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Gold strategy in the current economy


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HOLA441

Shouldn't you have had every base covered when you noticed all these insane bailouts taking place in 08/09?

are you assuming because i'm not a gold bug i don't have any as a hedge against hyper inflation? Par for the gold bug to assume anyone who isn't a gold nutter must be jealous or kicking themselves for missing the gravy train. I think the problem with gold bugs is it is very easy to invest in gold but not so easy to invest in other commodities or currencies so while the smart investor spreads the bet the amateur STRer just goes 100% gold and silver and then because there is so much hanging on sentiment they get upset with people who don't share the same level of mania, about what is just some not very useful yellow metal with a crazy price tag not actually unicorn balls with the power of eternal life etc.

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HOLA442

I've said it today. That's what it's done over the current month. 25% since 1st July.

I said at the beginning of July 'this is it'. It duly went parabolic.

I said it would crash in '08 - it crashed from $1030 to $690 depending on the contract. 35% crash and burn.

I've said it's in a bubble. At 500% annualised performance that's indisputable I'm afraid.

$1050 is now opened up for when the big boys want to go for it. I doubt it'll be in the next few weeks but it'll come. After that who cares frankly, it's done.

None of this changes the long term price targets. If it drops to $1050 physical buyers will come out in force - and that's an understatement. Volatility will only increase from this point on as we ascend ever higher.

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HOLA443

Do you agree that at some point there will be a very steep fall in gold or do you think gold prices only ever rise and it's different this time?

At some point? Of course on the way up there will be sharp falls - who ever said there wouldn't be? But that doesn't alter the fact that gold is going much, much higher medium/long term. Higher than anyone will think possible.

Even when we do reach a 'top', gold will be re-integrated into a currency system (not a gold standard) and stay at or around the highest price levels. Gold mining companies will be the new utility companies (this is essentially Jim Sinclair's view - a Wall St legend and probably the best gold trader alive).

Edited by Errol
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HOLA444

In the Bernank we trust.

Whether it's a formal QE3 announcement next weekend at Jackson Hole or more less than covert stuff through their hedge funds and mysterious Caribbean banking centres that somehow can't get enough of US government debt, it will be QE to infinity just like Jim Sinclair has maintained for years.

The Swiss Franc became the latest runner to join the fiat race to the bottom and of course devalued versus gold in a big way.

Central banks, the biggest players of all, have long since refrained from selling what they have in vaults and instead many are adding to their stacks as Judgement Day for all the pretty paper gets ever nearer.

Hugo Chavez wants his country's 200+ tonnes of gold repatriated. He must be a traditionalist in the eyes of the Bernank.

Does Merv at the BoE have it to give, or is it hidden under the beds of the Nominees... those looters whose identities are protected by the Official Secrets Act.

Hugo will let us all know in the weeks ahead.

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HOLA445
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HOLA446

At some point? Of course on the way up there will be sharp falls - who ever said there wouldn't be? But that doesn't alter the fact that gold is going much, much higher medium/long term. Higher than anyone will think possible.

Even when we do reach a 'top', gold will be re-integrated into a currency system (not a gold standard) and stay at or around the highest price levels. Gold mining companies will be the new utility companies (this is essentially Jim Sinclair's view - a Wall St legend and probably the best gold trader alive).

I'm familiar with his 'view'.

0.52 dixie (it's 0.74)

$1650 top then introduction of gold backed certificate to underpin dollar - at which point it soars of it's 0.52 all time bottom (it's still 0.74!) and will be pegged around, say, 10% of this $1650 target and thus the gold bubble won't ever burst but oscillate around a permanently high plateau.

Oh and I'm, pretty sure 0.52 was going to be hit in 2011 - you'll know better than me his exact target dates for this $1650 fixed certificated gold/dollar 'standard'.

I'll stick with my view that once the big boys decide to exit GLD en masse there will be more carnage than you could ever dream about. $1650 will look insance 6 months after that event.

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HOLA447

I don't know but its gone up too far, too fast for my liking, I'm really hoping for a healthy correction soon.

I won't be buying unless it comes back to something like $1600.

Maybe I've 'missed the boat'................now where have I heard that before ?

The POG has been very robust of late but, given the severity of the concurrently running debt, banking and monetary crises, IMO gold is well, well behind the curve.

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HOLA448
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HOLA449
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HOLA4410
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HOLA4411
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HOLA4412
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HOLA4413
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HOLA4414

GLD? More paper?

Once the real problems start paper gold will be worth nothing but paper. Physical gold will become almost unobtainable.

Beat me to it!

There is talk online of gold margins being raised soon, perhaps this weekend, in the same way that silver margins were raised a few months back.

Cool...should shake a few speculators out.

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HOLA4415

Highly amusing lead editorial in the Times today. Well worth a read for the laughs - entitled 'The Gold Bug' -

https://picasaweb.google.com/lh/photo/92iQKoPpQmXxj29tjmWZpA?feat=embedwebsite

:lol:

Not a bad article, then he drops those final two pharagraphs in there. :lol:

"Gordy was right to get out of Gold" :blink:

Sounds like something one of the HPC anti Gold brigade would come up with.

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HOLA4416

"Gordy was right to get out of Gold" :blink:

Sounds like something one of the HPC anti Gold brigade would come up with.

I don't think even they would go that far.

Gordon's average price $275.6.

Current price $1853.10.

I must admit I would be quite interested in any argument that supported Crash Gordon's sell-off.

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HOLA4417

I don't think even they would go that far.

Gordon's average price $275.6.

Current price $1853.10.

I must admit I would be quite interested in any argument that supported Crash Gordon's sell-off.

the only defence is hes a politician and therefore as it isnt theire money they never give a sh!t, however you need to knock about 40% of that difference because he sold it for Euros i believe

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HOLA4418

It is not the job of our Government to speculate on the possible future price of useless inedible metal, it should be disposed of and the proceeds invested in improving our country.

I must admit I would be quite interested in any argument that supported Crash Gordon's sell-off.

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HOLA4419

It is not the job of our Government to speculate on the possible future price of useless inedible metal, it should be disposed of and the proceeds invested in improving our country.

Like the value of the Gold matters anyway, when you can just borrow xxx billion out of thin air! :unsure:

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HOLA4420

There is talk online of gold margins being raised soon, perhaps this weekend, in the same way that silver margins were raised a few months back.

Every CME induced knockdown will be met with eager hands anxious to grab some discounted gold, just as they were recently when they pulled the same desperate stunt.

It does appear that you remain determined to cling to your ever depreciating paper however much contrary advice you receive from posters here and from the likes of Peter Schiff.

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HOLA4421

Jim Sinclair calling for $12000 gold - http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/18_Eric_Sprott_-_The_Price_of_Silver_Should_be_$110_to_$120_Today.html

When asked about the GATA conference in London and Jim Sinclair’s speech in particular Sprott responded, “Well it was very special for me to see James Sinclair and meet James Sinclair who I had never met, but I go to his website (jsmineset.com) very often. I mean I think it was one of the greatest calls of all-time which I commented on in my own speech there, that anybody who in 2000 that would have suggested gold would go to $1,650, to be able to triumphantly come to GATA and the price was $1,650 was absolutely incredible and I think it inspired everyone.

To add icing to the cake of course, Jim suggested that if gold went through $1,764, it would start entering a parabolic phase and would go to $12,000. But what an incredible call ($1,650), it was an honor to be there.”

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HOLA4422

The fanaticism exists on both sides of the table.

The big boys don't have the physical to push the small investor around forever, where do you suppose the central bank leased gold went?

In order for gold to have a long standing fall from grace, the system would have to be fixed, there would have to be a western currency to go to and that just isn't going to happen in the near future. So whilst you might be right about the -30% from the top, that may still be several magnitudes from where we are now.

you have the zeal of a fanatic, passion beyond a normal investor, but the price will be set by the big boys who are not ruled by fanaticism, my prediction is you will not sell at the top, your fanaticism will make you miss, oh i don't know, 30% of the gains on the way down until you can see through the fog, maybe more.

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HOLA4423

Jim Sinclair calling for $12000 gold - http://kingworldnews...$120_Today.html

When asked about the GATA conference in London and Jim Sinclair's speech in particular Sprott responded, "Well it was very special for me to see James Sinclair and meet James Sinclair who I had never met, but I go to his website (jsmineset.com) very often. I mean I think it was one of the greatest calls of all-time which I commented on in my own speech there, that anybody who in 2000 that would have suggested gold would go to $1,650, to be able to triumphantly come to GATA and the price was $1,650 was absolutely incredible and I think it inspired everyone.

To add icing to the cake of course, Jim suggested that if gold went through $1,764, it would start entering a parabolic phase and would go to $12,000. But what an incredible call ($1,650), it was an honor to be there."

Jon Hunt calling for £1,000,000 houses

When asked abut the NAEA conference in London and Hunt's speech in particular, Applegarth responded, "Well it was very special for me to see John Hunt and meet Jon Hunt who I had never met, but I go to his website (foxtons.co.uk) very often. I mean I think it was one of the greatest calls of all-time which I commended on in my own speech there, that anybody who in 2000 that would have suggested london house prices would go to £1,000,000 to be able to triumphantly come to NEAE and the prices were £1,000,000 was absolutely incredible and I think it inspired everyone (to sell more houses).

To add icing to the cake of course, Jon suggested that if london houses went through £1,100,000 they would start entering a parabolic phase and would go to £10,000,000. But what an incredible call (£1,000,000), it was an honur to be there *

Some houses are bought for cash. Some are bought on margin. Some are bought using paper. Just like any other asset. When the margin calls were raised and the paper leverage disappeared the price collapsed (down 30% so far). The value of non-paper financed houses didn't rise exponentially nor cease being traded at any price. Ditto oil, which fell 80% in 3 months.

* He may not have said this. But it demonstrates a similar psychology of vested interests at work manipulating a bubble to encourage new entrants to distribute into. Every single gold bug has the strongest possible VI to do this. They may as well have a Foxtons sign over their door and run around in a little mini with Foxtons written on the side. That is the plain truth of it.

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HOLA4424

* He may not have said this. But it demonstrates a similar psychology of vested interests at work manipulating a bubble to encourage new entrants to distribute into. Every single gold bug has the strongest possible VI to do this. They may as well have a Foxtons sign over their door and run around in a little mini with Foxtons written on the side. That is the plain truth of it.

Do you not understand there is a reason why paper/digital currency is/has been escaping to Gold and Silver?

IMO there are two ways this $h*t storm will be resolved -

1. High/hyperinflation

2. Sovereign debt default.

Option 1 can be used for quite a while until we get option 2 btw.

Do you have a third option for us?

If so....

Do you think those 'in power' are intelligent enough to use it?

edit: or do you think we all keep dancing around in a circle holding hands in wonderland?

Edited by spp
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HOLA4425

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