Gold looks bad

[DRumsfeld2000]

A while ago someone here talked about dumping their gold holdings as hell was coming: well maybe they will be right. Unfortunately I have had a year from hell and basically moved countries twice and been involved in endless mind games and tangles which resulted in me taking my eye off my investments: not good as my gold shares have been a disaster.

With a bit of peace at long last I can look at my investments again and take profits. I have started to sell more gold shares now as I think gold will fall to around $1,150. Gold shares look aweful I think that companies will start to hedge again soon. I will hold onto my physical as I still believe that gold will rise once this BS period is over, but this will not be until 2015.

I know that this is not a news story, but well...................hey!

[charliebrown]

Re: Gold looks bad

From zero-cred ...

http://www.zerohedge.com/contributed...-avoid-default

Brett Arends of the Wall Street Journal and Marketwatch asked the U.S. Treasury if they would consider selling some of the country’s gold reserves to pay the bills if the budget crisis escalates later this month.
Their response? Not a chance.
The Treasury has considered that option, among the many others, and rejected it.“Selling gold would undercut confidence in the U.S. both here and abroad,” a spokeswoman said, “and would be destabilizing to the world financial system.”She was quoting an official position laid out last year in a letter to Senator Orrin Hatch, but so far apparently little noticed on Wall Street.

[jpatter666]

Re: Gold looks bad

A while ago someone here talked about dumping their gold holdings as hell was coming: well maybe they will be right. Unfortunately I have had a year from hell and basically moved countries twice and been involved in endless mind games and tangles which resulted in me taking my eye off my investments: not good as my gold shares have been a disaster.

With a bit of peace at long last I can look at my investments again and take profits. I have started to sell more gold shares now as I think gold will fall to around $1,150. Gold shares look aweful I think that companies will start to hedge again soon. I will hold onto my physical as I still believe that gold will rise once this BS period is over, but this will not be until 2015.

I know that this is not a news story, but well...................hey!

Yeah, that was jtabeb who I have to admit has been very accurate in his (rare) forecasts -- when he makes them. I believe he still lurks on the site but hardly ever posts anymore.

For what it's worth, I'm in the same boat, maybe even worse since I have some miners (which got decimated). I'm still holding onto everything since I view my physical gold as insurance (as per EJ's recommendations) and the miners as a long-term call option.

Fortunately, my highest-priced physical gold was around the 1200 mark (most is substantially below that price) so I'm waiting it out.

However, I agree that prices could go even lower. Even if things go to hell in a handbasket, I view the initial response (which I expect to be very short lived) to be a fast acting replay of 2008 where gold sank. But the reflation tools are in place now, so if such an event reoccurs, it's going to come and go fast IMO.

[Adeptus]

Re: Gold looks bad

Unfortunately I have had a year from hell and basically moved countries twice and been involved in endless mind games and tangles which resulted in me taking my eye off my investments

Snowden... is that you? Please leak us some gold investment tips ;-)

[BK]

Re: Gold looks bad

I'm in the same boat.......and all I know is my instincts are wrong often. But, the price today is today's price and if I had sold Gold at $1900 what would I have stored that money in what form? Options - I could have gone to Cash (US Dollars) knowing I would know when to buy back into Gold or I could have sold Gold at $1900 and bought TSLA. Perhaps I would have had the insight to sell Tesla at $195 and then wait for the opportune time to buy Gold at the low. ;-)

[BadJuju]

Re: Gold looks bad

I'll just stack and stack regardless of the price because it will eventually go up. No other really good place to invest money, at least for me since I am quite divorced from investing.

[bpwoods]

Re: Gold looks bad

Physical is fine. Paper? The cunning plan is to 'make' physical look 'bad. A lot of speculator critters have made promises they cannot keep - unless some folk 'panic' and sell their physical. Keep calm. Hold on. Try to avoid the drama news. You may have to wait a while. Things are very edgy at the moment.

[verdo]

Re: Gold looks bad

well ive been considering selling out of gold for a while now, but now may be too early. I don't really expect a major sell off until 2014

[lektrode]

Re: Gold looks bad

would think the only time to sell the yellow stuff is when the CB's start (resume)??

but the miners are starting to look attractive again...

[jpatter666]

Re: Gold looks bad

would think the only time to sell the yellow stuff is when the CB's start (resume)??

but the miners are starting to look attractive again...

Yeah that's what I said awhile back. Got my head handled to me. Of course, just paper losses so I can sit on them.

Basic rule: don't invest in miners unless you can safely wait it out (and that you may even be wrong -- if energy spikes dramatically more than gold, we're going to lose)

[LorenS]

Re: Gold looks bad

I too have been tempted to get out of gold, but I don't have a very big % of my assets in it and I'm way overweight in cash equivalents. I'm starting to consider boosting my % assets in dividend paying stocks.

So far my best investment has been my family they're appreciating and appreciative.

[GRG55]

Re: Gold looks bad

Yeah that's what I said awhile back. Got my head handled to me. Of course, just paper losses so I can sit on them.

Basic rule: don't invest in miners unless you can safely wait it out (and that you may even be wrong -- if energy spikes dramatically more than gold, we're going to lose)

I doubt energy (petroleum energy in any case) will disconnect from gold for very long. Part of my rationale for a falling oil price is that gold and most of the other commodity complex is getting taken to the woodshed in this disinflationary part of the cycle. I can't see oil being a holdout. It's never happened before...

[touchring]

Re: Gold looks bad

I doubt energy (petroleum energy in any case) will disconnect from gold for very long. Part of my rationale for a falling oil price is that gold and most of the other commodity complex is getting taken to the woodshed in this disinflationary part of the cycle. I can't see oil being a holdout. It's never happened before...

I think oil is a consumed resource whereas gold is purely an investment metal and is more speculative in nature. If gold deflation continues, oil and food will also be hit.

Gold is a warning sign of what is to come and many people are ignoring it.

[dcarrigg]

Re: Gold looks bad

I doubt energy (petroleum energy in any case) will disconnect from gold for very long. Part of my rationale for a falling oil price is that gold and most of the other commodity complex is getting taken to the woodshed in this disinflationary part of the cycle. I can't see oil being a holdout. It's never happened before...

I'm not sure how to detect linkages and patterns in commodity markets, especially now that they are so financialized. When a few gorillas on the seesaw account for 20%-30% of the price of something, I'm not sure there's any way to know where it will go (unless the gorillas happen to tell you first).

[GRG55]

Re: Gold looks bad

I'm not sure how to detect linkages and patterns in commodity markets, especially now that they are so financialized. When a few gorillas on the seesaw account for 20%-30% of the price of something, I'm not sure there's any way to know where it will go (unless the gorillas happen to tell you first).

I have posted many times over the years that trying to predict the short term movements in the price of oil is a mugs game. But over time the fundamentals tend to assert themselves. A dis-inflationary part of the cycle, coupled with a still slow and perhaps slowing global economy plus the recent significant additions to crude production in North America would suggest the potential for a decline in oil prices sometime in the coming year or so, is greater than a continued rise from these levels.

I wouldn't bet the farm on this outcome. But I wouldn't be going long oil at this time either...unless one thinks the Middle East is really going to blow up and create the mother of all supply disruptions...