Ping
I think it costs $800ish to mind gold, so $800 or a little lower would be a pretty firm bottom.
Silver is generally a better investment than gold. More industrial uses = broader base = less speculation = less volatility. I think if you check the last decade or so, silver has even outperformed gold.
PAPER Gold has begun to unwind, and it will unwind fast after yesterday’s Chicago Merc revelations about COrzine, and what he did with customer Gold.
MEanwhile, Citibank comes out today with a Real Gold target price of $2,400 by mid-summer, with the possibility of as much as $6,000 by mid-2013, if economic conditions continue to decline. (TRANSLATION: If Obama is re-elected)
Only God knows, but this would be a good time to buy your kids one ounce rounds and ingots, the rounds are prettier. You can probably get them for around $31 or $32 each today. Not bad for a stocking stuffer that will surely go up in value faster than underwear or tooth paste.
$1,200
Nothing about this seems like a 'panic' to me.
Commodity prices will not perform well in the depths of the deflationary depression that is here, and will be getting much, much worse.
Commodity prices will not perform well in the depths of the deflationary depression that is here, and will be getting much, much worse.
“The main reason traders cite for the sell-off is the weaker euro and stronger dollar, making dollar denominated metals more expensive to own. But, there are other factors at play here as well.
“After a less than stellar year traders say hedge funds are seeing redemptions. “Everybody wants cash, liquidity is thin” says Bruce Dunn, Auramet Trading Senior Vice President.”
http://www.cnbc.com/id/44643824
I have to wonder if the MF Global imbroglio has anything to do with the commodity price crash.
Martin Armstrong has targets for a low in gold during this time period. Also predict years ago, when the dollar was crashing at the time, than the US$ could rally, maybe even to new highs in the future. The future is now.
I wish I could remember the person here on FR posting in a reply when the dollar was way down about how the ‘US dollar would end up being the tallest out of all the pigmy tribes of fiat’ or something to that effect. It was a classic.
Goldbug ping
Euro countries need liquidity......they have gold...they are sellors of massive amounts of pm’s right now in search of cash liquidity. When alot of one commodity overwhelms the market......price goes down.
In addition to unloading their gold, European banks are also selling their best, most-profitable businesses to raise capital, which will hinder long-term profitability… The same thing happened during the U.S. financial crisis. For example, Bank of America sold its profitable international credit card business to raise cash.
Helicoptor Ben will make a move to print.....but can it kickstart some inflation.......or just sit in banks investment portfolios again?