Marilyn, it's not Diamonds that are your best friends. It's Gold. Or is it?

[swissie]

Have you noticed? There is no international or local newspaper and all social media sources that do not celebrate the ever increasing price of Gold. I have seen this before. The "store of value" in troubled times.  

Silver also partially a "store of value", but lagging versus Gold.

 

Technically, the price of Gold is in in a strongly "ouverbought" situation, by every technical indicator. Due to the high price, recycling of Gold is on the increase and most central banks (major buyers in the past few years) have indicated that they will pause with purchasing Gold at current prices.

In such a difficult situation, I consulted my clairvoyant gipsy-lady in Romania. Her conclusion:

a) Gold will skyrocket. Everyone not in the market will be cursed by their next 3 generations.
b) Gold will pause for the next few years at this level. As happened before.
c) Gold will correct some 10%.
d) Gold will sell off to 1000 $, once humanity realises that Gold can not be eaten.

 

That's all the advice a sophisticated Gold-Investor needs to know.

[Airalee]

47 minutes ago, swissie said:

Have you noticed? There is no international or local newspaper and all social media sources that do not celebrate the ever increasing price of Gold.

No. In fact, oddly, I haven’t seen much.   I just scrolled down the whole CNBC, Marketwatch and Yahoo Finance pages.  There was only one small article in yahoo.   The others….nothing.

 

47 minutes ago, swissie said:

Technically, the price of Gold is in in a strongly "ouverbought" situation, by every technical indicator.

Please explain.   Keep it simple.  I looked up technical indicators for gold and it seems like many experts have been screaming “overbought” since gold was above $1700.  (See attached screenshot below for one example)
 

I’ve watched YouTube videos before when first wanting to understand trading on technical indicators.   Wow!  There are so many ways.   The most common denominator was that it was usually some gormless neck bearded weirdo sitting behind some $100 Office Depot desk set up in his apartment bedroom or moms basement.

 

47 minutes ago, swissie said:

most central banks (major buyers in the past few years) have indicated that they will pause with purchasing Gold at current prices.

I googled this too.   I saw lots of articles from June/July last year about China pausing their gold purchases but nothing else.   I also see that China resumed buying gold and has been a net purchaser for the last 4 months.

 

I do find it interesting however that the Swiss National Bank sold half of its gold reserves between 2000 and 2005 when gold was below $500. 

[swissie]

56 minutes ago, Airalee said:

No. In fact, oddly, I haven’t seen much.   I just scrolled down the whole CNBC, Marketwatch and Yahoo Finance pages.  There was only one small article in yahoo.   The others….nothing.

 

Please explain.   Keep it simple.  I looked up technical indicators for gold and it seems like many experts have been screaming “overbought” since gold was above $1700.  (See attached screenshot below for one example)
 

I’ve watched YouTube videos before when first wanting to understand trading on technical indicators.   Wow!  There are so many ways.   The most common denominator was that it was usually some gormless neck bearded weirdo sitting behind some $100 Office Depot desk set up in his apartment bedroom or moms basement.

 

I googled this too.   I saw lots of articles from June/July last year about China pausing their gold purchases but nothing else.   I also see that China resumed buying gold and has been a net purchaser for the last 4 months.

 

I do find it interesting however that the Swiss National Bank sold half of its gold reserves between 2000 and 2005 when gold was below $500. 

a) Can't be. The financial press is commenting the stellar performance of Gold daily.
b) Technically "overbought" can range from "yearly overbought" to "overbought" in a 30 minute chart. Both are in overbouth territory currently.
c) Most Gold-Gurus resemble your description of " The most common denominator was that it was usually some gormless neck bearded weirdo sitting behind some $100 Office Depot desk set up in his apartment bedroom or moms basement". I FULLY AGREE.
d) Yes, the Swiss National Bank sold a good part of it's Gold holdings. The strict "monetary policy" made the Swiss-Franc" as good as Gold. Still in place. The Swiss National Bank is forced to buy massive amounts of $ and Euros regularily just to keep the Swiss-Franc from "overvaluation".
e) If in doubt about the future price of Gold, look at the recommendations of my Romainian Clairvoyant Lady that I posted above.