Gold, lost its Glister?

michael1983l

Might this considerable devaluation in gold be due to the fact that Cyprus have just been forced to sell the majority of their gold reserves and the market may be flooded?

marathonic

michael1983l wrote: »

Might this considerable devaluation in gold be due to the fact that Cyprus have just been forced to sell the majority of their gold reserves and the market may be flooded?

The Cyprus gold will have been sold at this point and the impact of that factor, alone, will already be reflected in the price. Further prices drops are more likely to be related to fear of other countries taking the same action.

gozomark

mystic_trev wrote: »

Paah, Gold is so yesterdays news. I've gone long in frankincense and myrrh. I'll have cleaned up by Christmas!

myrr - isn't it some kind of wild animal ?

TDM850

A Gold Bear Market? 4 things investors should know..(1) Stockmarkets have risen – and expecting gold (aka crisis insurance) to rise at the same time would be illogical, if not greedy…(2) Gold's chart pattern is horrible – falling through $1525 on Friday, the gold price also dropped through £1000 and €1200 per ounce for UK and Euro investors..(3) Beware "bear market" talk – the newswires today all point to gold now being in a "bear market"..in both mid-2006 and again in late-2008 the gold price fell harder, down more than 25% and 33% respectively before resuming the upwards trend..(4) Gold has risen so strongly, for so long, a big setback has become overdue. The full article transcript is here

Reaper

I've mentioned before the light hearted rule that with gold you should always do the opposite of what states are doing as governments always get it wrong, buying high and selling low. I never really attached any serious weight to it but dammit if it hasn't proved right yet again.

I only had a small gold holding as a hedge but I've thrown in the towel this morning and sold. Though I'll keep the small holding I have in platinum for now.

Jegersmart

Personally I suspect that whilst gold may tread water between 1350 and 1450 for a while, the price target at the moment for me would be around the 1k mark. Interestingly, gold miners are not really reacting too much to this - I suspect that the 40% drop over the past year has been pricing something in.

I have entered an initial position in gold miners recently, will probably hold off for a little while to see how it develops...

Buy high, sell low - the retail investor's bane.

imho

J

HAMISH_MCTAVISH

michael1983l wrote: »

Might this considerable devaluation in gold be due to the fact that Cyprus have just been forced to sell the majority of their gold reserves and the market may be flooded?

No.

It's because Gold was in a bubble and is still only slightly into it's crash.

Still a very long way to go in the coming years, as it continues falling to fair value, which is less than $500 per oz.

Now $1367 and still falling near vertically.



Down $133 per ounce, or 8%, today alone, on top of Friday's bloodbath.

The Goldbugs are getting splattered.

Shaolin_Monkey

Yes gold miners listed in the UK only down 7-26% or so today... The 26% is Petropavlovsk PLC

michael1983l

I've just read in the press that they are blaming the fall on poor growth figures released by china today.

rockitup

Gold went on an almost 4 year climb from roughly $680 in Autumn 2008 to $1920 last year, so a gain of $1240

Using the Fibonnaci retracements, even the 50% level works out at $1300 and the 62.8% level comes in at about $1141, so somewhere between those levels should be "the sweet spot" if Mr Fib is right