Home › Forums › Financial Markets/Economics › Where are gold prices headed?
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denis4x4.
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May 23, 2007 at 11:29 AM #54510May 23, 2007 at 10:35 PM #54592
Wiley
ParticipantLove McEwen. Made me lots of money when he was ceo of GG.
As for risky, the dollar has lost 30% in the last 7 years while the HUI is up 650%. Having said that, Mark Twain did comment once that if you show him a gold mine he’ll show you a liar standing over a hole.
May 23, 2007 at 10:35 PM #54607ParticipantLove McEwen. Made me lots of money when he was ceo of GG.
As for risky, the dollar has lost 30% in the last 7 years while the HUI is up 650%. Having said that, Mark Twain did comment once that if you show him a gold mine he’ll show you a liar standing over a hole.
May 24, 2007 at 1:10 AM #54668poorgradstudent
ParticipantMark Twain was also a notoriously awful investor. Luckily he was a brilliant and popular author who could always write another book to make up for what he lost in bad investments 😉
May 24, 2007 at 1:10 AM #54682ParticipantMark Twain was also a notoriously awful investor. Luckily he was a brilliant and popular author who could always write another book to make up for what he lost in bad investments 😉
May 24, 2007 at 5:01 AM #54678Anonymous
GuestTwain also coined the expression “Monday is a particularly bad day for stock market speculation. Other bad days are Tuesday, Wednesday, Thursday and Friday.”
I seek professional help in speculating on gold. I trade almost all markets and have for a long time. “Trading” is a misleading term because nobody puts a time frame or a risk profile on it. I have a core position in gold stocks, the Franklin gold fund(FRGOX) that I “trade around”…or hedge via put buying in GDX or bullion futures. IMHO, I think that with the unprecedented asset inflation we have along with the debasement of the dollar, gold will eventually trade around $950-$1100. But, according to the guys I listen to (who have been largely right in their tactical calls) we are headed down short term, $632-640 being the high estimate and $585 being the low.
Interestingly, many of these guys are forecasting silver to be the out performer of the two precious metals with aluminum and zinc leading the way for non-precious due to Chinese industrial demand. 321 gold, Kitco and Zeal all have free newsletters or trials for those who have further interest.
May 24, 2007 at 5:01 AM #54692GuestTwain also coined the expression “Monday is a particularly bad day for stock market speculation. Other bad days are Tuesday, Wednesday, Thursday and Friday.”
I seek professional help in speculating on gold. I trade almost all markets and have for a long time. “Trading” is a misleading term because nobody puts a time frame or a risk profile on it. I have a core position in gold stocks, the Franklin gold fund(FRGOX) that I “trade around”…or hedge via put buying in GDX or bullion futures. IMHO, I think that with the unprecedented asset inflation we have along with the debasement of the dollar, gold will eventually trade around $950-$1100. But, according to the guys I listen to (who have been largely right in their tactical calls) we are headed down short term, $632-640 being the high estimate and $585 being the low.
Interestingly, many of these guys are forecasting silver to be the out performer of the two precious metals with aluminum and zinc leading the way for non-precious due to Chinese industrial demand. 321 gold, Kitco and Zeal all have free newsletters or trials for those who have further interest.
May 24, 2007 at 5:47 AM #546834plexowner
ParticipantSilver may be the most undervalued asset on the planet right now
The silver market has been operating in a supply deficit situation for the last 60 years but that supply has run out (US had 1 billion ounces of silver after WWII – this silver filled the supply deficit until 2004(?) when the US Mint had to buy silver on the open market to fulfill orders for silver Eagle coins
With the prices of gold and silver depressed (manipulated?) for 20 years, most miners went out of business or drastically scaled back operations – exploration for new mines mostly stopped – now that the demand for commodities is rising (think 3 billion people in Asia trying to achieve the western lifestyle) miners are ramping back up to speed but bringing a new mine online can take 5 to 7 years (or longer if you have to deal with NIMBY and tree-hugger issues)
Interesting tidbits about silver:
– silver to gold ratio in the earth is about 16:1 – interestingly, silver and gold have traded close to this ratio for most of the last 600 years (currently this ratio is about 50:1 so a return to the historic ratio will make silver far outperform gold in the current bull market)
– silver is a natural virus and bacteria killer – many new applications are taking advantage of this fact – silver linings in refridgerators and washing machines control germs – silver in the socks of our troops in Iraq helps prevent foot fungi from developing
– silver is one of the best electrical conductors known – how much silver will Asia need to give 3 billion people the western lifestyle? – all electronics have a little bit of silver in them (think cell phones, computers, TVs, etc)I could go on and on about silver but, as one of my professors would say, “the proof is left as an exercise for the student” – ie, do your own research
May 24, 2007 at 5:47 AM #54697ParticipantSilver may be the most undervalued asset on the planet right now
The silver market has been operating in a supply deficit situation for the last 60 years but that supply has run out (US had 1 billion ounces of silver after WWII – this silver filled the supply deficit until 2004(?) when the US Mint had to buy silver on the open market to fulfill orders for silver Eagle coins
With the prices of gold and silver depressed (manipulated?) for 20 years, most miners went out of business or drastically scaled back operations – exploration for new mines mostly stopped – now that the demand for commodities is rising (think 3 billion people in Asia trying to achieve the western lifestyle) miners are ramping back up to speed but bringing a new mine online can take 5 to 7 years (or longer if you have to deal with NIMBY and tree-hugger issues)
Interesting tidbits about silver:
– silver to gold ratio in the earth is about 16:1 – interestingly, silver and gold have traded close to this ratio for most of the last 600 years (currently this ratio is about 50:1 so a return to the historic ratio will make silver far outperform gold in the current bull market)
– silver is a natural virus and bacteria killer – many new applications are taking advantage of this fact – silver linings in refridgerators and washing machines control germs – silver in the socks of our troops in Iraq helps prevent foot fungi from developing
– silver is one of the best electrical conductors known – how much silver will Asia need to give 3 billion people the western lifestyle? – all electronics have a little bit of silver in them (think cell phones, computers, TVs, etc)I could go on and on about silver but, as one of my professors would say, “the proof is left as an exercise for the student” – ie, do your own research
May 24, 2007 at 10:40 AM #54747HereWeGo
ParticipantHere’s an interesting article on gold .
I like the point that jewelry demand and investment demand contervail each other.
May 24, 2007 at 10:40 AM #54761ParticipantHere’s an interesting article on gold .
I like the point that jewelry demand and investment demand contervail each other.
May 24, 2007 at 11:00 AM #54771ParticipantI remember Cramer and the Street.com was bearish on gold back in 2004. They were wrong then too. It’s telling they don’t mention the inflation adjusted average price of gold.
May 24, 2007 at 11:00 AM #54756ParticipantI remember Cramer and the Street.com was bearish on gold back in 2004. They were wrong then too. It’s telling they don’t mention the inflation adjusted average price of gold.
May 24, 2007 at 12:45 PM #54786limo_888
ParticipantWarren Buffett is now joining the band wagon. Check out the article below.
Billionaire Buffett’s Berkshire Hathaway to finally invest in gold…jewelry
Billionaire Warren Buffett’s Berkshire Hathaway intends to create the largest U.S. gold jewelry manufacturer, the new Richline Group.Author: Dorothy Kosich
Posted: Monday , 21 May 2007RENO, NV –
The company of U.S. billionaire Warren Buffett–who nearly a decade ago ridiculed the non-productive aspects of gold–intends to acquire U.S. gold jewelry manufacturers, Bel-Oro International and Aurafin LLC.
Berkshire Hathaway announced Friday it has entered into definitive agreements to acquire the companies and will combine them into the newly formed Richline Group, which aims to be the largest jewelry supply group in the United States.
During a 1998 speech at Harvard, Buffett noted that gold “gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
In a news release, Dave Meleski, Auragin CEO, called it “an unprecedented transaction in our industry. We are proud to have a top financial investor invest in which will now the largest jewelry supply group in the USA.” Meleski and Bel-Ore CEO Dennis Ulrich have agreed to merge the companies into two large and cohesive operating entities under Richline Group. Both brand names will be kept although Richline intends to achieve operational and administrative cost synergies.
Ulrich will become the CEO of Richline Group and will manage the company. Meleski will become president of the new group. The two jewelry companies generate more than $500 million in revenue and employ 1,800 people internationally.
The transaction is expected to close during the second or third quarter of 2007.
Mark Hanna, spokesman for Bel-Oro, told the Associated Press that the combined company will account for about 6% of the world gold jewelry market. Berkshire owns several jewelry retailers including Helzberg’s and Borsheim’s, which buy gold jewelry from Bel-Oro or Aurafin, according to Hanna.
May 24, 2007 at 12:45 PM #54801ParticipantWarren Buffett is now joining the band wagon. Check out the article below.
Billionaire Buffett’s Berkshire Hathaway to finally invest in gold…jewelry
Billionaire Warren Buffett’s Berkshire Hathaway intends to create the largest U.S. gold jewelry manufacturer, the new Richline Group.Author: Dorothy Kosich
Posted: Monday , 21 May 2007RENO, NV –
The company of U.S. billionaire Warren Buffett–who nearly a decade ago ridiculed the non-productive aspects of gold–intends to acquire U.S. gold jewelry manufacturers, Bel-Oro International and Aurafin LLC.
Berkshire Hathaway announced Friday it has entered into definitive agreements to acquire the companies and will combine them into the newly formed Richline Group, which aims to be the largest jewelry supply group in the United States.
During a 1998 speech at Harvard, Buffett noted that gold “gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
In a news release, Dave Meleski, Auragin CEO, called it “an unprecedented transaction in our industry. We are proud to have a top financial investor invest in which will now the largest jewelry supply group in the USA.” Meleski and Bel-Ore CEO Dennis Ulrich have agreed to merge the companies into two large and cohesive operating entities under Richline Group. Both brand names will be kept although Richline intends to achieve operational and administrative cost synergies.
Ulrich will become the CEO of Richline Group and will manage the company. Meleski will become president of the new group. The two jewelry companies generate more than $500 million in revenue and employ 1,800 people internationally.
The transaction is expected to close during the second or third quarter of 2007.
Mark Hanna, spokesman for Bel-Oro, told the Associated Press that the combined company will account for about 6% of the world gold jewelry market. Berkshire owns several jewelry retailers including Helzberg’s and Borsheim’s, which buy gold jewelry from Bel-Oro or Aurafin, according to Hanna.
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