Posted by Chaotic1 on 14th of Jun 2009 at 09:06 pm
I read an article not so long ago intimating that gold could go
to $400 or even $200 before heading off to $2k. The reasoning
had to due with his anticipated malaise that will come to the
market. His belief is that all the folks who are going to go
long gold have already done so; therefore, there is not much
upside due to the lack of potential buyers.
Posted by hornsant on 15th of Jun 2009 at 05:03 am
Another way to look at gold is by using that oil/gold standard
10:1, being 10 Bs of oil = 1 Ounce of gold. It does not mean
that the mkt will ever be there but it gives you an idea about
oversold/overbought condition, both will tend to find
equilibrium and a price divergence between them will imply
that one or both will start a correction towards that 10:1
relation. Oil has risen from extreeme oversold condition of app 30$
a barrel to near 75$ and it seems to have toped, at the same time
gold has retreated from that near 1000$ mark...gold could come down
further towards the 800 print... will see.
Is that because everyone owns gold already, or because people
have stopped buying it? Neither of these is true. Gold and silver
interest surged immensely last year and continues to be quite
strong (interest-wise, that is), yet I know very few people who
actually own the stuff. So I don't think we can call the market
saturated yet.
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$400 gold
Posted by Chaotic1 on 14th of Jun 2009 at 09:06 pm
I read an article not so long ago intimating that gold could go to $400 or even $200 before heading off to $2k. The reasoning had to due with his anticipated malaise that will come to the market. His belief is that all the folks who are going to go long gold have already done so; therefore, there is not much upside due to the lack of potential buyers.
Does this seem possible, or even reasonable?
Huge Shorts
Posted by saturn6 on 15th of Jun 2009 at 05:15 am
I have a small long on Gold target the 1000 area. But then I am looking to short the heck out of it.
If the likes of GS and JPM want the price down I am happy to go along with them...
http://www.hardassetsinvestor.com/features-and-interviews/1604-bill-murphy-manipulation-of-the-gold-market.html
Another way to look at
Posted by hornsant on 15th of Jun 2009 at 05:03 am
Another way to look at gold is by using that oil/gold standard 10:1, being 10 Bs of oil = 1 Ounce of gold. It does not mean that the mkt will ever be there but it gives you an idea about oversold/overbought condition, both will tend to find equilibrium and a price divergence between them will imply that one or both will start a correction towards that 10:1 relation. Oil has risen from extreeme oversold condition of app 30$ a barrel to near 75$ and it seems to have toped, at the same time gold has retreated from that near 1000$ mark...gold could come down further towards the 800 print... will see.
Is that because everyone owns
Posted by user32 on 14th of Jun 2009 at 09:25 pm
Is that because everyone owns gold already, or because people have stopped buying it? Neither of these is true. Gold and silver interest surged immensely last year and continues to be quite strong (interest-wise, that is), yet I know very few people who actually own the stuff. So I don't think we can call the market saturated yet.