Bye Bye Gold Nonsense

[opebo]

Can't say that I have.  

I just read a little synopsis though.  "Rabbit...  no longer feels the pull to run.  But satisfaction causes a few problems of its own."  I guess that's how I am.  But Rabbit owns his own business and at least two houses.  Rabbit is rich, after all.  I'm not.

Pretty damned close.  Rabbit makes quite a few bucks on Cougerrands, and I think he also loses at least as much, in the book. 

Actually I'm surprised that have those rands anymore now that apartheid has been ended.

[Beet]

I am still long on gold, but it's partially a hedge too.

[FEMA Camp Administrator]

It would be best to stock up on something that would be of value during an apocalypse: alcohol.

You have set my financial plans for when I become older.

[phk]

The price of gold is rallying this morning on US dollar weakness, but the commodity still has some work to do before it gets back above its 50-day moving average (DMA).  The metal has been treading water just below its 50-day after falling through it earlier this month (1/4).  So far it has had little success keeping its head above this level.

[Badger]

I knew should've been shorting gold.

[The Economist]

Out of curiosity, when will this bubble burst? (like the last couple of oil bubbles).

[Verily]

Out of curiosity, when will this bubble burst? (like the last couple of oil bubbles).

Eventually. Hard to predict. Probably within a couple of years, though. Gold is a hard bubble to burst because it's emotional as well as panicked.

[The Economist]

That's the problem with gold, yeah. It's considered a hard metal and a good safety commodity when the markets are uncertainty. It's quite a good indicator of investor sentiment. It would probably burst about the same time then, that the general economy begins to recover?

[phk]

[Person Man]

Buying Gold is like buying Apocalypse futures on ImTrade.

[J. J.]

Au close Friday:  $1369.90

Au close 2/9/01:  $260.00

Sure glad the "nonsense" has ended.

[phk]

Au close Friday:  $1369.90

Au close 2/9/01:  $260.00

Sure glad the "nonsense" has ended.

So adjusted for inflation, there's been a 1k increase per ounce since 2001? This is probably the maximum you could get before it lulls again.

[J. J.]

Au close Friday:  $1369.90

Au close 2/9/01:  $260.00

Sure glad the "nonsense" has ended.

So adjusted for inflation, there's been a 1k increase per ounce since 2001? This is probably the maximum you could get before it lulls again.

I would buy any now. 

[rdouty]

Of course, the expectation is for gold to depreciate this year -- at least with no evident debt crisis in Europe. With that, the inflationary effects of the quantitative easing program will probably take a couple of years. Coupled with the unloading of cash by businesses, this could cause some inflationary pressure and force gold prices up.

[Sam Spade]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

[memphis]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

Wrong. It has peaked and will soon fall spectacularly, just like oil. It isn't that hard to spot these bubbles. When "everybody" is talking about them and how great they're doing (ditto for real estate few years back) it's time to sell, or if you're adventurous, short in a big way.

[opebo]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

Wrong. It has peaked and will soon fall spectacularly, just like oil. It isn't that hard to spot these bubbles. When "everybody" is talking about them and how great they're doing (ditto for real estate few years back) it's time to sell, or if you're adventurous, short in a big way.

Yeah, but, but Staglefation!  Oh wait a minute, it still fell in 1980.

[Sam Spade]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

Wrong. It has peaked and will soon fall spectacularly, just like oil.  It isn't that hard to spot these bubbles. When "everybody" is talking about them and how great they're doing (ditto for real estate few years back) it's time to sell, or if you're adventurous, short in a big way.

Long-term tops in commodities bubbles are usually capped off by "mania" phases where no one thinks it will go down.  I see no "mania" phase in gold yet, though we're probably getting close.  Oil is quite different, as I suspect the mania phase was in early 2008.

More importantly, and I go back to the 2008 financial crisis in noticing this, gold has continually outperformed nearly every other commodity, when they slide since that event.  Like today.  That usually indicates underlying strength.

[Ⓐnarchy in the ☭☭☭P!]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

Wrong. It has peaked and will soon fall spectacularly, just like oil. It isn't that hard to spot these bubbles. When "everybody" is talking about them and how great they're doing (ditto for real estate few years back) it's time to sell, or if you're adventurous, short in a big way.

It was being said that it had peaked about 200$ ago. And again about 400$ before that. Etc.

Gold is a hedge against inflation and currency devaluation, both of which are occurring across the world (especially in the UK, US, China, and Japan). If currencies resume their strength, gold will fall. Except if that happened it would imply that inflation has cut off which would require that the Fed stop its various programs which would result in the recession coming back in full force and then some (not that they are actually preventing it so much as delaying it).

But please, keep on claiming that gold is in a bubble and that it has peaked, I would love it to drop back down a couple hundred dollars so I can buy some more.

[Verily]

Uhh... You might want to look at inflation indexes before claiming inflation is high (well, in the US and UK anyway; inflation is high in China, but that's like comparing apples and dishtowels).

[memphis]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

Wrong. It has peaked and will soon fall spectacularly, just like oil. It isn't that hard to spot these bubbles. When "everybody" is talking about them and how great they're doing (ditto for real estate few years back) it's time to sell, or if you're adventurous, short in a big way.

It was being said that it had peaked about 200$ ago. And again about 400$ before that. Etc.

Gold is a hedge against inflation and currency devaluation, both of which are occurring across the world (especially in the UK, US, China, and Japan). If currencies resume their strength, gold will fall. Except if that happened it would imply that inflation has cut off which would require that the Fed stop its various programs which would result in the recession coming back in full force and then some (not that they are actually preventing it so much as delaying it).

But please, keep on claiming that gold is in a bubble and that it has peaked, I would love it to drop back down a couple hundred dollars so I can buy some more.

You want to buy it when it's falling? Ok.......

[CitizenX]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

The problem with gold is 90% of consumption is for jewelry and hoarding.  Only 10% of global consumption is for industrial purposes.  If rappers and people in India didn't like it for jewelry and gold bugs had any common sense its value would collapse to less than $400/ounce.  I mean if 90% of homes in America were never lived in and were only for show or speculation what do you think the housing market would look like?

This is one problem I have with Ron Paul.  It makes no sense to base your entire economy on something that mostly has value as bling.  $140 oil makes more sense than $1500/oz gold.  In all the post apocalyptic movies I've seen people fight over water and oil.  No one fights over gold.  If the world ends what are you going to do with gold?

[phk]

Gold Closing in On All-Time High
Tuesday, July 12, 2011 at 01:51PM

While silver remains stuck in the doldrums, gold is currently trading at its highest level since May 2nd when it traded to an all-time high of 1,577.40.

[phk]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

Wrong. It has peaked and will soon fall spectacularly, just like oil. It isn't that hard to spot these bubbles. When "everybody" is talking about them and how great they're doing (ditto for real estate few years back) it's time to sell, or if you're adventurous, short in a big way.

It was being said that it had peaked about 200$ ago. And again about 400$ before that. Etc.

Gold is a hedge against inflation and currency devaluation, both of which are occurring across the world (especially in the UK, US, China, and Japan). If currencies resume their strength, gold will fall. Except if that happened it would imply that inflation has cut off which would require that the Fed stop its various programs which would result in the recession coming back in full force and then some (not that they are actually preventing it so much as delaying it).

But please, keep on claiming that gold is in a bubble and that it has peaked, I would love it to drop back down a couple hundred dollars so I can buy some more.

You want to buy it when it's falling? Ok.......

Anybody who bought Gold when the thread was made would have made a 14% or (28% annualized) return if they sold today.

[J. J.]

Opebonomics is even worse than Obamanomics. 

Interestingly, silver has gone up more 9 times since its low $4.15 in 2001.  Even buying on the day Obama was inaugurated, you would have made a 350%+ profit.