Next Level: GOLD $1,350.00

GOLD??

Damn! I always get sloppy seconds... (silver)

 

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Buying PMs right now is a bit premature. 1Q10 should be interesting though.

 

I'm dreaming of a gold Christmas,
just like the one I used to know.

Where the greenbacks are slippin'
and pundits are regretting,
that gold's, not in their portfolio...


Thank you thank you, I bow I bow.... hya:

 

gold ETF is second largest valued ETF in existence according to news. plently of infomercials about buy gold or shipping us your old jewelry.

Sound like the housing bubble to me...

sorry, but I would be a little more cautious

Lack

 

It always amuses me that people actually believe that JUST because the masses are headed one direction, that they should go the other. If everyone is running away from a fire, should you run to it?

I think you analyze the data and make an assumption and 'ignore' what the general population is doing. I say 'ignore' because you do have to consider momentum, but thats as much a pull up as the contrarians say its time to run the other way.

 

I for one am glad to see the prices going down.Maybe we will see sub $900 (we can wish can't we)

 

well suspending all reality and if you're just wishing why stop at sub $900 :mouth:

 

Gold currently at $1,133.90/oz. in Asian trading

 

I think this may very well be the bottom. The prognosticators are amazed that ETFs aren't all selling in a panic (as they would have in the past). I predict that many of those ETF acquisitions are long term holders....and that many of the old rules are "off the table" given a new class of investors. Personally....if I lost my butt on stocks, the LAST thing I would accept is "paper gold".

The guys who have been around this stuff a lot longer than I have may have the last laugh at my expense if I'm wrong, but nothing has changed in the fundamentals that drive PM prices up. The dollar is still weak...and will continue to be weak. Out of control spending continues, banks aren't lending, which to me suggests that they aren't nearly as solvent as they would like you to believe. The stocks may move up a bit here and there, but people are finding a place where they can get out (where their losses are easier to swallow)...and they are getting out.

New players...new rules.

At this level for awhile...or trending up again from this point is my guess. And yes...it's just a guess. I thought when the unemployment numbers were released that the dip would be short and shallow. We'll see what happens. I don't intend to sell anytime in the near future, but it's interesting to watch just the same.

Nightowl

 

Gold currently at $1,135.50/oz. in Asian trading

 

Ignoring supply and demand for the moment (but we really shouldn't), GOLD seems to be fundamentally driven by the fear of inflation. Inflation and a weaker dollar go hand in hand. Weaker dollar means the US$ is not an attractive reserve currency. There is no heir apparent (not the Yuan or Euro or Aussie -- yet).

So the fundamental question is "Will there be inflation?" The Feds want SOME inflation to get us out of the RECESSION. They promise to tighten monetary policy as appropriate and there really is no reason to think they won't. The big question is how long it will take for us to get out of this RECESSION. The longer it goes, the more US debt. The more US debt, the more we have to sell dollars, driving down the dollar and creating inflation. Some have even said that the only way we will pay off a $20 trillion debt is to inflate our way out.

SO....a recovery in 2010 hurts the chances of GOLD going up -- but it also means things are better and our dollar has a better chance of doing well. Bet all on cash or US denominated equity/debt and you lose in a protracted recession. Bet it all on GOLD and you lose in a V shaped recovery.

Then there is supply/demand....is supply diminishing? Is demand going to increase due to (1) fear, (2) greater world affluence? Clearly, LONG TERM we will run out of GOLD and more people will be able to afford gold jewelery, etc..A reasonable bet is that LONG TERM will occur within the next 200 years...probably before that....but how much sooner?

Answer the questions above correctly and you can make some money going long or short on GOLD.

 

Gold currently at $1,136.20/oz. in Asian trading

 

There already has been substantial inflation. It just hasn't shown up in consumer prices yet because the velocity of money is down. Also, any economic philosophy that espouses the belief that some inflation is good is fundamentally flawed.

 

Good point, I should have said "continued inflation". As Churchill said (paraphrasing) "Democracy and capitlisim are not perfect, but they are the best we have". There is a natural tendency in capitalism for inflation. Producers raise their prices to test the supply/demand equilibrium, consumers do so as well -- obviously they both of different buying power depending on the state of the economy. As long as real buying power remains relatively constant, its all a paper game. With globalization, this has gotten all the more complicated because all of the markets are interrelated and many have found ways of arbitraging the differences.

 

Absolutely! However the top shot caller Ben Bernanke says there will be no inflation. For whatever reason the American public seems to take what he says as gospel!!

JMO but he needs a good slapping on the back of the head!! I've noticed quite a bit of inflation. Nowadays it seems if the price of gas doesn't change for 1 quarter idiots at the top think everything is coming up roses!! Idiots!!

 

Because the average person still believes in wall street. Let's face it, the DOW has not crashed yet....it's holding very well, even if you believe it's only because of the stimulus that some stocks are up. In any event, as long as people see the DOW with a green up arrow next to it, it's all rosey...

 

I believe Churchill was wrong. The Founding Fathers spoke out numerous times about the dangers of democracy, which is why they rejected it in favor of establishing a republic. And "capitalism" is too broad a term to say whether or not it is "best." If you are talking about state-sponsored capitalism or cronie capitalism or oligarchical capitalism, or corporate capitalism, then I would say it is not best. If you are talking about free enterprise capitalism, then it is best by test. And there is no tendency in capitalism toward inflation. Just the opposite -- there is a tendency toward deflation and the appreciation in purchasing power as manufacturing becomes more productive. Inflation is always and everywhere bad.

 

Keep on dropping baby....keep on dropping!!!!

 

I'm a gold bug, and I'm real happy to see the price of the dollar rise. I'm not selling dollars for gold, but I am buying some stocks. I'd love to see gold go under $1,000. People who own gold and celebrate when gold goes up are not gold bugs, they measure value with the dollar. Gold bugs measure value in terms of gold.

 

$1115.60 right now....