Gold on a $900+ Breakout

wombat42_2

http://www.bullionvault.com/gold-price-chart.do

$905 a moment ago.

3% up for the day

purch

This is from yesterday's FT;

European central banks have cut their sales of gold to the lowest level in almost a decade, reversing the practice of recent years when hefty sales helped depress prices.Institutions bound by the Central Bank Gold Agreement - the banks of the eurozone plus Sweden and Switzerland - sold about 343 tonnes of gold in the year that expired on Friday, the lowest amount since the first CBGA was signed in 1999.

This compares with 475.8 tonnes in the year to the end of September 2007. Under the agreement, the banks are allowed to sell up to 500 tonnes of gold each year

The European trend is part of a global movement of reduced central bank selling and increased investor buying that is helping to underpin high prices at a time of turmoil in financial markets.

GFMS, the precious metals consultancy, estimates global central banks will sell 269 tonnes of bullion in 2008, the lowest since 1995.

mr_fishbulb

Was watching it last night when all was going on in US. Shot up to around $920 and then started going down again. Now only just over $890.

Silver is doing even worse.

What does it take to get a rise in the precious metals? Nuclear war?

pumpndump

mr_fishbulb wrote: »

What does it take to get a rise in the precious metals? Nuclear war?

I agree. Buy uranium.

mr_fishbulb

pumpndump wrote: »

I agree. Buy uranium.

I did, but it depleted

wombat42_2

mr_fishbulb wrote: »

Was watching it last night when all was going on in US. Shot up to around $920 and then started going down again. Now only just over $890.

Silver is doing even worse.

What does it take to get a rise in the precious metals? Nuclear war?

Ye of little faith. It is the Jewellry buying season From Oct to Feb

Another important thing to bear in mind is that gold is still 20% up over 12 months, see http://www.kitco.com/ Tell me anything else which is up by 20% over the last 12 months ? It is just that you bought when gold was quite high - but if you hold for more than 12 months, that fact will decrease in importance as hopefully you will pick up another 20% rise in th next 12 months. Also less gold is available to be mined each year and mining costs are going uo to around $800 per ox.