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Gold and silver haven't performed under normal market conditions for the last quarter, this is clearly a rigged market. Is this the start of the physical/paper divergence or is this the smack down before the lift off, I'm not sure, but I suspect we are within 10% of the bottom, so I'd have no problems buying physical here.

 

Crikey GOLD back below £1000. What do you reckon Frizzers et al? Time to start buying again?

 

 

http://www.moneyweek...-buy-gold-55919

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Gold and silver haven't performed under normal market conditions for the last quarter, this is clearly a rigged market. Is this the start of the physical/paper divergence or is this the smack down before the lift off, I'm not sure, but I suspect we are within 10% of the bottom, so I'd have no problems buying physical here.

I am getting tempted here. I have 5 figures to invest but I don't want to do it all at once just now. $1500 would be a gift. Anything lower, and I'll definitely buy.

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I am getting tempted here. I have 5 figures to invest but I don't want to do it all at once just now. $1500 would be a gift. Anything lower, and I'll definitely buy.

 

I have never had a position in gold. Frankly I had concentrated my efforts into paying down my mortgage,which I have now paid off and I began saving a lump sum for retirement.Although I've always been aware through this site of gold as an option I had resisted the temptation to buy and watched the price climb from around $600 an oz 3 years ago to the level it is today around $1500.

 

Recent events have made me increasingly nervous about the safety of fiat and the banks and I have decided to use the recent weakness in the gold price to make my first purchase.So I intend to go and buy physical in London over the counter.I was thinking Bairds and the Britannia 1oz coins.

 

I was curious about how the gold spot price affects gold bullion coin prices. Do they have an immediate effect on the gold bullion coins like the Brittania?

 

Any opinions or advice would be appreciated as I want to make sure I get the best deal I can.

 

http://www.zerohedge.com/news/fed-vs-ecb-presenting-correlation-2012-and-what-it-means-gold

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Starting to look a little similiar to the deleveraging of 2008. If it repeated the pattern, gold would dip down again in the early part of the year before bouncing back and going onto new highs. Still would make sense to buy during this present dip if gold was unowned.

 

goldde.png

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Starting to look a little similiar to the deleveraging of 2008. If it repeated the pattern, gold would dip down again in the early part of the year before bouncing back and going onto new highs. Still would make sense to buy during this present dip if gold was unowned.

 

 

I wonder how much of the current selloff is people scared by MF Global and dumping their paper now ?

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I wonder how much of the current selloff is people scared by MF Global and dumping their paper now ?

Yep, problem is all that hot speculative money that jumps in and out of the funds so easily. The writing was on the wall when gold spiked to 1900. I much prefer to see the steadier rise of 20% odd a year. With speculative money jumping out, the gold price could easily dip briefly below the long term trend.

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http://www.reuters.com/article/2011/12/28/us-markets-precious-idUSTRE7AK1M520111228

......

Although gold traditionally has a safe-haven appeal, the euro zone debt crisis is threatening the global economy, causing a liquidity shortage in markets and forcing investors to abandon their gold positions to cover losses elsewhere.

 

Among platinum group metals, platinum fell 3.2 percent to $1,381.74 an ounce, while palladium dropped 2.9 percent to $639.47 an ounce.

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Gold coin prices track the spot price, but the dealers use the AM fix. My advice is to ring around and play them off against each other, additionally you can haggle if you're buying in volume.

 

Good luck with timing the bottom!

 

I was curious about how the gold spot price affects gold bullion coin prices. Do they have an immediate effect on the gold bullion coins like the Brittania?

 

Any opinions or advice would be appreciated as I want to make sure I get the best deal I can.

 

http://www.zerohedge...t-it-means-gold

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Gold coin prices track the spot price, but the dealers use the AM fix. My advice is to ring around and play them off against each other, additionally you can haggle if you're buying in volume.

 

Good luck with timing the bottom!

 

I see,thanks. It does seem to be testing a key technical level right now but I don't see how anyone can view that as anything other than a buying opportunity given the current economic outlook.

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I see,thanks. It does seem to be testing a key technical level right now but I don't see how anyone can view that as anything other than a buying opportunity given the current economic outlook.

It broke support (252d.MA) yesterday on reasonably high volume - so we should see a fall to the next major support level

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Every bullish call from the investment banks always seems to precede a spike higher than a major sell-off. I wonder if this will be any different.

 

Well this turned out to be the correct forecast. IBs come out with an across the board bullish forecast, gold spikes to $1640 and then gets absolutely smashed. It's textbook.

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lifted from a comment section elsewhere...

 

 

Gold is one of the only winners over the last year or so. If you have losses from other investments, the only way you can capture these losses is to be able to deduct them from something you sold that was a winner; otherwise you cannot carry over the loss into the next year. In other words, pay taxes on your winners, eat shit on the losses.

 

I'm just surprised the redemptions waited until the last couple of days. Rest of today and tomorrow could get real interesting.

 

 

 

 

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It is a buying opportunity, but I try and pick the lowest price if possible. What's been happening to gold and silver for the last 3 months is unprecedented, so you should proceed with caution. Assuming you believe in higher prices for gold, then it doesn't really matter what point of the dip you buy, but if we do get a deflationary scare before the big money supply push, gold prices may dip. If it does happen, don't let it shake you out of your position, i.e. don't become weak hands.

 

Having said that, I firmly believe it's now more about the number of ounces you own rather than the price of each unit. If Gerald Celente says it's going down in Q1 2012, I'm inclined to believe him.

 

I see,thanks. It does seem to be testing a key technical level right now but I don't see how anyone can view that as anything other than a buying opportunity given the current economic outlook.

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It broke support (252d.MA) yesterday on reasonably high volume - so we should see a fall to the next major support level

That looks like being around the 1200 level

 

Well this turned out to be the correct forecast. IBs come out with an across the board bullish forecast, gold spikes to $1640 and then gets absolutely smashed. It's textbook.

Pump and dump ?

 

It is a buying opportunity, but I try and pick the lowest price if possible. What's been happening to gold and silver for the last 3 months is unprecedented, so you should proceed with caution. Assuming you believe in higher prices for gold, then it doesn't really matter what point of the dip you buy, but if we do get a deflationary scare before the big money supply push, gold prices may dip. If it does happen, don't let it shake you out of your position, i.e. don't become weak hands.

 

Having said that, I firmly believe it's now more about the number of ounces you own rather than the price of each unit. If Gerald Celente says it's going down in Q1 2012, I'm inclined to believe him.

 

Yes,it may be wise to wait and see if a bear market develops further

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What I find odd is that even with everyone supposedly selling, it's still almost impossible to get one's hands on much real metal. I bought three Krugerrands from Hatton Garden today ... and they were the last three gold coins they had in stock. While that remains true I won't feel anxious buying, for all the chartists' gloom.

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What I find odd is that even with everyone supposedly selling, it's still almost impossible to get one's hands on much real metal. I bought three Krugerrands from Hatton Garden today ... and they were the last three gold coins they had in stock. While that remains true I won't feel anxious buying, for all the chartists' gloom.

 

Why would suppliers want lots of stock when prices are falling? Won't they wait and buy as the market is rising, then sell them at a higher price?

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Why would suppliers want lots of stock when prices are falling? Won't they wait and buy as the market is rising, then sell them at a higher price?

That would be speculation on the side of the trader. Otherwise, they should be hedged and make money on the bid-offer spread.

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~ PositiveDeviant's tip for the day ~

 

Looking for a new broker?

 

DO NOT CHOOSE ETRADE

 

I bought a chunk of GDXJ today, I actually only intended to buy calls (however no options other than for 2014 (!) were available to trade on their platform).

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Why would suppliers want lots of stock when prices are falling?

I hadn't imagined that it worked like that. They're offering to buy, and so if anyone's selling to them they'd have stock. Surely they make their money on the spread?

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Maybe the bottom is in now. :)

 

http://www.bloomberg.com/news/2011-12-29/gold-bubble-seen-by-soros-ends-bull-year-on-bear-market-brink-commodities.html

Soros Sees Gold Prices on Brink of Bear Market

EXCERPT

Paulson, the billionaire fund manager mired in the worst slump of his career, sold 36 percent of his stake in the SPDR Gold Trust (GLD) in the third quarter, an SEC filing showed. New York- based Paulson & Co. remains the biggest investor in the largest gold-backed ETP, with a stake valued at $3.17 billion.

The 56-year-old manager’s Gold Fund was this year’s best performer among his $28 billion fund family through about mid- December, people familiar with the figures said last week. Redemption requests for the end of the year were about $2 billion, two people briefed on the matter said last month.

 

haha.

 

I don't think it is "the worst slump of his career", just the worst slump since he became famous in 2008.

 

Prior to his big win then, and before the media proclaimed him an investing genius, he was seen as an "average" HF manager.

 

People are way too susceptible to the media, and need to learn to think for themselves.

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