Gold

[Skol]

http://seekingalpha.com/article/4023...old-and-silver

[JBmurc]

there is one group that benefits from the low interest rate environment—borrowers. This means the largest borrowers in the world, developed world governments, will be able to service their enormous amounts of debt more easily. This year alone, the U.S., Japan and Europe will roll over $8 trillion in federal debt.

http://www.kitco.com/ind/Holmes/holmes_feb212012.html

[Vtrader]

EWT 5-a
Nothing to be scared of, buy the next dip which will mark 1,2,3,4,5,a,b,c from my last EWT gold note. Upwards from there...
DYOR
V.

[elZorro]

EWT 5-a
Nothing to be scared of, buy the next dip which will mark 1,2,3,4,5,a,b,c from my last EWT gold note. Upwards from there...
DYOR
V.

OK Vtrader, will watch out to see if you are right. These people think it's a pullback and not the end of gold's bull run either.

http://economictimes.indiatimes.com/...w/12091782.cms

At least there's some ideas about what caused the gold selling panic this morning.

[Skol]

In the meantime EZ the S&P500 is 26% ahead of gold for the last 6 months, at what stage do you throw in the towel?

[elZorro]

In the meantime EZ the S&P500 is 26% ahead of gold for the last 6 months, at what stage do you throw in the towel?

You may be right about that figure, what was the story over the last few years - different time periods? You'll be pleased to know that my silver bar is now almost worth what I paid for it a few months ago, but I am taking a longer-term view..

In any case, for explosive results from gold, a well chosen explorer or new producer is the way to go. It's the choosing that's difficult.

[Skol]

Well the S&P is 30% ahead of the XGD for the last 6 months so good luck.

What would happen if we all sold our equities, bonds, cash, bank deposits, properties and cars and bought gold?

Billions of people would own gold and it would probably $100,000 an ounce, but there would be nothing to buy with it because the equity markets would collapse, there'd be no manufacturing, unemployment would be astronomic , it doesn't add up.

[elZorro]

Well the S&P is 30% ahead of the XGD for the last 6 months so good luck.

What would happen if we all sold our equities, bonds, cash, bank deposits, properties and cars and bought gold?

Billions of people would own gold and it would probably $100,000 an ounce, but there would be nothing to buy with it because the equity markets would collapse, there'd be no manufacturing, unemployment would be astronomic , it doesn't add up.

Interesting, I wonder what proportion of people own shares or bonds, not a lot I'd expect. You should not have brought up the subject of cars, Skol. If you plotted the value of almost any car against gold it would be a very sad comparison. I'm all for people owning productive assets, but second best is holding onto their capital. Over the last 10 years, gold has beaten cash in the bank, owning cars, most property, and most equities. It's not an investor's job to have cash sitting in the bank so it can be marked up to someone else for their investment.

[Skol]

Interesting, I wonder what proportion of people own shares or bonds, not a lot I'd expect. You should not have brought up the subject of cars, Skol. If you plotted the value of almost any car against gold it would be a very sad comparison. I'm all for people owning productive assets, but second best is holding onto their capital. Over the last 10 years, gold has beaten cash in the bank, owning cars, most property, and most equities. It's not an investor's job to have cash sitting in the bank so it can be marked up to someone else for their investment.

Over the last 10 years gold has done well indeed, but for the previous 20 years a Hillman Avenger would probably have been a better investment.

Nothing goes up forever, even my boring TLS shares have beaten gold by 10% in last 12 months.

[JBmurc]

Today legendary value investor, Jean-Marie Eveillard told King World News he believes central banks are desperate and they are intervening in the gold market. Eveillard, who oversees $50 billion at First Eagle Funds, had this to say about the situation, “Usually I don’t have much to say for bullion regarding day to day trading. But a move of $75 is somewhat striking. Central banks acknowledge they intervene in foreign exchange markets. They (central banks) sort of don’t exactly deny, but they are very quiet about the fact that obviously they also intervene in the gold market.”

Jean Marie Eveillard continues:

“For all I know that may be the case today (that central banks are intervening in the gold market). Whether the fact that it’s the last day of the month is important or not, I leave that to traders to explain, if there is even an explanation there.

I understand this morning that Mr. Bernanke said something to the effect that he didn’t see the point to having additional stimulus right now, although if necessary he would provide it....