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mohsinqureshii

Gold Bullish or Bearish

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Ill stop buying when they stop printing money. I'll continue to buy on weakness. This is a long term position, not a trade. Rather have gold than worthless dollars.

Maybe 2020 they will turn off the printing presses. :D

 

Central Banks wish your hyper-inflationary theory is correct. In fact that is what they are trying to do because they fear that they cannot prevent asset prices from falling. When all the gold bugs realize that the opposite of what they were expecting is occurring, we will see gold at $12 an ounce.

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For those Gold traders who consider fundamentals, there is a positive correlation between the gold price and FOOD prices. When there is food price inflation, the price of gold rises.

Now over the last week CORN has gone up big time because of drought conditions in parts of the USA.

Expect a correction in gold .......UP.

Caution. Corn is only a small part of the food chain . Not all foods are going up, so expect the gold correction to be small.

regards

bobc

 

PS Better still, BUY CORN Futures

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Gold has been following Silver's lead since the double top last Aug/Sept.

 

Gold made slightly higher swing high while Silver made a slightly lower swing high.

 

Silver having more practical uses in industry is falling with the slowing growth rate in the world economy. Nothing more complicated than that.

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The best analysis i've seen was by Cullen Roche at pragcap.com

 

Lots of folks still think many governments are printing to much money and somehow gold would be safer... (not sure why gold has more value than anything else if it is armagedden ;-).

 

There used to be a strong correlation of gold to US inflation, but not so much the past decade or so. Money creation doesn't necessarily lead to hyperinflation, and the US has been more in deflation, but gold still goes up.

 

it is because the demand for gold is from India and China. Watch the CPI in China and you'll see the most curent influence on gold prices.

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yes great chart to prove a point :roll eyes:......what happens when you put them on the same vertical axis.

 

I was unfortunately previously associated with someone who used to claim....

 

Gold is a great inflation hedge.....(and in the same breath)

If gold were to be inflation adjusted it would be worth $5000.

 

amazing when you change the horizontal axis as well to prove a point, or go back 100 years to show a short term trend.

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yes great chart to prove a point :roll eyes:......what happens when you put them on the same vertical axis.

 

I was unfortunately previously associated with someone who used to claim....

 

Gold is a great inflation hedge.....(and in the same breath)

If gold were to be inflation adjusted it would be worth $5000.

 

amazing when you change the horizontal axis as well to prove a point, or go back 100 years to show a short term trend.

 

It is funny to hear both, especially when it is from the same person, but I suppose your associate is right about the inflation adjusted price of gold. The comment about the inflation hedge is that it is the commonly used hedge against inflation. Gold and other precious metals are seen as being good stores of value. Inflation erodes value in intangible assets. Gold is a good store of value, but by no means is it a great or perfect store of value and, therefore not a perfect hedge against inflation.

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exactly.....how with a straight face you can say....

 

this instrument is a great hedge against inflation,

and then in the next breath say,

it is cheap - because it has been such a poor hedge against inflation in reality.

 

If you find chart to back your idea then its all good.....extend the chart or change the comparison.....different story

 

sales pitch, sales pitch, sales pitch.........:doh:

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weekly, daily, 4h..all bearish

 

 

(who cares about corn's future? its the same old corn) :roll eyes::cool:

 

Gold now trading at 1590,an increase of 1.76% for the day.:missy:

I suggested to my wife I close my position and we go out for supper.

Or I hold over the weekend and we have soup.:crap:

I wont tell you my decision. It could influence the gold price:haha:

regards

bobc

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What was today's high?

 

Oh that's right - right in the resistance zone I've mentioned repeatedly.

 

On the biggest volume in weeks. Looks like distribution to me.

 

Maybe it breaks it ..... and maybe it doesn't.

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Perhaps a buying opp will present itself. Who knows. No sign of the bailout easing, just throwing more printed money at the bad debt. Only means one thing for gold.

Up up up. 🎉🎉🎉

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