Gold quietly goes above $1900 again

It seems the rumors of the gold bubble bursting are just that. The takedowns didn't last long as gold went above $1900 several times today. Noteworthy because the US markets are closed for the Labor Day holiday.

It's still time to get a ticket on this train, but it's gonna cost you $80 or so more than it did just a couple of days ago.

 

Log in or Sign up to hide this ad.

Any idea why silver is dropping? Its been following gold pretty closely the last few weeks and now they are doing the opposite.

 

Silver is a speculator's metal. Gold is a flight to safety metal.

 

Silver has dropped a miniscule amount compared to it's rise last week, about 30 cents. So it's not really doing the opposite. People were asking why it wasn't following gold when it hit $1900 last time around, but as was evidence last week when things really matter it will come along. My take on it is that gold has had added speculation lately with its all time highs and the media blitz. Plus with the Indian wedding season coming into play gold will be first and foremost on their minds, but silver typically comes along just not always right away. These are different markets so they aren't always a mirror reflection like we saw last week which was due to monetary reasons, and supports that while gold may move on it's own for some reasons that silver will move for monetary reasons which are the most important in this bull trend.

 

I wonder who can afford to buy quantities at these levels; wait until we hit $2K, it will be like hitting the reset button; the small premiums on type gold may then increase.

We will see another surge on silver soon. Especially if QE3 goes through.

 

But if you watch the market today, starting about 3 pm west coast, gold has wandered downward as the USD$ has gone up. So The USD is still the instrument of flight to safety for most people who who can't afford to buy gold, or doesn't trust the gold market at this level. Since gold is based on the USD, as the USD goes up, gold is more expensive for most currencies. IMO.

 

The reason the USD is going up is due to one thing, the Eurozone, it's falling through the floor. However it's a race of fiats to the same destination, the land of not good.

Gold is never too expensive in this environment. It's been demonstrating this now for 12 years and shows no sign of changing course despite the people who constantly tell us it's a bubble, it's too expensive, it's risky, etc etc etc. When gold is $2500, people will think $1900 is cheap.

 

I gave up on predictions - but this week may be interesting

 

Don't be silly. You can't "speculate" in Gold; you can only "fly to safety" in It. And if Its price drops by, say, 50%, well, that's just the manipulators -- all you have to do is outlast them, and in a few years or decades, you'll be back in the black.

 

yes, and that is also why gold is 1900+ rather than 1650 or 1700. IMO.

 

Ah, yes the dreaded manipulators. I would think that if they are making money ( and they must be ) then they are smarter than a lot of us people. Manipulators work both sides of the street, up and down.

 

If the Eurozone crashes, I wonder if we will see a return to manipulation by European central banks which has so far been held in check by pre-determined limits on gold sales?

 

I don't think this is an issue now because they are all buying gold these days, not selling it. In fact, it's coming out where the the countries paying for these bailouts want the gold that belongs to the countries that are getting bailed out.

Old advice, "Don't pay attention to what they say, Instead watch what they do."

If anyone watches these countries at the soverign level, as well as other major countries in the world, it's becoming apparent they are all moving towards shoring up their gold reserves. Their actions say they all feel the USD's days as a reserve currency are numbered and whatever is to come that replaces it, will have a significant component in gold. IMO, they are all watching China because China is clearly doing everything it can to have physical gold moved into that country.

So if these countries, who hold USD reserves, are coveting gold, why shouldn't you? Are these countries bying silver? NO. Are these countries buying stocks? NO.

-----------

It's not that gold is getting more expensive. It's not. It's really the paper confetti with the dead presidents printed on it are becoming more worthless. Gold is the only true measure of it's worth.

 

Gold is shining strong and will continue to do so for the forseeable future. I guess Soros' warning that gold was "the ultimate bubble" has proved dead wrong, especially that he said that when it was at $1500!

There was this article on Soros last week at The Daily Bell: http://thedailybell.com/2872/Adrian-Krieg-The-Evil-Marionette-Master

There are counters to gold's price: Let's say huge supplies were suddenly discovered. Of course, if this happened in North America it would take quite a while for the mining company to get the permits.

 

it's back to 1909 USD an ounce again

 

It actually hit a new high last night at $1921.

 

Soros didn't sell gold, he sold GLD (not that you said he did otherwise, just pointing out that many people took his actions as selling gold which was not the case, but was the intended impact). Nice informative editorial.

 

Mr. Soros says publicly exactly what benefits Mr. Soros. He uses media fairly savvily, and since there are people who think he is equivalent to a Buffett, it works for him. The difference is Mr. Buffett never manipulates the media to lead investors off track, he simply gives an opinion. I think if you went back and looked at Mr. Soros quotes, you will find they are always made long after he himself has gotten in or out of a position, so that anyone listening to his advise will profit Mr. Soros.

This is different than Mr. Buffett, who publicly proclaimed he was not interested in internet stocks in 1997 since he cannot see how they will make any money. He was not short those stocks, he simply gave great advice to investors. Well founded advice as it turns out.

 

!!? Berkshire Hathaway has lost 35% since the beginning of the financial crisis in late 2008. His major holdings include or have included most of the TBTF banks yet he sits on Obama's board of financial advisers. I say there might be a conflict of interest there. If it were not for government bailouts, government contracts, etc, his fund would be worth much less that that.

It's an opinion and people argue over opinions. I say it's the results that matter. While Berkshire lost 35% gold has risen 125%. Buffett apparently doesn't believe in gold since a majority of his holdings are in direct opposition of gold.

 

Warren Buffet's father was a hard asset believer.

http://www.businessinsider.com/warren-buffetts-father-howard-2010-11

Too bad he didn't follow his father's advice at the right time...