Gold
What is going on with the London gold fix at $1104. on Friday's p.m. closing? Are the English that deeply invested in Dubai?
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Permalink Reply by Lureuin on -
Everybody has a stake in Dubai, but I wouldn't lose sleep over it. I would guess that there will be a little selling at the start of the week for those Johnny-Come-Latelys who will see this weekend what happened Friday and get scared. It will all level off again by Wednesday. I still think $1,125 is the new bottom.
As far as the London close, if you look at the chart it was somewhere around $1,180; not $1,104. The price never went below $1,136 as far as I can tell. Also noted is that folks jumped on the dip and caused the price to go right back up.
IMHO- The signal to sell will still be the raising of interest rates by one of the G-5; and possibly only the raising of rates by the US will stop the dollar drop.
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Permalink Reply by Steve W on -
I agree that this price expansion has more room to grow. However, I wonder if it will continue if things implode after the holidays. Many prognosticators think that the stock market will contract in January. Some say that a stock decline would mean more cash into the PM market.
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Permalink Reply by IndianGoldEagle on
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I think we need to buy gold as an insurance policy against a dollar collapse or devaluation. For now I don't care where the price ends up so long as I have some in hand for a rainy day.
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Permalink Reply by Steve W on
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IE, The interesting point is that the Feds have done everything that should lead to inflation in an attempt to stave off deflation/recession. In fact we have seen no inflation as of now. Too many are out of work and demand is too slack to heat the inflationary fires at this time. Gold has risen in price or the dollar has lost international value, but then the gold price is also up for the Euro so some actual increase in gold value must be at work here.
Nobody knows where this will end. We have two unfunded and unresolved wars going, the financial markets are just now showing some signs of stability, deficits are growing, trade imbalances may be shifting in our favor, and we are in the middle of a major political kerfuffle over health care. Does this make PMs a safe haven for investment? That is above my pay grade, but I will continue to buy a little just in case! Hopefully, I will avoid any more bone head buys!
IndianGoldEagle said:I think we need to buy gold as an insurance policy against a dollar collapse or devaluation. For now I don't care where the price ends up so long as I have some in hand for a rainy day.
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Steve, we are in uncharted territory as far as the economy goes. This government can not continue to spend money they do not have without it taking the dollar down. Germany did that in the 1920's. I for one notice every time I go to the grocery store that the packages get smaller and the price rises. I continue to see taxes and "fees" rise. Utilities rise. Seems everything I need to live on is rising in price, yet the government tells me inflation is only 1%....BS! They juggle the numbers to get the results they want and tell us not to worry, there is no inflation. China, Japan, and other nations with large amounts of dollars are buying everything they can with them to get out before it falls lower. When the flood of those dollars starts to come back to the US, inflation will be roaring.
The banks continue to fall every Friday just like clock work. FDIC is now out of money and needs 80 billion more in tax payers dollars to cover the continuing failure of banks.
If you really think we are surrounded with "green shoots" and the economy has bottomed out, no need to buy gold or silver to insure your financial future. I don't mean to rant, but I sure see a far different future for us.
Steve W said:IE, The interesting point is that the Feds have done everything that should lead to inflation in an attempt to stave off deflation/recession. In fact we have seen no inflation as of now. Too many are out of work and demand is too slack to heat the inflationary fires at this time. Gold has risen in price or the dollar has lost international value, but then the gold price is also up for the Euro so some actual increase in gold value must be at work here.
Nobody knows where this will end. We have two unfunded and unresolved wars going, the financial markets are just now showing some signs of stability, deficits are growing, trade imbalances may be shifting in our favor, and we are in the middle of a major political kerfuffle over health care. Does this make PMs a safe haven for investment? That is above my pay grade, but I will continue to buy a little just in case! Hopefully, I will avoid any more bone head buys!
IndianGoldEagle said:I think we need to buy gold as an insurance policy against a dollar collapse or devaluation. For now I don't care where the price ends up so long as I have some in hand for a rainy day.
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Permalink Reply by Lee Grant on -
Luruein: I know what the chart shows but Kitco shows $1104 as the p.m. closing on November 27th. Their closings are not always reflective of the charts but they also do make mistakes. In the past when they have made a mistake they correct it. They have not changed the $1104 closing.
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Permalink Reply by Steve W on
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I am not sure what type of future that I see for the American economy. That is above my pay grade. However, I am a historian and I can assure you that our situation is nothing like Wiemar Germany in the early 20s! They were a defeated nation with a huge reparations debt and foreign occupation. Their inflation was partially designed to undermine the reparations payments to the British and French. In the process their people underwent horrible suffering before American intervention with the Dawes Plan and the roaring twenties rescued their economy. Then the Great Depression wrecked everything and gave us Adolph Hitler and WWII.
Our deficit government spending is designed to rescue our financial system, save the auto industry from collapse, and pay for two unfunded wars! Those wars have never been properly funded by taxation in fact the previous administration cut taxes at the time that the wars began. Where was the outcry about deficits when this was done? Now we not only have these same wars but we have just ducked a complete financial meltdown thanks to lax regulation and unparalleled greed on Wall Street. Bernie Madoff is only one example of the gross malfeasance practiced there in the last 10 years. In comparison to these scams welfare fraud looks like small potatos!
As far as inflation is concerned, let me remind you that housing prices have declined by over 30% in the last year and a half and gas prices are far lower than they were 18 months ago. That is the definition of deflation. Other issues may have moved up, but they have a relatively smaller impact on the economy.
I do worry about the economy, but inflation is not the big concern. I worry about employment and the wasting of our resources and military on unnecessary wars that seem to have no end. I worry about crumbling infrastructure and the inability of young people to get health care. I worry about the psychology of Americans who believe that they can have it all and not be taxed! These deficits are a horrible expedient for the lack of political will to make tough choices based on the real interests of America.
Those interests should be the health , education and welfare of Americans and not military adventurism that does not really increase national security and political bailouts to big finance and Auto Executive fat cats. This is my economic/political rant!
I dread the President's speech tomorrow because I believe that he will reluctantly continue down the same path blazed by Lyndon Johnson and George Bush. Somehow "more troops and deficit spending will solve America's problems"! It did not work in 1968 and I do not believe that it will work tomorrow.
IndianGoldEagle said:Steve, we are in uncharted territory as far as the economy goes. This government can not continue to spend money they do not have without it taking the dollar down. Germany did that in the 1920's. I for one notice every time I go to the grocery store that the packages get smaller and the price rises. I continue to see taxes and "fees" rise. Utilities rise. Seems everything I need to live on is rising in price, yet the government tells me inflation is only 1%....BS! They juggle the numbers to get the results they want and tell us not to worry, there is no inflation. China, Japan, and other nations with large amounts of dollars are buying everything they can with them to get out before it falls lower. When the flood of those dollars starts to come back to the US, inflation will be roaring.
The banks continue to fall every Friday just like clock work. FDIC is now out of money and needs 80 billion more in tax payers dollars to cover the continuing failure of banks. If you really think we are surrounded with "green shoots" and the economy has bottomed out, no need to buy gold or silver to insure your financial future. I don't mean to rant, but I sure see a far different future for us. Steve W said:IE, The interesting point is that the Feds have done everything that should lead to inflation in an attempt to stave off deflation/recession. In fact we have seen no inflation as of now. Too many are out of work and demand is too slack to heat the inflationary fires at this time. Gold has risen in price or the dollar has lost international value, but then the gold price is also up for the Euro so some actual increase in gold value must be at work here.
Nobody knows where this will end. We have two unfunded and unresolved wars going, the financial markets are just now showing some signs of stability, deficits are growing, trade imbalances may be shifting in our favor, and we are in the middle of a major political kerfuffle over health care. Does this make PMs a safe haven for investment? That is above my pay grade, but I will continue to buy a little just in case! Hopefully, I will avoid any more bone head buys!
IndianGoldEagle said:I think we need to buy gold as an insurance policy against a dollar collapse or devaluation. For now I don't care where the price ends up so long as I have some in hand for a rainy day.
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Permalink Reply by Lureuin on
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Very, very informative rant. lol
Thanks, I learned a couple things about history.
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Permalink Reply by Lureuin on
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Could this be consolidation at $1,175?? If so, the new bottom is $1,150.
A solid $1,200 by the New Year is very possible.
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Permalink Reply by Zyll on -
$1,200 came at around 11:45am today. Ridin' the nuke all the way down!
So Steve, you "worry about the psychology of Americans who believe that they can have it all and not be taxed", but you don't worry about inflation? That seems a little contradictory.
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Permalink Reply by Steve W on
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Zyll,
That is the point! You cannot prevent inflation without meaningful taxation and the elimination of unnecessary spending. Both parties want their pet programs, but neither wishes to pay for it with taxation. I have no idea what a new health care bill would cost since it seems to change each day. However, the "wars" are costing us 10 billion a month on the big credit card. That is a known figure. I agree with the Dems in Congress who say that we should impose a war tax to pay for this. Then we will see how much "support" for these actions really exists. Otherwise the wars will be just another financial opportunity for Locheed Martin and KBR, and a video game for the rest of those Americans who do not have a son in the military. As we used to say while playing poker in the Army, it does not matter if you do not have "skin" in the game! At this time most people do not worry about a situation that does not really hit their family or their wallet.
At this time we have escaped inflation because of the recession. The massive outlays for the wars (I believe the real costs are much higher than reported) and the economic bailouts will only hit us when the economy starts to recover.
Zyll said:$1,200 came at around 11:45am today. Ridin' the nuke all the way down!
So Steve, you "worry about the psychology of Americans who believe that they can have it all and not be taxed", but you don't worry about inflation? That seems a little contradictory.
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