Gold Down

[Eugene]

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.

Right now strong dollar is bad for the global economy. GDP kept growing through the first half of the year because of strong manufacturing and strong exports. With dollar back to 2007 levels, unemployment is through the roof and ISM manufacturing index is showing strong contraction.

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!

Loading up on gold at the bottom would be a remarkably bad idea. As the recession ends, investors will start moving from gold into stocks again, GLD and the likes will start unloading its reserves, prices will crash. If anything, load up on platinum because it will appreciate due to fundamental demand.

My personal sentiment is shifting towards bullish on gold (for now).
Sooner or later, probably sooner, the Fed will have to start pumping more money into the economy to avoid deflation, gold will appreciate. The idea is to buy gold now and sell at the bottom of the recession.

[Arraya]

Richard Daughty, the Mogambo Guru
Quote: “I can tell you EXACTLY what is going to happen ‘after taking all relevant factors into account’, because what is going to happen is the same thing that ALWAYS happens when an idiot government starts creating, or allows to be created, excess money and credit, which is that the money in question will expand and expand, and end up with zero purchasing power while gold, when priced in a currency that has no purchasing power, soars to infinite levels when priced in that currency, and that is what has always happened, anyway, and that is why I am 100% sure, dead-bang sure, no-doubt-about-it sure, can’t-miss sure that it will happen again! Betting with gold against a fiat currency in the hands of politicians is the biggest no-brainer on the planet! Whee! This investing stuff is easy!”

[Arraya]

Richard Daughty, the Mogambo Guru
Quote: “I can tell you EXACTLY what is going to happen ‘after taking all relevant factors into account’, because what is going to happen is the same thing that ALWAYS happens when an idiot government starts creating, or allows to be created, excess money and credit, which is that the money in question will expand and expand, and end up with zero purchasing power while gold, when priced in a currency that has no purchasing power, soars to infinite levels when priced in that currency, and that is what has always happened, anyway, and that is why I am 100% sure, dead-bang sure, no-doubt-about-it sure, can’t-miss sure that it will happen again! Betting with gold against a fiat currency in the hands of politicians is the biggest no-brainer on the planet! Whee! This investing stuff is easy!”

[Arraya]

Richard Daughty, the Mogambo Guru
Quote: “I can tell you EXACTLY what is going to happen ‘after taking all relevant factors into account’, because what is going to happen is the same thing that ALWAYS happens when an idiot government starts creating, or allows to be created, excess money and credit, which is that the money in question will expand and expand, and end up with zero purchasing power while gold, when priced in a currency that has no purchasing power, soars to infinite levels when priced in that currency, and that is what has always happened, anyway, and that is why I am 100% sure, dead-bang sure, no-doubt-about-it sure, can’t-miss sure that it will happen again! Betting with gold against a fiat currency in the hands of politicians is the biggest no-brainer on the planet! Whee! This investing stuff is easy!”

[Arraya]

Richard Daughty, the Mogambo Guru
Quote: “I can tell you EXACTLY what is going to happen ‘after taking all relevant factors into account’, because what is going to happen is the same thing that ALWAYS happens when an idiot government starts creating, or allows to be created, excess money and credit, which is that the money in question will expand and expand, and end up with zero purchasing power while gold, when priced in a currency that has no purchasing power, soars to infinite levels when priced in that currency, and that is what has always happened, anyway, and that is why I am 100% sure, dead-bang sure, no-doubt-about-it sure, can’t-miss sure that it will happen again! Betting with gold against a fiat currency in the hands of politicians is the biggest no-brainer on the planet! Whee! This investing stuff is easy!”

[Arraya]

Richard Daughty, the Mogambo Guru
Quote: “I can tell you EXACTLY what is going to happen ‘after taking all relevant factors into account’, because what is going to happen is the same thing that ALWAYS happens when an idiot government starts creating, or allows to be created, excess money and credit, which is that the money in question will expand and expand, and end up with zero purchasing power while gold, when priced in a currency that has no purchasing power, soars to infinite levels when priced in that currency, and that is what has always happened, anyway, and that is why I am 100% sure, dead-bang sure, no-doubt-about-it sure, can’t-miss sure that it will happen again! Betting with gold against a fiat currency in the hands of politicians is the biggest no-brainer on the planet! Whee! This investing stuff is easy!”

[barnaby33]

Might I remind you that early = wrong on Wall St.
Josh

[barnaby33]

Might I remind you that early = wrong on Wall St.
Josh

[barnaby33]

Might I remind you that early = wrong on Wall St.
Josh

[barnaby33]

Might I remind you that early = wrong on Wall St.
Josh

[barnaby33]

Might I remind you that early = wrong on Wall St.
Josh

[HereWeGo]

Bailout passes = gold plunges
bailout fails = gold soars, probably breaks 1000 tomorrow

[HereWeGo]

Bailout passes = gold plunges
bailout fails = gold soars, probably breaks 1000 tomorrow

[HereWeGo]

Bailout passes = gold plunges
bailout fails = gold soars, probably breaks 1000 tomorrow

[HereWeGo]

Bailout passes = gold plunges
bailout fails = gold soars, probably breaks 1000 tomorrow

[Author]

Posts