Where Is Gold Going In This Market

[Naam]

we all know fiat currency's value is going to be destroyed but how are you even supposed to value gold it has no earnings or anything like that.. it is all based on confidence (eroding quickly)

you are hereby charged with blasphemy, heresy and high treason! therefore your sentence will reflect the severity of your crimes!

[flying]

1,596 = falling faster than during "Lehman".

Actually it needs to drop below $1430 to equal that.

actually i meant the period, not the percentage Flying. in 2008 it took several months what gold has "achieved" this year within three weeks.

Ah I see & I agree too!

as I said in my post

I also believe that this correction is going to be faster than the last one in 08

But again we will see.

Also as I have said many times before we will see volatility shortly & $100/oz daily swings will seem

common if not normal.

It would appear we are quickly approaching those times.

Or have arrived

Rather exciting isn't it?

But at the same time I still step back & ask....What has changed?

What has changed that drove folks like myself to PHYSICAL gold & silver?

Yes price sure....

But other than that the premise for buying is in tact more today than 2008

What repairs to the system have taken place? NONE that I can discern other than more of that

which brought us to the crisis.

So in that light there is not much to be excited over.

Let the paper casino wreak havoc for now with what many confuse as true worth.

Also this time compared to Lehman many new types of speculators looking to flip

anything including PM's are here. Most of them did not arrive in 2008

so most of them have little to no wiggle room.

They are also the likely candidates to be stretched on margin. It is their nature to do so.

Let them thrash...Yes it is exciting to watch.

But I am not concerned as my premise is intact.

Not to say or suggest that my premise is right....but it remains right for me.

Edited September 26, 2011 by flying

[Naam]

this whole event definitely has me spooked

you are in good company Farang. the recent multiple bloodbaths at the markets should have propelled precious metals IF the assumptions of the aficionados were right. on the other hand, we had a similar development after the 2008 crisis. precious metals advanced much later.

[Naam]

Also as I have said many times before we will see volatility shortly & $100/oz daily swings will seem common if not normal.

swings?

[Naam]

Rather exciting isn't it?

the only thing exciting is that i can't make up my mind whether to buy back my paper gold. my mind "swings" every few minutes back and forth between "buy back!" and "hold your horses!"

[flying]

this whole event definitely has me spooked

you are in good company Farang. the recent multiple bloodbaths at the markets should have propelled precious metals IF the assumptions of the aficionados were right. on the other hand, we had a similar development after the 2008 crisis. precious metals advanced much later.

Not necessarily true.

Many have said ( cycles types)

that this would be a product of the Euro problems.

The Euro Banks have leased out large quantities of gold for bank financing of dollars

Started around 9/18/11

Edited September 26, 2011 by flying

[flying]

Rather exciting isn't it?

the only thing exciting is that i can't make up my mind whether to buy back my paper gold. my mind "swings" every few minutes back and forth between "buy back!" and "hold your horses!"

:lol:

Keep an eye on that GSR

[flying]

this whole event definitely has me spooked and i might sell all my paper gold

but if u r to look at gold as a safe haven, as money, as having "cash the gov can't print" it should not be having this type of volatility.

Your answer & your question respectively

[Naam]

Flying,

don't you agree it's all Churchill's fault? a couple of his postings like "the pension fund of the united mammoth hunters in Vorkuta, Siberia announced that it will add a certain amount of gold to its holdings".

shame on you Churchill!

[farang000999]

this whole event definitely has me spooked

you are in good company Farang. the recent multiple bloodbaths at the markets should have propelled precious metals IF the assumptions of the aficionados were right. on the other hand, we had a similar development after the 2008 crisis. precious metals advanced much later.

yeah this is what was happening earlier this month.. all those Dow -3%, Gold +3% days.

[lannarebirth]

What's the general consensus now guys?

your guess is as good as ours.

What is clear is that it isn't simply a squaring of positions heading into option expiry. Volume shows many have headed for the door. Time will tell if they were prescient or not. Ellioticians licking their chops.

[lannarebirth]

Flying,

don't you agree it's all Churchill's fault? a couple of his postings like "the pension fund of the united mammoth hunters in Vorkuta, Siberia announced that it will add a certain amount of gold to its holdings".

shame on you Churchill!

I'm placing the blame squarely where it belongs, at Hugo Chavez's feet.

[flying]

Flying,

don't you agree it's all Churchill's fault? a couple of his postings like "the pension fund of the united mammoth hunters in Vorkuta, Siberia announced that it will add a certain amount of gold to its holdings".

shame on you Churchill!

I'm placing the blame squarely where it belongs, at Hugo Chavez's feet.

:lol:

Actually he was smart to grab his physical before it was any further leased out.

As for Churchill.....I remain grateful to him for starting this thread years ago at a perfect time.

[farang000999]

ZH blaming it on margin hikes from shanghai

[gregb]

this whole event definitely has me spooked and i might sell all my paper gold

but if u r to look at gold as a safe haven, as money, as having "cash the gov can't print" it should not be having this type of volatility.

Your answer & your question respectively

Sadly gold can and will have this kind of volatility. There is a tremendous amount of fiat money splashing around out there looking for a home. A post growth economy is going to have serious problems with where to put all that illusory wealth. Since there are no really good investments any more, everyone will become speculators. The same thing happened in Roman times as the empire was breaking apart. It doesn't make sense that gold would be immune to speculation. It may be a currency, but it is still a different class of currency than industrial economy, debt based fiat systems.

Gold is money historically and will be again in the future. Don't let these last 50 years fool you. It will rise steadily against paper over time as it gets closer and closer to that moment for our posterity when it recovers the status it had in the past. But superimposed on that fundamental trend is a rather nasty speculative oscillation that is going to drive it through unbearable mood swings that correlate to market sentiments. The last few days has been a good reminder to me of just how ugly that can truly get. The difference is, some of those equities and bonds that get hammered down may never come back. Gold however, will return and continue its relentless gains vs. fiat currencies whose values are completely dependent on the dying industrial economy.

On paper I'm substantially poorer today than I was a few weeks back, but I guess I must be odd in that I truly have absolutely no fear about where gold is heading long term. There is only one outcome possible unless someone solves the energy crisis. All of these price swings are just so much noise, and having now experienced this a second time I guess I am getting an education. Since I have no intention of selling gold ever, these past few days have cost me nothing, and taught me a great deal. How can anyone argue with that?

Edit:

BTW, I wouldn't worry about distinguishing quite just yet between paper gold and physical. While I agree the time is coming to be concerned about that, I think the existing system is quite a bit more massive than most of us think While there may be a day you wake up and physical gold is suddenly no longer correlated with paper markers, I don't think that can happen while the existing economy is still basically in tact. Until the coming resource wars start obliterating real economies, I think most paper gold debts will be honored. Someone like Naam may have a problem, but for those of us who measure our gold in ounces rather than truckloads I think we'll be fine.

Also, that was a truly impressive bounce off of $1530. I suspect the bottom is in.

Edited September 26, 2011 by gregb

[edgarfriendly]

i sold 30% on friday at 7.30pm, and at the time i thought i might have been a bit hasty etc...

hindsight eh....

if i could turn back time.....

if i could find a wayyyy....

i would sell my whole dam_n thimble full...

and you'd say...

gold @ a trillion $$ per oz

etc...

it IS fun, flying, just the spooky kind of fun like when do i buy back in, or do i sell more!!

i was THIS close to selling another 30% this morning and got caught up doing other business.

at the end of the day we're back to the morning price, after a CRAZY day!!!

and it looks like we're diving again according to kitco!!

lulz!!

ef

[midas]

Another person injected with truth serum

" Governments dont rule the World... Goldman Sachs rules the world "

Edited September 26, 2011 by midas

[flying]

it IS fun, flying, just the spooky kind of fun like when do i buy back in, or do i sell more!!

i was THIS close to selling another 30% this morning and got caught up doing other business.

at the end of the day we're back to the morning price, after a CRAZY day!!!

and it looks like we're diving again according to kitco!!

lulz!!

ef

Well Edgar of course that is/will be your call based on your premise....long or short term

Also if your physical like me availability has its limits.

I am in the US so I know I saw 57-58/1 GSR before I went to bed. I am told this morning that the GSR

did hit that 60/1 as I slept but I have not verified it yet.

With the GSR having reached 60 overnight,we could see a nice rally

off the lows.

Silver bounced off the 26 and is a buy at the moment versus gold.

Cycle types say we will revisit 60 again down the line.Consequently there should be no hurry.

Thankfully because since I deal only in physical it is not always easy to do so.

For instance I could do nothing last night but watch.

If 60/1 is in fact revisited & I am able to availability wise I will do as I stated a few posts back.

Of course there is no guarantees & I note the GSR is already back below 53/1

As I said in that post it appears everything is moving much much faster this time around.

I have never seen GSR move that amount/quick in such a short time frame.

Chok Dee

[letitbe]

Churchill is not feeding this thread with positive news. that's the real reason why gold is down

ahh i understand now where is he i want to buy more bought a load today and silver ok it might go down more but ive now decided to slowly swap at right times stocks for gold or silver. Sold 1 million baht of stocks today at 5% loss and put it into silver on logic that im buying a lot more silver for that stock even with 5% loss than it would have bought before. Im now totally convinced money will crash badly and now from 50% property 40% stocks 10% gold and silver going to go as fast as possible to 45% property 30% stocks and 25% gold and silver and a few other commodities.

[letitbe]

Rather exciting isn't it?

the only thing exciting is that i can't make up my mind whether to buy back my paper gold. my mind "swings" every few minutes back and forth between "buy back!" and "hold your horses!"

actually i had my most fun for a long time today im a small player but it gave me the oppertunity to do something and not just pathetically sitting on my hands. Its just money assets. If you cant take 20-30% gains or losses without loosing sleep or entering a state of bliss you should not be playing game. Just IMO. I shall now take this oppertunity to swap one asset for another. Im only sure of one thing its better than cash money or crappy US bonds paying 1.8%.

[flying]

http://londongoldexchange.com/maintenance/

Due to operational difficulties the London Gold Exchange is permanently closed for business.

Thanks to all of our members.

London Gold Exchange

International Digital Currency Trader

26/09/2011

[lannarebirth]

http://londongoldexc...om/maintenance/

Due to operational difficulties the London Gold Exchange is permanently closed for business.

Thanks to all of our members.

London Gold Exchange

International Digital Currency Trader

26/09/2011

Not to many safety nets in that offshore realm.

http://en.wikipedia.org/wiki/London_Gold_Exchange

[Naam]

Rather exciting isn't it?

the only thing exciting is that i can't make up my mind whether to buy back my paper gold. my mind "swings" every few minutes back and forth between "buy back!" and "hold your horses!"

actually i had my most fun for a long time today im a small player but it gave me the oppertunity to do something and not just pathetically sitting on my hands. Its just money assets. If you cant take 20-30% gains or losses without loosing sleep or entering a state of bliss you should not be playing game. Just IMO. I shall now take this oppertunity to swap one asset for another. Im only sure of one thing its better than cash money or crappy US bonds paying 1.8%.

do you consider an investment of 350 ounces of gold -value exceeding 500,000 Dollars- "playing a game"? i don't!

[globalmenace]

The price of gold can fall as well as plummet.

[Naam]

The price of gold can fall as well as plummet.

[churchill]

Flying,

don't you agree it's all Churchill's fault? a couple of his postings like "the pension fund of the united mammoth hunters in Vorkuta, Siberia announced that it will add a certain amount of gold to its holdings".

shame on you Churchill!

Sorry Naam not to be supporting the Gold Price with news from Siberia etc but am on the road until next week so do not have much computer time ...

but a scary few days for sure , nice if we found a base here - I don't see a lot has changed ...but who knows what is going on behind the scenes

'Posted 2011-09-19 17:00:26

Naam, on 2011-09-19 16:30:58, said:

inspite of Asia and Europe markets bloodbath Gold weak. Churchill selling?

Not selling yet .....

I am more invested in pm stocks and will let you know when ...

CDNX at 2003 Levels Despite ‘High’ Metals Prices

http://www.gotgoldre...als-prices.html

although gold could correct .. I like Robin Griffiths who seems like a wise head ..

Robin Griffiths Report - Only a Fool Would Short Gold Here

http://kingworldnews..._Gold_Here.html '

Robin Griffiths expected a drop to around this area as did many ... although very severe / and amazingly my miners were up last night

'Finally, gold is an essential investment. The latest surge took the price to $1,900 when we expected a top near $1,750. An overbought condition exists, and a fall back to about $1,600 is possible. Only a fool would try and short this move. If the drop takes place, buy more gold, which is in the early stages of one of the greatest bull markets we are likely to see in our life times. It should be a core holding in all portfolios.'

Edited September 27, 2011 by churchill

[flying]

is today the 'option expiry' date thing again?

seen a small drop in price already this morning, was kinda expecting that...if im right about the option expiration 'thing'

ef

Well today was the last trade day edgar

tomorrow is option expiration.

So what ever damage it has been done & you should see the usual relief tonight as markets are

closed here in the US already.

[flying]

Get a load of this: with the huge whacking of silver, the SLV gained a huge 2.77 million oz.

My goodness, these guys are good. They have the foresight to buy silver when the criminal bankers are selling paper silver at the comex. Go figure!!

Edited September 27, 2011 by flying

[farang000999]

wow back to 1640 already. general consensus seems to be that we will test 1500 soon so i am bit surprised to see this strong of a rally this early.

[midas]

wow back to 1640 already. general consensus seems to be that we will test 1500 soon so i am bit surprised to see this strong of a rally this early.

another perspective

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/26_John_Embry_-_Why_Central_Banks_Smashed_Gold_%26_Silver.html