Posted on 11/05/2009 5:32:50 PM PST by SeekAndFind
NEW YORK (MarketWatch) -- Does India like gold, or dislike Washington's anti-gold dollar domination?
Let Mary Anne and Pamela Aden tell the story. Their Aden Forecast first came to fame in the great gold bull market 30 years ago. The Adens are careful and adroit traders, and have a strong track record according to Hulbert Financial Digest, but they were speculating that gold might ultimately reach $5,800 when I last looked. ( See Oct. 8 column.)
Last night they wrote in a hotline: "Gold is the big news this week. It hit another new record high today, quickly closing in on the $1,100 level. This followed yesterday's $31 jump, which clearly propelled gold well above its previous high. The news that India bought 200 tons of the [International Monetary Fund's] gold (half of what it's planning to sell) at these high prices, and in one fell swoop, was incredibly bullish. It was viewed as a strong sign that gold is not too expensive and the Indians, who have a long gold history, obviously believe it's going high."
The Adens conclude: "Our next target for gold at $1,200 is looking more realistic."
The Adens are chartists, and their rationalizations for what they see in their chart patterns are designedly an afterthought. Still, this rationalization is distinctly 1980-ish. There's a newer group I call the "radical gold bugs," gathered around Bill Murphy's Le Metropole Cafe subscription Web site, who have a distinctly different take, based on a close study of market conditions.
Murphy has long maintained, often in blistering terms, that what he calls a "moonshot" in gold's price is being frustrated by an alliance of government agencies trying to sustain a financial bubble and their chosen instruments in the private sector.
(Excerpt) Read more at marketwatch.com ...
Why buy gold at an all-time high?
Could India be doing this to prop up their own currency by backing it in gold, to make rupees a contender for the IMF “currency basket” to replace the dollar?
>> GOLD : BUY, SELL OR HOLD ?
That would depend on your personal investment strategy.
If you believe in the “buy high, sell low” philosophy, I’d recommend buying all the gold you can afford.
>> Why buy gold at an all-time high?
Because it can ONLY go UP from here at 17% per year! They said so on the radio today. Geez... don’t you remember real estate??!? Duh.
Publik skool grad I guess.
:-)
>:-( !
>> I sure want to get out of the dollar and fear I may have missed the boat.
Good luck with whatever you decide.
I’m not sure exactly what to do with my dollars either — who is? — but I’m pretty sure buying gold at $1100 per ounce ain’t it.
You can’t eat gold, and lead (properly packaged and ready to be delivered) is a much more useful investment...
Suppose India revalues their currency 1 for 10 or 1 for 20 or 10 for 100?? And goes back to using gold and silver coinage. Where does that leave the dollar?
Suppose India revalues their currency 1 for 10 or 1 for 20 or 1 for 100?? And goes back to using gold and silver coinage. Where does that leave the dollar?
A) depends on whether you believe this all time high is really THE all time high, or just another rung in the ladder to greater highs
B) do you see gold as an investment, or as a disaster hedge?
India's actions have a significant meaning. Question is, what? My gut feeling is that it is telling us to be very concerned about the dollar.
Who is selling gold for declining dollars?
I know what you mean, not that I have that many dollars to do something with. Buying tangible items of practical value seems to be a good move. Anything non perishable (or close) that you, or other people, don't want to live with out, and may be very difficult to afford in a period of hyper inflation.
Laugh if you will, but besides food, I have begun seriously stocking up on toilet paper, toothpaste, toothbrushes and dental floss. All rank pretty high on my list of things I don't wish to live without. And I figure none are going to get any cheaper for the foreseeable future.
>> Laugh if you will, but besides food, I have begun seriously stocking up on toilet paper, toothpaste, toothbrushes and dental floss. All rank pretty high on my list of things I don’t wish to live without. And I figure none are going to get any cheaper for the foreseeable future.
No laughing here. That seems like a reasonable strategy to me. I think I’d rotate the perishables though. ;-)
>> Suppose India revalues their currency 1 for 10 or 1 for 20 or 10 for 100??
Gonna be lots of Wipro IT guys sucking hind tit, for one thing.
Doing the rotation thing. And doing a better job of it than the dimwits at super Wallie World. They are always leaving stuff past sell date out for sale. I guess they can’t read.
Think about it though. How may cans of corn might you reasonably eat in two years? One a week? Well, since canned corn is good for 2-5 years, buy 100 cans now, then one a week, rotating.
That’s the yardstick we are using. We have a long way to go, but I am buying extra of such items every time I go into the store.
Mrs. Tick and I were doing that for a while — started after 9/11 — but I confess we got sloppy about it and pretty much stopped. We should probably get back into it.
Get back into it. Think of the warm feeling you will get when you are eating, knowing that starry eyed Obamites are hungry.
Ditto for firearms. Gonna have to keep hungry Obamites off the lawn. Can’t have them ruining the ambiance of the neighborhood.
How successful have you been with your investment strategies?
They’re certainly concerned about the dollar.
I dunno, this dramatic price run-up in so short a time kinda smells like a bubble about to pop.
If I had any I would hold. You need to go with your gut feeling because you can find “experts” who say sell experts who say hold
>> How successful have you been with your investment strategies?
Not bad so far. I learned a decade or more ago that I don’t have the guts to short anything, so I don’t. So that limits my range of responses to various situations, but given that limitation, I do pretty well.
The “investment” that has been the most successful for me personally is small company equity — as in, join a small company with a ground floor equity position, and work like a dog to make it worth something. :-)
I confess to a great deal of confusion in the current climate. And I know I’m not the only one.
“Why buy gold at an all-time high?”
because you expect it to go higher
it is actually not at it’s peak inflation wise
good forums but full of anti-semites and Ron Paul wackos who Ron Paul would disown
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.