Gold is $700- is it trying to tell us something?

[pb]

I'm surprised that the "evil speculators" crowd hasn't shown up. We know that it can't be the result of script, so it must be some nefarious investors up to no good.

Actually the evil speculators are most likely on the short side of the market and suppressing the price.

[Kemmer]

Gold closed at $1582 a new all time high today. It also set new all time highs priced in British pounds and Euros. Again I ask the question is it telling us something and ask if we are listening?

It's telling us lots of people all over the world are nervous about sovereign debt (Greece, Italy, Ireland) and civil unrest in the mid-east. It'll be a few years before we discover if this is prudent worry, or sheer paranoia.

It's telling us the gold bugs really loved Bernanke's sorta-promise to keep devaluating the dollar, if necessary.

(It's, also, telling us that people can now buy "paper" gold, in GLD, et al. That's gotta change the game, too.)

[HowAreWeGoingToPay]

It's telling us lots of people all over the world are nervous about sovereign debt (Greece, Italy, Ireland) and civil unrest in the mid-east. It'll be a few years before we discover if this is prudent worry, or sheer paranoia.

It's telling us the gold bugs really loved Bernanke's sorta-promise to keep devaluating the dollar, if necessary.

(It's, also, telling us that people can now buy "paper" gold, in GLD, et al. That's gotta change the game, too.)

You are being reasonable, it is also telling us that Beck was right.

[zenwalk]

(It's, also, telling us that people can now buy "paper" gold, in GLD, et al. That's gotta change the game, too.)

Don't mention paper speculation. I'm told by some on this thread in fact that paper speculation and old fashioned speculation are one and the same and that it has no bearing on price except as a palliative to troubled markets. I reply that speculation once it's used to securitize a bundle of financial investments is a different animal. Maybe you could expand for all our benefits?

[pb]

You are being reasonable, it is also telling us that Beck was right.

There is more to being right than having the right idea. You can be right about the fact that gold will go up, but buy it in the wrong form. Beck shilled for a company called Goldline at the same time he was pushing gold. The Goldline Company often used a bait and switch type of selling and convinced people that "collectible" Swiss 20 franc coins were the correct way to invest in gold. Often these coins were sold at large premiums over their gold content that weren't justified by the then gold price. Investers that followed Beck's advice when gold was around $1000 per ounce would probably be lucky to just now be hitting their break even point. Advice given with a vested interest, even when right, can be wrong.

[NoFreeRides]

My portfolio has accumulated more commodities as an infaltion hedge. It is quite clear that the Fed and the President are intent on devaluing the dollar to deal with the debt and to spur exports. To this point they've been able to get away with it because the rest of the developed world is so screwed up we can still borrow money cheaply.

The one place where inflation has reared its ugly head is in food and oil.

Inflation is a huge, ugly, hidden tax. When it hits the system fully it will devistate equity values and bond values and will make consumer and business borrowing even more difficult.

[pb]

To this point they've been able to get away with it because the rest of the developed world is so screwed up we can still borrow money cheaply.

I don't think that is exactly true. At least 3/5 of the new treasury debt over the last year has been purchased by the Fed with newly created money.

[douger]

In October of 2005, I started a thread Gold is $488-is it trying to tell us something? Just curious to see if in light of the changes anyone thinks gold is telling a compelling story?

What change four years has wrought...it closed at $1585 yesterday...

[pb]

Thought I would let everybody see how their opinions have matched up with reality. Gold today broke the $1700 barrier for the first time.

[HowAreWeGoingToPay]

Well, Beck was right.

[pb]

What change four years has wrought...it closed at $1585 yesterday...

What change a month has wrought....it closed at $1825 yesterday.

[HowAreWeGoingToPay]

What change a month has wrought....it closed at $1825 yesterday.

Yes, and is 1859 now, I expect it to be 2000 by year end.

I heard that Chavez was bringing home his gold reserve. Not much in terms of money 11B, but might be part of this price increase.

[pb]

Yes, and is 1859 now, I expect it to be 2000 by year end.

I heard that Chavez was bringing home his gold reserve. Not much in terms of money 11B, but might be part of this price increase.

That could have something to do with it, but I wouldn't discount the fact that European banks are teetering on the edge and that bailing them out won't be possible. If they fall, who knows who they will take with them. An asset without counterparty risk seems a reasonable thing to want to own in this environment.

[Calamari]

Gold is crashing now.


Wall Street Crushed in Steepest Selloff of '13 as Gold Crashes

[Apexbud]

Buy low, sell high.

[bullmikey]

I think it's trying to tell me that my wedding ring is worth a whole lot more than what I paid for it.

[EmDot]

Saw and ad today (didn't read the story) where Glenn Beck was using the Boston Bombing to urge people to buy gold. I'd call him an a-hole but a-holes have a purpose.

[bullmikey]

Saw and ad today (didn't read the story) where Glenn Beck was using the Boston Bombing to urge people to buy gold. I'd call him an a-hole but a-holes have a purpose.

If it’s the collapse of society you’re worried about, I’d stock up on guns and ammo. All the gold in the world won’t do you any good if the first guy with a spear or a meat cleaver comes along and takes it from you. Just saying.

[EmDot]

If it’s the collapse of society you’re worried about, I’d stock up on guns and ammo. All the gold in the world won’t do you any good if the first guy with a spear or a meat cleaver comes along and takes it from you. Just saying.

Did I sound worried? I'm sorry, I meant to sound disgusted with Beck for using the bombings for his own purpose (especially immediately after it occurred).

Take note of my location.

[bullmikey]

Did I sound worried? I'm sorry, I meant to sound disgusted with Beck for using the bombings for his own purpose (especially immediately after it occurred).

Take note of my location.

Beck is a media whore who pimps himself, and what's more, he doesn't even deliver the goods for the money.