With Gold over $1,800 Toz...

[Digga]

Anyone think it will go higher?

And with the price pegged to the USD, what are the chances of the GBP/USD getting stronger and wiping further gains?

Wouldn't normally ask, but I'm looking at everything that is liquid - anything that can be thrown overboard from current account - and wondering where to park it...

Also to discuss: http://live.bullionvault.com/front/index.html?ref=...

[Frankeh]

Damn, I'd literally have double my money if I listened to my nut job friend a few years ago. He claimed buying gold was a sure bet, but in the same sentence would be talking about aliens living on the dark side of the moon.

[Digga]

Frankeh said:

Damn, I'd literally have double my money if I listened to my nut job friend a few years ago. He claimed buying gold was a sure bet, but in the same sentence would be talking about aliens living on the dark side of the moon.

Difficult to make the call on your mate - whether he's a proper tin-foil-hat-wearing window-licker or not - because the first opinion was a 50:50 thing (head or tails) and in the case of the second, it all remains to be proved or disproved.

I think I'm the nut-job for selling gold at $900 IIRC a few years back and thinking that it had climbed as high as it woudl go...

[Rickeh]

It's a bubble that's going to burst massively IMO - just not yet. Too much uncertainty about European sovereign debt and growth prospects for western countries.

[Digga]

Rickeh said:

It's a bubble that's going to burst massively IMO - just not yet. Too much uncertainty about European sovereign debt and growth prospects for western countries.

I thought that when it berached $1,000...

But ask this; where else can people park large chunks of captial - and be able to get at them fast, if need be - until they figure out where all the rot is?

[Rickeh]

I think the market thinks it's pretty safe to be buying short term US treasury bonds now I remember seeing the yield went way down on them recently? I generally just spread bet and buy individual equities so not sure about the practical side of actually buying/selling them.

I see what you're saying though. If you look at a graph of the price of gold over time in the past 10 years it looks exponential! There must be a time where it becomes purely impractical to have gold priced at this level? Didn't they raise the minimum holding/deposit or something recently? Although clearly that's not stopped the price rising.

[OdramaSwimLaden]

Frankeh said:

Damn, I'd literally have double my money if I listened to my nut job friend a few years ago. He claimed buying gold was a sure bet, but in the same sentence would be talking about aliens living on the dark side of the moon.

Sadly in the same sentence Goldenboy was predicting it would hit $6000 in 18 months. Although he was partly right he was so wrong in so many ways he lost all creditability. Up or down was a 50/50 guess.....he guessed right.

[Rocksteadyeddie]

Gold is a massively overdone bubble...

We were discussing this morning whether we'll see $2000 today, or have to wait until next week. I am in the latter camp. As others have said where else to park your money. The trade is massively overcrowded and when the turn comes we'll see the mother of all corrections as people make for the exit.

[Fittster]

Rocksteadyeddie said:

Gold is a massively overdone bubble...

How are you judging the value of gold?

[Digga]

I think one of the drivers to gold may be baby-boomers, close to retirement, who have nothing to gain long term (because they simply are not planning on staying 'in' for much longer) but everything to lose short term.

ETA the ice cream van's just been onto the industrial estate and has solved the panic about my excess liquidity.

[Rocksteadyeddie]

Fittster said:

How are you judging the value of gold?

It's "worth" whatever the market price says its "worth"... at a point in time. If you're asking for a target price I would think $1000-1200 is more sensible than where we are now, but we could easily see double that first. Platinum is s decent benchmark, and I'd want to be long the spread in the medium term.

[Mr Whippy]

Digga said:

I think one of the drivers to gold may be baby-boomers, close to retirement, who have nothing to gain long term (because they simply are not planning on staying 'in' for much longer) but everything to lose short term.

ETA the ice cream van's just been onto the industrial estate and has solved the panic about my excess liquidity.

Hehe, I was reading about the baby boomer bubble the other day.

It read quite "tin-foil hat" but made some sense.

Toxic debt bubble, baby boomers leaving the markets and settling up, and a potential bubble in tangible assets (gold, land etc)

Any speculation now still seems like a 50:50 coin toss.

Dave

[Timmy35]

Rickeh said:

It's a bubble that's going to burst massively IMO - just not yet. Too much uncertainty about European sovereign debt and growth prospects for western countries.

Well according to the world gold council demand FELL by 17% last year, and since then prices have almost gone parabolic.

When demand is collapsing but prices keep rising faster and faster it is generally a bad sign.

[Deva Link]

Timmy35 said:

Well according to the world gold council demand FELL by 17% last year, and since then prices have almost gone parabolic.

I suppose demand for anything will fall as its price goes up.

[Welshbeef]

And our Oracle G Brown sold all our Gold reserves at a historically low $300 and even told the market he was going to dump tonnes onto the market.

[Frankeh]

Welshbeef said:

even told the market he was going to dump tonnes onto the market.

How was that even allowed to happen? How did he get away with it? How was he not fired instantly?

[chim]

I am one happy camper, having read the book "The coming Economic collapse-How can you thrive when the barrel price is $200 a barrel" in 2006 I bought a shed load of Gold.

Happy days

The book was also very good, excellent prediction on oil and many other things. Just seemed to make sense at the time and I bought in at around $620 an ounce. One of the best calls I have made investment wise, not sure when to bail out though, can afford to wait and see though and jump as it begins to drop.

[jonah35]

it could hit $2000 because as with oil when it first approached $100 there is always a trader that wants to push it over the edge!

[Digga]

Frankeh said:

Welshbeef said:

even told the market he was going to dump tonnes onto the market.

How was that even allowed to happen? How did he get away with it? How was he not fired instantly?

Been through this before and, much as I loathe to say it, Gordo didn;t quite make the fudge of things it is commonly beleived - if I understand correctly.

The version I read was that Rothchilds had a position on gold that threatened to finiosh them and, in order to enable them to buy at a price that would allow them off the hook, the gold was sold and (to achieve maximum drive-down on price) was also 'clumsily' telegraphed.

That's the story I read anyway. However, it still means he pissed-away the nation's assets to save a bank, long before Lehman's collapse.

[Timmy35]

Digga said:

Frankeh said:

Welshbeef said:

even told the market he was going to dump tonnes onto the market.

How was that even allowed to happen? How did he get away with it? How was he not fired instantly?

Been through this before and, much as I loathe to say it, Gordo didn;t quite make the fudge of things it is commonly beleived - if I understand correctly.

The version I read was that Rothchilds had a position on gold that threatened to finiosh them and, in order to enable them to buy at a price that would allow them off the hook, the gold was sold and (to achieve maximum drive-down on price) was also 'clumsily' telegraphed.

That's the story I read anyway. However, it still means he pissed-away the nation's assets to save a bank, long before Lehman's collapse.

I must say I don't believe that for a nano second. I never heard anything of that nature even as a rumour, and I worked in the city in commodities for 12 years.