Gold Down

[yooklid]

Gold is down, but not for long I would imagine given the bailout passing. What’s your buy in number? Do you have one?

[stockstradr]

This is a very tricky question, one I’ll admit I’m guessing on.

Let’s reflect on guesses that DID work.

Roubini guessed weeks ago that deepening recession will be deflationary and gold will NOT escape downward pricing pressure on commodities.

Also, many good articles (again see Roubini’s website) have been written that the Worlds central banks are supporting the dollar. Gold is kinda the enemy of the dollar, because if gold starts rising and people start dumping dollars then momentum can build against the dollar and for gold. So bankers don’t want higher gold prices. Central banks may be conspiring against gold.

India’s demand for gold fell 70% last month. There are other similar stories. Demand (for jewelry..etc) for gold is falling faster than speculative demand may be rising. However, (GoldTrackes “GLD”) shows increasing demand from investors, no question about that.

Now, recently AS EXPECTED gold has fallen as this recession gets uglier CONFIRMING some of the above

The only thing that could reverse that would be TOTAL CHAOS beyond the levels already seen. I’m guessing that won’t happen.

So HOLD COURSE on keeping my gold holdings to a MINIMUM (currently 25%) and watch for the bottom in gold prices, then LOAD UP ON GOLD at teh bottom of the recession. GUESSING now I think we are going below $800. Will we go below last resitance level of $750/ounce? I have no idea!

[stockstradr]

This is a very tricky question, one I’ll admit I’m guessing on.

Let’s reflect on guesses that DID work.

Roubini guessed weeks ago that deepening recession will be deflationary and gold will NOT escape downward pricing pressure on commodities.

Also, many good articles (again see Roubini’s website) have been written that the Worlds central banks are supporting the dollar. Gold is kinda the enemy of the dollar, because if gold starts rising and people start dumping dollars then momentum can build against the dollar and for gold. So bankers don’t want higher gold prices. Central banks may be conspiring against gold.

India’s demand for gold fell 70% last month. There are other similar stories. Demand (for jewelry..etc) for gold is falling faster than speculative demand may be rising. However, (GoldTrackes “GLD”) shows increasing demand from investors, no question about that.

Now, recently AS EXPECTED gold has fallen as this recession gets uglier CONFIRMING some of the above

The only thing that could reverse that would be TOTAL CHAOS beyond the levels already seen. I’m guessing that won’t happen.

So HOLD COURSE on keeping my gold holdings to a MINIMUM (currently 25%) and watch for the bottom in gold prices, then LOAD UP ON GOLD at teh bottom of the recession. GUESSING now I think we are going below $800. Will we go below last resitance level of $750/ounce? I have no idea!

[stockstradr]

This is a very tricky question, one I’ll admit I’m guessing on.

Let’s reflect on guesses that DID work.

Roubini guessed weeks ago that deepening recession will be deflationary and gold will NOT escape downward pricing pressure on commodities.

Also, many good articles (again see Roubini’s website) have been written that the Worlds central banks are supporting the dollar. Gold is kinda the enemy of the dollar, because if gold starts rising and people start dumping dollars then momentum can build against the dollar and for gold. So bankers don’t want higher gold prices. Central banks may be conspiring against gold.

India’s demand for gold fell 70% last month. There are other similar stories. Demand (for jewelry..etc) for gold is falling faster than speculative demand may be rising. However, (GoldTrackes “GLD”) shows increasing demand from investors, no question about that.

Now, recently AS EXPECTED gold has fallen as this recession gets uglier CONFIRMING some of the above

The only thing that could reverse that would be TOTAL CHAOS beyond the levels already seen. I’m guessing that won’t happen.

So HOLD COURSE on keeping my gold holdings to a MINIMUM (currently 25%) and watch for the bottom in gold prices, then LOAD UP ON GOLD at teh bottom of the recession. GUESSING now I think we are going below $800. Will we go below last resitance level of $750/ounce? I have no idea!

[stockstradr]

This is a very tricky question, one I’ll admit I’m guessing on.

Let’s reflect on guesses that DID work.

Roubini guessed weeks ago that deepening recession will be deflationary and gold will NOT escape downward pricing pressure on commodities.

Also, many good articles (again see Roubini’s website) have been written that the Worlds central banks are supporting the dollar. Gold is kinda the enemy of the dollar, because if gold starts rising and people start dumping dollars then momentum can build against the dollar and for gold. So bankers don’t want higher gold prices. Central banks may be conspiring against gold.

India’s demand for gold fell 70% last month. There are other similar stories. Demand (for jewelry..etc) for gold is falling faster than speculative demand may be rising. However, (GoldTrackes “GLD”) shows increasing demand from investors, no question about that.

Now, recently AS EXPECTED gold has fallen as this recession gets uglier CONFIRMING some of the above

The only thing that could reverse that would be TOTAL CHAOS beyond the levels already seen. I’m guessing that won’t happen.

So HOLD COURSE on keeping my gold holdings to a MINIMUM (currently 25%) and watch for the bottom in gold prices, then LOAD UP ON GOLD at teh bottom of the recession. GUESSING now I think we are going below $800. Will we go below last resitance level of $750/ounce? I have no idea!

[stockstradr]

This is a very tricky question, one I’ll admit I’m guessing on.

Let’s reflect on guesses that DID work.

Roubini guessed weeks ago that deepening recession will be deflationary and gold will NOT escape downward pricing pressure on commodities.

Also, many good articles (again see Roubini’s website) have been written that the Worlds central banks are supporting the dollar. Gold is kinda the enemy of the dollar, because if gold starts rising and people start dumping dollars then momentum can build against the dollar and for gold. So bankers don’t want higher gold prices. Central banks may be conspiring against gold.

India’s demand for gold fell 70% last month. There are other similar stories. Demand (for jewelry..etc) for gold is falling faster than speculative demand may be rising. However, (GoldTrackes “GLD”) shows increasing demand from investors, no question about that.

Now, recently AS EXPECTED gold has fallen as this recession gets uglier CONFIRMING some of the above

The only thing that could reverse that would be TOTAL CHAOS beyond the levels already seen. I’m guessing that won’t happen.

So HOLD COURSE on keeping my gold holdings to a MINIMUM (currently 25%) and watch for the bottom in gold prices, then LOAD UP ON GOLD at teh bottom of the recession. GUESSING now I think we are going below $800. Will we go below last resitance level of $750/ounce? I have no idea!

[cr]

From everything I’ve read on Gold it sounds like most expect it to peak again somewhere around $1200, though I’ve heard $1500 and higher.

I have no idea why it’s being beaten down, but having read Rich’s article on Gold, the slowdown doesn’t seem like something that will stick.

My guess is banks or other institutions scrambling for cash are trading in their Gold, but that’s just a guess.

[cr]

From everything I’ve read on Gold it sounds like most expect it to peak again somewhere around $1200, though I’ve heard $1500 and higher.

I have no idea why it’s being beaten down, but having read Rich’s article on Gold, the slowdown doesn’t seem like something that will stick.

My guess is banks or other institutions scrambling for cash are trading in their Gold, but that’s just a guess.

[cr]

From everything I’ve read on Gold it sounds like most expect it to peak again somewhere around $1200, though I’ve heard $1500 and higher.

I have no idea why it’s being beaten down, but having read Rich’s article on Gold, the slowdown doesn’t seem like something that will stick.

My guess is banks or other institutions scrambling for cash are trading in their Gold, but that’s just a guess.

[cr]

From everything I’ve read on Gold it sounds like most expect it to peak again somewhere around $1200, though I’ve heard $1500 and higher.

I have no idea why it’s being beaten down, but having read Rich’s article on Gold, the slowdown doesn’t seem like something that will stick.

My guess is banks or other institutions scrambling for cash are trading in their Gold, but that’s just a guess.

[cr]

From everything I’ve read on Gold it sounds like most expect it to peak again somewhere around $1200, though I’ve heard $1500 and higher.

I have no idea why it’s being beaten down, but having read Rich’s article on Gold, the slowdown doesn’t seem like something that will stick.

My guess is banks or other institutions scrambling for cash are trading in their Gold, but that’s just a guess.

[Arraya]

http://www.ft.com/cms/s/bf8246aa-8f13-11dd-946c-0000779fd18c,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fbf8246aa-8f13-11dd-946c-0000779fd18c.html&_i_referer=http%3A%2F%2Fwww.prudentbear.com%2Findex.php%3FItemid%3D57%26option%3Dcom_content%26view%3Dfrontpage

Investors in gold are demanding “unprecedented” amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen. Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by the very rich. There is an enormous pick-up in investment demand. I have never seen a market like this in my 33-year career,” said Jeremy Charles, chairman of the LBMA. “The gold refineries cannot produce enough bars.” The move comes as fears grow among investors over the losses at investments previously considered almost risk-free, such as money funds. Spot gold prices in London on Tuesday traded at about $900 an ounce, more than 25% above the level before Lehman Brothers’ collapse. Executives said gold refineries and government mints were working at full throttle but acknowledged they were suffering shortages, particularly on gold coins.

[Arraya]

http://www.ft.com/cms/s/bf8246aa-8f13-11dd-946c-0000779fd18c,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fbf8246aa-8f13-11dd-946c-0000779fd18c.html&_i_referer=http%3A%2F%2Fwww.prudentbear.com%2Findex.php%3FItemid%3D57%26option%3Dcom_content%26view%3Dfrontpage

Investors in gold are demanding “unprecedented” amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen. Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by the very rich. There is an enormous pick-up in investment demand. I have never seen a market like this in my 33-year career,” said Jeremy Charles, chairman of the LBMA. “The gold refineries cannot produce enough bars.” The move comes as fears grow among investors over the losses at investments previously considered almost risk-free, such as money funds. Spot gold prices in London on Tuesday traded at about $900 an ounce, more than 25% above the level before Lehman Brothers’ collapse. Executives said gold refineries and government mints were working at full throttle but acknowledged they were suffering shortages, particularly on gold coins.

[Arraya]

http://www.ft.com/cms/s/bf8246aa-8f13-11dd-946c-0000779fd18c,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fbf8246aa-8f13-11dd-946c-0000779fd18c.html&_i_referer=http%3A%2F%2Fwww.prudentbear.com%2Findex.php%3FItemid%3D57%26option%3Dcom_content%26view%3Dfrontpage

Investors in gold are demanding “unprecedented” amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen. Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by the very rich. There is an enormous pick-up in investment demand. I have never seen a market like this in my 33-year career,” said Jeremy Charles, chairman of the LBMA. “The gold refineries cannot produce enough bars.” The move comes as fears grow among investors over the losses at investments previously considered almost risk-free, such as money funds. Spot gold prices in London on Tuesday traded at about $900 an ounce, more than 25% above the level before Lehman Brothers’ collapse. Executives said gold refineries and government mints were working at full throttle but acknowledged they were suffering shortages, particularly on gold coins.

[Arraya]

http://www.ft.com/cms/s/bf8246aa-8f13-11dd-946c-0000779fd18c,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fbf8246aa-8f13-11dd-946c-0000779fd18c.html&_i_referer=http%3A%2F%2Fwww.prudentbear.com%2Findex.php%3FItemid%3D57%26option%3Dcom_content%26view%3Dfrontpage

Investors in gold are demanding “unprecedented” amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen. Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by the very rich. There is an enormous pick-up in investment demand. I have never seen a market like this in my 33-year career,” said Jeremy Charles, chairman of the LBMA. “The gold refineries cannot produce enough bars.” The move comes as fears grow among investors over the losses at investments previously considered almost risk-free, such as money funds. Spot gold prices in London on Tuesday traded at about $900 an ounce, more than 25% above the level before Lehman Brothers’ collapse. Executives said gold refineries and government mints were working at full throttle but acknowledged they were suffering shortages, particularly on gold coins.

[Author]

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