Gold, lost its Glister?

HAMISH_MCTAVISH

Goldbugs getting splattered.

Gold down 8% today alone, on top of Friday's bloodbath.

Jegersmart

Yes my apologies, responding to too many threads at the same time today.

J

HAMISH_MCTAVISH

Silver down 11% today alone, and nearly 50% from peak. (plus the VAT)

robmatic

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?

It could well be an aspect of the 'Great Rotation' by asset managers back into equities now that US growth prospects are looking more rosy.

HAMISH_MCTAVISH

What's really cool about this (beyond the obvious) is that there are now rumours in the gold forums that some gold dealers are stopping buying physical at anything close to spot price, as they don't want to get stiffed holding stock at what is still, lets be honest, once in a generation bubble pricing.

An illiquid depreciating asset....

Oh dear.

sabretoothtigger

I own Petropav . The ironic thing is that this company hedged gold at 1600, this fall just proves their management is sound.
Their debt 5x the market cap now, owch

(plus the VAT)

companies dont pay vat. The whole price tag, fear driven move gets a bit silly. When else do we get upset when prices fall, oil, petrol falling is great? Its about cost and margin profits really

I do reckon now is a decent time to buy cutlery or anything that might benefit from silver's anti bacterial properties

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

Is gold bear market a normal term. Because commoditys move wildly all the time, do we call wheat a bear market if theres a bumper harvest and prices fall

The second part makes no sense to me. Inflation would make the price of everything rise, since we have interest rates at 0.5% that is most probable

Over 4 years, gold and stocks have both risen. Here is ftse and gold (in dollars)

Reaper wrote: »

I only had a small gold holding as a hedge but I've thrown in the towel this morning and sold.

If I buy beer and then it gets half priced the next day. I just buy more of what I need/like. Do you need this product or not

Ark_Welder

sabretoothtigger wrote: »

companies dont pay vat.

Oh yes they do! But some might pay more VAT than others...

sabretoothtigger wrote: »

..do we call wheat a bear market if theres a bumper harvest and prices fall

Technically, this is known as a weevil market.

chewmylegoff

Fella wrote: »

Hm, to be fair over the last few years those fools have done substantially better than those fools who invested in, say, those brick things. Even allowing for recent falls.

The problem for the goldbugs is that they're in a cult and therefore although they might have made money on the way up they're likely to lose it all on the way down as their religious beliefs require them to repeat the mantra that this is just a buying opportunity. Small rallies after big falls will convince them that they are right, and once the slide recommences they will talk of manipulation. When their cult leaders finally admit defeat in public (probably a year after closing any actual positions they held, if any) the cultists will have been wiped out.

chewmylegoff

rockitup wrote: »

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

The only trouble is that the market doesn't care what Fibonacci retracements predict. As with any other technical analysis they are just a load of quackery to allow loons to have bizarre conversations about support and resistance. Might as well give gold a tarot card reading - it would be just as scientific.

HAMISH_MCTAVISH

chewmylegoff wrote: »

When their cult leaders finally admit defeat in public (probably a year after closing any actual positions they held, if any) the cultists will have been wiped out.

Yep.......

HAMISH_MCTAVISH wrote: »

One day in the not too distant future, you goldbugs are going to get wiped out by the gold price crash......

For all the very same reasons you think you won't.