Gold under £1000 !!!!!!!

[Mega]

Getting near where i going to buy more.....
Mike

[Techdread]

Re: Gold under £1000 !!!!!!!

Lucky you. My order's went off.

I wonder whats happening Gold does not usually go down this much.

[DRumsfeld2000]

Re: Gold under £1000 !!!!!!!

It is probably due to margin calls. Shares are going down down. I think I might subscribe to EJ so that I can get some sleep!

[globaleconomicollaps]

Re: Gold under £1000 !!!!!!!

Getting near where i going to buy more.....
Mike

uh... Hooray?

[Slimprofits]

Re: Gold under £1000 !!!!!!!

Munger says owning gold is uncivilized and lemmings sell.

[Mega]

Re: Gold under £1000 !!!!!!!

Its about now i expect "Metalman" to appear with a smug look on his face.........he sort of reminds me of Dr Smith from Lost in space...

Mike

[charliebrown]

Re: Gold under £1000 !!!!!!!

I'm surprised you are familiar with that fine piece of tele from across the pond.

[lektrode]

Re: Gold under £1000 !!!!!!!

Getting near where i going to buy more.....

everybody in algo land bailin out of everything today?
but... is this the moment?




would seem that what we're really waiting on is this scene:

http://www.youtube.com/watch?v=jzf20TVDoo0 (wont let me embed, but is this the moment of the euro beginning to "stand up" is the $64000 question ???)

[lakedaemonian]

Re: Gold under £1000 !!!!!!!

Final or almost final buying opportunity?

I'm going to buy under $1600, just not sure how MUCH under $1600 I want to try to buy.

Keen to hear the thoughts of our community here.

[Adeptus]

Re: Gold under £1000 !!!!!!!

I'm going to buy under $1600, just not sure how MUCH under $1600 I want to try to buy.
Keen to hear the thoughts of our community here.

I'm in the same boat. I already have a large core position, but this (below $1600) may be the last time to backup the truck for a long while. If Europe really goes anti-austerity, then it's QE to infinity, the only question is when is the next batch coming up?

While Goldman claims June is the time-frame, Bruce Krasting believes it won't be until December for political reasons.

Source: http://brucekrasting.blogspot.ca/201...s-of-ease.html

Select quotes from Bruce's blog post:

"Twist and LTRO are finished for the time being. Bond yields are reacting to the economic slowdown that comes with the ending of these monetary jolts. Stock markets around the world have flattened out; there is good evidence that an equity market correction is underway.
- The expectation from all directions is that the Fed and the ECB will (once again) rise to the occasion (June is the popular time frame), and when they act, stocks will go “green” again.

- That the market is so convinced that the Fed will bail it out (or prevent any significant decline) allows for the very high spread between stock prices and interest rates that exists today. There is a high degree of complacency in the market. It believes the Fed is the backstop, and it will always be there when markets flutter."

The arguments (above) and logic for additional Fed accommodation are compelling. The assumption is that the Fed will do the “logical” thing and repeat its past actions . I disagree.

The next opportunity for the Fed to act is June 21. That is 133 days before the election. Any new Fed program (sterilized QE) would take time to become operational. To be effective, it would have to have a time frame of at least six months. This leads to the conclusions that (1) the earliest the Fed could act is late August, and (2) if it were a six-month program, it would be in full gear for the first week of November.

The Fed can’t do that. It would (appropriately) be accused of supporting Obama and interfering with the political process in the US. An independent Fed can’t throw elections. If it tried, the result would be a lose of its independence.
The Fed's only support comes from the political right. I think this is because the Political Right = Money, and Money "believes" it is better off with an independent Fed. If the Fed takes action to support a liberal president in a key election, it will lose what support it has.

The folks at the Fed ain’t dumb. If they cared about their role in society and wanted to maintain their power, prestige and independence, the last thing they would do is start another round of QE in the 3rd quarter of 2012.

+
The situation is quite the opposite in Europe. I think the outcome will be the same. Europe has had its critical elections this weekend. Now we know that a Socialist will lead France. The message from this election is very clear. The French people do not want austerity. Neither do the Dutch, Italians or Spaniards. The only country left that is pushing for austerity is Germany.
I think that there is a near zero chance that the German people will permit their leaders to write a check that supports growth programs in the EU. If France says, “To hell with austerity”, the politics in Germany will turn away from those that support pan European bailouts. Merkel will be D.O.A. if she tries to have Germany foot the bill for a French expansion program.
I will add that if France does turn its back on austerity, (almost certain that they will) the German Bundesbank will just say, “Nein, danke”. Without "Bubba", no deals will happen.
The markets are going to hit a wall on Monday. There will be a cry from the pundits,

"Don't worry, QE is coming for sure! Buy the dip! The Fed is going to come to the rescue and bailout the global markets!"
I’m going to go against the consensus opinion.

The Fed is on hold until December.

We will not see another LTRO operation this year.

[thriftyandboringinohio]

Re: Gold under £1000 !!!!!!!

I am highly certain that right now the gold market confuses me. Greatly.
I got stopped out for another small loss today trading GLD.

Finster's HMX chart is as good a windsock as any I've seen.

I'm not even considering selling any of my physical core position; I'll just keep mine, thank you.

[Mega]

Re: Gold under £1000 !!!!!!!

It was never very "Big" in the UK......I "sort of" arrived home from school "early" on Friday afternoons.....i was surpose to do sports, but i decied that seeing how the school was a good few miles from home that was execise enough......i found it on 1 of the 3 (yes we only had 3!) Channels about 2.30 ish...........ok but the world of the late 70's was very differant to late 60's.

Mike

[Mega]

Re: Gold under £1000 !!!!!!!

As for Gold, do i buy that 5 oz tomorrow or hang on???????
Mike

[charliebrown]

Re: Gold under £1000 !!!!!!!

I am building a permanent portfolio with a 25% gold position. The latest down draft has brought my allocation below so I am going to stock up. I bought a wee bit at BV today. Tomorrow if things are flat I will buy a bit of PHYS. If it springs back probably not, If it's down again I will wait. Basically I'm looking for a valley to form.
Gold to oil ratio is at 16. If it reverts to the decade average 14, we could see a gold price of around $1400, if oil sticks at around $100.

Remebember this trend following stuff works to a point. All it takes is a hot war in the middle east and its to the moon!

All other correlations negative interest rates, increasing debt to gdp, increasing CB balance sheets are all in place for higher prices.

If you don't own any gold, I would start building a position immediately at these prices.

[lakedaemonian]

Re: Gold under £1000 !!!!!!!

Yup Adeptus....I'm thinking the same thing......no way am I selling....I'm keeping everything I've got until EJ and the big brains here start making noises about selling in a few years.

And I'm thinking one more decent sized buying opportunity....I'm still too cash heavy overall...so it's as good a place as any to put some of it if the price is right.

But what's the "right price" to back up the truck for the "last" time?