Gold Down

[HereWeGo]

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

[EconProf]

Let’s remember that recessions are fundamentally deflationary. The deeper the recession, the more likely commodities get hit–and gold is at heart another commodity. Absent a Head-for-the-hills panic atmosphere, gold will fall.
I trust gold as a barometer. I think what it signalled in today’s big drop is the upcoming recession (predicted by other economic indicators today) will be a doozy.

[EconProf]

Let’s remember that recessions are fundamentally deflationary. The deeper the recession, the more likely commodities get hit–and gold is at heart another commodity. Absent a Head-for-the-hills panic atmosphere, gold will fall.
I trust gold as a barometer. I think what it signalled in today’s big drop is the upcoming recession (predicted by other economic indicators today) will be a doozy.

[EconProf]

Let’s remember that recessions are fundamentally deflationary. The deeper the recession, the more likely commodities get hit–and gold is at heart another commodity. Absent a Head-for-the-hills panic atmosphere, gold will fall.
I trust gold as a barometer. I think what it signalled in today’s big drop is the upcoming recession (predicted by other economic indicators today) will be a doozy.

[EconProf]

Let’s remember that recessions are fundamentally deflationary. The deeper the recession, the more likely commodities get hit–and gold is at heart another commodity. Absent a Head-for-the-hills panic atmosphere, gold will fall.
I trust gold as a barometer. I think what it signalled in today’s big drop is the upcoming recession (predicted by other economic indicators today) will be a doozy.

[EconProf]

Let’s remember that recessions are fundamentally deflationary. The deeper the recession, the more likely commodities get hit–and gold is at heart another commodity. Absent a Head-for-the-hills panic atmosphere, gold will fall.
I trust gold as a barometer. I think what it signalled in today’s big drop is the upcoming recession (predicted by other economic indicators today) will be a doozy.

[peterb]

The big fluctuations in gold are panic driven and dont last very long. But in the long haul, gold is the honest value of FIAT currencies. So from a store of value point of view, it’s a good investment foundation.

It has done exceptionally well lately when you compare it to other commodities. If it holds up in price, the mining companies can make good incomes again. Especially if oil trends down. Mines are energy intensive ventures. But there are some strong arquements that gold is in a rising bubble formation. But from a historical analysis, gold rises in real terms after a huge credit bubble bursts and we get strong liquidation pressure. This may occur as early as late October through to December. And right now the technicians are saying it’s very “over bought”. So I would not be surprised to see it drop for a few weeks or longer. At which time I will probably buy more as the world currencies look unstable going forward.

[peterb]

The big fluctuations in gold are panic driven and dont last very long. But in the long haul, gold is the honest value of FIAT currencies. So from a store of value point of view, it’s a good investment foundation.

It has done exceptionally well lately when you compare it to other commodities. If it holds up in price, the mining companies can make good incomes again. Especially if oil trends down. Mines are energy intensive ventures. But there are some strong arquements that gold is in a rising bubble formation. But from a historical analysis, gold rises in real terms after a huge credit bubble bursts and we get strong liquidation pressure. This may occur as early as late October through to December. And right now the technicians are saying it’s very “over bought”. So I would not be surprised to see it drop for a few weeks or longer. At which time I will probably buy more as the world currencies look unstable going forward.

[peterb]

The big fluctuations in gold are panic driven and dont last very long. But in the long haul, gold is the honest value of FIAT currencies. So from a store of value point of view, it’s a good investment foundation.

It has done exceptionally well lately when you compare it to other commodities. If it holds up in price, the mining companies can make good incomes again. Especially if oil trends down. Mines are energy intensive ventures. But there are some strong arquements that gold is in a rising bubble formation. But from a historical analysis, gold rises in real terms after a huge credit bubble bursts and we get strong liquidation pressure. This may occur as early as late October through to December. And right now the technicians are saying it’s very “over bought”. So I would not be surprised to see it drop for a few weeks or longer. At which time I will probably buy more as the world currencies look unstable going forward.

[peterb]

The big fluctuations in gold are panic driven and dont last very long. But in the long haul, gold is the honest value of FIAT currencies. So from a store of value point of view, it’s a good investment foundation.

It has done exceptionally well lately when you compare it to other commodities. If it holds up in price, the mining companies can make good incomes again. Especially if oil trends down. Mines are energy intensive ventures. But there are some strong arquements that gold is in a rising bubble formation. But from a historical analysis, gold rises in real terms after a huge credit bubble bursts and we get strong liquidation pressure. This may occur as early as late October through to December. And right now the technicians are saying it’s very “over bought”. So I would not be surprised to see it drop for a few weeks or longer. At which time I will probably buy more as the world currencies look unstable going forward.

[peterb]

The big fluctuations in gold are panic driven and dont last very long. But in the long haul, gold is the honest value of FIAT currencies. So from a store of value point of view, it’s a good investment foundation.

It has done exceptionally well lately when you compare it to other commodities. If it holds up in price, the mining companies can make good incomes again. Especially if oil trends down. Mines are energy intensive ventures. But there are some strong arquements that gold is in a rising bubble formation. But from a historical analysis, gold rises in real terms after a huge credit bubble bursts and we get strong liquidation pressure. This may occur as early as late October through to December. And right now the technicians are saying it’s very “over bought”. So I would not be surprised to see it drop for a few weeks or longer. At which time I will probably buy more as the world currencies look unstable going forward.

[Eugene]

It has done exceptionally well lately when you compare it to other commodities. If it holds up in price, the mining companies can make good incomes again. Especially if oil trends down. Mines are energy intensive ventures.

It’s a relatively useless metal, and its main consumer (jewelry) has been thoroughly squeezed out of the market. So it naturally does not suffer as much as oil or platinum from the global commodity slowdown.

For the same reason it will not enjoy as big a bounce (if any at all) when the recession is over. On the contrary, investors will rush for the exits.

For the last 12 months gold had a strong negative correlation (-2 or more) with the dollar index.

http://tinyurl.com/3fv28u

Correlation -2 means that, when dollar gains 1% against other world currencies, gold price falls 2% in dollars and 1% in other currencies. It did not crash like silver because industrial demand is not a major contributor to its price.

Right now gold is higher than it should be based on this dollar index principle. But if GLD gets into 75 range again, I’d start buying.

[Eugene]

It has done exceptionally well lately when you compare it to other commodities. If it holds up in price, the mining companies can make good incomes again. Especially if oil trends down. Mines are energy intensive ventures.

It’s a relatively useless metal, and its main consumer (jewelry) has been thoroughly squeezed out of the market. So it naturally does not suffer as much as oil or platinum from the global commodity slowdown.

For the same reason it will not enjoy as big a bounce (if any at all) when the recession is over. On the contrary, investors will rush for the exits.

For the last 12 months gold had a strong negative correlation (-2 or more) with the dollar index.

http://tinyurl.com/3fv28u

Correlation -2 means that, when dollar gains 1% against other world currencies, gold price falls 2% in dollars and 1% in other currencies. It did not crash like silver because industrial demand is not a major contributor to its price.

Right now gold is higher than it should be based on this dollar index principle. But if GLD gets into 75 range again, I’d start buying.

[Eugene]

It has done exceptionally well lately when you compare it to other commodities. If it holds up in price, the mining companies can make good incomes again. Especially if oil trends down. Mines are energy intensive ventures.

It’s a relatively useless metal, and its main consumer (jewelry) has been thoroughly squeezed out of the market. So it naturally does not suffer as much as oil or platinum from the global commodity slowdown.

For the same reason it will not enjoy as big a bounce (if any at all) when the recession is over. On the contrary, investors will rush for the exits.

For the last 12 months gold had a strong negative correlation (-2 or more) with the dollar index.

http://tinyurl.com/3fv28u

Correlation -2 means that, when dollar gains 1% against other world currencies, gold price falls 2% in dollars and 1% in other currencies. It did not crash like silver because industrial demand is not a major contributor to its price.

Right now gold is higher than it should be based on this dollar index principle. But if GLD gets into 75 range again, I’d start buying.

[Eugene]

It has done exceptionally well lately when you compare it to other commodities. If it holds up in price, the mining companies can make good incomes again. Especially if oil trends down. Mines are energy intensive ventures.

It’s a relatively useless metal, and its main consumer (jewelry) has been thoroughly squeezed out of the market. So it naturally does not suffer as much as oil or platinum from the global commodity slowdown.

For the same reason it will not enjoy as big a bounce (if any at all) when the recession is over. On the contrary, investors will rush for the exits.

For the last 12 months gold had a strong negative correlation (-2 or more) with the dollar index.

http://tinyurl.com/3fv28u

Correlation -2 means that, when dollar gains 1% against other world currencies, gold price falls 2% in dollars and 1% in other currencies. It did not crash like silver because industrial demand is not a major contributor to its price.

Right now gold is higher than it should be based on this dollar index principle. But if GLD gets into 75 range again, I’d start buying.

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