Gold Expert: Sell, Sell, Sell

http://moneynews.newsmax.com/streettalk/gold/2009/09/15/260278.htmlTuesday, September 15, 2009 11:28 AM

By: Dan Weil Article Font Size
One of London’s leading gold experts has urged his clients to dump their gold and silver holdings.

John Reade, an analyst at UBS, told investors to erase all their positions until the latest upward price surge ends, Ambrose Evans-Pritchard writes in the London Telegraph. Last week, gold ran up to $1,011 an ounce, not far from 2008’s record high of $1,030.

Gold has climbed amid the dollar’s drop to a one-year low.

Reade says futures contracts on New York's Comex exchange are flashing warning signals. The Comex experienced a surge of 6.4 million ounces in net long contracts last week. Such jumps in the past have on average presaged a 5 percent drop in gold prices over the next month.

"We recommend that nimble investors take profits on any long gold and silver positions, looking to re-enter after a correction," Reade says.

He sees gold slipping to $950 over the next month and then resuming its rally next year.

The last time Comex long contracts approached last week’s levels was in February 2008, when gold hit its record high and then crashed.

Others also see a pause for gold before its next rally.

Kaname Gokon of Okato Shoji told Reuters, “Gold looks like it will stay strong, as there is a general preference for the precious metal. But in order to gain further momentum, we first have to deal with a heavy pile of long U.S. futures positions."

 

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Can't agree or disagree.

Seems plausible but then if it does not happen what will all those folks that sold do? Re-enter the market at a higher rate?

This is why I am in it for the long haul that way I don't worry so much.

 

when expert said sell. yankee, you better buy it. gold closed at $1,018.20. will buy another 20 spouses gold.

 

I don't know about anyone else, but I agree with Yankee. Now is the time for panic and hasty decisions.

 

My specialty !

 

Just buy and put it away. In the long run, you can not lose

 

looking forwward to break the record high within these few days.

 

After Hours​

$1018.85
+1.55 (+0.15%)
4pm Close: $1017.30 +15.40
Oct 05, 09 9:38 pm EST

 

high for the night. gold $1,020.90 per ounce.

 

You better get those 20 FS coins before Thursday...the prices are going up!

 

If he is 'London's leading gold expert' Why is he not taking into account currency fluctuations? Given that gold is priced in USD, the performance of sterling against the dollar is pertinent here to people like me. Even if the price of gold declined in dollars, it could still rise in sterling if the pound weakened against the dollar at the same time....

 

With this recession that we are currently trying to climb out of nobody can predict what gold is gonna do with any certainty at all. Besides gold coins are not only collected for bullion prices. Anytime someone gives a gold prediction and then cites what has happened in previous years is clearly an indication of talking out of their back sides.

It's fairly safe for anyone to say that gold is gonna go down a little and come back up as that is a normal gold progression. To put it in easy to understand terms. That's a fairly generic one size fits all prediction that ain't worth beans on a full stomach in my book.

 

hold

My sources say buy gold if it closes at $1,018. Closing at that price means it's going higher they say. I am not one to buy into a high. Conversely I am not selling either. My position is neither buy or sell right now. Hold, hold, hold.

 

You better hurry and buy then! MetalBidAsk Gold$1,025.40 $1,026.40 8.60 Silver$16.94 $16.99 0.45 Platinum$1,301.30 $1,311.30 10.50 Palladium$298.10 $303.10 -1.20 Updated:10/6/2009 5:10:49 AM CST

 

Keep in mind that John Reade is the metals strategist for UBS and puts out advice for traders, not investors. His track record is that whenever metals run up, he says sell; and whenever they move down, he says buy. Now this works perfectly well until the day prices really take off, and his clients are almost guaranteed to miss the major moves in a bull market by following his advice. He has no interest in catching major moves. He is helping people who trade the minor moves.

 

MetalBidAsk Gold$1,028.90 $1,029.90 12.10 Silver$17.04 $17.09 0.54 Platinum$1,306.50 $1,316.50 15.70 Palladium$299.00 $304.00 -0.30 Updated:10/6/2009 7:26:03 AM CST

 

gold high $1,031.90. bought 20 spouses + 8 additional.

 

I hope it works out good for you!

 

elaine: Wow! I'd love to see a photo of that little horde when the order comes through!

So did you buy today, before the price increase this week, thinking these coins will be sold out by the time gold falls to your low 950 range, when the mint would lower the price below the current prices and you may get these for less than you are paying today? curious how this works for you.

 

Gold
The dollar came under sustained pressure as the Independent of London’s Robert Fisk broke a story stating that a group of Arab countries, Russia, France, Japan and China and others were in secret discussions to use a basket of currencies and gold to replace the dollar in order to trade oil. Although some officials have denied this report, the fact that it is mentioned at all raises the question as to how much longer the dollar will remain the global reserve currency. According to Chinese banking sources, the transitional currency in the move away from dollars, may well be gold.
Gold surged to $1,021/oz on the news of this increasing threat to the petrodollar. The unexpected move by the Australian central bank to increase interest rates may have also pressurised the dollar. At some stage central banks will have to start withdrawing the unprecedented monetary stimulus of recent months and years. A rising interest rate environment from the unprecedented historic low rates we have now is bullish for gold as it was in the rising interest rate environment of the 1970s. Gold has risen through resistance at $1,020/oz in recent minutes to as high as $1,025/oz and looks set to challenge the record (nominal) high of $1,033/oz. A close above the record high should set us up for the anticipated rally to $1,200/oz.