Posted on 06/09/2010 7:29:07 PM PDT by blam
Gold Prices Nudge $1250/Oz, Are You Prepared?
Commodities / Gold and Silver 2010
Jun 09, 2010 - 06:44 PM
By: Bob Kirtley
We will kick off with a quick at the chart for gold prices and what a great chart it is. Despite the bears constantly jostling to be the first bear to call a major correction for gold prices to drop back to the depths of the last decade, gold is just not listening and continues to strengthen as the demand for real value grows.
Gold prices popped up above the $1250/oz parapet today to survey the economic landscape before easing back to close at $1237.30/oz. Gold is now poised to to set another new all time high and when it does gold prices will be once again, be in unchartered waters. Also note on the chart that the 50dma and the 200dma are moving up in support of gold prices which is a positive sign. The MACD has just had a nice crossover, again a positive indication for gold. The RSI is heading north and as it is sitting at 62, it still has room for a little more upward movement. The Stochastic is in the overbought zone at the moment but hopefully it can move sideways as gold pushes ahead.
The difference this time regarding an all time high is that gold is already at all time highs in all the major currencies across the globe and is therefore starting to attract more attention in these countries, as nervous investors contemplate the advent of a double dip recession. With the exception of the US Dollar, paper money is losing its reputation as a store of value. The printing presses continue to inflate the money supply thus diluting the value of everyone's savings and begging the question of just what is the point of holding cash as a store of value, huh.
The rally in the dollar is not because its fundamentals are sound, it is more a result of other currencies hitting the wall, particularly the euro, which in our humble opinion faces extinction in the not too distant future. The people of northern Europe will not tolerate forever their hard earned cash being transferred to the south in order to preserve a way of life which many regard as unsustainable. Spain has moved in terms of ordering a 5% pay cut for the public sector only to be met by a strike and threats of many more to come. Every time this sort of news hits the air waves investors are forced to reconsider the logic of holding euros and in greater numbers they will diversify into other asset classes, which for now include the dollar. Sooner or later their will be an event which grabs the headlines in the United States, the first state to default for instance, bringing into focus the very same questions that are being applied to the euro now and again investors will not be shy in making the decision to diversify still further.
So where will they go? Well we are gold and silver bugs and have been for some time now so we cannot give you an unbiased answer as we are up to our necks in gold, silver, associated mining stocks, options trades and hold no other equities. We can tell you that we have no intention of touching the industrials as we are of the opinion that the broader markets could still drop by around 30% from here, which would take the DOW back to the 6000 level. But that's just us and we do see things through gold coloured glasses.
A snippet from BNN:
[snip]
Ping.
I have found this website to be a very useful source of information on the economy, gold, and silver.
http://goldismoney.info/forums/
Buy a whole lotta eggs for that much.
although....I wish I had bought back when it was at $600.....I could have bought some and doubled my money...but then....what to do with that money?....
there is no winning...
Ditto
Goldbug ping
I note FWIW that I exercised quite a bit of restraint earlier this week when I saw the familiar claim here that gold was in a bubble, written by the same guy who claimed the same thing on March 12, 2009. I’ve decided to start privately chronicling his undoubtedly serial claims just for fun.
Mail me to get on or off the Free Republic Goldbug Ping List.
The Southern Europeans (Greeks, Spaniards, Portugese and Italians) work very little and party a lot, the Northern Europeans save and work a lot, so like most cultures, the working pay for the non-working...just like here in the US.
waiting for the inevitible comment on this thread explaining that one can’t eat gold.
That will be corrected here during the coming revolution.
You'll work/contribute or you won't eat.
Do we hold gold and silver, you mean?
Merkle hinted at it today.
Keep waiting for the weak-hand pull back to jump in. Everyone and their cat is buying gold now. One blip, and the weak hands will sell.
Or maybe not. More and more people understand our paper money is intrinsically worthless without faith in our government.
Either way, it’s going to get UGLY. Or rather UGLIER.
Yes.
I have some nickels too.
It's hard to digest. Somewhat malleable, like metal gum.
bumping for later
Northern Italy produces a lot of stuff. Quite a lot of it is good stuff including Beretta guns.
Their gun barrels were used to great effect in 1571 AD by the Holy League at the Battle of Lepanto when the states that would become Italy to some extent Spain - saved Europe from Islam.
http://en.wikipedia.org/wiki/Battle_of_Lepanto
http://en.wikipedia.org/wiki/Beretta
“Beretta is one of the world’s oldest corporations,[1] and it has been owned by the same family for some five hundred years. The Beretta company was established in 1526,[2] when gunsmith Maestro Bartolomeo Beretta[3] of Gardone Val Trompia (Brescia, Lombardy, Italy) was paid 296 ducats in payment for 185 arquebus barrels by the Arsenal of Venice.[4] The bills of sale for the order of those firearms are in the firm’s archives.”
Northern Italy has autos (Ferrari), pharmaceuticals, textiles, chemicals, all sorts of metals and alloys and a lot more.
“The economy of Italy was in 2008 the seventh-largest economy in the world, based on nominal GDP comparisons, and the fourth-largest in Europe, according to the International Monetary Fund.”
Italy is far from perfect but it is not Greece, Portugal or Spain.
Which currency do you think will become strong enough to devalue the price of gold?
Yep. Stockpile nickels. It’s only a matter of time before they switch to a cheaper metal.
And cents dated before 1982?
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