waitingscot Posted June 1, 2009 Share Posted June 1, 2009 Then why is gold going up in price at the moment? Isn't gold meant to go up during a crisis and then come back down when the panic clears? If that's so then why when people talking about recovery, and things not being quite as bad as expected, is gold rising towards $1000 again? Quote Link to comment Share on other sites More sharing options...
three pint princess Posted June 1, 2009 Share Posted June 1, 2009 http://www.ft.com/cms/s/0/52c9f2a8-4e1a-11...?nclick_check=1 Investors sceptical on stock market reboundBy Peter Garnham in London Published: June 1 2009 00:08 | Last updated: June 1 2009 00:08 ..... Six out of every 10 respondents believed that the recent rise in equities is a “bear market rallyâ€, indicating that global investors still have a large share of their funds parked on the sidelines in cash. The survey revealed that 91 per cent of investors were running positions that were “light†or “average†in terms of their risk limit or capacity. This leaves just 9 per cent whose positions are “large†or “at limitâ€. It's amazing how quickly the FTSE has recovered, but the economy remains the same and although short term gains from buying at the bottom are 30% or more , long term it's down hill. So Gold and Cash make more sense to me, as well as protecting against inflation even though I'm a deflationist so it protects from that as well. Could also be a report from this morning, Index of Commodity PricesRelease date: 1 June 2009 Preliminary estimates for May indicate that the index fell by 3.5 per cent (on a monthly average basis) in SDR terms, following a decrease of 12.8 per cent (revised) in April. The largest contributors to the fall in May were decreases in the estimated prices of coking coal, iron ore and steaming coal (see below). The prices of gold, nickel, sugar and wheat rose. In Australian dollar terms, the index is estimated to have fallen by 8.2 per cent in May, following a fall of 18.1 per cent (revised) in April. http://www.rba.gov.au/Statistics/commodity_prices.html Quote Link to comment Share on other sites More sharing options...
Gideon Gono Posted June 1, 2009 Share Posted June 1, 2009 Then why is gold going up in price at the moment? Isn't gold meant to go up during a crisis and then come back down when the panic clears? If that's so then why when people talking about recovery, and things not being quite as bad as expected, is gold rising towards $1000 again? Gold primarily is a hedge against inflation. The USD looks rather sad (note how all currencies in the below graph are stronger against it). Buying gold is a form of wealth protection. Its not the end of the world and house prices wont fall to 20p. Quote Link to comment Share on other sites More sharing options...
pilchardthecat Posted June 1, 2009 Share Posted June 1, 2009 gold bubble Quote Link to comment Share on other sites More sharing options...
waitingscot Posted June 1, 2009 Author Share Posted June 1, 2009 gold bubble No doubt. But has it got much further to travel that's the question. Quote Link to comment Share on other sites More sharing options...
waitingscot Posted June 1, 2009 Author Share Posted June 1, 2009 Gold primarily is a hedge against inflation. The USD looks rather sad (note how all currencies in the below graph are stronger against it). Buying gold is a form of wealth protection. Its not the end of the world and house prices wont fall to 20p. I notice how much the dollar has fallen. Peter Schiff must be jumping. Need to look out for a new video. Quote Link to comment Share on other sites More sharing options...
waitingscot Posted June 1, 2009 Author Share Posted June 1, 2009 http://www.ft.com/cms/s/0/52c9f2a8-4e1a-11...?nclick_check=1It's amazing how quickly the FTSE has recovered, but the economy remains the same and although short term gains from buying at the bottom are 30% or more , long term it's down hill. So Gold and Cash make more sense to me, as well as protecting against inflation even though I'm a deflationist so it protects from that as well. Could also be a report from this morning, Well I wish I bought gold last year, but I don't think I'll jump in at this level. Just hope for deflation in the medium term instead. Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted June 1, 2009 Share Posted June 1, 2009 gold bubble Huge gold bubble which you can trace right back to 1971. Why is that now? Quote Link to comment Share on other sites More sharing options...
waitingscot Posted June 1, 2009 Author Share Posted June 1, 2009 Huge gold bubble which you can trace right back to 1971.Why is that now? Point taken. So what next? Gold to $5,000 and beyond and then the collapse of fiat currencies? I hope not. Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted June 1, 2009 Share Posted June 1, 2009 Huge gold bubble which you can trace right back to 1971 huge USD bubble that started faultering in 1971 Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted June 1, 2009 Share Posted June 1, 2009 Point taken. So what next? Gold to $5,000 and beyond and then the collapse of fiat currencies? I hope not. The inflation genie is out of the bottle. I don't see how people losing faith in fiat currency is a bad thing. It will topple governments and bring about change, which is good. Maybe you disagree. Quote Link to comment Share on other sites More sharing options...
Number79 Posted June 1, 2009 Share Posted June 1, 2009 gold is only going up in $ terms as the $ falls. in sterling terms, gold has remained stable at around £600 for some time. It has actually fallen to £597 today. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted June 1, 2009 Share Posted June 1, 2009 Gold isnt going up, the dollars going down. Quote Link to comment Share on other sites More sharing options...
waitingscot Posted June 1, 2009 Author Share Posted June 1, 2009 The inflation genie is out of the bottle.I don't see how people losing faith in fiat currency is a bad thing. It will topple governments and bring about change, which is good. Maybe you disagree. I have a medical condition that may require an operation at short notice. A stable society is life and death in some cases. So while I might enjoy the prospect of revolution and a more equitable outcome at the other end, I fear I and many others might end up as collateral in the process. Quote Link to comment Share on other sites More sharing options...
Laura Posted June 1, 2009 Share Posted June 1, 2009 I have a medical condition that may require an operation at short notice. An NHS suit may have another angle on that Quote Link to comment Share on other sites More sharing options...
Guest มร หล Posted June 1, 2009 Share Posted June 1, 2009 Then why is gold going up in price at the moment? Isn't gold meant to go up during a crisis and then come back down when the panic clears? If that's so then why when people talking about recovery, and things not being quite as bad as expected, is gold rising towards $1000 again? Add to that, whys unemployment rising at 100,000 a month? Quote Link to comment Share on other sites More sharing options...
Number79 Posted June 1, 2009 Share Posted June 1, 2009 Gold isnt going up, the dollars going down. That is the other way to look at it. If gold is a constant currency then the $ is falling and £ is staying constant at its relative value to gold. Quote Link to comment Share on other sites More sharing options...
bajista Posted June 1, 2009 Share Posted June 1, 2009 If the economy was really improvong the BOE would be having a meeting to put up interest rates again. The fact that more QE is being discussed means that the economy is still toast and the "experts" all know it. Don't be fooled by hype. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.