Gold

[Skol]

I didn't put a link up EZ, because the rumour that the Chinese are buying gold is rumour, not fact. The Chinese central bank hasn't increased its gold for years but the goldbugs will tell you that they are 'secretly' adding to their hoard.

Central Banksters have been the biggest losers of the lot, buying tonnes of gold at exorbitant prices, and the goldbugs thought it would be a good idea to emulate them, only it backfired.

Google 'John Paulson loses $1billion in 2 days' for a bit of entertainment.

[elZorro]

I did that, and I guess he hasn't 'lost' the money until he sells the shares. He's still positive overall though.

Paulson did, however, get into gold shares when the commodity was selling at $950 an ounce in April 2009. Gold futures due for delivery in June closed yesterday at $1,361.10. That means he’s still up for the lifetime of his investment, despite the prodigious losses in the last two days.

[Skol]

Paulson owns lots of gold stocks which have been pummelled. The $1b he lost in the last 2 days is in addition to the funds 28% decline this year and 25% last year.

When Paulson throws in the towel, that could be the final nail in the gold coffin.

[elZorro]

Paulson's gold stocks will have recovered a bit in the last few days though. More about the cause of the gold "shock and awe".

http://zeenews.india.com/business/bu...wgc_74510.html

[JBmurc]

Paulson owns lots of gold stocks which have been pummelled. The $1b he lost in the last 2 days is in addition to the funds 28% decline this year and 25% last year.

When Paulson throws in the towel, that could be the final nail in the gold coffin.

Only gold stock I brought PGI (when gold was in high 1400's) is higher than when I brought it @ 9.3c paid 9.1c looks like the gold hedge for the first three years is keeping the price solid from the fear....but I see so many others have been smashed

[elZorro]

Only gold stock I brought PGI (when gold was in high 1400's) is higher than when I brought it @ 9.3c paid 9.1c looks like the gold hedge for the first three years is keeping the price solid from the fear....but I see so many others have been smashed

I think you're right JB. More about the rigged gold price, predicts what happened early this week too. http://www.marketoracle.co.uk/Article39970.html

[JBmurc]

I think you're right JB. More about the rigged gold price, predicts what happened early this week too. http://www.marketoracle.co.uk/Article39970.html

Yes I think the way forward for much higher prices esp. silver will come about not through the paper system of value but the fact of investor's not been able to buy real physical bullion anywhere near spot prices or even the major users-- Panasonic,Apple,GE,Samsung etc......will end up fighting over less production to secure the silver they demand .....production/demand for decades has met thanks to a huge amount of recycling ...the days of massive silver holdings is gone..the market is much tighter these days2

As for Gold it's all going depend on real sentiment from the buyers of phys V's the paper sellers .....as 95% of Gold is held and not used up in industry(like silver) It's movement come from mankinds belief in it's value and back up with underling costs to extract and a history that even out dates the WHEEL ....we all remember browns bottom when many seen gold as a relic .next come a major bull trend..Some say the bubbles burst I find that hard to believe when 99% people worldwide never gave a rats about Gold or silver ....like I've said before the most interest I've seen from the ASX market in Gold Silver producers/explorers was way back 05/06 ($500-$600 gold)we did have another smaller bull trend in 09/10 but these days it's about as bad as it gets in the sector ...

[elZorro]

Terry Hall has a great article about the gold price and reasons for the fall. Posted elsewhere by Toasty.

http://www.stuff.co.nz/business/opin...rky-in-markets

[stoploss]

Terry Hall has a great article about the gold price and reasons for the fall. Posted elsewhere by Toasty.

http://www.stuff.co.nz/business/opin...rky-in-markets

Whats so great about it, why can't these producers hedge the gold price by selling futures contracts ??? Also Terry talks of manipulation...pretty harsh word in todays markets , any proof take it to the regulators ......

[elZorro]

Whats so great about it, why can't these producers hedge the gold price by selling futures contracts ??? Also Terry talks of manipulation...pretty harsh word in todays markets , any proof take it to the regulators ......

I don't think there's much doubt about there being some manipulation. These were paper trades, and it's easy to set up a shorting contract to make the most of some negative noises about gold that had surfaced in the week previously. But buying at the new lower prices has been strong.