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Gold above $900

WeissWeiss Posts: 9,941 ✭✭✭✭✭
Nice sharp bump this morning.

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I own gold, and I do think it's critical to have a good % of your wealth in physical metals.
But I have mixed feelings about seeing it rise in value. I can't see many scenarios where a huge run-up in gold means good news for our country or the world. Or the rest of my portfolio, for that matter.

Ancient coin collectors will tell you that when the Romans and other powerhouses of the ancient world started coining their gold, it was usually a sign of bad times.

We are like children who look at print and see a serpent in the last letter but one, and a sword in the last.
--Severian the Lame

Comments

  • gecko109gecko109 Posts: 8,231
    Dammit!!! It was supposed to go the other way today. Im planning on buying $5,000 worth this afternoon. Dammit, dammit, DAMMIT!!!!image
  • TwoSides2aCoinTwoSides2aCoin Posts: 44,364 ✭✭✭✭✭
    I'll sell 1 ounce and then buy 500 shares of GM. Oh wait. I already did image
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Who thought it was gonna tank today? Seemed like it had tipped in the favor of resolving towards the upside if anything by stalking the $885-$895 level over the past several days. And the momentum (ie gold/silver ratio) was indicating rising prices to come.

    I'm just surprised that with the stock market slightly up, and banks slightly up that it finally broke that trend of being the anti-stock market. The dollar has been weakening the past 2 days and weakened further today.

    Next barrier of resistance is $911. If that's exceeded we can see significantly higher numbers. 1st push was to $898, 2nd to $907, and would expect a 3rd to peak into the $911 to $919 range.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • jmski52jmski52 Posts: 22,899 ✭✭✭✭✭
    I'm thinking that the actual price in dollars is becoming somewhat irrelevant. The relevant unit of measure is ounces. JMHO.

    I still think that it's necessary to have dollars, but not for savings or investing purposes.

    Come to think of it, investing in companies right now will always be subject to governmental meddling, and that's another variable on the investment landscape that we really, really, really don't need.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • fcfc Posts: 12,793 ✭✭✭
    for some odd reason i like watching India. They seem to have a knack
    for knowing when to buy and when not to.

    Buying picked up greatly when gold was 880-890 in India.
    It is festival/wedding season right now and many got out and purchased just as it
    dipped.
    I am sure with gold at 900+ it will really slow down in the summer months.

    So I expect it to stay stable or slip with no huge news coming out
    that is bad.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Looks like the bottom is now in for the time being. We're already $45 above that point now. Gold stocks are up 5-10%.

    Gold and silver are going to rally for a while while bonds, the dollar, and possibly the stock market all take a breather. Whether the deflationists like it or not, the bond prices falling seem to be smelling inflation. The SM refuses to tank but has been running on fumes for several weeks making little additional gains. Unless the bank stress test reports come out with some miraculous "claims," I don't see where more bullishness can come from. It certainly won't be from 1st qtr corporate earnings unless you happen to be a gold miner. If the SM falls < 7800, it's probably going significantly lower.

    Peter Degraaf shows a few simple ratios comparing gold to the 30yr bond, gold bugs stock index, S&P, and Commodities Index. They all show the same change in trend. The gold:silver ratio continues to contract which means there is more to go in this run. In fact it broke well under the 200 day moving ave. for most of today but closed out just above. The 50 dma looks ready to cross below the 200 dma. The oscillators have all turned down supporting a continued lowering of the g:s ratio (ie metals higher). This should break a trend that has been in force since gold turned back on Feb 23. The original prediction of a high in the April 22 - May 6th window by Ron Rosen appears to be back in play. Armstrong and others stretch that out to as far as 2nd week in June using the 7 week cycle.

    DeGraaf on gold ratios

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • MoneyLAMoneyLA Posts: 1,825
    Here we go again... grasping at straws (gold back above $900).

    When gold reaches $1,000 again, wake me up please.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    MoneyLA just checked in for his monthly "gold is still in the $800-$990 trading range" call. OK, time to go back to sleep Rip.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • tincuptincup Posts: 5,187 ✭✭✭✭✭
    So... we have some who want to snooze until gold goes above $1000.....

    and we have those who are still waiting (for what... about 2 years now?) for gold to drop to $700 so they can buy...

    .... and meanwhile many are slowly and steadily increasing their possession of the metal while it is in a relatively quiet trading range.




    Who has the best strategy?? I know which camp I prefer....
    ----- kj
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