Why is gold NOT going up?

[Dominique]

Re: Why is gold NOT going up?

Lukester must be a new investor. Gold and silver move in spurts; it's the nature of the PM industry. What makes this bull very hard to stay on is the fact very few investors have the patience required to save themselves from the profound debasement of almost all currencies throughout the world.

You have to remember that patience is very rare in the US, and elsewhere for that matter. Just buy more when the price "craters". Buy silver, too. Silver should outperform gold, going forward.

The ratio between gold and silver is about 50; it should close to 20, or so, over time.

Dominique

[Guest]

Re: Why is gold NOT going up?

Lukester must be a new investor. Gold and silver move in spurts; it's the nature of the PM industry. What makes this bull very hard to stay on is the fact very few investors have the patience required to save themselves.

Dominique - It was just joking around.

[Finster]

Re: Why is gold NOT going up?

"Why is gold not going up?" Whine, whine, whine. I feel your pain fellas. You guys want the moon and the stars in six months, and if it's not served up on your schedule on a Ritz Hotel platter you get impatient and suspicious. How the heck are you going to go the distance for the next decade? What a rank newbie question! Gold can sit there and do NOTHING for two years while the impatient ones buy it, sell it, then buy it back and sell it all over again, churning their positions with expressions of bewilderment and irritation, wondering why 'it's not doing anything' for them.

This is a really rank newbie complaint. "Hey, I just loaded up on gold six months ago and this thing is a dog! It's not going anywhere! There's a conspiracy of wankers suppressing the price and robbing me of my fat reward! Anyone who suggested I buy gold to protect myself from inflation is full of shit!" etc. etc. Anyone wanting instant gratification does not deserve any windfall or reward! You don't have the long term view - you deserve to get thrown off this thing at the very next downturn. All the people you look at enviously who made 300% waiting patiently since 2000 and sweating it through ugly downturns are looking at your greedy impatience with disgust.

Lukester, most of us know intellectually that you are right. But our emotional side still wants to bellyache! ;)

[Guest]

Re: Why is gold NOT going up?

Lukester, most of us know intellectually that you are right. But our emotional side still wants to bellyache! ;)

Fully understood Finster. And I see that you've remained a rock steady proponent of the virtue of Gold in this decade's general environment. I then read people questioning how we could see gold and the other PM's "collapse" due to bubble qualities in these fiat currency hedges and I wonder how their world view is constructed. There is no hard metal standard in any currency today. We have major stresses appearing in the global fiat currencies, closing in on a quadrillion dollars of notional derivatives worldwide, closing in on Peak Cheap Oil, introducing 2-3 billion new consumers with burgeoning savings, witnessing the unequivocal final teetering of the US dollar standard, and some people continue to worry that the underpinnings of gold are questionable? Well, OK, to each his own I guess. Should I sell my gold? :eek: [ five minutes later ] How about now??!?? :eek: [ next day ] Well, how about now then? Should I sell it now?? You say no? Why not then, huh, huh?? :eek: :eek:

[FRED]

Re: Why is gold NOT going up?

Fully understood Finster. And I see that you've remained a rock steady proponent of the virtue of Gold in this decade's general environment. I then read people questioning how we could see gold and the other PM's "collapse" due to bubble qualities in these fiat currency hedges and I wonder how their world view is constructed. There is no hard metal standard in any currency today. We have major stresses appearing in the global fiat currencies, closing in on a quadrillion dollars of notional derivatives worldwide, closing in on Peak Cheap Oil, introducing 2-3 billion new consumers with burgeoning savings, witnessing the unequivocal final teetering of the US dollar standard, and some people continue to worry that the underpinnings of gold are questionable? Well, OK, to each his own I guess. Should I sell my gold? :eek: [ five minutes later ] How about now??!?? :eek: [ next day ] Well, how about now then? Should I sell it now?? You say no? Why not then, huh, huh?? :eek: :eek:

Don't neglect the commentary
of the possessed MSM business press
for the past 10 years: sell gold!



No, the preferred method is selling CDOs and such.

[sadsack]

Re: Why is gold NOT going up?

I'm just waiting for sub-$850 spot prices before I commit the rest of my "Mad Max" reserve bonars. Although the recent traction seen in Ag relative to Au is making my trigger finger very itchy wrt the latter PM . . .

[Nervous Drake]

Re: Why is gold NOT going up?

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[Finster]

Re: Why is gold NOT going up?

Fully understood Finster. And I see that you've remained a rock steady proponent of the virtue of Gold in this decade's general environment... :eek: :eek:

You bet, Lukester! As you've suggested, however, the major trend does not proceed in a straight line. One of the best formulations we've seen of this idea is in the thread Gold Update: The small trade within the big trade:

... Within the long gold and silver trade are players that create price movements that at times are counter to the long term trend and at other times exaggerate the long term trend...

Thus, rather than see AU/USD proceed at a nice, steady, 20% or so clip year in year out, we see an advance of 60%, followed by a decline of 15%, followed by a levelling off, followed by an advance ... etceteras. It must be this way ... the former is virtually impossible, since if market participants could count on a certain directional movement across all time frames, the bets would rapidly accumulate on that thesis and the expected longer term price movement would soon be brought forward and compressed into a very short time frame, depriving the next time frame of the movement whose anticipation spurred the bets in the first place. The former leads ineluctably to the latter...