Gold Tops $1080 Today

[alan2102]

http://www.321gold.com/editorials/thomson_s/thomson_s_110409.html

"the tactics for traders and investors are the same. Wait. Don't join all the idiots madly buying this price strength. If you failed to buy at 680, 905, and other key lows, don't buy now. Now you say, "Stewart, I'm a human being, I just gotta get in on this. I'm like a drug addict looking at this strength, I can't sit here and watch, I need a fix!" Well, slow down and think about this: Gold's move now, will lead many other gold-related items higher very soon. Gold's blood relatives, so to speak. Some of these items are trading at rock bottom low prices. Even within the gold sector, vast numbers of gold stocks themselves are trading at low prices, but less and less so. Focus on what is low, not on what is high, on the buy side."

[jcs44]

Gold at $1099.00 so far in overnight trading. $1 to go before breaking $1100...

[metaforge]

"the tactics for traders and investors are the same. Wait. Don't join all the idiots madly buying this price strength. If you failed to buy at 680, 905, and other key lows, don't buy now. Now you say, "Stewart, I'm a human being, I just gotta get in on this. I'm like a drug addict looking at this strength, I can't sit here and watch, I need a fix!"

Sort of implies getting into gold with the aim of making money, which I'm sure many people do.  From my current point of view, getting into gold/silver is more about trading in some fiat dollars before they become worthless.  Hedging.  Wouldn't ever plan to convert back.  So, personally, I'm not too concerned with timing the gold market.

[gin]

Did gold really go up 7.70?
In real terms gold remained unchanged, but the weaker US Dollar caused the increase in price.
Price Change due to Weakening of US Dollar +7.70.. Change in terms of Non-$USD Currencies 0.00

[cygnus]

"the tactics for traders and investors are the same. Wait. Don't join all the idiots madly buying this price strength. If you failed to buy at 680, 905, and other key lows, don't buy now. Now you say, "Stewart, I'm a human being, I just gotta get in on this. I'm like a drug addict looking at this strength, I can't sit here and watch, I need a fix!"

Sort of implies getting into gold with the aim of making money, which I'm sure many people do.  From my current point of view, getting into gold/silver is more about trading in some fiat dollars before they become worthless.  Hedging.  Wouldn't ever plan to convert back.  So, personally, I'm not too concerned with timing the gold market.

My feelings exactly.  My PMs are not for "investments" - they are insurance.  So I don't care if they go up or down in the short term - my outlook is for the long term.  And if I never need to cash them in, fine - I'll pass them on to the kids.  They will probably need the security far more than I will.  

[cz]

"the tactics for traders and investors are the same. Wait. Don't join all the idiots madly buying this price strength. If you failed to buy at 680, 905, and other key lows, don't buy now. Now you say, "Stewart, I'm a human being, I just gotta get in on this. I'm like a drug addict looking at this strength, I can't sit here and watch, I need a fix!"

Sort of implies getting into gold with the aim of making money, which I'm sure many people do.  From my current point of view, getting into gold/silver is more about trading in some fiat dollars before they become worthless.  Hedging.  Wouldn't ever plan to convert back.  So, personally, I'm not too concerned with timing the gold market.

Well, the eventual idea is to "convert back" at some point - to *something* - although it may be "converting back" to seeds, food, tools, etc.  But they are more "an insurance policy" than an investment - something you *hope* you don't need, but when shit happens...

But I agree, not buying to "make money" - in fact I'm willing to bet when TSHTF even gold will be worth "less" (in terms of tangible goods you can buy with it compared to today), just won't take a beating like a fiat paper dollar will.

And the 2010 Year of the Tiger is a beautiful coin.   I'm kinda doing it as a "collector hobby" too, not just buying all gold Buffalo's or Eagles or something.  (I think the Eagle & the Tiger put the Buffalo to shame artistically).

[DoomOrBust]

Must read article, absolutely outstanding in explaning the recent spot price.

http://www.taipanpublishinggroup.com/taipan-daily-022409.html

Bluffing Into the Nuts

We’ll close with a quick poker analogy.

In No Limit Texas Hold ‘Em, to hold “the nuts” means you can’t be beaten – that your hole cards in combination with the board give you the best possible hand.

Needless to say, it is useless to bluff a player who is holding the nuts. Why would they fold? They know they have the best hand. If you raise such a player, they will happily call... or better yet shove their own stack in the middle, a reraise to put you all-in.

If the Fed or the IMF were to dump gold onto the market in this environment, I believe it would be the poker equivalent of bluffing into the nuts. I don’t think the powers that be are that dumb.

But even if they were, what would happen? If they tried to increase the gold supply discreetly, the central banks and institutional holders who are quietly accumulating bullion would simply pick up the pace a little.

If they tried to talk down gold in the open market, blathering about how they planned to sell a huge chunk, gold might take a sizable short-term hit... but then it would bounce back, and then what they do?

[powerDown]

What would happen if the sale were voided and delivery was canceled ? Is the bullion being delivered to India, or is it going to be "stored" on their behalf? FDIC insures some Rupee investments if I recall correctly.

[cz]

What would happen if the sale were voided and delivery was canceled ? Is the bullion being delivered to India, or is it going to be "stored" on their behalf? FDIC insures some Rupee investments if I recall correctly.

My opinion, anyone who *doesnt* take physical delivery of their gold, especially given the lies and manipulation going on by our (& probably other) governments, would be stupid.

[anarchyale]

Started up right out the gate. I know TPTB don't want another resistance point broken, but I gotta think closing over $1100 by next week if not tomorrow.

I have to say though, it makes me a bit nervous about what it might mean overall. That, and I wish it would snap back below $1,000 for a minute so I could buy another ounce or two.

Will the new floor be $900? $1,000?

[Dangime]

Last ride we went from $1000 to $750. -25% from 1100 would be...$825. Its possible, particularly if everything else is going down faster.

[Ganesh Baba]

Last ride we went from $1000 to $750. -25% from 1100 would be...$825. Its possible, particularly if everything else is going down faster.

I really hope that happens. But I am afraid it won't, because falling dollar ensures higher gold, general commodity and stock prices.