Posted on 09/19/2011 11:16:36 AM PDT by blam
Gold Still Looking Really Sick...
Joe Weisenthal
Sep. 19, 2011, 1:42 PM
It just keeps getting worse today, not benefiting from the aggressive nervous selling in every market around the world.
(Excerpt) Read more at businessinsider.com ...
Easy, flee from euros into dollars, tumble gold prices, buy gold with the dollars, save money/get more gold.
During my 20 years in the market, I have been a superb bellwether of contrarian investing. Anytime I purchase an asset, it proceeds to fall precipitously, usually within minutes. And the only time my assets actually increase in price, is right after I sell them.
So beware all: I have of late been seriously considering adding gold to my portfolio. I’ll let you know when I do, so you all can go short.
I’m not really an expert on this but I see it this way:
In the US, everything is valued in dollars. So when both the markets AND commodities are falling in price, I figure we are seeing an increase in the perceived value of the dollar. People are going into cash. When the market is up and metals are down, or vice-versa, then I see it as more complicated.
I'd say 28% is a pretty good return.
Keep dreaming. When all of those Cash for Gold places that are all over the place close down? THAT's when you rethink your position.
Keep dreaming. When all of those Cash for Gold places that are all over the place close down? THAT's when you rethink your position.
Here’s to hoping oil catches Ebola.
Or, when the last few gold teeth in America have been pawned. :)
When the cash for gold places close down, it will be way too late... kind of like the “We buy ugly houses” billboards, which lingered into 2009. Go ahead and put your eggs in one basket, but remember, the elitists on Wall Street with the political connections always wind up on top.
For many, PMs are long-term insurance that may or may not ever be used.
—For many, PMs are long-term insurance that may or may not ever be used.—
Yep. Sadly, I have a suspicion I will use it though.
Looks like a buying opportunity to me. I guess it is all in how we look at it.
When the cash for gold places close down, it will be way too late... kind of like the “We buy ugly houses” billboards, which lingered into 2009. Go ahead and put your eggs in one basket, but remember, the elitists on Wall Street with the political connections always wind up on top.
Probably only a few PM collectors “put all of their eggs in one basket.” That would be foolish.
Dollars which, I understand, the Fed created out of thin air. When the dust settles and they convert from euros to dollars, what happens to the newly created "money"? Disappear or go into circulation? I bet on the latter and will hang on to gold.
"Safe haven" is somewhat of a relative term. It is a safer haven than the Euro, but that's not saying much.
Both euro and dollar holders should be fleeing into gold/silver.
They are. That's why both metals are up so much over the past several years and why both the fundamental and technical indicators are still so strong.
There are problems associated with buying the physical metal - including transport, storage, insurance and finding the it (bullion is in backwardation at the present time). The annual market is small - about $40 billion for silver and about $400 billion for gold - so it is difficult to buy very much without sending the price into orbit. There is a long lead time to lay in metals.
Paper bullion (e.g. the GLD and SLV ETF's) should be avoided at all costs, as should the Comex (almost no physical backing any of them).
Bottom line: the dollar is about the only alternative.
Well put.
The momentum of the dollar pig has kept it in motion as the ground has fallen away. There are those who think it is flying. The real outcome is not in doubt. The time of that outcome is.
A frying pan and a fire came to my mind when I read this.
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