Gold

[Lego_Man]

I just dont think it's in the final bubble phase yet. Think oil in 2008 with its 5-10% daily moves and absolute spike of a graph. We will get there though, as everything moves in cycles....and that's the time you'd want to be going balls-short.

[Skol]

LM,
If you know when it's at the top can you let the rest of us know too, then we can all be rich.

One commentator reckons if it breaks through the 34 week EMA it's 'look out below'.

[Timo]

Wrap your heads around this one ...http://fofoa.blogspot.com/2010/09/shoeshine-boy.html

[ENP]

Hi JB, Skol and others...

I watched these 2x Mike Maloney videos this morning and am quite confused.

http://www.richerdaddy.com/10-oil-mi...n-part-1-of-2/
http://www.richerdaddy.com/10-oil-mi...n-part-2-of-2/

He says that soybean, corn, wheat, oil etc are going to have DEFLATION

While gold/silver are going to have INFLATION

I thought they would both inflate or deflate in the same patterns? Why is oil and grains different to gold/silver?

Appreciate everyones thoughts on this. The videos are extremely valuable and I recommend you watch them.

[elZorro]

Hi ENP, I think we covered those videos further up the page. He's a powerful speaker. But in most of these conferences time is strictly limited, and he's been pushing this news for awhile.

Try this link, China's new policy is one reason why Gold is a different animal.

[inghamp]

Thanks a lot Timo. That is a really useful read. A lot to digest

[ENP]

Hi ENP, I think we covered those videos further up the page. He's a powerful speaker. But in most of these conferences time is strictly limited, and he's been pushing this news for awhile.

Try this link, China's new policy is one reason why Gold is a different animal.

So from that article I got that the average working class man in China is buying some gold coins to take home.

So that's why there isn't deflation in the price? Is that what you are saying?

[Skol]

Another contrarian signal, gold vending machines to be installed in the USA. A flash in the pan for sure.

Probably got a bit to go yet though.

http://blogs.wsj.com/marketbeat/2010...a-sell-signal/

[Skol]

Hi ENP, I think we covered those videos further up the page. He's a powerful speaker. But in most of these conferences time is strictly limited, and he's been pushing this news for awhile.

Try this link, China's new policy is one reason why Gold is a different animal.

Poverty stricken places like the Chinese countryside are notorious for pyramid and get-rich-quick schemes and gold will shortly become the latest get-rich-quick-scheme.
The average Chinese peasant hasn't studied the works of Ludwig Von Mises, he's buying gold because it's trendy thing to do and it will probably end badly.
Read this about the Albanian pyramid that engulfed two-thirds of the population.

http://www.imf.org/external/pubs/ft/.../03/jarvis.htm

[elZorro]

So from that article I got that the average working class man in China is buying some gold coins to take home.

So that's why there isn't deflation in the price? Is that what you are saying?

It's complex. Gold tends to try to hold its value against a basket of currencies, at the least. So if the US$ is under pressure (lowers its value) then the US$ value of gold has to go up. Check the Aussie value of gold, it has been less exciting.

On top of that, will there be buying pressure from more of the masses? Most likely, and this could very easily increase the shortage of available physical gold. Most of the gold already mined is held as jewelry (about 60%) and 25% is stored as bullion. Every human on the planet would have about 23g of gold (well under an ounce) if it were to be distributed equally. Of course that isn't the case, but for many, a decision to hold some gold where they didn't have much before, would have huge ramifications. Already wealthy Chinese and Saudi Arabian clients are apparently asking for their promised physical gold that they've invested in, to be supplied to them for storage, they're not happy with the paperwork only. That has caused some back-room juggling around the world, if the rumours are to be believed.