So who is selling? and why?
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Have a look at the gold/oil ratios for many years Skol, there is a consistent pattern and a high correlation longer term. That ratio always heads back to about 16. If you were an extremely rich oil baron being paid for oil in US$, and this currency has undeniably dropped 10% in value in just the last 4 months, wouldn't you be smart to buy a very dense, stable and compact inflation-safe item with those spare US$? After you'd bought an ocean liner, a couple of jets, a few mansions of course.
Maybe the dollar's about to turn around. That won't do much for the POG. If it does it'll shake the goldbugs to their very foundations because I don't know how many times I've heard over the last couple of years that the dollar's dead or it's gonna be confetti. Thousands.
I doubt it.
One trader reckons buy the dollar, bin Laden's demise shows that the USA is still the most powerful and capable military, and the country with the most powerful military always has the reserve currency.
The FT says this is the time to buy the dollar.
the Dollar yeah that's going do well LOL most the guys I follow and a majority that I don't also are very negative towards the USD's future while the US Government give tax breaks to the rich and bailout or pay-off anyone that's mates with the people in power to the detriment of the not so free USA public that will have the burden of the ever increasing debt for generations to come..
There will still be a spare labour pool in USA by the end of 2012, if they add 300,000 jobs every month from now on. That's staggering.
With monetary policy there still on "easy", many expect gold's small drop so far to be a correction, rather than a change in the bullish long-term trend. At least the percentage drop was nowhere near as marked as for silver, which was to be expected. Siver had raced up in the last few weeks, still at a good gain for any medium-term investor. Certainly the US$ has picked up, but it was a very fast rise, still at a low level(74) compared to the last 6 months average, and things can change again, fast. We still see higher highs in gold, there on the chart.
Not what Incredible Charts says, see what I posted on the silver thread.
Is this the 'bull trap'?
Bad news .....The gold bubble is now the same size as the 1929 Wall St Stockmarket bubble.
Good news... Gold has to reach about us$7000+ to be the same size as the 1980 gold bubble.
Hmmm....Hands up anyone who still doesn't know how the 2008 GFC happened and who was to blame.
Hoops Quote..Those who invest in bubbles should wear earmuffs as the pop is deafening
http://i458.photobucket.com/albums/q...leschart-1.png
Hello Hoop, thanks for the chart. So gold isn't in 'bad' bubble territory yet? I wouldn't mind the gain from 492% to 2,276% or somewhere close. I don't feel threatened by the gold price yet, because many miners aren't making much profit anyway. Rising energy prices kill some of the gains. But they are looking at M&A to get to a more organised situation for their asset base. And until I see this chart changing, I'm going to keep looking at miners. Over 12 months the US$ has lost up to 17.5% of its value.
FYI:Hong Kong Mercantile Exchange's 1 Kilo Gold Contract To End Comex Gold Futures Trading (And "Bang The Close") Monopoly
http://www.zerohedge.com/article/hon...ding-and-bang-
Could be interesting?