficits in gold, rather than UST: Meanwhile, the explosion higher is yet to come: the USD repricing against gold. The US frantically need a weaker USD. Historically it has been revalued against gold. It will be again.






No more thank-you notes. Gold. Do as China and others are doing. Print USD buy gold. But to start the ball rolling, revalue the USD as against your (alleged) 8000 tons or tonnes, either way it's a lot.

Now as markets start to appreciate what's on the cards, what happens to POG? Probably no significant pullbacks. There could be some really big days +$500/day moves. The big one will be the revaluation, which will happen at the w/e on a Sunday night, where there is no chance to get into gold until it's too late.

jog on
duc

 

[Sean K]

Now as markets start to appreciate what's on the cards, what happens to POG? Probably no significant pullbacks. There could be some really big days +$500/day moves. The big one will be the revaluation, which will happen at the w/e on a Sunday night, where there is no chance to get into gold until it's too late.

jog on
duc

I'm holding you to $500 day moves ducati. Next Sunday night, thanks.

 

[Garpal Gumnut]

Many do not have the patience to follow Gold long term. As a result they are missing out on large profits. It is tempting to take profits in Gold after 10% or 15% moves in the precious metal.

This chart is important as many such as I who have been accumulating Gold since the late 1970's may be tempted to take early profits expecting a retrace during which to "buy back in". This may be unwise. A 5 year chart should be the minimum time frame in which to assess exit points.




The chart enclosed shows the five years from just a few moments ago. There was a $700 move in 2018 to early 2021. Taking the recent low at $1800 I would expect a minimum of $2500 to be easily achievable. Longer term charts are much more generous. Patience rewards.

Given the geopolitical situation this may be a very conservative expectation. Selling Gold should only occur for need events such as taking another wife ( or convincing the present one to stay as appropriate ), or a new number restricted Mont Blanc pen.

gg

 

[finicky]

This may be unwise. A 5 year chart should be the minimum time frame in which to assess exit points

Yeah this is a sea change. Forget the daily chart and watch the monthly long term.

 

[rcw1]

Good morning
Perhaps also rely upon one's own knowledge and experience ...

or maybe not...

Have a very good day, today.

Kind regards
rcw1

 

[finicky]

Perhaps also rely upon one's own knowledge and experience ...

This is one of the times for the praxis of a few axioms that I have painstakingly fashioned from gruelling experience. Sorry to quote myself:

1. “Money is made by sitting, not trading.”

2. “It was never my thinking that made the big money for me, it always was sitting.”

3. “Nobody can catch can catch all the fluctuations

4. "Buy right, sit tight"

 

[ducati916]

This is one of the times for the praxis of a few axioms that I have painstakingly fashioned from gruelling experience. Sorry to quote myself:

1. “Money is made by sitting, not trading.”

2. “It was never my thinking that made the big money for me, it always was sitting.”

REMINISCENCES OF A STOCK OPERATOR by Edwin Lefèvre Brand NEW Hardcover 9780471059684 | eBay

Gift Quality.

www.ebay.com

Well worth the read.

jog on
duc

 

[peter2]

So this is a definite BTD in stocks.

Bold

Thunderbirds are go!

Bolder.

Probably no significant pullbacks. There could be some really big days +$500/day moves.

Boldest.

 

[rcw1]

This is one of the times for the praxis of a few axioms that I have painstakingly fashioned from gruelling experience. Sorry to quote myself:

1. “Money is made by sitting, not trading.”

2. “It was never my thinking that made the big money for me, it always was sitting.”

3. “Nobody can catch can catch all the fluctuations

4. "Buy right, sit tight"

Hello finicky
Nice work.

5. Gold is money. Everything else is credit (J P Morgan 1912)

ha ha ha ha ha ha haha

Have a very nice evening.

Kind regards
rcw1

 

[Sean K]

Bloody hell, where's the consolidation?

 

[rcw1]

Bloody hell, where's the consolidation?

View attachment 174415

US$2376 ... and not all over red rover just yet, reckon.
How good it that!!!

Kind regards
rcw1

 

[DaveTrade]

Bloody hell, where's the consolidation?

As the Italians say 'forgetaboutit'.

 

[greggles]

Costco in the US is estimated to be selling up to US$200 million in gold bars a month. That's about 85,000 ounces of gold per month, and that's just one retailer. One wonders how much is being sold each month in total across the globe. Gold sales must be huge at the moment. Does anyone know where to find global gold sales statistics?

https://www.cnbc.com/2024/04/09/costco-selling-up-to-200-million-in-gold-bars-a-month-wells-fargo-estimates.html

 

[rcw1]

Good morning
onwards and upwards.

 

[Garpal Gumnut]

The closer to the weekend we get the tastier Gold looks. Steady as Gold goes.



gg