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Gold Is Expected To Keep Rising This Week ($1300/oz is just a warmup?)
Business Insider ^ | 09/26/2010 | Vincent Fernando CFA

Posted on 09/26/2010 4:25:40 PM PDT by SeekAndFind

As gold hovers just below the $1,300 mark it broke last week, consensus expects the metal keep rising in the coming week.

The bull is back:

Bloomberg:

Sixteen of 23 traders, investors and analysts surveyed by Bloomberg, or 70 percent, said the metal will rise next week. Six forecast lower prices and one was neutral. Gold for December delivery was up 1.3 percent for this week at $1,293.60 an ounce at 11 a.m. yesterday on the Comex in New York. Futures climbed to a record $1,298 on Sept. 22.

...

The weekly gold survey that started six years ago has forecast prices accurately in 189 of 329 weeks, or 57 percent of the time

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: devaluation; gold; inflation; rise

1 posted on 09/26/2010 4:25:46 PM PDT by SeekAndFind
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To: SeekAndFind

Bloomberg News has all the details :

http://www.bloomberg.com/news/2010-09-23/gold-may-gain-next-week-on-wealth-protection-weaker-dollar-survey-shows.html


2 posted on 09/26/2010 4:26:49 PM PDT by SeekAndFind
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To: SeekAndFind

Is gold really going up,or is the dollar tanking?


3 posted on 09/26/2010 4:27:38 PM PDT by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: Farmer Dean

The dollar is tanking. People (traders especially, and China also) are losing confidence in it as a sound currency.


4 posted on 09/26/2010 4:29:56 PM PDT by SeekAndFind
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To: Farmer Dean
Both. Go to Kitco.com where they partial out the effects of the dollar and the buy/sell interest in the commodity itself. It varies, obviously, day to day.
5 posted on 09/26/2010 4:35:29 PM PDT by hinckley buzzard
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To: hinckley buzzard

Inflation is usually the friend of gold. However, what we see going on here is not inflation but COMPETITIVE CURRENCY DEVALUATION. In other words, the central banks of the world are trying to out-do each other in intervening to weaken their currency.

This is especially true in export oriented countries.

The USD is weak because of lack of confidence in our debt and deficit.

Japan weakens the yen to prevent exports from sliding. The US eases. Brazil weakens the real. Japan weakens again. Around and around the print parade goes on, and the main beneficiary is gold, the anti-currency.

It’s a pretty logical argument, and it’s not obvious what will end this game.

So, what will cause gold to fall ?

The answer is probably be a return to robust, sustainable growth and modest inflation — pretty much the opposite of what we see now. But this doesn’t seem imminent (but if the GOP takes over Congress and are SERIOUS about stopping the Obama agenda, this might just happen. If they’re simply going to do surface house cleaning, gold will not fall ).

But is there any other outside event or headline that could whack gold? I can only think of one, and that would be a serious move by China to revalue the yuan.

If China did it by her own, that wouldn’t necessarily be the economic panacea many of us imagine it would be. It wouldn’t all of the sudden reverse the much-derided trade imbalances. But it might put a halt to the competitive devaluation daisy-chain, as Japan, Brazil, and the US might feel a bit less pressure to weaken their own currencies.

That would probably take a lot of the air out of gold, but that being said, it’s hard to imagine China making this move any time soon, and in a dramatic way.

Hence, in the meantime, gold will continue to rise ( and watch silver also ).


6 posted on 09/26/2010 4:39:41 PM PDT by SeekAndFind
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To: Farmer Dean

Inflation is usually the friend of gold. However, what we see going on here is not inflation but COMPETITIVE CURRENCY DEVALUATION. In other words, the central banks of the world are trying to out-do each other in intervening to weaken their currency.

This is especially true in export oriented countries.

The USD is weak because of lack of confidence in our debt and deficit.

Japan weakens the yen to prevent exports from sliding. The US eases. Brazil weakens the real. Japan weakens again. Around and around the print parade goes on, and the main beneficiary is gold, the anti-currency.

It’s a pretty logical argument, and it’s not obvious what will end this game.

So, what will cause gold to fall ?

The answer is probably be a return to robust, sustainable growth and modest inflation — pretty much the opposite of what we see now. But this doesn’t seem imminent (but if the GOP takes over Congress and are SERIOUS about stopping the Obama agenda, this might just happen. If they’re simply going to do surface house cleaning, gold will not fall ).

But is there any other outside event or headline that could whack gold? I can only think of one, and that would be a serious move by China to revalue the yuan.

If China did it by her own, that wouldn’t necessarily be the economic panacea many of us imagine it would be. It wouldn’t all of the sudden reverse the much-derided trade imbalances. But it might put a halt to the competitive devaluation daisy-chain, as Japan, Brazil, and the US might feel a bit less pressure to weaken their own currencies.

That would probably take a lot of the air out of gold, but that being said, it’s hard to imagine China making this move any time soon, and in a dramatic way.

Hence, in the meantime, gold will continue to rise ( and watch silver also ).


7 posted on 09/26/2010 4:40:24 PM PDT by SeekAndFind
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To: SeekAndFind

I say again, the value of gold is entirely based on psychology and psychiatry, and not on economics or physics. You can get hurt really bad buying the stuff.


8 posted on 09/26/2010 4:40:30 PM PDT by wendy1946
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To: wendy1946

RE: I say again, the value of gold is entirely based on psychology and psychiatry, and not on economics or physics.


Would you rather put your trust on a piece of paper with ink added to it?


9 posted on 09/26/2010 4:42:22 PM PDT by SeekAndFind
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To: SeekAndFind

Since late July 2010 the London gold exchange (LBMA) are under pressure from Chinese, Arab, some Russian and other billionaires for physical gold deliveries. The LBMA is suppose to be storage facility for allocated accounts of gold. Allocated accounts means the LBMA cannot touch the gold, loan against it or loan it out. For decades the US COMEX and London Exchanges have created paper investments that are suppose to be backed by “physical” gold. There are analysts who claim that for every 40 to 100 troy ounce of gold represented by the paper investments, there is only one ounce of physical gold.
To cover these shortfalls the gold in the untouchable allocated accounts may have been loaned out and when the owners want their gold the exchanges scramble to buy gold on the open market or go to the other exchanges to get physical gold to cover the empty allocated accounts. There is a shell game amongst the exchanges to cover each other. The problem is what happens when all the owners of the allocated accounts want their physical gold.
China and Dubai recently open their own gold and silver storage facilities. The Chinese government already moved their national gold supply from London to Hong Kong. The Arabs governments moved their national gold supply from London to Dubai. Now the Arab, Chinese, Russian and some unknown billionaires are furious to find out that the LBMA have touched their allocated gold accounts. These billionaires are nicknamed “gold vigilantes”.
Ever since September they are launching gold purchases every ten to fourteen days with the aim to expose the LBMA’s lack of physical gold to back all their paper investment and contracts they sell to investors. The LBMA is having problems and are desperately borrowing physical gold from the US COMEX and other central bank exchanges as well as buying what is available on the open spot market to make deliveries to the allocated account owners requesting physical deliveries to Hong Kong and Dubai. In the past the LBMA would publish on a website for the public the amount of gold entering and leaving the London exchange. As of last July 2010, the LBMA stopped posting such data on its website.
The Chinese and Arab buyers swore to continue the demand for deliveries from their LBMA gold contracts/accounts till the LBMA bankers are “dead and castrated”..
How does that impact us? Price of gold and silver will go up because the current price of the metals are based on paper contracts that over estimate the physical metal supply by 40 to 100 times. When the LBMA is desperately buying gold to cover the deliveries, gold would go up. Silver usually follows the gold prices. If the LBMA scheme is exposed and confirmed, imagine the price of gold and silver based on a true physical supply that is 40 to 100 times less then previous official numbers.
The biggest danger this poses to the US is the US COMEX may get dragged into the LBMA crisis because they are loaning gold out of their allocated accounts to the LBMA. If the LBMA collapses and the paper shortfalls are exposed, JP Morgan and Golden Sachs investments in gold and silver derivatives will be severely impacted.
Let us pray that the US Treasury and Federal Reserve in desperation to rescue the US banks and COMEX do not involve loaning the US gold in Fort Knox (US has not done a physical inventory of its gold bars since the late 1950’s. US Treasury and Federal Reserve opposes calls in the current Congress to do a physical inventory. Hmnnn I wonder why). Congress would be in an uproar!!!


10 posted on 09/26/2010 4:45:51 PM PDT by Fee
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To: Farmer Dean

GOLD IS REALLY GOING UP!!! Yikes

My friend has a jewelry store and I told her that in Iceland jewelry is made with silver and stainless steel..and it is quite nice. The sparkles are crystals...there are some shops that have fine jewelry but the cost a year ago was terribly high and 14 and 18 kt is not often seen.
We joked that if the price of gold keeps climbing we will see our fine jewelry in silver and stainless too..


11 posted on 09/26/2010 4:48:10 PM PDT by celtic gal
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To: SeekAndFind

Local car dealer advertised they’re having gold buyers there this week.
“Sell your gold to get the down payment!”

(Yeah, not really to the point, but it’s the wierdest promotion I’ve ever seen...)


12 posted on 09/26/2010 4:49:41 PM PDT by mrsmith
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To: SeekAndFind

Question: I have a friend who was given his mother’s gold teeth after she died. He is now unemployed and wants to sell the gold. Does anyone know the value of gold used in dental cavities and where would he go to sell it? Thanks.


13 posted on 09/26/2010 4:55:50 PM PDT by stilloftyhenight (Don't make me use uppercase.)
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To: jiggyboy

FYI...


14 posted on 09/26/2010 5:18:40 PM PDT by Squantos (Be polite. Be professional. But have a plan to kill everyone you meet)
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To: Farmer Dean

Both.


15 posted on 09/26/2010 5:22:14 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: mrsmith

Local car dealer advertised they’re having gold buyers there this week.
“Sell your gold to get the down payment!”


Wow! Do they have this on the web, too? I’d love a link to share with friends!


16 posted on 09/26/2010 5:24:08 PM PDT by Atlas Sneezed (Congressmen should serve two terms: One in Congress and one in prison.)
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To: stilloftyhenight

I recommend www.usgoldbuyers.com. They post their prices and being a direct melter they offer 90 percent spot price or more depending on the amount of gold being offered by seller. They are located in the diamond district of New York City. He can go there direct or have them send him a delivery package. Stay away from pawnshops or other buyers on the web unless they post their prices.


17 posted on 09/26/2010 5:29:03 PM PDT by Fee
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To: stilloftyhenight
Dental gold runs around 16 karat.
Here is how to sell it in California. Other locations may be different
http://www.ehow.com/how_4420842_sell-dental-gold-california.html
18 posted on 09/26/2010 5:40:48 PM PDT by Polynikes (Haakkaa Paalle)
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To: Farmer Dean
Is gold really going up,or is the dollar tanking?

Yes, like oil prices, it is a combination of both. I track gold at kitco.com, which always splits the daily rise based on buying/selling and dollar fluctuations.

19 posted on 09/26/2010 5:43:37 PM PDT by SampleMan (If all of the people currently oppressed shared a common geography, bullets would already be flying.)
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To: wendy1946
I say again, the value of gold is entirely based on psychology and psychiatry, and not on economics or physics. You can get hurt really bad buying the stuff.

I wish you had told me that BEFORE I bought in at $850/ounce with half my savings.

You should have said "heavily" not "entirely" Buying water before a hurricane is also heavily a matter of psychology and psychiatry, as most people who buy water won't need it. Indeed, the vast majority.

Gold is going up because the dollar is going down and because everyone knows that bonds are about to be greatly devalued by inflation.

When Time or Newsweek starts touting gold, then I'll get out. I just don't know what I'm going to get into yet. That is the real problem.

20 posted on 09/26/2010 5:49:19 PM PDT by SampleMan (If all of the people currently oppressed shared a common geography, bullets would already be flying.)
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To: Beelzebubba

Sorry, can’t even remember their name.
I’ll look in the paper tomorrow and if I see an ad I’ll post a link to their site here.


21 posted on 09/26/2010 6:08:06 PM PDT by mrsmith
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To: SeekAndFind

Off track but how`s silver doing?


22 posted on 09/26/2010 6:38:25 PM PDT by nomad
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To: nomad

Silver hit $21.50 last week, a 30 year high. It’s doing very well, thanks!


23 posted on 09/26/2010 6:48:19 PM PDT by Jack Black ( Whatever is left of American patriotism is now identical with counter-revolution.)
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To: nomad

Silver is already approaching $21/oz. Its surge the past week is just as fast as gold.

It’s easy to see how gold’s performance could be overshadowing the impressive gains also being posted by silver. But ignoring silver today in favor of gold could wind up costing you dearly.

I’m not saying to ignore gold. That would be crazy in light of the probable debasement of the U.S. dollar, which should keep gold surging to new all-time highs.

But you need to consider investments in silver because of the leverage the white metal has on gold.

It’s important to remember that – in the long run – the performance of silver depends upon the performance of gold. Silver gains typically lag those of gold, but they can also strongly surpass them. And in a drawn-out bull market, a significant portion of gains will be made near the end of the run. So if you’re serious about adding silver to your portfolio, make patience your friend.

Silver has yet to set any new all-time highs, but at roughly $21 an ounce, it’s already just broken its 2008 bull-to-date high of $20.79. When it hit that level in 2008, gold was setting a price record, breaking the psychological barrier of $1,000/ounce for the first time ever.

And having just breached the $21-level recently, momentum traders are likely to drive new silver buying.

But silver’s a funny animal, especially since it has both industrial and monetary attributes. Plus, much of the silver produced today is a byproduct of the production of such base metals as zinc and lead. So its supply isn’t always a function of demand. A lot of the silver supply is used up by industry, so the price of silver can often track the broader markets.

That’s why its price action of late is so intriguing – and revealing.


24 posted on 09/26/2010 6:53:56 PM PDT by SeekAndFind
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To: Jack Black

Cool.


25 posted on 09/26/2010 6:56:46 PM PDT by nomad
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To: Polynikes; Fee

Thankyou both for the excellent info. I’ll pass it on to David. He really needs help. :)


26 posted on 09/26/2010 6:59:00 PM PDT by stilloftyhenight (Don't make me use uppercase.)
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To: SeekAndFind

Got any good sources?


27 posted on 09/26/2010 7:02:09 PM PDT by nomad
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To: SeekAndFind
The people are running to gold. However, the fed and stimulus dollars are going into the stock market to help the Demorats look good. The stock market bubble will pop after election.
28 posted on 09/26/2010 8:26:05 PM PDT by Armaggedon
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To: nomad

I wrote a guide to buying gold and silver and it’s posted on my home page. I’m not a shill for a coin company, so it’s a legit write-up of my experiences. You may find it helpful. Several others who are experienced in buying gold and silver have told me that it’s accurate from their experiences as well.


29 posted on 09/27/2010 6:38:26 AM PDT by Jack Black ( Whatever is left of American patriotism is now identical with counter-revolution.)
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To: nomad

RE: Got any good sources?


Not sure what you mean by sources.... if you’re referring to where to buy gold and silver, let me tell you what I personally own...

I don’t own physical gold or silver. I own Exchange Traded Funds that track the price of gold and silver.

I own the iShares gold and silver ETF ( Symbol for Gold is GLD and the symbol for Silver is SLV ). The amount I own in USD, when traded for physical gold for instance, will be SEVERAL POUNDS.

Some people have critiqued my choice because they tell me that when the S__T hits the fan, those iShares will be useless compared to physical gold.

Of course, I am betting that the S__T won’t hit the fan in this country.... but again I might be wrong.


30 posted on 09/27/2010 6:50:03 AM PDT by SeekAndFind
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