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Realistbear

If The Boe And Fed Both Say There Is No Real Inflation

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The US PPI figures today said there is virtually no inflation in the world's largest economy. Gordon claims that the CPI is 2%. Iran seems to be a diminishing threat. So what next for gold the hedge against what appears to no longer exist? Is this a good time to dump gold and get back into equities? Or cash?

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I read somewhere that historically there is an 88% correlation between a weakening dollar and higher gold prices. The dollar has only just started to slide; I'm getting into gold this week.

We have not heard the last of the Iran issue. Just the Euro Bourse will guarantee the further attentions of Uncle Sam.

Edited by tahoma

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Erm!

Isnt this a blatant stunt to undermine gold, in the face of fears of rapidly devaluing fiat currencies. Everything of value is going up massively in fiat currency terms (yes l accept some part is speculative) for the very reason that those currencies are simply not worth as much as they were. i.e. INFLATION.

Just cos the biggest VI's on the planet come out with a soundbite...splutter..rage...etc! :angry:

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We have not heard the last of the Iran issue. Just the Euro Bourse will guarantee the further attentions of Uncle Sam.

I'm long on crude anytime it drops back to the ~$68 region, one can only hope Ahdinnerjacket pens another nice letter.

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I read somewhere that historically there is an 88% correlation between a weakening dollar and higher gold prices. The dollar has only just started to slide; I'm getting into gold this week.

We have not heard the last of the Iran issue. Just the Euro Bourse will guarantee the further attentions of Uncle Sam.

Germany is making noises about its economy weakening with some bad sentiment figures out this morning. Italy and Spain are not doing too well which leaves France--well that does leave France. The EU is hardly a power house economically and with a low dollar any hope of a recovery will be sunk unless they can sell more to China. Gordon's debt-ridden job-haemoraging Miracle Economy is about to get rumbled so its hard to see how the dollar is going to depreciate much against Sterling or the Euro. Granted it may fall against the revaluing Yuan and Yen but a serious drop against the European currencies will tank the economy.

Iran is now being offered a Nuclear reactor by Europe--but you are right--we may not have heard the last as they may want Nukes not Nuclear Power--not many Iranians have electricity and they have enough oil to generate all the power they need.

http://news.bbc.co.uk/1/hi/world/middle_east/4987484.stm

If the dust settles and inflation remains contained gold could suffer a sharp downturn. Warren Buffett's tested wisdom would say to get out when the rush to buy is on. Its a tough call.

One Gold bear's view:

http://biz.yahoo.com/tm/060516/14308.html

TradingMarkets.com

Why I Think Gold's Pullback Isn't Over Yet

Tuesday May 16, 8:49 am ET

By Gary Kaltbaum

A few important group notes...starting with GOLD.
We have been telling you that GOLD was due for a pullback. We have been telling you COMMODITIES were due for a pullback. There was a simple reason why. Just take a look at the chart of GOLD vs. its moving averages. GOLD had been moving into the $725 range with the 50-day moving average at $600. Are you kidding? If there is anything we have taught you throughout the years, it is knowing when risk picks up.
When markets, sectors or stocks are stretched so far away from their moving averages, it is getting close to the party ending. We would consider what happened in recent weeks a climax run in GOLD as well as other COMMODITIES. This occurs when all the dumb money jumps on top of the pile AFTER a move up. Just remember 1999.

Continues.....................

http://biz.yahoo.com/ap/060516/gold_prices.html?.v=3

Analysts at Barclays Capital in London said that even though gold and silver are higher on the day, further near-term weakness is possible given the large speculative length. On a technical basis, the analysts said, there is little that suggests the trend is actually over.
Edited by Realistbear

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Germany is making noises about its economy weakening with some bad sentiment figures out this morning. Italy and Spain are not doing too well which leaves France--well that does leave France. The EU is hardly a power house economically and with a low dollar any hope of a recovery will be sunk unless they can sell more to China. Gordon's debt-ridden job-haemoraging Miracle Economy is about to get rumbled so its hard to see how the dollar is going to depreciate much against Sterling or the Euro. Granted it may fall against the revaluing Yuan and Yen but a serious drop against the European currencies will tank the economy.

Iran is now being offered a Nuclear reactor by Europe--but you are right--we may not have heard the last as they may want Nukes not Nuclear Power--not many Iranians have electricity and they have enough oil to generate all the power they need.

http://news.bbc.co.uk/1/hi/world/middle_east/4987484.stm

If the dust settles and inflation remains contained gold could suffer a sharp downturn. Warren Buffett's tested wisdom would say to get out when the rush to buy is on. Its a tough call.

One Gold bear's view:

http://biz.yahoo.com/tm/060516/14308.html

TradingMarkets.com

Why I Think Gold's Pullback Isn't Over Yet

Tuesday May 16, 8:49 am ET

By Gary Kaltbaum

A few important group notes...starting with GOLD.
We have been telling you that GOLD was due for a pullback. We have been telling you COMMODITIES were due for a pullback. There was a simple reason why. Just take a look at the chart of GOLD vs. its moving averages. GOLD had been moving into the $725 range with the 50-day moving average at $600. Are you kidding? If there is anything we have taught you throughout the years, it is knowing when risk picks up.
When markets, sectors or stocks are stretched so far away from their moving averages, it is getting close to the party ending. We would consider what happened in recent weeks a climax run in GOLD as well as other COMMODITIES. This occurs when all the dumb money jumps on top of the pile AFTER a move up. Just remember 1999.

Continues.....................

http://biz.yahoo.com/ap/060516/gold_prices.html?.v=3

but he also likes banks - just hope its not the ones with big mortgage books

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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