India gold at record high of Rs 19,257

goingbroke

Record high price dried up demand for gold in India, the world's biggest consumer, on Wednesday as buyers preferred to postpone purchases, bank dealers and jewelers said.

Gold futures on Multi Commodity Exchange of India (MCX) hit a record high of Rs 19,257 per 10 gm on Wednesday afternoon.

“Demand is absolutely nil. People are not even making inquires,”
Prices are way above psychological acceptance level of buyers.not buying

OPA

I'm curious to know, who is buying gold at these levels, except for the world mints to replenish inventory or for new strikes.

57loaded

in India they are required to purchase in their own currency and it is a different kind of market as most is used/made into jewelry as a sign of cultural wealth.

pmcollectour

<< <i>I'm curious to know, who is buying gold at these levels. >>



The smart money.

goingbroke

Just like I figured, Now that PM prices are high no one is buying!

30AnvZ28

Ive bought .85 ounces this week, and inquired on another 1oz.

goingbroke

.85?

OPA

<< <i>

<< <i>I'm curious to know, who is buying gold at these levels. >>



The smart money. >>



I would disagree with your analogy...the "smart money" purchased their gold when it was below $1k..

AnkurJ

I bought a few small pieces. An old $5 and a modern commem.

roadrunner

The smart money bought gold at $1000 and sold it at $1226. They they rebought at $1055 or $1155.

But let's face it. It makes no sense that Indian gold demand was there at $1225, $1230, $1235, $1240, $1245, $1250, $1255, $1260, and finally the old high of $1265. But then it totally dries up at $1270. Please explain the $5-10 difference to me.

The Indians bought about 123 tons of gold last quarter while gold was hitting all time highs. That sounds like real demand to me. When it goes to $1300, or $1400 are they going to cease buying altogether? I think not. Who pays for such "newsworthy" articles? Ok, so the US born and bread gold buyers starts hitting the local coin shops at all time highs to buy gold (just like in 1980) but the Indian buyer is too savvy to fall for that "trap." The Indians are taught to ignore human nature from an early age and buy only in a contrarian mode when things are dirt cheap. Uh huh.

roadrunner

Bear

MANIPULATION OF THE PRESS, BY CENTRAL BANKS!

pmcollectour

<< <i>

I would disagree with your analogy...the "smart money" purchased their gold when it was below $1k.. >>



And when people were purchasing gold at $950.00, people were asking..."who's buying gold at these prices ???"
And some were saying the smart money bought at $400.00


And when people are paying $ 2,300.00 for an ounce of gold, people will be asking..."who's buying gold at these prices???"
And people will say the smart money bought at $1,650.00

OPA

<< <i>

<< <i>

I would disagree with your analogy...the "smart money" purchased their gold when it was below $1k.. >>



And when people were purchasing gold at $950.00, people were asking..."who's buying gold at these prices ???"
And some were saying the smart money bought at $400.00


And when people are paying $ 2,300.00 for an ounce of gold, people will be asking..."who's buying gold at these prices???"
And people will say the smart money bought at $1,650.00 >>



Tell that to the "smart money" who bought at $850 in Jan 1980 & then had to wait 25+ years to break even.

pmcollectour

<< <i>

Tell that to the "smart money" who bought at $850 in Jan 1980 & then had to wait 25+ years to break even. >>



Economic conditions favor gold now more then ever. Nothing in US history compares to what we're under now.

AnkurJ

90% of what I have was bought at the $550 and $650 range. I wipl be sitting on those for a while unless a huge spike happens.

roadrunner

Tell that to the "smart money" who bought at $850 in Jan 1980 & then had to wait 25+ years to break even.

The smart money is "smart" because they know when a top is getting nuts and it's time to get out...because they were the same guys helping to push the market up all along. Sinclair, Katz, and guys like them were either out of gold on the way up at $750-$850 or on the following rebounds in 1980 to $750...there were two of those bounces. Dumb money was buying gold at $800-$875 and then on the subsequent bounces at $750 figuring it was going to keep going. Dumb money was buying stocks in spring of 2000 and fall of 2007. The smart guys were long gone by then. Dumb money is still waiting to buy gold in this current 10 yr run up because levels are not yet "dumb" enough for them. They won't jump in until they see gold at a number like $2000+ or even $3000-$5000 because by that time their buddy or neighbor is buying it. At that point they'll figure gold is going up forever and "know" it's going to hit $10,000. That's what dumb money does. Was dumb money buying the Dow in the early 1990's when it was at all time highs?

1. Give me some examples of smart money gold analysts who were still loading up at $800+ gold in 1980.
2. Finding someone who bought their portfolio of gold at $850 in Jan. 1980 and still owns it today is rarer than finding a hen's tooth. How many bought the top of the Nasdaq at 5,000 and kept those shares until today? A low percentage I'd bet.

roadrunner

goingbroke

Another possibility is for gold’s spot price itself to move up by an additional $10-$20 or so and close above its previous high. This could be followed by a consolidation back to today’s levels, which would allow for entry into the market at reduced risk levels. However, it's important to note that the RSI points to caution at this time as the 70-level is quite close today. The old adage “When in doubt, stay out” perhaps should be heeded at this time.

Justacommeman

<< <i>

<< <i>

<< <i>

I would disagree with your analogy...the "smart money" purchased their gold when it was below $1k.. >>



And when people were purchasing gold at $950.00, people were asking..."who's buying gold at these prices ???"
And some were saying the smart money bought at $400.00


And when people are paying $ 2,300.00 for an ounce of gold, people will be asking..."who's buying gold at these prices???"
And people will say the smart money bought at $1,650.00 >>



Tell that to the "smart money" who bought at $850 in Jan 1980 & then had to wait 25+ years to break even. >>



There is exactly one person who bought @ $850. If he held, he is still well in the black. Not a great ROI, but not the end of the world. MJ

jmski52

There are very few people around who don't know about the gold spike in 1980. Ever since, people tend to think in terms of someone who hypothetically bought at that peak and then for some weird reason - held their position until now - still being in a loss position, considering inflation.

That being the case, those who are unaware of what is happening and has happened to the currency over these last 20 years are most likely to see the current gold price as highly over-inflated. Nothing could be further from the fact.

Today's gold price is not analogous to the $850 peak in 1980 - it is much closer to gold at $250 in 1979 when someone might have said the same thing - that the "smart money" bought at $180 in 1978 and would have already logged a 40% gain!

Like I said before, step away from the charts and take another look.

roadrunner

Dumb money will have entered the gold arena when your neighbors start telling you that they just discovered gold, and it's going to $10,000......or when the local water cooler chatter discusses how GLD or GDX did today......or when a relative tells you that they took out a HELOC in order to invest in the gold market.

It won't be hard to miss dumb money when it finally shows up.

roadrunner