Gold price dives through support to new low. Gold Bubble continues to deflate.; Gold price to drop another 15% this year say strategists at Societe Generale
Tweet Topic Started: 3 Apr 2013, 10:29 AM (37,671 Views)
In 1980 the average POG was $550 (AUD), the Melbourne house $39,500. That's 72 ounces.
So if you had 72 ounces of gold in 1980, and kept it as a "safe haven", you would now being feeling a jerk.
The gold hoarder's 72 ounces would now be worth about $100k.
The bloke who sold his 72 ounces in 1980 and bought a house would now have an asset worth about $500k (ie 5 times s much as the gold hoarder) and had free accommodation for the last 33 years.
Grandpa Catweasel say mouse of a 50s, 60s, 70s, 80s and even a 90s can the not know its the mouse house price in a 20-30 years the time.
Why has mouse of a 2000s suddenly be a all-knowing base on narrative of well sounding expert all speaking through same mega-phone?
Mad as batshit more it think about.
The USD Gold price seems to be at a point of resistance.
Meanwhile tons and tons of the metal are being urgently mined at highly profitable amounts to satisfy anybody who urgently needs to hold the metal with the likelyhood that fewer and fewer new gold bug enthusiasts are going to be buying into such high prices at the rate previous new enthusiasts were buying in.
Whatever happens Gold is going to be great trading metal i think, because for sure the price is going to go up and down like a yoyo for years to come.
But what about buy and hold? What will you get to buy with your USD5,000-10,000 gold in ten years time? Today even a simple Galvanised steel M8 washer is costing me NZD 24 cents. It seems unreal to me. NZD one dollar for 4 simple washers! 5 NZD for two liters of milk , 4 NZD dollars for a tin of Watties chicken curry, 33 NZD for a kilo of Scotch Fillet steak.
The real nutters must be the cash bugs. Gold buggery seems acceptable behaviour these days.
By Katya Wachtel NEW YORK | Tue May 7, 2013 2:25pm EDT
(Reuters) - Hedge fund billionaire John Paulson is emerging as one of the biggest losers in this year's gold rout, further tarnishing his once legendary status in the $2 trillion hedge fund industry.
Paulson's $700 million gold fund lost a whopping 27 percent in April, when the price of the metal plunged 17 percent over a two-week stretch, according to performance figures provided by a person familiar with the fund.
The jarring one-month decline in the Paulson gold fund brings the year-to-date loss for the fund to about 47 percent, the source said. The fund's losses were magnified by the fact that its bullish bet on gold was enhanced with leverage, or borrowed money, and derivatives tied to the price of gold.
The majority of the money invested in the Paulson gold fund is believed to be the billionaire's own.
Paulson rose to fame after he made $15 billion for his firm in 2007 by betting against subprime mortgages before the housing collapse. Since then, however, he has struggled to duplicate that success, and several of his portfolios have lagged in recent years.
Assets under management at his Paulson & Co firm have dropped to $18 billion, down from $38 billion in early 2011, due to investor redemptions and poor performance.
To be fair, the April selloff in gold was particularly fierce and came as a surprise to many hedge fund managers who were long either gold bullion or the SPDR Gold Trust, the most popular gold exchange-traded fund.
Hedge fund manager David Einhorn said on a conference call on Tuesday, "We were somewhat surprised by the swift decline in the price of gold in April."
Paulson disclosed the gold fund loss to investors on Monday along with results for his other funds, the source said.
Over two weeks in April, the price of gold plunged 17 percent, from $1,603 per ounce to a low of $1,321 on April 16, before starting to rebound. As of Tuesday, the metal was trading near $1,446.
Regulatory filings show that at the end of last year Paulson's firm was the largest holder of the SPDR Gold ETF, with 21.8 million shares. Paulson has not yet disclosed its latest position in the gold ETF. Since the beginning of the year, the gold ETF has fallen about 14 percent.
Paulson's hedge funds also are large investors in shares of gold mining companies, which similarly have sold off this year.
Until this year, gold had been a solid investment. In the wake of the financial crisis, a number of hedge funds began buying gold as a hedge against inflation. But inflation has yet to materialize, despite the Federal Reserve's aggressive purchases of Treasuries and mortgage bonds to stoke the economy.
Paulson's more widely held Advantage fund declined 0.8 percent in April, largely because of its gold positions, the source said, and is up 2.5 percent for the year through April.
The Advantage fund and a leveraged version of it were once two of Paulson's most popular funds but now have less than $5 billion in assets.
The average hedge fund is up a little over 3 percent this year, while the Standard & Poor's 500 is up about 13 percent.
It's not been all bad news for Paulson. Two other funds managed by him are performing well this year and far outpacing the returns of the average hedge fund.
His credit-focused fund, which invests in mortgage securities and bank debt, is up 11.9 percent for the year. The Paulson Recovery fund, which invests in some insurers and asset management firms, is up 21.8 percent. And a merger-focused fund is up 7.1 percent.
Paulson will be one of the featured speakers at this week's SALT Conference in Las Vegas, a popular event with wealthy investors. The conference, sponsored by Skybridge Capital, begins Tuesday night.
(Reporting by Katya Wachtel; additional reporting by Svea Herbst-Bayliss and writing by Matthew Goldstein; Editing by Chizu Nomiyama, Kenneth Barry and John Wallace)
Gold Chemical Element Gold is a dense, soft,........
Much like the brains of its hoarders
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Gold remains under pressure after it slid below the mark of $US1400 an ounce overnight, losing more than 2 per cent and hitting its lowest in nearly a month as a record rally in US equities and economic optimism undermined bullion's safe-haven appeal.
The metal is facing its sixth straight session of losses after the S&P 500 hit a new all-time high and Wall Street rose for four consecutive sessions.
"There is no reason to own gold as long as people keep on putting money into the stock market. You can see it everywhere that the economy is turning around," said Comex gold options floor trader Jonathan Jossen.
Spot gold dropped as much as 2.5 per cent to $US1390.24 overnight, and is extending its falls this morning, slipping to $US1388.
Accordingly, there’s lots of red ink among the local gold mining stocks this morning. Newcrest, Australia's biggest gold miner, has fallen 5.2 per cent at $150.03, hitting an eight-year low.
I was thinking the same. In fact I haven't seen R2M or raveswei post anywhere for a long time. In fact quite a few older once vocal bloggers seem to have retired.
Probably mowing their front lawn.
Any expressed market opinion is my own and is not to be taken as financial advice
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