Gold bubble goes pop!

[Mega]

..............but it will be BACK.

2% Down, just like Oil.
Mike

[Chris]

Re: Gold bubble goes pop!

Does anyone know why this is? I've heard it decsribed as a "takedown" before with the implication that some entity is controlling the price. Is that possible? I assume so. It seems consistent with this chart.

http://www.gold-eagle.com/editorials...eck062802.html

enter the date 03-04-08 (or 04-03-08 where I come from).

http://www.kitco.com/scripts/hist_ch...ily_graphs.cgi

[c1ue]

Re: Gold bubble goes pop!

If you believe hedge funds have accelerated the gold price rise, then an all markets fall as we've been seeing could have caused margin calls.

This in turn forced the hedgies (or Fred's USIPs) to sell some of their recently purchased gold in order to stay solvent.

Not unrealistic if leverage was being used...

[WDCRob]

Re: Gold bubble goes pop!

As interesting as the precipitous fall was it sure seemed like prices did not BUDGE for the rest of the day.

[BobinSFCA]

Re: Gold bubble goes pop!

Maybe it is just simple profit taking by spectators? It looks like it just bounces up and down a little on its way to the top. It certainly looks like another opportunity to buy a little more while it is still a bargain . . .

[dbarberic]

Re: Gold bubble goes pop!

Yawn... wake me up when gold drops 20% to $800; everything else is just noise.

[Chris]

Re: Gold bubble goes pop!

Hardly a pop. It's almost back up to yesterday's high. Did someone say "volatile"?

[FRED]

Re: Gold bubble goes pop!

See Gold Update: The small trade within the big trade - March 5, 2008

[touchring]

Re: Gold bubble goes pop!

Thks, i should have bought more on Tuesday. Now it bounced back! :eek:

[GRG55]

Re: Gold bubble goes pop!

Thks, i should have bought more on Tuesday. Now it bounced back! :eek:

I did. And if it works, it might be the first time ever I got the timing right on a trade

[touchring]

Re: Gold bubble goes pop!

oh yea, i wanted to buy some silver as well, but was lazy to go to the bank.

:mad:

I did. And if it works, it might be the first time ever I got the timing right on a trade

[grapejelly]

Re: Gold bubble goes pop!

I still expect a major correction in all commodities. This is a hyperbolic increase we've seen and it is prolly a short or medium term peak, according to Steve Saville whom I respect in such matters

[Guest]

Re: Gold bubble goes pop!

If we're creating/printing money at rate X, wouldn't it just be logical that commodities rise roughly proportionally to that?

Last year gold was up something around 31%. How much did the money supply increase globally? In the US?

I'm sure much of it is speculative, but isn't this primarily just a reaction to the lower value of a dollar, plus the flight of wealth to something that isn't eroding away? Seems logical to me, and I'm curious what would, in the medium term of a few years, stop this trend?

I also don't like the term "bubble" for gold. It implies that the price of it is based on the empty air inside. I think of a bubble as being like a tech stock that never made a dime and had no assets beyond a room full of computers and some office space going from $2 to $100 a share and then to zero.

Wheat, corn, soybeans, haven't they risen more than gold? How has oil's rise related to the inflation we've created?

Sometimes I wonder if the more financially sophisticated here forget that what really drives markets beyond a day or two is the dumb masses out there and what they finally catch onto. When THEY turn off American Idol and figure all this out, what are THEY going to rush to put money in? Then you'll have a mania/bubble.

[metalman]

Re: Gold bubble goes pop!

If we're creating/printing money at rate X, wouldn't it just be logical that commodities rise roughly proportionally to that?

Last year gold was up something around 31%. How much did the money supply increase globally? In the US?

I'm sure much of it is speculative, but isn't this primarily just a reaction to the lower value of a dollar, plus the flight of wealth to something that isn't eroding away? Seems logical to me, and I'm curious what would, in the medium term of a few years, stop this trend?

I also don't like the term "bubble" for gold. It implies that the price of it is based on the empty air inside. I think of a bubble as being like a tech stock that never made a dime and had no assets beyond a room full of computers and some office space going from $2 to $100 a share and then to zero.

Wheat, corn, soybeans, haven't they risen more than gold? How has oil's rise related to the inflation we've created?

Sometimes I wonder if the more financially sophisticated here forget that what really drives markets beyond a day or two is the dumb masses out there and what they finally catch onto. When THEY turn off American Idol and figure all this out, what are THEY going to rush to put money in? Then you'll have a mania/bubble.

yeh but as ej and fred point out, the dumb masses don't have any money.

it's when the rich guys start to panic out of the dollar... capital flight... that the shit really hits the fan.

[GeraldRiggs]

Re: Gold bubble goes pop!

I still expect a major correction in all commodities. This is a hyperbolic increase we've seen and it is prolly a short or medium term peak, according to Steve Saville whom I respect in such matters

Don't you mean parabolic rise? and I wouldn't call a rise from $650 to $970 that kind of rise. it's only 49%. NOW, if gold shot up to $2500, then, I'd consider calling it something depending on the M3, etc. Just my 2 cents.