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Bloomberg: Gold Rallying To $1,500 As Soros's Bubble Inflates


DisQ

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HOLA441

Some kinda new record!

RB has been saying it will crash to $300 then, $600.

waiting to that price for ages to fill my boots, doesn't look like it will happen....ever.

or soon

Gold Rallying to $1,500 as Soros's Bubble Inflates

Investors are accumulating enough bullion to fill Switzerlands vaults twice over as golds most- accurate forecasters say the longest rally in at least nine decades has further to go no matter what the economy holds.

Analysts raised their 2011 forecasts more than for any other precious metal the past two months, predicting a 10th annual advance, data compiled by Bloomberg show. The most widely held option on gold futures traded in New York is for $1,500 an ounce by December, or 18 percent more than the record $1,266.50 reached June 21. Holdings through bullion-backed exchange-traded products are already at more than 2,075 metric tons, within 0.1 percent of the all-time high.

http://www.bloomberg.com/news/2010-08-30/gold-rallying-to-1-500-for-analysts-as-soros-s-bubble-inflates.html

Edited by DisQ
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HOLA446

As an experiment, ask acquaintances and friends over the next few days if they think gold is looking like a bubble about to pop.

One or two might be able to comment something about its price but from the rest you'll get a slackjaw gaze.

The thing about this gold bull is that so far the vast majority are utterly unaware of it. They are still hoping for a resumption of the property boom. That's just one reason why it is not in a final bubble phase yet.

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HOLA447

Hmmm... Not sure this is a good sign when the MSM start to ramp Gold.

Mike

I could not agree more. Warren Buffett's advice, often good to follow, is that when everyone is buying in its past time to get out.

When gold crashes it does so in spectacular fashion and its takes decades, literally, to recover.

From the farticle:

George Soros, who made $1 billion breaking the Bank of England’s defense of the pound in 1992, described gold as “the ultimate asset bubble” at the World Economic Forum’s January meeting in Davos, Switzerland. Buying at the start of a bubble is “rational,” he said.

George is a pump and dump expert of the first order. Be careful out there a crash comes like as thief in the night!

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HOLA449

I could not agree more. Warren Buffett's advice, often good to follow, is that when everyone is buying in its past time to get out.

When gold crashes it does so in spectacular fashion and its takes decades, literally, to recover.

From the farticle:

George Soros, who made $1 billion breaking the Bank of England’s defense of the pound in 1992, described gold as “the ultimate asset bubble” at the World Economic Forum’s January meeting in Davos, Switzerland. Buying at the start of a bubble is “rational,” he said.

George is a pump and dump expert of the first order. Be careful out there a crash comes like as thief in the night!

==========

"When gold crashes it does so in spectacular fashion and its takes decades, literally, to recover."

Correct, and as a matter of fact gold is still actually recovering from the last crash, which is why it can't be described as a a bubble about to pop.

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HOLA4410

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/7972065/Gold-is-it-really-a-safe-haven.html

Gold could fall fast
It has become far easier to invest in gold, but this has a downside. Many people are now getting exposure to the gold price through Exchange Traded Funds (ETFs). Gold ETFs are linked to the value of the metal and operate like a tracker fund in so far as they follow an index.
They are, in fact, shares that can be traded on the stock exchange. These funds are easy to buy but, as currency strategist Ilya Spivak from DailyFX says, they are easy and quick to sell as well.
"The problem with ETFs is that while they make buying gold comparatively easy, they make liquidating the investment easy as well, prompting a
far more violent downturn than would otherwise be the case
should trader sentiment reverse," she said.

Gold is in a Ponzi right now with the ancillary ETFs being oversold.

:o:o:o

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HOLA4411

SKY ramping deflation now: :angry:

http://indepth.news.sky.com/InDepth/topic/Deflation

Deflation In Depth

People are reflected in a board that graphs the exchange rate between the Japanese Yen and the U.S. Dollar outside a brokerage in Tokyo August 27, 2010. Japans core consumer prices fell for the 17th straight month in July on an annual basis in a sign that deflation remains deeply entrenched, boding ill for a fragile economy faced with a surging yen. REUTERS

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As an experiment, ask acquaintances and friends over the next few days if they think gold is looking like a bubble about to pop.

One or two might be able to comment something about its price but from the rest you'll get a slackjaw gaze.

The thing about this gold bull is that so far the vast majority are utterly unaware of it. They are still hoping for a resumption of the property boom. That's just one reason why it is not in a final bubble phase yet.

I wouldn't ask them if it was a bubble about to pop - ask them if they were planning to buy some/had already bought some/had already sold their holdings.

I'd be surprised if you get many affirmatives to even the first option.

That's why this first part of the article interested me:

Talking about house prices is so Nineties; buying and selling gold is the fashionable dinner-party topic for today's recessionistas. Since the credit crunch began to bite, it seems as though the shiny stuff is everywhere you look. You can buy bars of it in Harrods, and even host a Tupperware-style party to sell your unwanted earrings.

I would be very interested to hear if people are starting to talk about gold in social settings, as that is a sign that the price could be entering the public conciousness phase.

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HOLA4414

As an experiment, ask acquaintances and friends over the next few days if they think gold is looking like a bubble about to pop.

One or two might be able to comment something about its price but from the rest you'll get a slackjaw gaze.

The thing about this gold bull is that so far the vast majority are utterly unaware of it. They are still hoping for a resumption of the property boom. That's just one reason why it is not in a final bubble phase yet.

The same is true of any asset class. In fact I think gold has far more exposure given the proliferation of gold 'converters' on many high streets that generally speaking (for obvious reasons) declare that gold is peaking...

Edited by Cogs
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HOLA4415

I was visiting the inlaws this weekend and the topic shifted to some family jewellery that has been stored in a safety deposit box for the past 10 years or so. There has been on going discussions as to what to do with it, but as with a lot of families disagreements have resulted in nothing happening whatsoever.

Anyway... it was clear that the family members were clued up on the fact that gold was at a high right now relative to cash, but the general consensus was "now is the time to sell - lets cash!"

I kept relatively quiet, but did suggest that maybe it is worth considering holding on to. That suggestion was quickly swept aside with very little consideration.

I would say that even if there is a general awareness for the price of gold, the majority see it as a time to sell rather than a time to buy. Most people don't bother to understand why something has escalated/is escalating in price, least of all try to understand the likelyhood of this trend to continue.

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HOLA4416

The same is true of any asset class. In fact I think gold has far more exposure given the proliferation of gold 'converters' on many high streets that generally speaking (for obvious reasons) declare that gold is peaking...

Can you name another asset class has ever peaked because people were being persuaded to sell?

Asset classes peak because people en masse decide to sell. But in this case, gold is continuing to rise.

People selling gold to rip-off merchants (which is what most of these C4G operations are) is not a sign of an investment frenzy.

Edited by NotMyHouse
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HOLA4417

Can you name another asset class has ever peaked because people were persuaded to sell?

Er, is it not obvious why they claim what they do? Surprised the FSA haven't come after them actually. But please, patronise me some more. I'm just saying, people are very aware of gold having an exchange value.

Edited by Cogs
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HOLA4418

Asset classes peak because people en masse decide to sell. But in this case, gold is continuing to rise.

People selling gold to rip-off merchants (which is what most of these C4G operations are) is not a sign of an investment frenzy.

The existence of C4G operations in the first place however...is it possible they have people to sell to? Gold is in a massive bubble, the only people who buy it are the same people who claim validation and buy more of it when it goes up in price. Just a little suspicious of any market where (1) everyone involved without exception claims to be some sort of insider with special knowledge and insight... it doesn't look like a functional market, particularly as the use of gold in electronics and particularly jewellery is declining, at this rate you might as well be speculating on oakleaves or seashells or something so long as all the other 'Conchbugs' agree with you I guess you are doing great business eh (2) the relied upon websites are as hysterical as Glenn Beck after sniffing poppers.Perhaps gold will go to the moon and cash will crumble into dust, I still think those observations are correct.

Edited by Cogs
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HOLA4419

It will be bubbly when the Sun recommends buying gold!

It will be bubbly when you can go on a course to learn the secrets of buying gold at below market value so you can flip it to unsuspecting late-buying panic mode individuals.

This bubble has a long way to go yet.

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It will be bubbly when you can go on a course to learn the secrets of buying gold at below market value so you can flip it to unsuspecting late-buying panic mode individuals.

This bubble has a long way to go yet.

Agree. $1230 to $1500 is hardly a wild assertion - look at some of the other 'vertical' runs on the 5 year chart.

But I will sell most of mine (into dollars & euros) if it spikes to $1500 or so by Dec.

Then look to buy back on the dip.

If it doesn't, hey ho, will have made a profit well into 4 figures anyway.

If it does and then tanks after I'm back in - also hey ho - took the original investment out ages ago so just gambling with the profit. I'd just hold to the bottom and the next bull run.

OMG - nearly typed 'Innit for the long term' :lol:

Wouldn't be so carefree if I'd bought in recently though. Gold is definitely not an investment for the nervous.

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HOLA4422

Soros can't be trusted he is a proponent of the New World Order. He is shepherding people towards the ETF, a paper derivative of gold.

Sure it will become the "ultimate bubble", I don't want to be around when it pops, and Liz will whine she lost a fortune in the Daily Mail in 2015. If you want to speculate, own the physical asset. At least you'll have something to polish at the end of it all.

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