Gold

[Skol]

Actually there's very little around here made in China, maybe an iPhone or other electronic products, but US companies are bringing their production home after major quality failures.

There's books everywhere that predict the end of days, but it never happens, punters buy gold thinking the worst is going to happen and all they've done for the last 2 years is lose money, and silver ................ say no more.

Hyperinflation LOL how long have we been hearing that one? The goldbugs have been prediciting a hyperinflation-ravaged world for years, what a joke, they really do live on another planet.

[JBmurc]

Some great moves up in Gold shares again today my biggest PM investment PGI has really turn round from low 7's to decent sellers now 10c+ ....25%+ return not bad for under a month hold....

[Daytr]

Meanwhile Skol, gold has jumped 1.8% this morning & is now $140 off the lows. There is very good reason now to think gold has put in a bottom. I am aiming for circa $1450 USD gold & around A$1600 gold which will make my gold producers very profitable & that's all I care about! End of world no. However a tangible value of all things? Definitely!

Actually there's very little around here made in China, maybe an iPhone or other electronic products, but US companies are bringing their production home after major quality failures.

There's books everywhere that predict the end of days, but it never happens, punters buy gold thinking the worst is going to happen and all they've done for the last 2 years is lose money, and silver ................ say no more.

Hyperinflation LOL how long have we been hearing that one? The goldbugs have been prediciting a hyperinflation-ravaged world for years, what a joke, they really do live on another planet.

[slimwin]

Skol, I read an article in the economist about manufacturing going back to the states. They believed it was due to an increase in Chinese wages making it viable for an automated workforce to compete. My uncle, a manager at Husqvana in Sweden,mentioned quality was only an issue if you don't provide adequate quality control. The same as everywhere really.

[Daytr]

There is some evidence that manufacturing in the US is expanding. However the numbers of what is imported vs made in the good ol' USA are still dismal, pretty much like everywhere in the Western World. Its not only China but Mexico that is a significant low cost manufacturer among others. Bangladesh is also taking some of the manufacturing especially in textiles & fabrics business away from China. Similar to what China did to Korea & what they did to Japan before them..

Skol, I read an article in the economist about manufacturing going back to the states. They believed it was due to an increase in Chinese wages making it viable for an automated workforce to compete. My uncle, a manager at Husqvana in Sweden,mentioned quality was only an issue if you don't provide adequate quality control. The same as everywhere really.

[JBmurc]

Gold shorts getting crushed ...LOL burn baby burn

Gold Bulls Bet Right as Prices Rally Most Since ’11: Commodities
By Debarati Roy - Jul 22, 2013 4:47 PM GMT+1200


Hedge funds raised bets on a gold rally before prices capped the biggest two-week gain in 20 months as Federal Reserve Chairman Ben S. Bernanke damped speculation that a cut in stimulus is imminent.
Speculators increased their net-long position by 56 percent to 55,535 futures and options by July 16, the highest since June 4, U.S. Commodity Futures Trading Commission data show. Short contracts fell the most since November after reaching a record the previous week. Net-bullish wagers across 18 U.S.-traded commodities jumped 28 percent, the biggest gain since March.

Gold surged 6.7 percent in two weeks, the most since November 2011, as Bernanke signaled that decreases to bond purchases aren’t imminent. It’s “way too early to make any judgment” as to whether the Fed will start winding down its stimulus program in September, he said while testifying before the Senate July 18. Bullion fell into a bear market in April as some investors lost faith in the metal as store of value.
“We are seeing some support for gold as Bernanke’s statements tell us that the Fed wants to see a visible improvement in economic conditions before they begin tapering,” said Michael Cuggino, who manages $12 billion of assets at Permanent Portfolio (PRPFX) Family of Funds Inc. in San Francisco. “The longer-term reasons for owning gold, like capital preservation, remain as easy money will continue to flow into the system.”

http://www.bloomberg.com/news/2013-0...mmodities.html

[JBmurc]

follow the momentum lol. wonder how long this will last. once QE is back on the block for an axing, she's going down again. right now, I'm in for a little over exuberant rallying

Fact is they can't axe Q.E ..if they do...debt rates will increase next minute many of the western debt laden nations will find it hard to even pay the interest on the debts...

Currently the short side V's the long has never been more out of wack (12.3yr high) the massive once in a life time smash down in the gold/silver price created a massive short squeeze i.e-you had a huge amount of Gold bears jumping on board the Short train ...now the train has been put back on the Bull trend track ...I wouldn't be surprised to see one of the biggest moves north in the history of PM over the short term as shorter fight to take profits and in time save losing money...as I stated awhile ago commercial longs had increased while retail shorts hit records i.e big money gets out while small timers get in late

[peat]

gold is quite easy to play

Attachment 4664
I just cant resist givin you some stick at this point moosie

[JBmurc]

yes, shorts have to be covered, and there will be a huge upturn short term due to this. but that is not a solid long term bet for gold. and the idea that QE will never end is very naive JB. gold is quite easy to play as long as you read the charts, follow the momentum and dont get emotional about it!

Well your be a billionaire in no time ..moose....

[Skol]

Sell the present rally. From CNBC>

By that standard gold doesn't do as well. Since 1940 adjusted for inflation the only period over which gold has outperformed stocks is 2000 - 2010; and that lead is slipping fast. History suggests gold is extremely volatile in shorter terms but dramatically lags U.S. equities for the truly committed gold enthusiasts.

Those who quibble with that analysis, parsing the numbers to maximize the apparent returns of gold versus stocks are missing the point. Gold has worked over shorter periods as a speculative vehicle but the die hard goldbugs have seen minimal returns at best and dramatically underperformed stocks.