Gold

[Skol]

Looks like the gold price will have to fall if it's gonna sell in India.

http://www.reuters.com/article/2011/...7B11IE20111202

[elZorro]

Looks like the gold price will have to fall if it's gonna sell in India.

www.reuters.com/article/2011/12/02/us-india-gold-idUSTRE7B11IE20111202

Skol, that article also said that gold is in a continuing bull trend..

Who am I? (It's more fun this way).

I think the world’s central banks rung a pretty loud bell today to buy precious metals…So we are increasing the global quantity of dollars in circulation, as a result the dollar is losing value. And I believe it’s going to lose a lot more value, not just against other fiat currencies, but against real money – gold and silver. And so I think investors should be buying. Those of you who have been on the sidelines, waiting for an opportunity to buy, I would not wait much longer, I would just buy. You have gold at around $1,700, silver around $32. I think these are good positions both to buy gold for the first time if you still haven’t bought, or to add to your positions if you already own. Also don’t overlook platinum…it is trading at quite a discount to gold; I don’t think that is going to last.

A lot of people think what is going on is a bailout for the euro zone. It is not. It’s a bailout for the banks on both sides of the Atlantic…I think this is a bank bailout ala QE2. This is not about economic growth, it’s about propping up insolvent financial institutions by creating inflation. People who really understand this dynamic will be buying gold.
The amazing thing is that the world is now easing when they barely tightened. That’s how vulnerable the global financial system is. They can’t even stand normal low interest rates; they have to be super low to keep this whole house of cards from imploding. It’s still going to implode. The people who understand the dynamics, they’re not buying dollars, they’re buying gold.
Now, gold and silver are up quite a bit today, but I think it’s just getting started. I think as people have more time to digest what all this means you’re going to see more buying coming into the precious metals market. Even if you look at the mining stocks – which are up pretty big today – if you look at the PE’s on these stocks, these are the lowest valuations in about ten years. What that shows me is that there is a lot of pessimism out there in the market. The professional investors still don’t know what’s going on. They still doubt this gold rally. That’s not a bubble, that’s a wall of worry that a bull market climbs.”
But I think a lot of people who have been questioning this market over the years are going to start believing in it. I think there is a lot of buying coming, and when that happens I think prices are going to move up in a very rapid way. So the key is to buy before that happens.

[Skol]

Gold's been going up for 11 years and "it's just getting started".

Does that make sense to you EZ? You're an educated man.

[elZorro]

Gold's been going up for 11 years and "it's just getting started".

Does that make sense to you EZ? You're an educated man.

Well, it must be a narrow education, but no, I don't quite agree with Peter Schiff's thoughts completely. I was partly waiting to hear your reaction..

However, if gold is charting the end of cheap oil, as we are being told, (have a look at the recent Peak Oil thread video) then until the world starts to make moves to properly address this, gold might just keep going. Moves might include the cancelling of those aircraft orders you mention. In Africa, the villages have power blackouts. They have diesel generators for backup, they just can't afford the fuel to run them.

[Skol]

Told you to buy TLS, up 16% in the last year + 10% DY = 26%.

Here's my theory: Equity markets will stage a rally, maybe a big one, the big gold punters and hedge funds will dump their gold to get in on it.

[elZorro]

Told you to buy TLS, up 16% in the last year + 10% DY = 26%.Here's my theory: Equity markets will stage a rally, maybe a big one, the big gold punters and hedge funds will dump their gold to get in on it.

Yep, interesting theory, would it just be a bear market rally though Skol? There are many more than Peter Schiff advising caution. I'm waiting for a goldmine to be announced (literally) for my bonanza, it's been a while waiting however. Of course I could be like Peter Schiff then, and say I was right all along. Maybe it'll be your turn first? TLS, interesting profit agenda.

Market Club still predicts gold to go 'much higher' in 2012 as inflation takes off worldwide. That sounds feasible.

GOLD (SPOT)
————-
With a Chart Analysis Score of -70, gold is moving into and emerging trend, however with our monthly Trade Triangle in a positive position we have a longer term bullish bias. We remain positive on this market longer term and expect we will see it move much higher in 2012 as inflation kicks in around the world. Long-term traders should remain positive for this precious metal. Intermediate term traders should be out of this market at the moment and on the sidelines waiting for a buy signal with the weekly Trade Triangle.
BIG PICTURE: Emerging Trend
Monthly trade triangles for Long-term trends = Bullish
weekly trade triangles for intermediate term trends = Bearish
daily trade triangles for short-term trends = Bearish

Combined Strength of Trend Score = -70
————-
HOW TO USE THE MARKETCLUB SCORING SYSTEM:
Score: 50 – 65 Trading Range
Score: 70 – 80 Emerging Trend
Score: 85 – 100 Strong Trend

[corran]

Here's my theory: Equity markets will stage a rally, maybe a big one, the big gold punters and hedge funds will dump their gold to get in on it.

It's interesting pondering what's going to happen eh Skol... personally I reckon the euro leaders won't be able to save the euro in it's current form and that's going to have massive (downward) repercussions in the markets around the world. I reckon gold will get hit too for a while and the USD will go up, but only temporarily. Interesting few weeks coming up.

[JBmurc]

Miners' stocks slip as gold price soars

From: Bloomberg
December 02, 201112:00AM

GOLDMINING stocks are trading at their cheapest level in at least nine years even though the industry's profits are estimated to almost double this year and bullion trades close to its historic high.

The benchmark NYSE Arca Gold BUGS Index, which includes Barrick Gold, Newmont Mining and AngloGold Ashanti, ended last week at 17 times earnings, the lowest since at least November 2002 and below a five-year average of 37 times.

Investors sold equities across the board as Europe's debt crisis soured the corporate profit outlook, and they are ignoring analyst projections for bullion and gold producers.

The gold index's 16 members will increase combined per-share earnings 94 per cent this year, according to Bloomberg estimates.

"When you look back in history, you will say this was a buying opportunity," said John Wong, a portfolio manager at CQS Group's New City Investment Managers in London and lead manager of the $US200 million ($195m) Golden Prospect Precious Metals, a fund holding gold and silver stocks. "It's like a coiled spring."

Gold equities have fallen 4.7 per cent this year, heading for the first annual decline since 2008. Gold reached a record $US1921.15 on September 6 and is set for an 11th annual gain.

"The market doesn't trust big spikes," Citigroup analyst Jon Bergtheil said.

"People will wait to see if gold holds above $1600 for a while."

Gold averaged about $US1706 an ounce in the third quarter, 39 per cent more than a year earlier, and is forecast to average $US1859 next year, according to a median estimate of 18 analysts.

Hedge fund manager David Einhorn said on November 1 that a "substantial disconnect has developed between the price of gold and the mining companies".

Mr Einhorn's Greenlight Capital Re cut holdings of the commodity in the third quarter and moved funds into the Market Vectors Gold Miners ETF, which tries to replicate the Arca Gold Miners Index of metal producers.

Bullion has more than doubled in price since the start of 2008, while gold stocks have advanced about 33 per cent.

Goldminers' earnings per share and per-share cashflow reached the highest levels in at least nine years in the third quarter.

"When earnings are reported, the market will be all goggle-eyed about how much cash is flowing into these companies and what their balance sheets look like," Mr Bergtheil said.

[elZorro]

Sounds fair enough JB. If I might be so bold, GEL and OGC are at cheap prices, just the local ones I'm watching. All hinges on the gold price, maybe after the Christmas rush we'll see something happening.

[CAM]

Stocking up....

http://www.stuff.co.nz/business/mone...e-gold-imports