That is the market consensus view & gold in USD would normally go down with a stronger dollar. However I think we are going to see an unusual event in that gold in AUD terms goes up with a lower AUD & higher gold combining. With the majority of QE being pumped into equities & the market being short gold, turning off the tap by the FED should see equities struggle & gold will benefit as a result by short covering as we are seeing now & the market eventually going speculatively long. Physical demand has been incredibly strong & will slowly turn the sentiment in gold imo.
Originally Posted by Aaron
I thought tapering was bad for gold as there is less chance QE will destroy the value of a dollar.
Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.
Perhaps Turkey, Argentina & I'm sure there will be others, let alone most or Europe might disagree with Skol. Japan's appetite for gold is also resurgent as a hedge against Abenomics.
Originally Posted by Bobcat.
You're like a broken record, Skol. It's obvious to the rest of us that Equities are entering a Bear market (except for precious metal diggers of course which will get a boost from the doom and gloom that comes with it). $10m tapering is nothing in the bigger scheme of things and so the remaining $65b/month bond buying will continue the devaluation of fiat currencies. That is, Gold and Silver benefit two fold...as evidenced by today's pivots around the Fed announcement and lift from 1260USD / 19.70USD.
Looking good for the ASX PMs today. OGC up 6% and TGZ up 12% in Toronto.
Tonight's regular bullish run may indeed take the price of gold well over 1270USD.
BC
Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.
If you can think of something positive for gold and I mean ANYTHING, let me know.
I might sound like a broken record, stocks have soared and are due for a correction, here's the evidence:
This is a chart of the S&P500 vs gold for 5 years. The S&P doesn't include dividends either.
The S&P Total return Index (incl. div) is up 236% in the last 5 years, gold is up 40%.
But again you're looking back, Skol - wisdom in hindsight achieves very little. To make money you need to also pick new trends going forward, and we can now see Gold and Silver this year heading onward and upward. That has been reinforced by market reaction to today's FOMC meeting.
BC
To foretell the future, one must first unlock the secrets of the past.
I wonder what that chart looks like over 10 years or 12 years? We can all be selective with our data!
Anything positive for gold.... Well how about record physical demand for one! Take the blinkers off Skol.
Its not a broken record, its more like the sound of fingernails down a chalk board.
Anyone who is so anti something cannot have good judgment, be it shares, currencies or precious metals. An open mind is a clear thinking mind.
Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.
Skol, the Chinese have been denied access to gold, something they have always have had an affinity for, for over 50 years. If you think the demand of 1.3Bln people & their government has been satisfied in 3-4 years then imo you are well off the mark. In percentage terms gold demand may ease as you would expect when as you say demand growth has been exponential, so instead of almost tripling in two years it may only go up 25-50%, however in tons this is massive. There is also pressure being applied to the Indian government to review their new gold duties. It's an election year in India & the gold duties rightly or wrongly are unpopular. If overturned it is easy to see Indian demand to post a new record this year.
Originally Posted by Skol
If you're referring to the demand in China, which I'm sure you are, it's exponential and symptomatic of a mania, utterly unsustainable.
Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.
If you can think of something positive for gold and I mean ANYTHING, let me know.
I might sound like a broken record, stocks have soared and are due for a correction, here's the evidence:
This is a chart of the S&P500 vs gold for 5 years. The S&P doesn't include dividends either.
The S&P Total return Index (incl. div) is up 236% in the last 5 years, gold is up 40%.
Something positive for gold --Your still slagging it
Of course no one knows for sure where gold will go--but in terms of being overbought--the share market is looking much more dangerous at this stage.
The FED will do its best to create magic but its a tough road when you dont have manipulation of interest rates to achieve goals--they're playing with one hand tied behind their back and because things are still on shaky ground ,odd ball things like small countries getting into trouble can have greater effects on the whole game (if it gets worse)
If you want to get an idea about gold--dont look at gold--look at the things that affect it--like the sharemarket and the availability of easy money. IMHO
Originally Posted by Aaron
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