Tuesday, Mar 18, 2008
Warning
IndiaDaily: Gold ready to crash to $600 an ounce with Indian gold import down 80%
I know some of you out there have some gold. This article seems to imply that the peak is coming. Good luck.
Posted by stillthinking @ 03:46 PM (1373 views) Add Comment
21 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. sold 2 rent 1 said...
Gold could correct down to the low 900s in the next week or 2.
As we move through the different stages of this gold bull, the buyer profile changes quite a lot.
Indian buyers are drying up but that doesn't mean the bull is finished. It is time for another group to take the gold bull run baton.
This story will scare off the weak hands, who don't understand gold, before it zooms off to 1300-1500 by May/June.
"As the overall stock markets in the world start improving with a major rate cut by Fed today, gold will see (perhaps has seen) the best for a long time."
Remember the name, Sandra Simons, she knows jack all about gold.
2. cornishman said...
Propaganda by whoever is pulling the strings IMO.
Major rate cuts by the Fed haven't encouraged a stock market rally so far. Who wants to catch a falling knife?
If gold falls to $600 - I'll buy even more!
3. cornishman said...
Having said that, there is every chance that there will be a major attempt to drive the gold price down this evening - which may work for a short while.
4. Govt Planner said...
If as the article claims, Indian demand has already fallen by 80% in a period when gold has moved to a real post-1980s high, then there seems little prospect of any further reductions in Indian demand having a significantly negative effect on gold prices given that the maximum fall in demand (to zero) will only be 25% of what the demand in India has supposedly already fallen by.
5. stillthinking said...
"Gold is not an effective means to cover debt. Our society is awash in debt. Gold will fail for that reason. It has currently fallen (at times) as folks sell gold to cover their butts. Well therein is the fundamental point."
From here: http://forum.themarkettraders.com/read-m/26/11351/11356
The point I want to make is that you are not investing in gold, but you are speculating, and from your comments you seem to be speculating even while knowing that a gold collapse is coming. The comment I copied (as usual!) makes a very good point, people are going to be screaming for money because otherwise they will get kicked out of their homes. Where is your gold market then?
Anyway, I am sure you all know your own minds. I regret very much not buying a few coins in June last year, which would have meant some freebie electronics device for my good self.
6. who stole my pension? said...
I think if the IMO (or others) trys to force the gold price down then Japan the Middle East and other countries holding dollars will simply see the lowish price as an oppurtunity to convert dollars to gold thus forcing the gold price back up.
7. paul said...
India loves gold but cannot afford it - this is why this article is in the India Daily - they want it to happen.
8. little professor said...
I think if the IMO (or others) trys to force the gold price down then Japan the Middle East and other countries holding dollars will simply see the lowish price as an oppurtunity to convert dollars to gold thus forcing the gold price back up.
Oh come on. That's worse than the Assetz-type argument that if house prices fall, eager BTLers will jump in to snap up bargains thus driving house prices back up.
Basically you are saying the gold price can never fall, only rise. Remember the HPC mantra - what goes up, must come down...
9. little professor said...
India Daily isn't a recognized or established newspaper or website - in fact I've never heard of it before. And it's very poorly designed. Looks like a cobbled-together ad farm with various agency news stories.
Check timesofindia.com, indianexpress.com, thehindu.com, samachar.com, rediff.com or sify.com for real Indian news.
10. cornishman said...
The price of farmland in 1900 as measured in ounces of gold/acre cost about the same as it is today. The price in pounds is about [from memory] 100 times more. Which means that the pound has lost value and gold hasn't. Gold is a store of value.
It may be that there is a lot of speculative froth around at the moment and that a correction happens today, tomorrow whenever - but in the long term a kilo of gold will still be a kilo of gold. What will a piece of paper be?
No one should put all their eggs in one basket, mind!
11. Debtfree said...
what a load of old nonsense.
if rates in the US drop to 0% then gold will rocket, not drop.
what planet is she on ?
12. Letthemfall said...
I'm also inclined to think this article is not the product of much insight into the gold market. As others have pointed out, gold has value by virtue of its rarity, and when paper currency is looking shaky, as is the dollar and pound, and inflation looms, then people buy gold. It's a safe haven in uncertain times rather than a target for speculators. Now if you believe the financial crisis is over, and the dollar will now go from strength to strength, and house prices soar - well, then you should probably sell gold. Shall we vote on it?
13. sold 2 rent 1 said...
stillthinking,
"The point I want to make is that you are not investing in gold, but you are speculating, and from your comments you seem to be speculating even while knowing that a gold collapse is coming. The comment I copied (as usual!) makes a very good point, people are going to be screaming for money because otherwise they will get kicked out of their homes. Where is your gold market then?"
All investments are speculative. Even cash is speculative - you hope that it won't devalue faster than the interest earned.
All market tends to run from total fear to total greed and back again. We are in a position where property and stocks are heading for total fear and gold is heading for total greed. There will be some frothy moments with gold, but the total greed situation is still a couple of years away at least.
People will be creaming for cash; but what happens when either hyperinflation takes off or banks start going under. Where is your cash market then?
14. Jamie Bear said...
Well the last few meetings I've been to at the Society Of Technical Analysists have turned me into a gold bull. I had pulled out shortly after I saw the price gapping 3 deviations above the 200day moving average - and that was back at $823. It did retrace, but not by much... It is now breaking through the $1000 barrier and I'm buying again. If you look back at inflation adjusted figures you will see that it has spiked above $2000 before, and when you look at the relationship between gold and oil and how much quicker oil has gone up and the price dislocation - its time to be back in the game. Sure it is expensive, but lets face it - those who are buying up the beautiful shiny metal won't be affected with debts, they'll be the guys who are trying to protect their wealth.
15. Debtfree said...
to be fair, by advertising articles with crazy headings that go against the grain........ they might get some hits on the advertising links.
if you read some of the other articles in will have you in fits.
check this one liner...
'The US deficit spending may have seen a peak. As oil price falls below $60 a barrel due to lack of worldwide demand, the US trade deficit will improve dramatically.'
ha, you gotta laugh.
16. ttimgg said...
I bought gold at 620. At the time they said it would go down to 550 - but it went to 750. I bought more. They said it would retrench to 600 but it went to 950. I bought more. They said it would drop to 850 but it went over 1000.
Don't believe the froth. Buy and hold.
17. Hardcheese said...
How do you buy gold?
18. sold 2 rent 1 said...
As a write gold has dropped to 977, down 50+ in 2 days.
There is huge support at 920, the 50 dma.
Any general market selloff in the next week could see this support reached.
Take this support as a great buying opportunity as we will then zoom into Elliott wave 5 (from August) that should peak in May/June
19. Gsc said...
I don't know about this website (who owns) but this news was in leading TV Channel about 80% cut in import.
20. Kagiso said...
The Indians and other Asian jewellery markets are the only major proper end users of gold. (European and American speculators are not users, merely hoarders). Gold production is normally closely matched to asian jewellery consumption.
Asian consumption drops by 75%, but production stays the same - work it out for yourselves.
Gold has no more intrinsic value than cowrie shells.
21. inbreda said...
I don't like it when a store of value is so volatile, and I like it even less at the moment, it having come down. Scarey ride, but I will hold. It wont take long IMO to recover