Is This Good Time for Buy Gold Again???

[jimbo320 10]

Be careful with the "Gold will always go up" idea, Jimbo.

 

When I hear that, I think of selling.

 

Interesting times.

 

Indeed. We've seen it so many times now.

Crisis? What Crisis? If my banks debts are 5 bill, so what, central bank buys them with printed $. It's the only way out of the mess. It will continue till the debts are clear.

 

Until the debts are cleared, inflation rules and gold goes up.

[TheNegotiator 13]

If all the world's central banks continue with their policy to inflate away debt and devalue currency (under the guise of stimulus), ALL tangible assets will ultimately go up in value. True, if there's some dodgy goings on in gold and silver etc. then there could be a crisis in supply and prices could rocket. But then ultimately there are bubbles like anything. There is a limited supply, but look what happened in Oil. $150 down to something like $35 (can't remember exactly but you get the picture I'm sure). My feeling is that gold could potentially be worth much much more but then I want to see the stock indices start to march their way to much higher levels too. The S&P 500 needs to start making new all-time highs and keep going. At this point, it's likely that gold will also move considerably higher. But for now, it could be that the market is quite long already all things considered.

Edited November 2, 2012 by TheNegotiator

[Savant 10]

Hehe interesting thinking...

[Obsidian 10]

today's move is scary, i have to say...first support at1675/70

[Ingot54 13]

Remember that Gold is also a commodity, as well as being a store of wealth.

 

When traders get on the wrong side of a trade, they need to raise cash fast.

The quickest way is sell the most liquid asset in existence ... GOLD!

 

The other interesting theory is the "risk-on-risk-off" idea.

 

When things are "bad" (according to whom you may ask?) it's risk-off behaviour

for the markets - ie, "take-no-risks." That's the cue to purchase "safe" assets like

the USD, gold, CHF or the AUD as examples.

 

Monet needs a "safe-haven" in such times. But the market does not always act

predictably - sometimes they will sell gold in order to park money in the currencies.

Sometimes not.

 

When things are "rosy" (according to whom you may ask again?) and returning to

fun-fun-fun ... then it's risk-on behaviour for the markets - or "take-risks-again time."

 

Again - with markets being unpredictable, who knows whether gold will be bought or sold?

 

If you are going to trade gold, you will need very deep pockets, and a quick trigger

finger on the buy/sell button.

 

I discovered that you can not afford to take a bias on anything - gold does NOT always

go up in uncertain times. I let a very nice profit turn into a small loss, thinking that the

turn-around was just an hour away ... for over 72 hours!

 

Nope! That dog did not hunt! :crap:

[Obsidian 10]

...I discovered that you can not afford to take a bias on anything - gold does NOT always go up in uncertain times......

 

that is so correct...we have to trade the markets as they are, not as they should be.

[jimbo320 10]

If all the world's central banks continue with their policy to inflate away debt and devalue currency (under the guise of stimulus), ALL tangible assets will ultimately go up in value. True, if there's some dodgy goings on in gold and silver etc. then there could be a crisis in supply and prices could rocket. But then ultimately there are bubbles like anything. There is a limited supply, but look what happened in Oil. $150 down to something like $35 (can't remember exactly but you get the picture I'm sure). My feeling is that gold could potentially be worth much much more but then I want to see the stock indices start to march their way to much higher levels too. The S&P 500 needs to start making new all-time highs and keep going. At this point, it's likely that gold will also move considerably higher. But for now, it could be that the market is quite long already all things considered.

 

Agreed. Inflation due to printing will affect all asset classes.

Oil is not the same as gold tho. That is manipulated at least as much as fiat currency. You only have to look at the Saudis and the OPEC cartel.

Gold can be manipulated short term by futures markets and liquidation to raise capital. But can't be manipulated long term, as there is limited supply and is getting more and more expensive to produce.

[Obsidian 10]

....But can't be manipulated long term, as there is limited supply and is getting more and more expensive to produce.

 

but increasing prices make it possible to use the sources which was not considered profitable before...4 years ago it was 850..now it is 1750

[Ingot54 13]

but increasing prices make it possible to use the sources which was not considered profitable before...4 years ago it was 850..now it is 1750

Which means its price can not be manipulated down - no one is going to enter into a contract to sell gold at a cheaper price that they bought/produced it.

 

There will be limits to that.

 

But I know some bears are going to be caught one day (JP Morgan) and to cover their shorts they are going to have to buy gold at a loss ... I hope I see that ... what Schadenfreude!

 

:applaud:

 

PS - and if it can happen in the Silver market, then Gold is certainly not immune to some of it too!

 

http://moneymorning.com/2012/08/08/cftcs-chilton-assures-silver-price-manipulation-probe-not-over/

[Obsidian 10]

Which means its price can not be manipulated down - no one is going to enter into a contract to sell gold at a cheaper price that they bought/produced it.

 

There will be limits to that.

 

But I know some bears are going to be caught one day (JP Morgan) and to cover their shorts they are going to have to buy gold at a loss ... I hope I see that ... what Schadenfreude!

 

:applaud:

 

PS - and if it can happen in the Silver market, then Gold is certainly not immune to some of it too!

 

CFTC

 

going against Chinese wealth would not be wise

imvho I do not think we will ever see gold around that 850 levels, unless there is an extraordinary drop in human population...of course I may be wrong...

 

that news says they have been probing for 4 years...that did not sound so right

[Lavazza 10]

Agreed. Inflation due to printing will affect all asset classes.

 

Well, could you pls explain?

What I see is CBs, printing money and giving it to commercial banks. And commercial banks don't flow them into the real economy, preferring to sit on piles of cash.

So how can inflation go up without money money supply growth?