Gold, lost its Glister?

Generali

padington wrote: »

Do you think? it's broke all the important support levels, I would have thought the computers will go mad selling off more.

Maybe. Clearly someone is buying otherwise there wouldn't be anyone to sell to (a tautology that people often miss).

We'll see what happens from here. The massive overhang on the market that the Troika have created rather disrupts the risk off/risk on trade that has moved the gold price over the past few years.

For the uninitiated, the risk on/risk off trade is that perceived bad news has meant the price of almost all shares falling and the price of gold and US Government bonds rising with good news having the opposite impact. We may now be in a situation where all news is bad for gold.

blinko

commodities after todays action hhhmmm

padington

Generali wrote: »

Maybe. Clearly someone is buying otherwise there wouldn't be anyone to sell to (a tautology that people often miss).

We'll see what happens from here. The massive overhang on the market that the Troika have created rather disrupts the risk off/risk on trade that has moved the gold price over the past few years.

For the uninitiated, the risk on/risk off trade is that perceived bad news has meant the price of almost all shares falling and the price of gold and US Government bonds rising with good news having the opposite impact. We may now be in a situation where all news is bad for gold.

I wonder if Osborne is tempted to make a massive gold punt. If he sold now, and bought it back when gold hits the floor ...

rockitup

chewmylegoff wrote: »

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.

Same goes for fundamentals too sometimes. No holy grail in the gambling, i mean investing world.

Jegersmart

blinko wrote: »

commodities after todays action hhhmmm

commodities *because* of recent action?

wait and see imho.

J

[Deleted User]

warehouse wrote: »

It's my fault, I purchased my first sovereign about 2 weeks ago. I'm unlucky like that .

Hi warehouse - sorry to hear that. I've been watching the sovereigns price on line since Dec/Jan, but hadn't taken the plunge - I was going to buy a few 2012/13 ones as souvenirs as I retired on 31 Dec. I had considered buying 10 :eek::eek:with the "logic" being that if the price rose enough I'd sell; then buy 11 if the price fell enough I have always been pretty cautious, so never took a final decision.

CNBC reporters/commentators were sitting virtually open mouthed today in the parts of the programmes I saw this morning.

I have no idea where the price will end up, so even as a rank amateur/potential souvenir buyer, I think my plans are on hold!!

WR

redbuzzard

Jegersmart wrote: »

commodities *because* of recent action?

wait and see imho.

J

Better bought at $1400 than $1900.

Too scary for me though.

Although superficially similar to stocks in that sentiment drives price, the thing I have never been able to get my head around is that gold has no underpinning like dividends, and unlike other commodities it's value, or price, bears little relation to essential consumption.

So it's all sentiment really. The price is always a bubble, only the bubble size changes as far as I can see.

Not that I am claiming to understand it.

padington

Wild_Rover wrote: »

Hi warehouse - sorry to hear that. I've been watching the sovereigns price on line since Dec/Jan, but hadn't taken the plunge - I was going to buy a few 2012/13 ones as souvenirs as I retired on 31 Dec. I had considered buying 10 :eek::eek:with the "logic" being that if the price rose enough I'd sell; then buy 11 if the price fell enough I have always been pretty cautious, so never took a final decision.

CNBC reporters/commentators were sitting virtually open mouthed today in the parts of the programmes I saw this morning.

I have no idea where the price will end up, so even as a rank amateur/potential souvenir buyer, I think my plans are on hold!!

WR

The problem about real things instead of bits of paper is that when the price goes significantly down, you have to face your error.

Take it for me, art thats worth less than half of what you paid for it a year later becomes a very bittersweet experience, however much you love/d it and all too often finds its way into a dark corner where you don't have to face your folly too often.

It must be damn annoying if its your house that makes you wince.

On the other hand if you bought well, a house might just be the most enjoyable asset you can earn. The physicality adds a new dimension to the relationship.

It possibly explains why gold bugs became so obsessed.

[Deleted User]

padington wrote: »

The problem real things instead of bits of paper is that when the price goes significantly down, you have to face your error.

Take it for me, art thats worth less than half of what you paid for it becomes a very bittersweet experience, however much you love/d it and eventually finds its way into a dark corner where you don't have to face your folly too often.

It must be damn annoying if its your house that makes you wince.

It's a bit late at night but I think I know what you are getting at. We own no "artwork"in that sense - did you buy something "arty" that you now regret? I bought a Wade decorative teapot in a charity shop that I thought was a "bargain" but when I brought it home and went on line I found that it had the "wrong" lid! Still a wade one, but for a different teapot:mad:. Lesson 1 - always do your research first; Lesson 2 -see lesson 1! It was only a few quid and it looks quite nice, so lesson learned without too much damage.

We bought our house in 1993, so prices will have to fall much further for a "gold-like" plunge to have any effect, but as I regard my houser as a home rather than an investment it's not too relevant to me. It's always struck me as odd that some folk go daft over a couple of percentage points fall in house prices, yet happily buy a new car and see tens of percents of the value disappear as soon as they drive it away from the showroom.


WR

padington

Wild_Rover wrote: »

We bought our house in 1993, so prices will have to fall much further for a "gold-like" plunge to have any effect, but as I regard my houser as a home rather than an investment it's not too relevant to me. It's always struck me as odd that some folk go daft over a couple of percentage points fall in house prices, yet happily buy a new car and see tens of percents of the value disappear as soon as they drive it away from the showroom.


WR

Wait till it goes to less than half in less than a year, you'll see what I mean then. There is a tipping point of regret.