Where Is Gold Going In This Market

[cloudhopper]

1700 dudes

[flying]

Yep the pretty green line has touched that $1700 USD mark....

Real gold is now headed for $1800 when premiums are factored in

Edited August 8, 2011 by flying

[ExpatJ]

Today is going to be a good day

not for US stocks [just sold most of mine] but it will be for gold. I just brought a lot more last Friday and will be buying more on the next dip

I'm in similar position- sold alot of my stocks to cash out last week in order to buy up value stocks in the coming days/ weeks ; bought into gold in November last year for the first time and again in a much bigger way 2 weeks ago and today some more. So hopefully this could be a very good year for my portfolio even given the global crash going on.

[Naam]

Yep the pretty green line has touched that $1700 USD mark....

Real gold is now headed for $1800 when premiums are factored in

gold clearly above rubber sheet expectations :jap: silver lagging equi.shit.ties = CHF rules currency markets last week's BoJ JP¥ intervention =

[Naam]

...in order to buy up value stocks...

don't buy equi.shit.ties!

[flying]

gold clearly above rubber sheet expectations :jap: silver lagging equi.shit.ties = CHF rules currency markets last week's BoJ JP¥ intervention =

Personally I don't care for these nose bleed rises....tends to remind me of irrational exuberance.

I prefer the steady rise we have seen for quite some time now.

Not that I'm complaining.... & I do believe as always we are not so much witnessing gold rising but the currencies they are measured in or the faith in them declining.

[midas]

gold clearly above rubber sheet expectations :jap: silver lagging equi.shit.ties = CHF rules currency markets last week's BoJ JP¥ intervention =

Personally I don't care for these nose bleed rises....tends to remind me of irrational exuberance.

I prefer the steady rise we have seen for quite some time now.

Not that I'm complaining.... & I do believe as always we are not so much witnessing gold rising but the currencies they are measured in or the faith in them declining.

Some talking heads on business news this morning still pumping equities and saying when everything settles down

and people see there's nothing much to worry about gold will drop like a stone

I really can't see this happening?

Edited August 8, 2011 by midas

[midas]

gold clearly above rubber sheet expectations :jap: silver lagging equi.shit.ties = CHF rules currency markets last week's BoJ JP¥ intervention =

Personally I don't care for these nose bleed rises....tends to remind me of irrational exuberance.

I prefer the steady rise we have seen for quite some time now.

Not that I'm complaining.... & I do believe as always we are not so much witnessing gold rising but the currencies they are measured in or the faith in them declining.

Some talking heads on business news this morning still pumping equities you know the old familiar crap

" there's never been a better time to buy " and saying when everything settles down

and people see there's nothing much to worry about gold will drop like a stone

I really can't see this happening?

Edited August 8, 2011 by midas

[churchill]

gold clearly above rubber sheet expectations :jap: silver lagging equi.shit.ties = CHF rules currency markets last week's BoJ JP¥ intervention =

Personally I don't care for these nose bleed rises....tends to remind me of irrational exuberance.

I prefer the steady rise we have seen for quite some time now.

Not that I'm complaining.... & I do believe as always we are not so much witnessing gold rising but the currencies they are measured in or the faith in them declining.

Some talking heads on business news this morning still pumping equities you know the old familiar crap

" there's never been a better time to buy " and saying when everything settles down

and people see there's nothing much to worry about gold will drop like a stone

I really can't see this happening?

If we get any hint of further QE from Ben I think equities and PM's will go higher ... USD continuing lower ...

[churchill]

"CHF rules currency markets"

I don't see how it can if it brings the Swiss Economy to its knees , and so When will the Swiss start charging people to hold Swiss Francs - There must be a limit ?

Gold/Silver No limit .

[JRinger]

...in order to buy up value stocks...

don't buy equi.shit.ties!

Not so long ago, you said the same thing about gold !

[Naam]

"CHF rules currency markets"

1. I don't see how it can if it brings the Swiss Economy to its knees , and so

2. When will the Swiss start charging people to hold Swiss Francs - There must be a limit ?

3. Gold/Silver No limit .

1. currency values are not determined by markets but like any other commodity by offer and demand. hot money looks for profits and does not care about economies. Swiss National Bank is still licking its wounds because of a 21 billion loss caused by intervention (selling CHF vs. EUR). another example is the recent intervention by Bank of Japan... it does not work.

2. it's about to start but limited to holdings in Swiss banks.

3. offer and demand applies to gold too whether you are in denial or not. from 1981 till 2001 no demand for gold = 20 years no appreciation but pure loss due to inflation.

[Naam]

...in order to buy up value stocks...

don't buy equi.shit.ties!

Not so long ago, you said the same thing about gold !

"not so long ago" is a bla-bla expression. when i was really against gold, much better opportunities existed. even now i consider holding gold for investment purpose nothing but a gamble. but it serves its purpose as a kind of insurance.

[churchill]

...in order to buy up value stocks...

don't buy equi.shit.ties!

Not so long ago, you said the same thing about gold !

"not so long ago" is a bla-bla expression. when i was really against gold, much better opportunities existed. even now i consider holding gold for investment purpose nothing but a gamble. but it serves its purpose as a kind of insurance.

Are you http://www.google.com/imgres?q=stupid&hl=en&client=safari&sa=X&rls=en&biw=1238&bih=587&tbm=isch&prmd=ivns&tbnid=3eQAqeWtbwpW6M:&imgrefurl=http://www.graphicshunt.com/funny/images/cant_fix_stupid-12939.htm&docid=5QPUyhndb6lGvM&w=311&h=450&ei=Cso_TqGhMYeqrAfY95AV&zoom=1&iact=hc&vpx=898&vpy=161&dur=753&hovh=252&hovw=174&tx=96&ty=111&page=1&tbnh=122&tbnw=84&start=0&ndsp=21&ved=1t:429,r:19,s:0?

How much Naam - come on , you say '

Naam thinks he owns more gold and silver than any individual gold lover who has participated in this thread.'

how much are you gambling ..

but you have a good bet IMO ..

I do not think Gold is a gamble in this market in fact , with the S&P downgrade ,I think it is becoming a one way bet , pension funds , countries have to reconsider ' safe havens '

sell on the way up BTFD /

Edited August 8, 2011 by churchill

[12DrinkMore]

the raw material cost of e.g. a finished pharmaceutical product is ridiculously low, in some cases less than 5%, in most cases less than 10%. value is added by production processes, acquired know-how and the cost spent on research. this added value is generated independently from raw material and paid for in expensive Swiss Francs.

example:

-raw materials CHF 100

-cost of added value CHF 900

-cost of finished product CHF 1,000

if import of raw materials become cheaper by 30% because of CHF strength, cost saving would amount to slightly over 3% of the finished product who's total production cost would still be CHF 970 and who's final price would be nearly 27% higher without CHF appreciation. the pharma companies might be able to absorb much higher cost because of their huge profit margins but the manufacturers of machinery are caught between a rock and a hard place.

friendly advice: "high cube" assumptions, no matter how logical they seem, are not applicable

I realise that I am now destined to be persued by Naam's immense forty foot high cube as long as I am around here on TV . Pity it probably won't enter common parlance.

"he's been high cubed again!"

"Thrown another high cube!"

I would feel proud to have made such a colourful contribution to the language.

In Swiss exports I agree there is a huge added value/price component, but in my post I was rather referring to the huge drop in fuel/energy/consumer goods/vehicles/food import prices which should filter through to the consumers at some point. But I'll take the high cube on the nose.....

I still do not know what is the result of the SNB making a huge loss on its failed attempt at keeping the CHF in line with its neighbour's toilet paper. Maybe its just some bookkeeping entry at the SNB? Are central banks even required to run a balanced book?

Edited August 8, 2011 by 12DrinkMore

[cloudhopper]

even now i consider holding gold for investment purpose nothing but a gamble. but it serves its purpose as a kind of insurance.

The best kind - you own the company and get to keep all the premium payments.

Good night's sleep? - priceless!

Hi cubes all around dudes...

[Naam]

I still do not know what is the result of the SNB making a huge loss on its failed attempt at keeping the CHF in line with its neighbour's toilet paper. Maybe its just some bookkeeping entry at the SNB? Are central banks even required to run a balanced book?

a true high cube hypothesis! additions missing are "most probably central banks are into fractional reserve banking" and "reserves don't exist in reality, they are generated electronically by keystrokes"

p.s. the "neighbours toilet paper" gained 8% in 6 trading days vs. your beloved AUD :jap:

[flying]

Well I guess the premiums on gold coins are not going to wait till the 3rd week of August to rise as earlier predicted.

As of today dealer like American Precious Metals Exchange are charging prems as follows

Eagles spot + $98usd/oz

Maples + $86

Krugs + 95

Of course if you buy more than 100 ounces prem drops to $88 on eagles

Edited August 8, 2011 by flying

[Naam]

I do not think Gold is a gamble in this market in fact , with the S&P downgrade ,I think it is becoming a one way bet , pension funds , countries have to reconsider ' safe havens '

Churchill,

you called it a "bet". in my book betting is gambling! i call investing in gold gambling because fundamentals, which i could study and try to evaluate, do not exist. i am dealing with nothing but the performance history, a perceived value, the bla-bla of gold gurus and (just my personal view) the strange behaviour of "investors", both contrary to my policy of investing.

i have never bought any asset with the primary expectation that it appreciates in value. since i started investing my aim was to acquire and own assets which generate income/cash flow and allows, within certain parameters, extrapolations. asset appreciation is not always welcome as it lowers yields and puts pressure on the investor to realise profits. after cashing in profits the problem how to reinvest the proceeds are back and if no better alternatives exist realising profit is a zero sum game.

as far as the holdings of precious metals are concerned, their value exceeds 20% of our liquid assets... which i think is too high.

[cloudhopper]

as far as the holdings of precious metals are concerned, their value exceeds 20% of our liquid assets... which i think is too high.

A problem growing worse by the minute it would seem...

[Naam]

as far as the holdings of precious metals are concerned, their value exceeds 20% of our liquid assets... which i think is too high.

A problem growing worse by the minute it would seem...

i'm already worried sh*tless

[Naam]

today is the third time that i see Platinum quoted lower than Gold

[Lost in LOS]

I brought lots of gold last week physical and stock

Silver is way down now and I will buy some tonight, it may take a while but silver will be going up, a lot, not just from investments but from companies needing it for manufacturing while people are hording it for investment

my stocks tanked, i sold lots last week, albeit late, and most of the rest last night

Geitner was on an interview last night, and they interviewer kept at him about a double dip recession. After asking many times, many ways Geitner finally said, its possible. Not good

[gregb]

i have never bought any asset with the primary expectation that it appreciates in value. since i started investing my aim was to acquire and own assets which generate income/cash flow and allows, within certain parameters, extrapolations. asset appreciation is not always welcome as it lowers yields and puts pressure on the investor to realise profits. after cashing in profits the problem how to reinvest the proceeds are back and if no better alternatives exist realising profit is a zero sum game.

Mathematically Naam there is no distinction between the 2 cases you state above. If an asset appreciates by 20% and you sell 20% of it (actually 16.67% if you want to be pedantic), that is effectively no different than allowing the asset to give you a dividend of 20%. In each case, you wind up with an asset worth exactly what you paid for it, and 20% of its value in your pocket. The difference is simply that in the case of a dividend, the sale is forced on all investors, while in the case of capital appreciation you have the option of taking the dividend or leaving it in the investment.

Gold does generate cash flow if you want to treat it that way. You simply sell a portion every time it exceeds your purchase point. Your amount of gold goes down, but the value of that gold in fiat remains constant and you continually receive money. No different than your other investments. As a bonus you even get to decide for yourself how much the dividend will be and how much you want to see in appreciation.

[flying]

today is the third time that i see Platinum quoted lower than Gold

I remember when we last spoke of that at the $800 range

[flying]

Silver is way down now and I will buy some tonight, it may take a while but silver will be going up, a lot,

Just IMHO but now is not the time to buy Silver

Let the GSR guide you

It is still under 45/1 too low to be buying silver

Last time I backed up the truck...literally was at 77/1

[Naam]

Gold does generate cash flow if you want to treat it that way. You simply sell a portion every time it exceeds your purchase point.

is that the brilliant method how the goldlovers financed their living expenses for 22 years (1979 till 2001)?

[Naam]

Mathematically Naam there is no distinction between the 2 cases you state above. If an asset appreciates by 20% and you sell 20% of it (actually 16.67% if you want to be pedantic), that is effectively no different than allowing the asset to give you a dividend of 20%. In each case, you wind up with an asset worth exactly what you paid for it, and 20% of its value in your pocket.

it is irrelevant whether an asset has the same value after realising 20% profit by selling a part. one does not pay for expenses by book value but by generated cash. if the realised profit is not reinvested at an identical yield but used to pay for expenses its "cash generating value" is gone forever.

[flying]

Gold still chugging ahead in Euro/Asia markets headed for another $50/oz usd rise already

I thought it might like to catch its breath after today in the US markets.

[cloudhopper]

Gold still chugging ahead in Euro/Asia markets headed for another $50/oz usd rise already

I thought it might like to catch its breath after today in the US markets.

No chance of that flying - we hit Jimmy Sinclair's magic # of 1764 at which point the exponent is said to abruptly steepen. According to the CIGA cult anyway...