What's up with gold? It's down

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Mr. Fri's picture
Mr. Fri
Status: Silver Member (Offline)
Joined: Feb 21 2009
Posts: 220
What's up with gold? It's down

Just wondering....

Gold has been trending down for the last month.  Is this the yearly summer slump or is there other news out there about gold?

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: What's up with gold? It's down

Gold is a temperamental date. Moody. She isn't as ugly as our debt date, but she is moody. This chart puts it in perspective. If she wigs out and goes below the trend line I'll pay more attention. Till such a time - she is what she is.

 

 

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Re: What's up with gold? It's down

Gold is a temperamental date. Moody. She isn't as ugly as our debt date, but she is moody

OMG! Goes Davos!

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2237
Re: What's up with gold? It's down

Davos, you do have a way with words that makes me smile!

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: What's up with gold? It's down
pinecarr wrote:

Davos, you do have a way with words that makes me smile!

Thanks for the kind words, just wish I could spell them.

robie robinson's picture
robie robinson
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Joined: Aug 25 2009
Posts: 1148
Re: What's up with gold? It's down

Gold turning back up today, i guess the bond sale is wrapping up.

 

robie

Davos's picture
Davos
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Joined: Sep 17 2008
Posts: 3620
Re: What's up with gold? It's down

Sprott's John Embry "Gold Is On The Cusp Of A Parabolic Move Up"

Central banks can no longer supply the amount needed to balance supply and demand while mine production continues to stagnate at best. It is imperative that investors ignore the volatility created by the anti-gold cartel and use every opportunity that is created by them to purchase more physical gold." Yes John is conflicted, and yes, he has said comparable things in the past... maybe, as more and more piece of the puzzle come into place,

Looks like she is getting in a really good mood now.

One moody $*#&# I'll be happy to dump when this mess is over.

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: What's up with gold? It's down

Looks like most commodities are up today....must be all that talk about QEII at the first sign of any real trouble LOL.

yobob1's picture
yobob1
Status: Silver Member (Offline)
Joined: Apr 20 2009
Posts: 132
Re: What's up with gold? It's down

With the dollar down so much and gold responding negatively, I think there is need to be alert on this one.  I speculate that it was the issue with the PIIGS states and the Euro effect that drove it up earlier and as that pressure has eased for the moment gold is back sliding a bit.  What's next?  Nobody knows.

Summer always brings low volume nuttiness to Wank Street as the big boys are all cruising in their Yachts or playing tennis in the Hamptons.  Pretty much what happens between early June and late August is just filler to keep the doors open. In the old days prior to air conditioning the exchanges were hardly open in the Summer - hence the "sell in May and go away" policy.

What disturbs me the most about gold right now is the potential effect of the the ETFs. Gold bugs go nutty and lose their lunch when a big sale by the IMF, CB or nation becomes common knowledge.  To me the liquid time bombs are the ETFs.  GLD ( I think) has something like 1,300 tons.  How many tons might have to be dumped into the market if people start dumping their shares because -  a. they need to raise cash to meet margin calls as the rest of the market craters - b. Something else causes gold prices to rapidly decline c. they simply decide to move onto another market segment that has a lot more momentum.

Of course if there were a large exodus from the ETFs causing them to dump gold, it could easily become a self perpetuating story of falling prices causing more share sales causing falling prices......

For me the only real gold are the coins held in hand - US legal tender non numismatic, thank you. I don't own it as an investment, but only as the last bastion of "money" in a total social breakdown.  I keep only a reasonable percentage of wealth in that form.

 

 

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