Posted on 01/25/2011 8:43:39 AM PST by RightGeek
NEW YORK (TheStreet ) -- Gold prices Tuesday hit their lowest levels since October as traders dumped the metal forcing gold to test a key support level.
Gold for February delivery was tanking $16.20 to $1,328.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Tuesday has traded has high as $1,338 and as low as $1,321.90.
The spot gold price was holding up better supported by physical buying down only $5.30, according to Kitco's gold index. The Chinese have been big buyers headed into their new year which begins Feb. 3.
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"Traders dump gold" is the headline of the day signaling that gold's rally Friday and Monday as well as the SPDR Gold Shares 20-ton addition on Friday were, in fact, just technical buying. Options expiration Saturday forced many traders, who were short gold, to buy gold or the GLD to protect themselves against any losses.
Now that options expiration is behind us, traders are abandoning their positions. The GLD lost 11 tons Monday as the Dow Jones Industrial Average climbed towards 12,000, making stocks perhaps a more valuable investment.
"Yesterday's net redemption takes the month's outflow to 22.7 tons," wrote Barclays Capital in its daily commodity briefing. Silver fared better -- the iShares Sivler Trust added more than 83 tons. Silver is a currency like gold and also a recovery metal like copper.
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(Excerpt) Read more at finance.yahoo.com ...
There is no cash.
Gold will sink down to 1292 USD/oz. That’s the 50% retracement and support line.
I will be holding and buying.
This cracks me up. The silver tanking thread yesterday, and now this. Just sounds like a buying opportunity.
I often wonder if “the powers that be” are scared of too many people trying to get into gold and silver. With gold especially, I suspect that for every two ounces of gold in storage “owned” by someone, there is actually only one ounce in existence.
I’d like to think I know what’s really going on, but I don’t. Instead I pretty much follow the likes of Jim Rogers and Marc Faber as best I can and act accordingly.
Last I knew they are long-term positive on commodities, metals, and a few paper currencies.
And we can kiss the greenback good-bye.
Sell! Your gold, your silver... sell it all!
I am sure you’re right about the powers that be, but the coming steep correction in Gold (and Silver) will probably be the same as it is every year.
There’s one steep correction in PMs every year, without fail. No sense trying to time it - just buy at about 1292.
For my purposes, there is not much difference between $1292 and $1350. Both prices are low compared to $10,000 (or more). I’m in for the LONG haul. The “apocalyptic” long haul.
I have been buying gold since it was $280 for a one ounce Eagle. Most recent purchase was at $1127. Gold has a long way to fall before I will get hurt. I think I will be buying before I will be selling.
Gold is now about 7% below the high set in early Dec 2010.
We are likely in the midst of the first correction in gold since it began its latest run in Aug 2010.
A 10% correction would be healthy and that would take gold to around $1300.
A this point nothing to get worried about.
The Fed will eventually lose, since the World Market will eventually take charge of the volume. The price will then run up rapidly and inflation here will run up with it.
Get your money ready to buy shortly. (Literally)
≤}B^)
Yeah, like Wall Street, the insiders suck people in then pull the rug out....
BTW, if things ever got real bad, ya couldn't trade a chunk of gold for a ham sandwich.
To all who said that gold would always continue to go up ....
It’s barely down 1.2% during light trading. I sure stocks would have “Tanked” like that in 2008!
Currency collapses have happened reasonably often in the last few decades. In each case civilization didn't break down:- civility took a hard knock and people in paper currencies got wiped out.
Argentina and Mexico spring to mind as examples: anybody left with pesos in those countries got treated like garbage, but people with gold got all the ham sandwiches they could eat.
Stock up up on all the usual FReeper essentials. But if you have disposable income, make sure to put it in hard assets, including precious metals.
“BTW, if things ever got real bad, ya couldn’t trade a chunk of gold for a ham sandwich. “
This...
(BTW- I’m not stalking you) Same threads though.
In the absence of a doom and gloom event to drive sentiment, the gold bubble will burst by the end of this year with the price falling below $1000. Why? Because there are only a limited number of people foolish enough to buy gold as an investment and once the goldbugs are fully invested there will not be enough buyers to pump the market. Second, as the stock market continues to improve —and as a testament to the capitalist system, it will improve not because of Obama, but in spite of him — some of the fools who brought gold will start selling their gold portfolio so that they can buy real investments that produce dividends and capital gains. This influx of money into equities will drive the markets higher, which will cause more gold bugs to sell their gold to invest in the markets, which will drive the price of gold down even further.
Once again, when all is said and done, the people who profit from gold will be the hucksters who pump and dump and the radio stations that sell ad space to the hucksters.
Mark my word on this.
In the coming future, we will hear great despair here, from some who failed to buy Gold and Silver.
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