Goldbugs... what will you do with your gold? What's the point of holding gold?; Will you eventually convert it into real money, or just hoard it for ever?
The gold price has been hovering around the $1,400 an ounce level for the better part of a week, but on Thursday the metal fell back again.
By midday gold for delivery in December, the most active contract on the Comex in New York, was trading at $1,387 down 1.8% or $25 from Tuesday's close as profit-takers sell into any gold strength that's available.
Gold gained 5.7% in August and briefly reach a three-month intra-day high of $1,434 last Wednesday, but moving significantly higher appears impossible for now.
The $1,400+ resistance level has proved insurmountable despite a number of factors working in gold's favour (but, if it does not pan out as expected, would be bearish):
The threats of military action by the US on Syria boosting gold's status as a safe haven asset (but the risks seem to have been largely priced in with even oil's reaction muted). A currency crisis in emerging markets which encourages hedging using gold (but it could also have the opposite effect – vide India) An industry-wide strike by gold miners in South Africa, at more than 170 tonnes per year, the world's number five producer (but supply is not nearly as big a factor in the gold market compared to industrial metals and South African strikes tend to be violent but short).
Standard Bank in a research note today makes a strong case that gold's inability to form a new base above $1,400 is because Asian physical buying in Asia dries up when the price moves much above this level:
Standard Bank Gold Physical Flow Index (GPFI), which predominantly tracks Asian physical buying and selling, has declined in recent days (see chart). The Shanghai Gold Exchange premium has fallen to $11 an ounce, well below the $20 more Chinese buyers were willing to pay through August and July and far from the $37 peak when the gold price was close to $1,200. "One has to question the sustainability of a move in the gold price much higher without strong physical demand, especially with our view that US 10-year bond yield will move towards 4% over the next 12 months." The seasonal demand as India enters its festival period is predicted to be weak – heavy buying when gold was trading closer to $1,200 means Indian stocks may have been replenished already and the record low rupee could encourage scrap selling.
A good barometer of underlying gold demand – US sales of gold coins – have also fallen sharply
I will sell it if the price gets sufficently high that I feel it has begun topping out of it's long term bull
So why didn't you sell two years ago when prices peaked?
[/quote]Because it hadn't, as has been obvious from the recent action and current demand. To sell below $2000 would have been like selling a residential property in the inner ring suburbs back in 1991.
I know you don't believe that, but since your predictions on where the gold price would be now are so far off the mark it doesn't really matter what you think does it. Leave gold to the goldbugs and stick with what you know best, spinning property data to fit a non-existant Sydney property BOOM.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
Yes it had, and it's still well below that peak, and diving again in the past few days.
Quote:
I know you don't believe that, but since your predictions on where the gold price would be now are so far off the mark it doesn't really matter what you think does it
The prediction I made on gold was about two years ago when I said the bubble had peaked. Prices fell 40% in real terms shortly afterwards and are still well down in both real and nominal terms. Apart from that, I haven't made any predictions about where the gold price would be now.
Quote:
Leave gold to the goldbugs and stick with what you know best, spinning property data to fit a non-existant Sydney property BOOM.
LOL, Sydney house prices are at an all time high, and rising fast. Very fast...
Because it hadn't, as has been obvious from the recent action and current demand. To sell below $2000 would have been like selling a residential property in the inner ring suburbs back in 1991.
I know you don't believe that
fortunately for shadow his investments don't need hope and faith.
you should have sold, you didn't, man up and admit your mistake.
I am the love child of Tony Abbott and Pauline Hanson
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
i told that fuckwit goldbug that the rally was over just the other day, you know, when it finished going up.
i suppose if he could apologize for calling me a beginner (the irony of that is huge) and admit i called it, but from him that would be expecting too much. the sore loser.
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