Gold Through $960!

wombat42_2

Arcaine wrote: »

Gold now around $920 down about 8%, as I suspected it had to take a dip at somepoint. These global hedge funds are pumping huge amounts of money into speculative positions in commodities driving these prices. As these hedge funds continue de-leverging to make the margin calls to their creditors there will be periodic firesales of commodities positions, I hope none of you investors get caught in the cross-fire like today. Good Luck.

Gold went up from about $905 to $920 on the morning of Good Friday in the Far East market.

purch

Funny how nobody wants to talk about Gold anymore.:eek:

Where have the Gold Bugs gone ???

shokadelika

purch wrote: »

Funny how nobody wants to talk about Gold anymore.:eek:

Where have the Gold Bugs gone ???

I guess they are busy accumulating after the recent correction.

I find it rather amusing that people use quotes from Von Mises yet seem to have have no understanding of the Austrian School of Economics or the role gold plays in monetary systems.

[FONT=Arial,Helvetica,Verdana]“If one wants to avoid the recurrence of economic crises, one must avoid the expansion of credit that creates the boom and inevitably leads into the slump.”[/FONT]
[FONT=Arial,Helvetica,Verdana]Ludwig Von Mises 1912[/FONT]

There would/could have been no expansion of credit if money had still been backed by gold!

Von Mises Institute http://www.mises.org/

purch

There would have been no expansion of credit if money had still been backed by gold

Wow thanks for that little insight !!!:rotfl:

.............I was starting to think I was the only one who knew what was going on

ianmr65

The south african generator, escom, wants to double energy prices over the next year, to help stem demand.

Being as they had to shut the gold mines for 5 days due to power cuts earlier this yera, and this caused a spike in the gold price, a steady increase in south african energy costs will no doubt have an impact in pushing gold prices higher.

Woohoo!!

mr_fishbulb

purch wrote: »

Funny how nobody wants to talk about Gold anymore.:eek:

Where have the Gold Bugs gone ???

Nothing nice has been happening since it tanked

Gone up nicely today though - I'm almost back to where I started.

wombat42_2

Huh ? Are you guys on the same planet ? Gold has just had an excellent day up 2% at $935.

jamesd

It may even go through 960 soon - boom times for gold!

Hold on. Haven't we been here before? It might stay above 960 longer next time. Or not, if the US economy doesn't suffer too badly.

ianmr65, what percentage of the South African production will become uneconomic to produce at current prices if the electricity cosst doubles? Not much, I think.

john_kane_2

gold overshot, as did most other commodities. too much money was pouring into them from pension funds and speculative ibanks over a short period as they all looked to chase the easy money. when it started making the papers, then it became a worry, because evidently gold and other commodities had made way above fundamental price gains (commodities shouldnt be making the front page of national news papers) so a correction was due. i didnt get out of all of my positions, because timing these commodity markets are impossible for long term positions.

the recent corrections are fine, it was needed to bring back prices more in line. the only people who really lost out were the people who read the headlines when gold hit $1k, read the article saying gold was going to $1800 or so, and bought. they would of then seen it fall to $900 or so, and then they would of sold having shat themselves.

this is a very good buying opportunity. i doubt prices will rise quickly and i dont really want them to. i wouldnt be surprised to see gold at $900 in a few months time nor would i be surprised to see it at $1050 in a few months time. it's impossible to tell. what we do know is gold will rise to $1500-$2000 in the next few years, and we do know it'll end out in a speculative bubble and people will make a lot of money, but a lot will lose vast sums as well. the key is buying now and slowly trimming your position on the way up. when it starts going crazy, then get out, as this is when the fools will be investing. when will it start going crazy? who knows, thats why i hope we see $1 rise a day. this will always mean that there will be no speculative bubble for much longer than if we see gold shoot up to $1200 then potentially a big sell off back down to these levels, because thats how some big players in this game, ibanks, will make a lot more money. obviously $1 a day will never happen, but i want the volatility out of this market, but i imagine that'll only happen when a couple of years after the bubble has burst (when gold hits the $2k mark or so) many years down the line.

all imo

john

ianmr65

jamesd wrote: »

It may even go through 960 soon - boom times for gold!

Hold on. Haven't we been here before? It might stay above 960 longer next time. Or not, if the US economy doesn't suffer too badly.

ianmr65, what percentage of the South African production will become uneconomic to produce at current prices if the electricity cosst doubles? Not much, I think.

None at current prices, especially as these are prompting the re-opening of abandoned mines in california, and so on. But the more gold costs to mine around the world, the more the differential between global extraction costs and daily market fix narrows, which will help with the upward climb.