Will $400 oz. gold cause buying or selling?

greghansen · November 18, 2003 9:25AM

When gold crosses the $400 oz. barrier (tomorrow probably) will it cause:

a.) an increase in the pace of buying resulting in higher prices;

b.) an increase in the pace of selling resulting in lower prices; or

c.) no discernible impact on the market.

nwcs · November 18, 2003 9:28AM

I think a lot of people will sell. $400 is a nice magic number now.

jdimmick · November 18, 2003 9:30AM

I think people will sell, if two locals I know are an indication of others. There are two local guys here that have been stockpilin gold bullion ((10/20 libs ) Englehard bars etc) for some time, I have herd that there about to unload som, especially if it breaks 400 or so.

darktone · November 18, 2003 9:31AM

Call me stupid but I can see gold going over $500 in the near future! mike

nwcs · November 18, 2003 9:36AM

Would you sell if it goes over $500?

Placid · November 18, 2003 9:36AM

Some will sell some will buy. Usually when the price goes higher it generates more interest in gold so probably more buyers than sellers.

DCAMFranklin · November 18, 2003 9:40AM

Increased buying.

DCAMFranklin · November 18, 2003 9:43AM

Increase buying.

greghansen · November 18, 2003 9:45AM

I think I'm in the increased buying camp also. Interestingly, it's going to coincide pretty closely with the initiation of trading in the gold bullion exchange traded fund (ETF) that will commence trading under the symbol GLD in the near future. People who want to own bullion but don't want to physically hold it (for security, storage and many other good reasons) will choose to own bullion through this ETF. I think it will provide a new and potentially powerful source of liquidity for the market.

Placid · November 18, 2003 9:45AM

10¢ to go.

dollardude · November 18, 2003 9:58AM

Everyone here knows how much I hate gold as an investment. I'd just like to throw in a token comment here. My advice is to get out while the getting is good. However, everyone has to make his/her own decision, and I respect that.

In answer to the original question, I think selling will outweigh buying, putting downward pressure on the price. This is just my opinion only, and, to me, there is no reason to take such a huge risk for such a lousy investment that is about at a ten-year high.

Will $400 oz. gold cause buying or selling?

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