My produce man told me to buy gold is it time to sell?

I'm selling 30% at $1100.

 

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[COMMENT]Don't pay attention to what the goldbugs say. Don't pay attention to what the anti-gold crowd says. Pick a few indicators and watch them. Look at long term trend lines. Watch the dollar index.[/COMMENT]

Exactly, Gold is very tricky to value given it's tie to the Dollar. Given that the Dollar is weak Gold is strong --- runs inverse to one another. Makes sense given that most industrialized countries use Gold as a financial reserve to hedge against currencies.

Gold is whacky in that it is also used by various industries and then of course it's major use in jewelry... But, the price isn't based on supply/demand of it's actual use, but on it's economic value based on the strength/weakness of currencies. The problem with this is that it's not just the US $ that you are gaming, but the big players around the world.

 

I just sold 5% at $1068.45 today! Never hurts to take some profit off the table!

 

Didn't you know the gov is going to encode the data, so only government GPS will work?

I hope I am kidding !


Jim

 

My thoughts are: If you need dollars to buy stuff, sell some gold. If you have extra dollars that you want protect from devaluation, buy gold. If the dollar becomes worth .50 cents, the price of gold will have doubled, since it is priced in US dollars. The weaker the dollar, the more of 'em it takes to buy gold. They have been closely tied together for quite awhile now.

 

It worries me a little that jewelry demand is down, given that it's 70% of the market for gold. A key unanswerable question is whether the increased investment demand is coming from fear or from greed. If it's greed, we're in a bubble, though maybe in the early stages.

Then there's the relativity problem: do you interpret the price rise as gold going up, or as the dollar going down? The fundamentals on gold are mixed, the fundamentals on the dollar are consistent.

The comment above about watching oil prices is insightful. One estimate is that 40% of the cost of mined gold is the diesel to move all that dirt around.

 

I'm thinking that the price of gold is not going up...it's simply reflecting the weakness of the dollar. Kinda like oil, which is also priced in US dollars.

 

I think people are viewing gold as long term investment, because they think it is safer than stocks right now. People thought mutual funds were a very safe play not too long ago, but most I talk to don't really know or understand they just heard it from somebody else and repeated it. Because they could not explain why they felt it was safer they just don't understand how many investment vehicles are tied in toghether and how they affect each other. And yes devaluation of the dollar will drive the price of commodities up.

 

Too bad all the people who know how to run this country are busy running taxicabs or cutting hair.

George Burns

 

if you think and would like to play gold. buy and sell gold stock. do not use physical gold for playing. you might lose money. why?. you going to lose huge mark up, shipping and handling cost, packing, time and so forth. some even have to pay sales tax. physical gold are for long term investment and/or collection.

 

Who in their right mind is talking about the recession being over and the dollar strengthening? This is absolutely false. The talking heads from the government want people to believe that

 

I agree. I don't think many people will be successful trying to swing-trade physical gold coins and bars.

 

Sound advice elaine/Cloud. I too agree with this approach.

 

:thumb: +1

 

I would think it would be close, Iam not sure how much higher Gold can go
It just seems to me, Its near the top, Gold coins such as St.Gaudens or
Liberties have numismatic value in addition, I would hold on to these

 

At some point I hope the price of gold tanks...so the FS coin mintages max out and the ones I bought this year and last go up, Up, UP!

Either way...I ain't turing my back on the "little ladies".

 

You guys see this article? Scary........


http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=8039

 

Yes, Very!!

 

Thanks green. That's certainly an eye opener about the faked bars in central banks and all the ramifications that could come of such matters addressed in this article. I'm sure that audits are an expensive pain in the butt and since the US is reported to do audit on gold in its possession very infrequently, it would be a good campaign to rest concerns that the public may be having that the reserves here were 100% authentic and accounted for.

 

The fake bars are a concern for large buyers, but the rest of the article seems overstated to me. It sounds to me like the banks got caught in a good old fashioned short squeeze, probably by some players who had good intelligence that they were naked shorts, and perhaps with the collusion of some other large players who agreed in advance not to bail out the shorts by loaning their gold. It is also pointless to worry about all of the gold being bought-up. It's already bought-up in the sense that somebody owns every ounce. If they mean it in the sense that gold is moving from weak hands to strong hands, then I agree, but it doesn't seem to be something to worry about.