Big dip for gold?

DiggerUK

After dropping from 860GBP to 790GBP an ounce in under a month, I think it quite possible that bargains in the yellow metal are still to come.

It seems that the pound has had a big boost from the Euro problems...... (a strengthening pound helps buyers of gold in UK.)

There have been some slides in $US price of gold back towards $1200, and if that continues down with a stronger pound, then UK buyers will benefit.
http://money.cnn.com/2010/07/08/markets/gold/index.htm

Other gold fans I have run this past seem to suspect the same, so if you were considering buying gold then keep an eye on prices. Buying opportunities that look this good for gold don't come by that often.

How this affects miners and ETF's I'll leave for others to pass comment on.

Best of fortune.

purch

Nice post.

Gold and Precious Metals are not traded in isolation, and also do not trade in a different way to other commodity or financial markets.

Gold can become overbought and oversold, just like any other market.

It was clearly reaching an extremely overbought position, and the market was in need of a pullback, if it is to continue higher eventually.

This pullback has not brought it anywhere close to breaking below it's longerterm MA's or trendlines, but it will bring lower buying opportunities.

Of course, voicing opinions such as these can put the poster in the position of being called anti-gold and negative, or even worse a heretic for daring to say anything other than Gold can only go up.

It is good to see that there is at least one "Goldbug" on these forums who can see reality at times.

VT82

The OP recommends buying gold even when it is going down, and you think other people will think he is NOT a gold-zealout?

DiggerUK

VT82 wrote: »

The OP recommends buying gold even when it is going down............

That is exactly what I am saying. The alternative is to buy as expensive as possible. Or am I missing something.

Long term gold has a long way to go, far to much debasement of currencies due to printy printy for it not to go way higher than present.

The price of gold is the real barometer for monetary inflation, gold is no more valuable than yesterday, it's the value of paper going down that it exposes.

lvader

DiggerUK wrote: »

The price of gold is the real barometer for monetary inflation, gold is no more valuable than yesterday, it's the value of paper going down that it exposes.

By that logic the value of paper currencies have gone up by 6% in the last week, at a time when other comodities and stocks cost more. It doesn't make sense. Gold is simply another thing to bet on like anything else, it can go up or down, but unlike stocks or other comodities it has no real purpose.

Stavros_3

I see the 'Pimp my gold' fans are still lurking, where's Asheron? he's always good for a laugh

VT82

lvader wrote: »

By that logic the value of paper currencies have gone up by 6% in the last week

love it

:rotfl:

jem16

DiggerUK wrote: »

After dropping from 860GBP to 790GBP an ounce in under a month,

And here was me being led to believe that gold is a no-risk investment.

wombat42_2

Were in the summer doldrums for gold, will probably shoot up again in August.

sabretoothtigger

Im not sure on what basis gold would be seasonal .

Maybe it runs according to congress schedule since on average laws they pass are to the deficit of the usa and its (global) currency so gold should run inverse to that and generally up.
Does Congress holiday for summer


Sterling recovered recently along with confidence in the Euro. Both had previously produced the highest price ever for Gold in the uk

The OP recommends buying gold even when it is going down, and you think other people will think he is NOT a gold-zealout?

price is not value. The reasons to buy gold is probably opposite to an average persons interest and belief in it





An article about 20% of this years gold production being cashed in http://www.telegraph.co.uk/finance/markets/7884272/Secret-gold-swap-has-spooked-the-market.html



Seems normal to me, some of the gold holders are places like Greece with alot of debt to service at 10% or more and gold yields zero.
Italy also has massive gold reserves vs debt apparently (or plated tungsten if you believe that )

VT82

wombat42 wrote: »

Were in the summer doldrums for gold, will probably shoot up again in August.

One assumes therefore that you sold your investment before the doldrums and have bought it back now to make a quick turn?