Thought I would share an interesting article on gold. No surprises, but seems to be an objective/fact based view vs. some other opinion-based articles I have read. Enjoy. And if you don't like/agree with it, please don't shoot the messenger. https://www.fidelity.com/viewpoints...-gets-hammered-in-2013?ccsource=email_monthly
And yet China, Singapore, and Hong Kong have not missed a beat as far as buying physical gold. (and We can`t forget about India`s use for it in the form of jewelry) This is both the banks as well as the individual. Sorry, but I do the eye and ear test when it comes to the PMs......and mine are telling me that the rhetoric coming from most brokerage houses is just pure crap......coming straight from the bulls butt. (or in this case, the "bears" butt)
So what exactly do you disagree with in the article? It wasn't even that bearish, the article was more of a summarization of what had already happened and a lite read on correlations. Also some mention of support levels. I really don't think that there is much meat in this article to have an issue with.
I agree. Basically a fluff piece updating a casual investor on what happened. No strong predictions of the future. It actually said that this might be a cyclical correction, which is bullish on gold. I do not see how any gold bug could view the article negatively, unless to that gold bug the only ACCEPTABLE article is how gold will go to the moon almost immediately, stay up there forever, his family will worship his name as the founder of the family gold fortune, and the local high school will hold annual parades in his honor forever, and anything else written about gold is simply anti-gold "propaganda". Sorry I went off the deep end there, but the point it gold is an asset. As an asset there are pros and cons, and anyone interested in the asset should listen to both sides of the discussion with an open mind, and not assume everything is "propoganda". Yes, there is vested interests trying to influence the price of basically everything. I agree there is a ton of negative stuff written against all pm, maybe from vested interests maybe not. But to assume everything not supporting your world view has to be wrong or tainted, I simply believe is a dangerous world view. You know what? I have been wrong more times than I can count. I have been majorly wrong with many investment ideas. Could I be wrong about pm at this monent? Of course. Maybe this IS a huge, never to be seen again chance in my lifetime to buy pm at these prices. However, the one thing I would say in my favor is I try to read and listen with an open mind. Its one thing to be wrong, everyone is, has been, and will be. However, if you refuse to listen to anything other than what supports your world view then you will ALWAYS stay wrong on those things. I simply do not mind being wrong in life, but I would hate to think I was too stubborn to ever learn and admit when I was wrong. Btw Hotpocket, we have a longstanding, honored tradition here on Cointalk of shooting messengers. Why should you be any different?
Sorry to bump this after nearly a week.....But to respond to the comments left. First, nowhere was I trashing the messenger, as nothing was directed to Hotpocket. I have seen some of the vitriol directed at people on here at times.....and it`s often over things that are quite petty. You won`t catch me trash talking or putting anybody down on this site for the sake of cheap ego satisfaction. Second, my issue with the article is no different than my issue with any article concerning gold in the last year or so.......Most ignore what is happening on a global scale and tend to focus on a more confined narrative. I tend to look at either PMs or stocks on a global level and appreciate reporting that is objective. So as this article is saying that gold`s "exuberance clearly began to dissipate"....ok....in its spot price sure.....nobody would deny that.....but what about physical demand on a global scale? That never missed a beat in other countries, as they flocked to the banks to purchase gold when it dipped. Funny how that fact was (and is) often ignored and seldom being mentioned by most brokerage houses.
What about the physical demand for Gold Globally? It wasn't enough to move the needle was it? I am trying understand your point about the Global view you are taking, but you are talking about the LOCAL markets of China, Hong Kong, and Singapore.
That`s exactly the point. When We see demand increase on the dips and the price still hovers around $1200.....That basically makes no sense. When a bank such as Goldman Sachs has various analysts appearing on the financial networks talking about how the bubble is burst, and how gold is on "life support".....yet Goldman themselves increased their holdings.....is something not strange? Usually as demand either increases or remains steady, a stock and or commodity will not have a drastic dip as what We saw with gold and silver. Physical demand does not seem to be a true reflection of the spot price. (but one could say the same about the markets as a whole)
I guess my first thoughts sir would be: 1. Are we very sure of this high worldwide demand? I know the pm press likes to talk about it a lot, but I haven't seen any firm international numbers year on year to back it up. Maybe you have such a link. 2. What about supply? Has the higher prices encouraged higher production? Supply is just as important as demand, right? Yes, markets can be manipulated. I simply, (some may say simplistically), view it as a commodity driven high by cheap interest and lack of yield elsewhere, and now yields are up in other investments a lot of hot money has moved on. This has forced a correction in the price. I never trust what the talking heads say, pro or con, since all have an agenda.
That article is just like all the others, and the ones about silver are all the same. It doesn't matter whether they are bullish or bearish, its mostly all rubbish; a bunch of words strung together using pm buzz words. How do these authors get paid to write all this drivel? Charts and nonsense is all they are.
Here`s one that was from last Nov. http://www.reuters.com/article/2013/11/20/gold-mine-output-idUSL5N0J44T720131120
Howdy folks, I don't see anything wrong with the article - he was simply reporting what had happened over the past year with the POG asking if indeed, this was the end of the bull market or not. I'm a coin collector and a momentum investor. That said, I firmly believe everyone should have some percentage of their wealth in physical gold and silver - say 5-10%. More than this is speculation and while that's fine, just be sure you are aware of it. Because of collecting coins for over 50 years, I was able to spot the breakout back in 2002/3 and proceeded to back up the truck. I had helped to pay for my college with silver sales into the Hunt Bros run back in the late 70's so this was not new ground. It was however, an opportunity to play more actively than selling 90% silver coinage I had bought out of the cash register back in the early 70's. I was able to buy mutual funds and stocks and ETFs - oh my! I was able to buy Silver Wheaton SLW in the $2s and watch it go over $40. I cut back my speculative momentum play when things started breaking down a couple of years back. You like to ride the train up the mountain, but riding it back down sucks. Back in the fall, silver hit some amazing lows and folks around here (myself included) started buying again. I started to ramp up my basic paper holdings, bought some annual issues, some hockey pucks, my annual ASEs, etc. I also started watching the miners, particularly the silver miners as they seem to have much more leverage and therefore greater profit potential. I started with some PAAS because it pays a dividend. Now I've been scaling into positions with some silver mining penny stocks. Very much nose bleed stuff and not for the weak at heart. Plays I have on right now include MGN, ASM, SLTOF and HUSIF. The momentum is very good and I'm scaling in. I guess the bottom line is I have no idea where the POG or POS is going to go to - how high? how low? At this moment in time there is positive momentum in gold and silver and particularly in their mining stocks. I'm going to play it and make some money and really don't care who says the market is going up or down. The talking heads do not matter. The only person that matters on the planet is Captain Price (i.e. what is the price of bullion doing - both paper and physical).
