Where Is Gold Going In This Market

[badge]

Mining

The wacky world of gold

Why gold bugs no longer love gold miners

Jun 2nd 2011 | from the print edition

STRIKING gold is generally considered a slice of good luck. Owning it, however, is a sign that you fear the worst. Some people buy the yellow stuff because they think it looks pretty, to be sure. But the quintessential gold bug is an investor who expects every form of paper wealth to collapse, along with civilisation itself.

http://www.economist.com/node/18774624

[RedFxTrade]

views from a couple of locals ......

Marc Faber: Why I am bullish on gold

http://www.commodity...-39728-3-1.html

jim Rogers: US Is Nearing Even Worse Financial Crisis

http://profitimes.co...inancial-crisis

Great Rogers interview, cheers. I heard he was short JP Morgan a while back...it kind of confirms it when he said its the one that has not went down as much as the rest. The Tech call is hard to argue with also when you look at the rise of Twitter, Facebook, Linkin and Groupon against the valuations place on them...He has also stepped into buy the USD for a rally...its good to hear from my point of view....however, as soon as the fall comes, possibly before it, it will be time to bail the ship...talk of major investment banks selling the CHF on the wires this morning, which would explain the spike up in the USD in the last hour.

Anyone here looked at the water investment as related to China and India...? There could be some stocks in that area, that could be potentially explode.?

Agree .... but also with the views on Nuclear changing at this time /and Opec /Mid East - Solar ? and as I mentioned before Silver a double play ?

Silver – The Key to Efficient Energy Collection and Transport

http://www.silverins...r08june2011.php

Definitely provides a decent fundamental back drop for Silver. I think world demand for silver based on industrial use is 48%, so it certainly provides a good balance between industrial use and investment demand. The Gold/Silver ratio is still on the rise, once it begins to fall below the moving averages, and some form of "cupcakes 3" is announced or is began to be priced in, as Rogers pointed out, ie, QE 3 in another name for those that didnt watch the video. Then Silver could take off again. Add to that the fact that after a contractionary phase we are in now will turn to "expansion" phase which should support silver. When I say expansion it will be another short lived false expansion, but it will lead to a demand, false demand or not it will be good for assets such as silver IMHO.

[midas]

QE3 - Just A Matter Of Time

http://www.streettal...ust-matter-time

Seemed more like an essay on why it probably won't happen to me.

how about this then ?

Jim Rogers: The Fed Will Return With QE3, "But They May Disguise It"

Read more: http://www.businessinsider.com/jim-rogers-fed-qe3-cupcakes-2011-6#ixzz1OpbzKjkQ

[badge]

Zerohedge is a hub for radicalising bed-wetters imvho, but I hadnt seen this story prior:

http://www.zerohedge.com/article/how-china-just-implemented-stealth-bailout-bigger-one-and-half-tarps?

While the rest of the world is transfixed by the latest pocket change bailout of the Eurozone, China has stealthily conducted an economic rescue bigger than than one and a half TARPs.

[cloudhopper]

how about this then ?

Jim Rogers: The Fed Will Return With QE3, "But They May Disguise It"

Read more: http://www.businessi...6#ixzz1OpbzKjkQ

It will be the politicians not the Fed who get money into the economy where it could increase velocity. The Fed just allows the politicians to deficit spend but that may become less politically tenable. Or maybe more who knows? I don't, so I keep inedible fiat cash around along with inedible bullion just in case the next deflationary burst overwhelms anything the government is capable of fighting. As Mises said there is no way to avoid a final deflationary collapse; QE can only delay (and worsen) it and at some point it will be obvious to all that not even the most extreme efforts of government can avoid that collapse. All that expanded in the last 40 years of Nixonian credit expansion is going to contract, only much faster than it expanded. Economies of creditor and debtor countries will both be devastated.

[Naam]

Zerohedge is a hub for radicalising bed-wetters

that means my view is shared

[midas]

Zerohedge is a hub for radicalising bed-wetters imvho, but I hadnt seen this story prior:

http://www.zerohedge.com/article/how-china-just-implemented-stealth-bailout-bigger-one-and-half-tarps?

While the rest of the world is transfixed by the latest pocket change bailout of the Eurozone, China has stealthily conducted an economic rescue bigger than than one and a half TARPs.

but I don't get you badge ? you criticise zero hedge followers but then you quote an article as if it means something to you?

That's like saying I'm on a strict diet but I will just eat one more desert with two servings of whipped double cream

[midas]

Zerohedge is a hub for radicalising bed-wetters

that means my view is shared

Will you change my bed sheets please?

[midas]

Zerohedge is a hub for radicalising bed-wetters

that means my view is shared

Will you change my bed sheets please?

[flying]

While the rest of the world is transfixed by the latest pocket change bailout of the Eurozone, China has stealthily conducted an economic rescue bigger than than one and a half TARPs.

1) TARPS is chump change compared to QE's

2) China has the actual cash to do bail outs. They need not create it out of thin air/ future promises of taxation

3) the One & a half is another fancy diversion based on population yada yada yada, Truth is they ( china) spent half of the 1st US chump change TARP ie: 463 billion as compared to the US TARP of 700B....But again TARP Smarp..... it was chump change compared to where BS Bernanke has since taken us.

Edited June 10, 2011 by flying

[Naam]

Zerohedge is a hub for radicalising bed-wetters

that means my view is shared

Will you change my bed sheets please?

no

[Naam]

China has the actual cash to do bail outs. They need not create it out of thin air/ future promises of taxation

not if the U.S. defaults and/or the Dollar experiences zimbabwean™ inflation (as some doom&gloomers suggest)

[flying]

China has the actual cash to do bail outs. They need not create it out of thin air/ future promises of taxation

not if the U.S. defaults and/or the Dollar experiences zimbabwean™ inflation (as some doom&gloomers suggest)

true it ( their reserves in USD ) is worth less every day but......As for China using it now for their own TARP version it still existed when they spent it.

Also as mentioned before it will be infinitely easier for countries like China to return to what most of them knew their whole life.

It will be a whole new experience for fat sofa riding welfare recipients to deal with poverty in the US of A when the US no longer can prop the story.

Edited June 10, 2011 by flying

[midas]

Zerohedge is a hub for radicalising bed-wetters

that means my view is shared

Will you change my bed sheets please?

no

Then at the very least you can give me one of your infamous rubber mattresses

CNN’s latest poll shows 48% of Americans think a Great Depression is coming within a year

http://www.abovetopsecret.com/forum/thread714155/pg1

James Carville to Obama, “It’s the economy stupid” … Warns 2012 Could be Another Shellacking for Obama & Says Civil Unrest ‘Imminently Possible’

http://scaredmonkeys.com/2011/06/07/james-carville-to-obama-%E2%80%9Cit%E2%80%99s-the-economy-stupid%E2%80%9D-warns-2012-could-be-another-shellacking-for-obama-says-civil-unrest-%E2%80%98imminently-possible%E2%80%99/

[churchill]

Worth Watching ..

The 144-day moving average of gold

http://screwtapefiles.blogspot.com/2011/06/144.html#comments

[anon676545345]

Gold it about to or in the process of undergoing a correction I'm expecting a move down to around 1420 demand zone and bottom of trend channel over next couple of weeks, strengthening dollar is likely to be bearish for gold.

http://imageshack.us/photo/my-images/819/spotgolddfb.png/

[anon676545345]

Silver is looking interesting at the minute it's formed a large bear flag and also a sloping head and shoulders pattern if it breaks to the downside it would offer an immediate target of 3300, I'm standing back at the minute not willing to enter until it breaks out of that wedge.

http://imageshack.us/photo/my-images/90/spotsilverdfb.png/

[anon676545345]

Crude is also at a key level a break to the downside would offer 9250.

http://imageshack.us/photo/my-images/11/dailyuslightcrudejul10j.png/

And FTSE is at a major trend line I've opened a swing long on this from 5775 as I don't think this bull run is over yet.

http://imageshack.us/photo/my-images/801/ftse100dfb.png/

[cloudhopper]

http://en.wikipedia.org/wiki/File:Exter.png

[Naam]

the stuff of which dreams are made...

[flying]

the stuff of which dreams are made...

I dont know about that being the stuff of dreams....I think more it is just the running from the nightmare

[anon676545345]

Gold is testing that minor trend line on daily again today I expect it to break and will enter short when it retests and confirms as resistance.

http://imageshack.us/photo/my-images/808/spotgolddfb.png/

Silver broke out of it's bear flag and provided a good entry on retest this morning, however looking extremely oversold on lower time frames and volume is light so have moved stop to break even in case this proves to be a fake out.

http://imageshack.us/photo/my-images/155/spotsilverdfb.png/

[badge]

Gold is testing that minor trend line on daily again today I expect it to break and will enter short when it retests and confirms as resistance.

http://imageshack.us...potgolddfb.png/

Silver broke out of it's bear flag and provided a good entry on retest this morning, however looking extremely oversold on lower time frames and volume is light so have moved stop to break even in case this proves to be a fake out.

http://imageshack.us...tsilverdfb.png/

Interesting. Youre charting (trading?) Spot metals and talking of light volume, so where do you get this data please? And, 'extremely oversold on lower timeframes' is refering to what? Thanks.

[anon676545345]

The Stochastic indicates over bought/over sold conditions, there is light volume across the board today as shown by the lack of price movement.

[RedFxTrade]

Gold is testing that minor trend line on daily again today I expect it to break and will enter short when it retests and confirms as resistance.

http://imageshack.us...potgolddfb.png/

Silver broke out of it's bear flag and provided a good entry on retest this morning, however looking extremely oversold on lower time frames and volume is light so have moved stop to break even in case this proves to be a fake out.

http://imageshack.us...tsilverdfb.png/

Interesting. Youre charting (trading?) Spot metals and talking of light volume, so where do you get this data please? And, 'extremely oversold on lower timeframes' is refering to what? Thanks.

Here is a chart of the intraday futures for Silver Comex July contract....Yes pretty light volume...

Edited June 13, 2011 by RedFxTrade

[badge]

The Stochastic indicates over bought/over sold conditions, there is light volume across the board today as shown by the lack of price movement.

OK. Im not sure that a lack of price movement is always a sign of low volume, but assumed thats what you were guessing, just wanted to clarify.

Stochastic can indicate over bought/sold conditions, although as your charts show, when oversold more than current conditions, markets can still decline further. Somewhat unreliable imho. Thanks for the response.

[Naam]

my latest personal research (www.naams-bullshit_analTAcharts.org) proves that Gold will move sideways if it doesn't drop or increase in price.

[flying]

Where I was once 60/40 Silver/Gold in 2008

when GSR was 77/1

I now sit at 96/4 Gold/Silver

Swapped out all but some eagles last week.

swapping range over the last few months was between mid 30's- low 40's/1

Missed the swap at the low 30's thinking it could go to 27/1....such is life

Looking for a low in Sliver later in the summer

If GSR goes back to 60/1 I will happily swap back....

If not I do not feel bad about swapping silver to buy gold at the equivalent of $450-480 / oz

Good luck to the silver longs I do believe the physical supply is almost exhausted

but watching the margin hikes by CME last month on silver made me realize that for me

Gold which is widely held by many sovereign nations is ultimately less manipulated than silver.

We will see..............

Edited June 14, 2011 by flying

[edgarfriendly]

my latest personal research (www.naams-bullshit_analTAcharts.org) proves that Gold will move sideways if it doesn't drop or increase in price.

WHATS THE POINT? why would u even bother posting this crap??

and ur pictures...gold is what dreams are made of...the day before a 250bt drop....

are u intentionally being misleading/obnoxious/pointless??

u must have filled a large percentage of this thread with ur rubbish.

what is the purpose??

ef

[churchill]

The debate seems to be getting a bit more serious ...

The Emerging New Monetarism: Gold Convertibility To Save The Euro

http://blogs.forbes.com/ralphbenko/2011/06/13/the-emerging-new-monetarism-gold-convertibility-to-save-the-euro/

'Professor Robert Mundell urges gold convertibility for the euro, the currency which he fathered, as well as for the dollar. This is a major step forward. Thought leaders are abandoning “old monetarism,” which was vainly fixated on quantity. Even its chief proponent, Milton Friedman, acknowledged old monetarism as unsuccessful in a 2003 interview with the Financial Times. An emerging “new monetarism” is quickly taking its place — one that focuses on the quality, not quantity, of money.

Empirical data suggest that the gold dollar represents the epitome of quality. As Forbes’ own Steve Forbes advised the presidential candidates last week, the “debate should be focused on what the best gold system is, not on whether we need to go back on one.”

Mundell recently endorsed the gold standard on Pimm Fox’s Bloomberg Television “Taking Stock.”

Pimm Fox: You’ve written about the role of gold in the world economy, Professor Mundell. Do you think that we’re going to see any kind of return to the gold standard?

Mundell: [T]here could be a kind of Bretton Woods type of gold standard where the price of gold was fixed for central banks and they could use gold as an asset to trade central banks.

The great advantage of that was that gold is nobody’s liability and it can’t be printed. So it has a strength and confidence that people trust. So If you had not just the United States but the United States and the euro tied together to each other and to gold, gold might be the intermediary and then with the other important currencies like the yen and Chinese yuan and British pound all tied together as a kind of new SDR that could be one way the world could move forward on a better monetary system.

Mundell is the world’s most distinguished living economist. He is a Nobel Economics Laureate. He was the primary source of the original supply-side manifesto, “The Mundell-Laffer Hypothesis,” which led to the low-tax-rate, strong-dollar policy at the heart of Reaganomics. He has acted as a privy counselor to the Chinese government (which in appreciation has named a university for him). Mundell’s guidance, of course, is one of the reasons why mainland China has had 30+ years of uninterrupted double-digit economic growth. Mundell’s work also laid the foundation for the common European currency, the euro.'