Gold

[Skol]

EZ,

What does mining investment have to do with the gold price?

[Skol]

Another bad day coming up for gold shares.

HUI -2.5%
GDX -2.45%
GDXJ -2.87%

[elZorro]

EZ,

What does mining investment have to do with the gold price?

Supply and demand? If hardly any supply is available below US$1400 an ounce within say 2-3 years, the price will have to go up, if there is a reasonable demand. Miners will quickly run out of cashflow, and investors, if the price drops away too much. In fact if you look at big goldmining company shareprices, they will literally follow the US$gold price all day when trading. Investment in this sector pulls away fast when the PoG drops. You argue that the cheapest mines will carry on, the others will close up, problem solved. Except that this would place more pressure on all the gold above ground.

There have been some incredible correlations between the gold price and other factors shown on this thread. Gold is strongly linked to the oil price, the inverse of the US$ basket value, and even more so to the amount of foreign investment in US bonds. So the shorters can have their fun, make their millions, while the sharemarket puts on an act of general recovery. Some are making money, sure, but how much of it is due to the extra trillions sloshing around looking for a productive home?

http://www.ino.com/blog/2013/05/gold...f-the-week-36/

[Skol]

The mines will close down, it's that simple. There'll be no demand if the price keeps falling, owning gold at the moment is a bit like having leprosy, if it gets to $1,000, no one on earth will want it and the price will keep plunging and loads of gold will be out there for anyone who feels they need it.

Too bad about investors, they're already in the Schiff, $1,000 gold will just bankrupt a few more, money's coming out of non-productive assets like gold and silver into the stockmarket.

I'd love $1 for every time I've seen posted on the internet, 'the bottom's in'. lol

There's no relationship between the cost of production and the gold price. It's like this strange idea that goldbugs have about real gold and 'paper' gold-there's no difference, one is more liquid and easier to purchase and dispose of than the other.

[skid]

Skid,
----------------------
Skol i do own some gold.Not a truckload but some- prices I paid range from $30-$500 /oz for it so yes I have owned it for some time and even with gold at $2000/oz havent sold.[It is my insurance against American stupidity.Which is not confined to the Bushes
----------------------

Not selling it at $1,900 was a mistake, because it's not going back there any time soon. The world is recovering, all is well, this century won't be the Chinese century, it's probably going to be the American century the way things are going in China.

It was'nt me who said that Skol--your starting to sound like your favorite president.
BUT I do agree with what he is saying.
You just dont get the concept of having a small amount of Gold as insurance ,just in case the unthinkable happens.
Your to busy trying to make money in the short term.--some say that is a bit reckless. All will say its reckless if it happens.
If it doesnt ,well we haven't made quite as much money,but our family knows we were looking out for them nevertheless.

[skid]

[QUOTE=Skol;406416]I've been drawing my conclusions about gold for years, it's on the 'skids'. lol

Up to more of that Skollduggery are we?

[Skol]

Stocks off to the races today while gold's down to $1426.

HUi -1.23%
GDX -1%
GDXJ -1.26%

[Skol]

Dip back down to $150 circa 2009 would be a great buying opportunity for HUI eh Skol?

Could be, that'll be $700 gold, sounds about right.

[Daytr]

Hi All, just joined after being on HC for a number f years but as now based in NZ thought I may as well sign in here as well & I see Skol posts here as well so I'm sure there will be plenty of banter. I for one am bullish gold medium to long term, however short term it could go lower as the money printers keep inflating the party balloons in the equity markets that will eventually burst & it will be very ugly indeed. My floor gold is around $1250 where the marginal cost of production kicks in, not sure if we will get there or not but can't see it much lower, alternatively I do see it a lot higher in the coming years. Now for transparency reasons I should mentioned that I have traded gold for 15 years for banks & have now moved back to NZ to set up a Australian Equity Resources based fund mostly concentrating on gold stocks. So you may think I am talking my book, but its in reality what I believe & am certainly no gold bug. Anyway if you have any interest in looking at the fund, give me a shout. Cheers Daytr

[Skol]

XGD down 2.7% today, now withing striking distance of it's lowest level since 2005. If it falls 11% from here could be a serious correction - downwards of course.