This may sound a bit naive, but if the two stories below are
true, why has the price of gold tumbled so hard? Does the
paper market really dominate the physical
market?
Please don't tell me too many weak hands owned it or that
it was over-subscribed. Nothing can be further from the
truth. I can count on one hand the number of people I know
who EVER bought into the idea of owning precious metals...and I
suspect most everyone on this website can say much the
same. And, the few people I do know who owned gold have sold
none. ..and I suspect that much the same elsewhere.
Posted by jcomptonod on 18th of Apr 2013 at 09:50 am
This isn't a great answer and you may totally disagree ... but
when we were all watching gold moving parabolic to 1800 it seemed
pretty obvious what was next to come. When these things end-
they can end badly and it takes a while to find an equilibrium or
fair price and both extremes in price can be tested during the
process. Our job is not to care why they do what they do,
only to try to follow what is really happening and ignore the
noise.
agree - too many folks focus on news articles, and especially
conspiracies in gold - just focus on the charts and price action
and TA - you can't get a trigger for a buy or sell signal on that
stuff, but with TA and charts you can and that's all that matters.
Like if there is a conspiracy from the world governments to
short gold, or there isn't any gold in Fort Knox, etc, how does
that give me a buy or sell trigger an help with timing my entries?
It doesn't, it's just noise and can actually hurt by clouding
my judgement and giving me a bias where I would ignore what is
right in front of me, which is the chart!
It's a process and will take time to play out but if this keeps
up there will be a magical 'fail to deliver' moment in these mkts
and the squeeze will be on and gold will scream higher...but tough
to time.
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Demand for physical gold is frenzied....
Posted by RichieD on 18th of Apr 2013 at 08:50 am
This may sound a bit naive, but if the two stories below are true, why has the price of gold tumbled so hard? Does the paper market really dominate the physical market?
Please don't tell me too many weak hands owned it or that it was over-subscribed. Nothing can be further from the truth. I can count on one hand the number of people I know who EVER bought into the idea of owning precious metals...and I suspect most everyone on this website can say much the same. And, the few people I do know who owned gold have sold none. ..and I suspect that much the same elsewhere.
Is it simply a rigged game?
http://www.zerohedge.com/news/2013-04-17/gold-buying-frenzy-continues-china-japan-and-australia-scramble-physical
I did a world asset
Posted by steveo on 18th of Apr 2013 at 02:18 pm
I did a world asset summary in Aug 2012, PM's physical around 8.5T
http://oahutrading.blogspot.com/2012/08/summary-of-all-money-in-world.html
I heard that "paper gold" was worth around 55T, so yes, paper could trump the physical, a drop of over 10% will pop most peoples stops.
Gov has strong interest in not seeing this alternate currency being respected, and in fact being feared as "too volatile"
agreed rigged game with strong financial interest in mind.
But I did look at my stack on Monday....hey, it was same size as last week!
This isn't a great answer
Posted by jcomptonod on 18th of Apr 2013 at 09:50 am
This isn't a great answer and you may totally disagree ... but when we were all watching gold moving parabolic to 1800 it seemed pretty obvious what was next to come. When these things end- they can end badly and it takes a while to find an equilibrium or fair price and both extremes in price can be tested during the process. Our job is not to care why they do what they do, only to try to follow what is really happening and ignore the noise.
agree - too many folks
Posted by matt on 18th of Apr 2013 at 09:58 am
agree - too many folks focus on news articles, and especially conspiracies in gold - just focus on the charts and price action and TA - you can't get a trigger for a buy or sell signal on that stuff, but with TA and charts you can and that's all that matters. Like if there is a conspiracy from the world governments to short gold, or there isn't any gold in Fort Knox, etc, how does that give me a buy or sell trigger an help with timing my entries? It doesn't, it's just noise and can actually hurt by clouding my judgement and giving me a bias where I would ignore what is right in front of me, which is the chart!
Title: Physical vs paper It's a
Posted by stockus on 18th of Apr 2013 at 09:37 am
It's a process and will take time to play out but if this keeps up there will be a magical 'fail to deliver' moment in these mkts and the squeeze will be on and gold will scream higher...but tough to time.