Gold GOING to get Killed!!!!

[Mega]

http://www.foxbusiness.com/story/mar...+-+Business%29

Mike

[grapejelly]

Re: Gold GOING to get Killed!!!!

"These risks are probably much lower than generally supposed," he wrote, adding his forecast depends "crucially" on at least a partial recovery for the U.S. dollar. "While we do not think that gold is yet in a bubble, the weakness of underlying demand at these record price levels is at least a warning sign," he wrote.

I am sure gold will correct when the USD goes up. But so what?

[hayekvindicated]

Re: Gold GOING to get Killed!!!!

http://www.foxbusiness.com/story/mar...+-+Business%29

Mike

YAAAAAAAAAAAAAAAAAWWWWWNNNNNNNNNNNN

These forecasts are utterly meaningless and are made repeatedly by these astrologers.

A fall in the gold price is certainly possible as it is currently overbought. HOWEVER, I heard the same bulls*** last year while what really happened is that stocks got pummelled while gold hit $1000 in March - so the strengthening of the dollar while causing a dip in the gold price, couldn't keep gold down for long and it bounced right back up again, despite the fact that the dollar was rising against everything else.

I don't think a dollar rally will be sufficient to "KILL" gold - the people that are buying gold are not buying it as a "hedge against inflation". That is moronic. Gold is NOT a hedge against inflation. It is a hedge against systemic meltdown and/or currency failures/sovereign defaults. The fear of that will INCREASE rather than decrease if the stock market started tanking. The typical herd reaction at that point will be to pile into the "safe havens", i.e. treasuries, cash (Dollar) AND Gold. Remember that even though the Lehman insolvency was a massive deleveraging event, it cause a massive spike in the gold price over $900 on the Monday after the weekend in which Lehman collapsed.

[globaleconomicollaps]

Re: Gold GOING to get Killed!!!!

Remember that even though the Lehman insolvency was a massive deleveraging event, it cause a massive spike in the gold price over $900 on the Monday after the weekend in which Lehman collapsed.

Do you recall what happened to the gold price after the collapse of Bear Stearns? It went down about $100 for a week or two after that. In a post I made, that was subsequently removed from this site, A wall street insider speculated about a large gold position that needed to be unwound.

[hayekvindicated]

Re: Gold GOING to get Killed!!!!

Do you recall what happened to the gold price after the collapse of Bear Stearns? It went down about $100 for a week or two after that. In a post I made, that was subsequently removed from this site, A wall street insider speculated about a large gold position that needed to be unwound.

If you are hoarding physical and don't have a leveraged position, who cares?

Actually, in the current market, there is a risk of a blowout if gold hits $1200 before the end of the month. There are some very very large call options that have been sold at $1200 and these expire in four days. If gold hits $1200 before that (which is perfectly possible), there could be a huge short squeeze and that could send the price rocketing well past $1200. These things are always variables.

[johnnybill45]

Re: Gold GOING to get Killed!!!!

And...we've been reading this same argument for the last five years, but can you find one stock that has outperformed gold in the last five years? I don't think so. Not even one.

[Rajiv]

Re: Gold GOING to get Killed!!!!

If you are hoarding physical and don't have a leveraged position, who cares?

And in for the long term -- in other words, you do not have short term liquidity needs. Other wise these words from marketskeptics.com could be useful

The gold market is an accident waiting to happen

Basically, the gold market operates on a fractional reserve basis. On average there are several claims of ownership on each gold bar conforming to London Good Delivery (LGD) standard on the "pool" of gold which acts as liquidity for the massive OTC gold trade based in London. Similarly, there are several claims of ownership on the gold bars in Comex warehouses. If a sufficient number of market participants become concerned about this (which is happening) and there is a stampede to take delivery of physical bullion, the entire gold market will come crashing down, taking most of the global financial system with it. Market failure isn't a risk, it is a certainty. The unregulated gold market is an accident waiting to happen.

[Starving Steve]

Re: Gold GOING to get Killed!!!!

If you are hoarding physical and don't have a leveraged position, who cares?

Actually, in the current market, there is a risk of a blowout if gold hits $1200 before the end of the month. There are some very very large call options that have been sold at $1200 and these expire in four days. If gold hits $1200 before that (which is perfectly possible), there could be a huge short squeeze and that could send the price rocketing well past $1200. These things are always variables.

When this gold bubble finally bursts (at $1200? or $1800? or $2800?) one would be wise to run as far away from gold as one could get. After gold peaked in 1980 at $840, it took 21 long years before gold hit bottom....... And then it took a moron like Gordon Brown to sell-off the Bank of England's gold at $240 before gold could even make a bottom.

The story in silver was even worse: Bunker Hunt, another moroon, cornered the silver market in 1980 and drove prices to $51 per ounce. Immediately after the peak, silver dropt to $10.80 per oz. in one big and bloody dip, taking a few hours, on Silver Thursday. The Federal Reserve Bank had to bail-out the mess....... And then after the rescue, the story in silver slowly got worse and for 21 long years.

Stay away from bubbles. Walk quietly out of gold and into your executive McMansion in Atlanta courtesy of the maroons who buy the mania at the top... When the lines finally form outside of the Bank of Nova Scotia to buy gold, that will be "the tell" that the gig will soon be over in precious metals.:rolleyes:

[skyson]

Re: Gold GOING to get Killed!!!!

Stay away from bubbles. Walk quietly out of gold and into your executive McMansion in Atlanta courtesy of the maroons who buy the mania at the top... When the lines finally form outside of the Bank of Nova Scotia to buy gold, that will be "the tell" that the gig will soon be over in precious metals.:rolleyes:

Ha, Nova Scotia is my bank. I has been in and out there quite often for the last half year. None of those tellers have any clue about gold/silver, even the ones responsible to fill my orders were staring at me like I was from Mars. Just today, one of them asked me:"Why do you keep so much cash in the account? It is the RRSP(US 401k equivalent) season, you sir!". Wow, very considerate advices.

Certainly no signs of bubble yet to my own eyes. Any one you see? ;)

[jpatter666]

Re: Gold GOING to get Killed!!!!

Ha, Nova Scotia is my bank. I has been in and out there quite often for the last half year. None of those tellers have any clue about gold/silver, even the ones responsible to fill my orders were staring at me like I was from Mars. Just today, one of them asked me:"Why do you keep so much cash in the account? It is the RRSP(US 401k equivalent) season, you sir!". Wow, very considerate advices.

Certainly no signs of bubble yet to my own eyes. Any one you see? ;)

No way. Many friends and associates know I'm into gold. When they start calling and emailing *me* to find out how best to position for gold I'll know the public mania is revving up.

When their friends start contacting me because I'm "the PM guy" I'll know the top approaches.

Was the same story during the dot-bomb bubble (I worked in IT)

[snowman111]

Re: Gold GOING to get Killed!!!!

When this gold bubble finally bursts (at $1200? or $1800? or $2800?) one would be wise to run as far away from gold as one could get. After gold peaked in 1980 at $840, it took 21 long years before gold hit bottom....... And then it took a moron like Gordon Brown to sell-off the Bank of England's gold at $240 before gold could even make a bottom.

The story in silver was even worse: Bunker Hunt, another moroon, cornered the silver market in 1980 and drove prices to $51 per ounce. Immediately after the peak, silver dropt to $10.80 per oz. in one big and bloody dip, taking a few hours, on Silver Thursday. The Federal Reserve Bank had to bail-out the mess....... And then after the rescue, the story in silver slowly got worse and for 21 long years.

Stay away from bubbles. Walk quietly out of gold and into your executive McMansion in Atlanta courtesy of the maroons who buy the mania at the top... When the lines finally form outside of the Bank of Nova Scotia to buy gold, that will be "the tell" that the gig will soon be over in precious metals.:rolleyes:

I am surprised you are not a fan of precious metals. What asset class currently puts a smile on your face?

[Master Shake]

Re: Gold GOING to get Killed!!!!

I am surprised you are not a fan of precious metals. What asset class currently puts a smile on your face?

I think Steve is long carbon credits and windmills.

[cjppjc]

Re: Gold GOING to get Killed!!!!

No way. Many friends and associates know I'm into gold. When they start calling and emailing *me* to find out how best to position for gold I'll know the public mania is revving up.

When their friends start contacting me because I'm "the PM guy" I'll know the top approaches.

Was the same story during the dot-bomb bubble (I worked in IT)

Revving up is far different than a top. How long did the .com rev before the top?

[Adeptus]

Re: Gold GOING to get Killed!!!!

Stay away from bubbles. Walk quietly out of gold and into your executive McMansion in Atlanta courtesy of the maroons who buy the mania at the top...

Au contrair, mon fraire. Bubbles is the fastest way to make money. The same ol' applies here. Buy low, sell high (before the bubble bursts).

Next bubble = Oil... Looking forward to the iTulip article that explains how to get in early into that eventual bubble. I'm still hoping part 3 will include non-USD investment options, as it makes perfect sense both for US subscribers as well as non-US (i.e. Canucks like moi).

Cheerios,
Adeptus

[Jay]

Re: Gold GOING to get Killed!!!!

I have had a grand total of two people who have listened to me over the years and bought gold or GTU. Many, many more have heard the speech. Not one of the disbelievers has come to ask me how to buy yet. When they do, it will be a change in market psychology for me. I have had a few people mention the price though which is new.