Where Is Gold Going In This Market

[cloudhopper]

going vertical at the moment

[flying]

YO Flying! do i has to repeat "KEEP DA SILVA MAN!"

mah theory did done workin'... until now

Yep gotta feel a bit foolish now having swapped out 15% @ 47/1

Seeing the ratio now @ 36.39/1 gave up 10oz per on those

Mai Bpen Rai could have been worse....could have sold instead of swapped

Ok no more swapping till 16/1

Edited April 8, 2011 by flying

[old wanderer]

YO Flying! do i has to repeat "KEEP DA SILVA MAN!"

mah theory did done workin'... until now

Yep gotta feel a bit foolish now having swapped out 15% @ 47/1

Seeing the ratio now @ 36.39/1 gave up 10oz per on those

Mai Bpen Rai could have been worse....could have sold instead of swapped

Ok no more swapping till 16/1

I moved heavily (90%) into Ag almost 2 years ago. Got tired of people complaining about my "Tin Hat", when I would try and get others to move into physical.

1st of the year when we were at 45:1 ratio, I had some friends that wanted to trade for Au. Might as well have been talking to the wall. They did it. Today we are at 36:1 and sinking like a rock. My link

Yes Ag is a PIA to store, and I will move it into Au starting somewhere around 20:1.

Gold will always be the #1 hedge against the "Zimbabwe" factor. I read an interesting article a few months ago. I talked about how most people cannot conceive of what they have not experienced. The call it the "Normalcy Bias". I now accept this of my friends, and have quit trying to talk about silver unless asked.

[churchill]

Gold and Silver Mining Shares have had a good run but with a lot of Hedge Funds being short ! We could see some big moves in the coming weeks /

and I think this could be big news as other mining companies will probably follow /

Newmont shares rise Thursday after dividend announcement

The world's second largest gold producer said it plans to link its dividend to gold prices and added it would raise production by more than a third by 2017

http://www.mineweb.com/mineweb/view/mineweb/en/page504?oid=124696&sn=Detail&pid=102055

and from http://traderdannorcini.blogspot.com/2011/04/hui-at-all-time-high.html

'HUI at an all time high

Gold and silver shares are moving strongly higher at noon EDT. Based on what I have been seeing this past week, it appears that the ratio spread trades which have kept so much pressure on this sector for the last two years are finally coming off.

I have long suggested that if the hedgies wish to play the spread trade game with the mining shares, use them as the long leg of their spread against a short against the broader market. That would have been a far more profitable trade than plying shorts against the mining shares when the primary trend in the precious metals is higher.

We'll see if they remain stubbornly wedded to this trade or continue further unwinding and attempt a new and more profitable strategy.'

take a listen http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/4/7_John_Embry_-_Mr._Bernanke_is_a_Murderer_of_the_Middle.html

'As the hedge funds move to cover their shorts in the mining shares, some of the moves will be breathtaking as many of these smaller quality producers and explorers go from dramatic undervaluation to overvaluation. This is all just part of a cycle. Definitely look for the mining shares to outperform the metals as this hedge is unwound. '

[powderpuff]

So new all time high is around USD 1475. The day gold exploded it went up $20.00. real strength.

Currently pulled back $15.00 or 1%.

Mrs. Naam likes bonds. Cool. She'll be wiped out. Karma.

[Naam]

So new all time high is around USD 1475. The day gold exploded it went up $20.00. real strength.

Currently pulled back $15.00 or 1%.

Mrs. Naam likes bonds. Cool. She'll be wiped out. Karma.

Mrs Powderpuff does not hold

"toilet paper / fiat money". she buys her groceries with Krügerrands

ahem... "the day gold exploded" by 1.375% and pulled back 1.254% gaining the enormous percentage of 0.121% is indeed a hallmark real strength day.

[khunjake]

Gold is setting up for a another leg higher. Multiple tests this week right at the 1410 area and each time funds bought aggressively.

There has been a consolidation period going on for several months now and the corrective weakness the past 3 weeks is namely due to April Futures/Options expiration

Will be looking for a breakout over 1445-1450 key resistance the 1st week of April and a major move to $1650-1710 before July.

Taking long COMEX June Gold Contract at 1427.60 this morning with a close under 1410 as a stop.

Got the decisive breakout over 1445-1450 and have also broken the ascending triangle pattern as well.

The gold stock indexes have also responded as well to a breakout so we should hit our target in the specified timeframe.

In terms of actual targets, the range of $1650-1710 is completely valid although opening the lower end more from $1575-1710 would be a consideration as well.

Holding long from $1427.60 basis June Gold...

Closing out GCJ11 at 1457.30. Technical indicators starting to rollover now; holding long futures while risk of a major move lower looms.

Booking the 3k USD gain on the trade and will wait until summer low projections for better risk/reward opportunity. cheers....

[flying]

Metals really moving in the US today

Silver really shining

[flying]

Belarus Central Bank Halts Sales of Gold for Roubles

MINSK, April 15 (Reuters) - Belarus' central bank has stopped selling gold to local retail customers for Belarussian roubles it said on Friday, after demand for precious metals soared due to expectations of a currency devaluation.

The bank did not explain its decision.

Belarus is in talks with Russia on a $3 billion bailout package that Minsk hopes will help it avoid a painful devaluation of the rouble and offset the large current account deficit.

Belarussians bought 470 kilograms of gold from the central bank last month, up from 209 kilograms in January and February together, as they sought to protect their savings.

Analysts say that Belarus will have to eventually devalue the rouble by about 20-30 percent even if it receives aid from Moscow. However, the central bank has said it would not make any such moves until late April.

Edited April 15, 2011 by flying

[flying]

“Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked: Account Overdrawn.” ~ Ayn Rand, from “Hymn to Money”

[powderpuff]

New high by $10.00. Sky's the limit.

[flying]

Gold/Sliver ratio also setting new lows

34.86/1

Lowest since 1980's

[Naam]

New high by $10.00. Sky's the limit.

Mrs Naam asking me yesterday evening in a fancy restaurant with a sympathetic smile on her face "shall i pay for the dinner today or just for the wine?"

[flying]

http://video.cnbc.com/gallery/?video=3000016926

[12DrinkMore]

http://www.bloomberg.com/news/2011-04-16/texas-university-endowment-storing-about-1-billion-in-gold-bars.html

The University of Texas Investment Management Co., the second-largest U.S. academic endowment, took delivery of almost $1 billion in gold bullion and is storing the bars in a New York vault, according to the fund’s board.

[dananderson]

What does a million$ in gold coins look like? You could put it in a small suitcase. CNN video here. http://money.cnn.com/video/markets/2011/04/05/mkts_bz_gold_exchange.cnnmoney/

[churchill]

http://www.bloomberg.com/news/2011-04-16/texas-university-endowment-storing-about-1-billion-in-gold-bars.html

The University of Texas Investment Management Co., the second-largest U.S. academic endowment, took delivery of almost $1 billion in gold bullion and is storing the bars in a New York vault, according to the fund’s board.

This has long been talked about and is probably the tip of an iceberg - with other pension funds also increasing their investments in PM's ( along with central banks & all )

'October 23, 2009 05:14 EDT

Oct. 23 (Bloomberg) -- Pension funds will increase gold holdings to acquire “financial insurance,” pushing prices higher as currencies drop, according to Shayne McGuire, director of global research at the Teacher Retirement System of Texas.

“I think the largest institutions like our own are realizing that we barely own any,” McGuire said in an interview in Hong Kong. “The same thing applies to most of the pension funds which manage trillions of dollars in world wealth.”

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aXmYglOn5Sac

I think , as previously stated , that gold/silver miners are very undervalued and have a long way to go to catch up to current gold and silver prices . see http://traderdannorcini.blogspot.com/2011/04/gdx-majors-versus-gdxj-juniors-ratio.html

'It is just mindboggling to see how undervalued many of the shares are when compared to the metals. While many have moved strongly higher, a large number of them continue to lag and are not reflecting the kind of price movements that we would expect to normally see with the bullion making either all time highs in price or 30+ year highs.

If you want to get a "fair" or reasonable level at which the indices should be trading, run some statisticial analysis and see what the mean or average value should be then see what the standard deviation away from that mean is. I will leave that to my statistics friends but either way, the result is indicative of how cheap the stocks are compared to the metals in many cases.'

I think that most people now accept that prices have been manipulated - Chickens are coming home to roost -

Anatomy of a short squeeze

http://www.goldmoney.com/gold-research/anatomy-of-a-short-squeeze.html

[12DrinkMore]

http://www.bloomberg...-gold-bars.html

Open interest in gold futures and options traded on the Comex typically exceeds supplies held in its warehouses. If the holders of just 5 percent of those contracts opted to take delivery of the metal, there wouldn't be enough to cover the demand, Bass said.

So the question I have is, if that is the case, why don't those guys all opt for physical delivery? It would surely send the price spiraling upwards, make them a fortune and burn a good few of the "shorters".

[powderpuff]

New all time high by another $10.00 who who. $1495.00

[flying]

Gold sniffing at $1500/oz

[Taggart]

Just curious. Was anyone on this site buying gold or silver in the 1990's for investment purposes, and actually held on to it for part of, or all of this bull market in precious metals. I do know that Warren Buffett started buying in July of 1997 when silver futures contracts were at $4.32 per ounce. I also heard he sold out in 2007.

[flying]

Just curious. Was anyone on this site buying gold or silver in the 1990's for investment purposes, and actually held on to it for part of, or all of this bull market in precious metals. I do know that Warren Buffett started buying in July of 1997 when silver futures contracts were at $4.32 per ounce. I also heard he sold out in 2007.

I think most here would have been in Tech stocks in the 90's....who wasn't

I stumbled into metals in Oct 08 gold $735/oz & silver $9.45/oz but more of a freak flag play as I was disgusted with what I saw as pure corruption

in everything else.

Edited April 18, 2011 by flying

[Taggart]

Just curious. Was anyone on this site buying gold or silver in the 1990's for investment purposes, and actually held on to it for part of, or all of this bull market in precious metals. I do know that Warren Buffett started buying in July of 1997 when silver futures contracts were at $4.32 per ounce. I also heard he sold out in 2007.

I think most here would have been in Tech stocks in the 90's....who wasn't

I stumbled into metals in Oct 08 gold $735/oz & silver $9.45/oz but more of a freak flag play as I was disgusted with what I saw as pure corruption

in everything else.

Well, I made the mistake of following the herd and buying tech stocks in 1999. Luckily it was only 10% of my portfolio. You'd think I'd learned my lesson from reading numerous articles about the nifty fifty crash in the 1970's, but no.

Now I just search for assets that other people aren't too interested in.

I've no opinion on precious metals, one way or another, but would like to hear from others.

[cloudhopper]

Just curious. Was anyone on this site buying gold or silver in the 1990's for investment purposes, and actually held on to it for part of, or all of this bull market in precious metals. I do know that Warren Buffett started buying in July of 1997 when silver futures contracts were at $4.32 per ounce. I also heard he sold out in 2007.

In the early 90s I bought 100 eagles in 5 mint tubes from USAA for around 35k as I recall. But for insurance, not investment purposes, so they are still in a private safe back in the States along with most of the rest I have been accumulating (for physical cash and therefore unlike the USAA purchase, off the radar screen) ever since.

[saraburioz]

Does anyone know a good site to see graphs of gold price?

http://alcohol411.info/AA%20Step%206.htm\

is the best I've googled.

Edited April 19, 2011 by saraburioz

[churchill]

http://www.bloomberg...-gold-bars.html

Open interest in gold futures and options traded on the Comex typically exceeds supplies held in its warehouses. If the holders of just 5 percent of those contracts opted to take delivery of the metal, there wouldn't be enough to cover the demand, Bass said.

So the question I have is, if that is the case, why don't those guys all opt for physical delivery? It would surely send the price spiraling upwards, make them a fortune and burn a good few of the "shorters".

Cha Cha

Help Break the Bankers’ Price Suppression Schemes Against Gold & Silver

http://www.theundergroundinvestor.com/2011/04/how-to-break-the-banker’s-price-suppression-schemes-against-gold-silver/

[Taggart]

Just curious. Was anyone on this site buying gold or silver in the 1990's for investment purposes, and actually held on to it for part of, or all of this bull market in precious metals. I do know that Warren Buffett started buying in July of 1997 when silver futures contracts were at $4.32 per ounce. I also heard he sold out in 2007.

In the early 90s I bought 100 eagles in 5 mint tubes from USAA for around 35k as I recall. But for insurance, not investment purposes, so they are still in a private safe back in the States along with most of the rest I have been accumulating (for physical cash and therefore unlike the USAA purchase, off the radar screen) ever since.

Very interesting. So, in a way you were going into an asset that was pretty well dead in the water quite a number of years before you yourself bought into it. Did you ever feel a few years after, say in the late 1990's that your Gold Eagle coins may have been a bad investment?

[flying]

Silver just went over $44/oz

[cloudhopper]

Did you ever feel a few years after, say in the late 1990's that your Gold Eagle coins may have been a bad investment?

No because I don't view gold as an investment at all. For me it is insurance against a corrupt government destroying the purchasing power of the USD that my income is denominated in. So I view all the money I have ever spent on gold as a premium payment for a policy that, like other insurance policies, I never hope to actually need. Thus I never plan to sell my gold regardless of price unless it becomes the only remaining store of liquid wealth I have, which will be the case in the (increasingly likely IMO) event of a global currency crisis.

[flying]

No because I don't view gold as an investment at all. For me it is insurance against a corrupt government destroying the purchasing power of the USD that my income is denominated in. So I view all the money I have ever spent on gold as a premium payment for a policy that, like other insurance policies, I never hope to actually need. Thus I never plan to sell my gold regardless of price unless it becomes the only remaining store of liquid wealth I have, which will be the case in the (increasingly likely IMO) event of a global currency crisis.

GOLDBUG !!!!

Just kidding

You described that very well & much more eloquently than my description as a "freak flag play"

Edited April 20, 2011 by flying