Skip to comments.Some gold bugs think storm has passed
Posted on 06/30/2011 10:09:26 PM PDT by OneLoyalAmerican
Gold stumbles, but some gold bugs think the storm has passed. When I last wrote on gold, the metal was looking goodbut I described gold shares as a train wreck, while noting that a number of observers were thinking the gold shares might have lagged too much.
In the past week, it is tempting to say the situation has reversed. Last Wednesday, gold closed at a seven-week high, and the Aden Report was talking of a possible move to $1,600 soon.
Then the roof fell in. By Monday, gold /quotes/zigman/700181 GC1Q -0.10% had fallen $58 (3.7%) to close at $1,496.40.
As a correspondent on the LeMetropoleCafe website pointed out, the drop in open interest (the number of gold contracts outstanding) was even steeper, over 5%. This is regarded as discouraging: It suggests real selling by contract owners was involved, rather than short selling, which carries with it the possibility of a short-covering rally.
In the past two days, gold has managed a modest recovery $14 as of Wednesdays close. But the Aden Report is now discouraged, saying this evening that gold (and silver) are bouncing up this week as global tensions ease, but this may not last long. ... Note that both of the short-term indicators are declining, suggesting prices will likely soon head lower in a further downward correction.
(Excerpt) Read more at marketwatch.com ...
The debt deal hasn’t even been finalized. The economy hasn’t even hit its low as of yet. I’m still waiting for a reason why the fundamentals have changed. I suspect that someone[PPT] is pulling some strings.
SELL before it’s too late!
Seems the opportunity is now. These dips in recent history have been very short lived. I have been praying for a big correction for quite a while in order to get the heck out of greenbacks. I have always hated the thought at buying at historic highs, suspecting it would drop as soon as I made my move. I almost moved in May thinking it won’t ever turn back. I am now glad I didn’t. Silver is trending down too. I wish someone had some clue how low it could go. I tend to doubt it will stay down for very long. I’m driving both me and my spouse nuts waiting. GOD I hate bubbles.
You’re one person who has a clue. I won’t touch gold or silver in this economy. It reminds me of the NASDAQ climb to the sky in 1999.
The price of gold keeps going up though.
We are and have been in a serious debt deflation...hidden by the printing presses. Now that money has been found to have nearly zero velocity as it went from bank balance sheets, to investment bank subsidiary to commodity markets.
Very soon those "investors" will turn around and find there's nothing but a cold wind at their back.
Been coming down tonight. $1498.46 overseas.
I’m actually hoping metals come down more so I can buy more.
I’ve been hearing and reading comments like yours for years and they have never deterred me. Nor have they ever deterred the price of gold. Sure, there has been temporary dips, but they always proved to be buying opportunities.
I expect to see gold near $1,000/oz by Christmas and oil near $65/bbl
Thinking that means President John Boehner has taken his Oath of Office.
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Silver went into a bubble and Gold is in the same mode.
They will go lower not higher in the next few years.
Gold is down because systematic financial failure risks are now down thanks to Greece’s vote.
Inflation is not as big a risk as assumed.
I ain’t worried about gold.....I’m buying at every dip. I’M WORRIED ABOUT THE FEDERAL GOVERNMENT BUBBLE
What would Glenn Beck do? ;D
God bless the man.
I'll have what you are having
But when the tech-market was bubbling, all we heard was that we had entered a "new" economy. And when the housing market was at its highest, the conventional wisdom had it that houses would always appreciate so buy, buy, buy.
This is different. This is driven by pure fear that the world's monetary system will collapse -- not euphoria about imagined, never-ending growth.
Unless Bernanke is fired and Paul Volcker replaces him, I can't see a single reason why people wouldn't continue to accumulate gold.
If silver gets anywhere near 25 I’m buying. Not much cause I’m poor but I’ll buy what I can.
I simply explained the market action.
Fine to disagree, but posting silly pics is not an argument.
“This is different. This is driven by pure fear that the world’s monetary system will collapse — not euphoria about imagined, never-ending growth.”
It’s a ‘bubble’ in panic-phobia and the-end-is-nigh thinking. Understandable aftereffect of the 2008 meltdown, but what if it is over-estimating the issue?
But what if the international monetary system WONT collapse? What if the US doesnt have hyperinflation? Then what happens to gold vs dollar?
We are going through what Japan went through in the 1990s and they had bouts of deflation not inflation. Gold v Yen stayed low.
You are right about Bernanke though. he’s a dollar trasher. Another volker would get gold under $1000 imho.
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