Gold

[Daytr]

Malca-Amit Opens China's Largest Private Vault. Room for 2,000 tons of gold.
That's a lot of gold!

http://www.diamonds.net/news/NewsIte...rticleID=45275

[Skol]

Malca-Amit Opens China's Largest Private Vault. Room for 2,000 tons of gold.
That's a lot of gold!

http://www.diamonds.net/news/NewsIte...rticleID=45275

They're opening up vaults everywhere Daytr, more vaults than there is gold.
Gold price steady, XGD down 3.35%.

[elZorro]

Gold demand is evaporating which is why the price is dropping, so while gold production soars, gold demand declines.

More production + less demand = gold price continuing to fall.

I had a good look at the pages on the World Gold Council website. It shows increasing interest in gold jewellery and electronic component use from Eastern countries, not a falling trend there at all. ETFs in the West are still selling, but this has slowed. Isn't George Soros buying gold again?

[Daytr]

Soros is certainly buying gold stocks, not sure about gold itself.
Its ridiculous to say demand is evaporating. China has gone from buying 400+ tons in 2011 to what will be over 1k tons this year.
ETF selling is previous investment demand coming back on the market as supply & it is slowing & is finite. IMO it is likely to turn net buyer within months.

[Skol]

Soros is certainly buying gold stocks, not sure about gold itself.
Its ridiculous to say demand is evaporating. China has gone from buying 400+ tons in 2011 to what will be over 1k tons this year.
ETF selling is previous investment demand coming back on the market as supply & it is slowing & is finite. IMO it is likely to turn net buyer within months.

I would take this information with a grain of salt the same as I would anything Daytr says, who enjoys talking his books. I can't find anything about Soros buying except on goldbug sites.

If NCM continues its implosion we could see some historic lows soon.

[Daytr]

I just completed the latest Barclay's Global Macro survey.
It gives you the results at that point in time at the end.
A couple of things I found interesting.
Equities by far was picked as to have the best return over the next 3 months, almost a whopping 60%.
The biggest risk to market performance is the removal of stimulus at 42%. Next closest was. A substantial deterioration in the pace of developed markets growth at 19%
Deflation over inflation was also seen as most likely 63% to 36%.
What this is telling me is that the market still believes equities will run much higher (possibly) but only if QE stays in place. Another words it is QE that is propping up the equity markets.
Even though the market considers deflation a much more likely risk, they still think equity markets should go higher.

[Bobcat.]

Historically, there is normally an Equity market correction late Sept/Oct due to corporate earnings uncertainty, tax factors, etc, and then a bullish run through Christmas before falling away early/mid Jan, and it appears that most pundits are expecting the same this year...but I would not be surprised if this doesn't happen this year.

Yes, corporate earnings have been good (off the back of artifically depressed interest rates and lack of inflation) but...
1. The US Debt ceiling negotiations are a spanner in the works, and I expect before they formally get underway in Jan, the markets will begin to factor in a pessimistic outcome (once burnt, twice shy).

2. Tapering has been regarded as a negative for both Equity markets and precious metals, however as that again becomes a possibility/fear, it's quite possible that investors will jump from Equities into Gold & Silver, etc. The prospect of tapering is not having the negative impact on Gold it once had.

3. The USA Government tonight reports its Employment Cost Index (i.e. the price that businesses and Government pay for civilian labour). Also, FOMC member Dudley and Bernanke speak tomorrow (4am and 1pm NZST) which could also influence both Equity and PM markets.

4. After cracking 16000 on the DJIA index and 1800 on the S&P500 index today, both have fallen away sharply in late afternoon trading. There is clearly a psychological impact here in that reaching these levels are making investors more cautious, and many are taking profit. Where will they invest before Christmas - still in equities? I doubt it. Bonds - not likely. PMs - probably.

5. The bullish run on Equities this month has taken indexes to new all-time highs, and this has dragged down the price of Gold and Silver but not to new lows for 2013. The price of Gold has not revisited July's low of 1190USD and today did not even drop to last week's low of 1260USD. It's holding up OK in spite of flood of cash (and credit) into Equities. Overnight, it bounced off 1270USD (new support) to trade (as I type this) at 1274USD. Call it wishful thinking (I don't believe it is) but IMO, the PoG could easily rise this week to test its Bollinger Band mid range and 50Day Moving Average prices tracking in the vicinity of 1300USD. Any break through that level would be bullish.

Meanwhile, we await a reality check on the Equity markets. The sentiment demonstrated over the past 3 hours on the NYSE could be the beginning of that correction. If not, then the madness continues, but so does the likelihood and momentum of a mad rush to PMs in January.

http://www.bloomberg.com/quote/SPX:IND

[skid]

I would take this information with a grain of salt the same as I would anything Daytr says, who enjoys talking his books. I can't find anything about Soros buying except on goldbug sites.

If NCM continues its implosion we could see some historic lows soon.

I seem to remember your biggest criticism of gold was its parabolic rise -now your talking historical lows.
So are you actually capable of recommending to buy in at that time?--and what was that you were saying about a grain of salt

[Daytr]

I believe the saying is 'a pinch of salt' &' a grain of sand'. Skol not only mixes up his claims on most things, he also mixes his metaphors! Sorry couldn't resist!

[Skol]

I believe the saying is 'a pinch of salt' &' a grain of sand'. Skol not only mixes up his claims on most things, he also mixes his metaphors! Sorry couldn't resist!

Wrong again, like your exhortations to your herd to buy a useless yellow metal. Small things amuse small minds. Are your long-suffering customers getting impatient yet, or are you fudging the numbers, like your assertion that you made 100% in 3 months.

http://en.wikipedia.org/wiki/Grain_of_salt