Is Barrick Responsible for $1,000 Gold? 22 comments
an article to
-
Font Size:
-
Print
- TweetThis
Bespoke recently asked the question: Did Barrick jinx gold again?
Now we have the answer and it doesn't look pretty. Barrick's (ABX) de-hedging program may have actually driven up the gold price with its buying, according to this report [emphasis mine]:
Dehedging by the world's largest gold producer, Barrick Gold Corp., has been the driving force behind gold's move above $1,000 a troy ounce this week, a price level analysts say is unsustainable.
Barrick said late Tuesday that it will close its gold hedges at a total cost of $1.9 billion over the next 12-months...
"We have more buying to do," the Barrick spokesman said.
India's gold market, which is one of the largest sources of physical gold demand, is showing signs of lukewarm demand. What's more, I posted a few days ago that the US bond market could be poised for a rally. Could this rally in gold be the final capitulation of the bond bears (and conversely the gold bulls)?
I remain a long-term commodity bull, but nothing goes straight up. For the gold bugs who want to send me hate mail, I refer you to this.
Related Articles
|
-
The Seeking Alpha 100
See allThe top 100 stock
market authors
selected for publication
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largestSee all
increase in followers
in the last 7 days
Fastest Climbers » -
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most active
Instabloggers.-
1
David Fry
-
2
TraderMark
-
3
Don Dion
-
4
Cliff Wachtel
-
5
Joseph L. Sha...
Top Instabloggers » -
1
-
Top StockTalkers
TopSee all
StockTalkers.
Top StockTalkers »
To do this, huge amount of gold are sold over short period of time.
$1000.00/Ounce could become $900.00/ounce shortly.
If the governments do not jump in, then we are going to $1250.00
My bet is the governments have a vested interest in take the market down
Personally, I believe gold looks very dicey here. Sentiment, in metals is at very high levels, especially in silver, while running into significant overhead resistance. Meanwhile sentiment in the dollar is at the extreme low levels requisite for a reversal, while running into a zone of support. Caution is warranted.
thank you.
On Sep 10 10:20 AM buy all dips wrote:
> This is still a dip buy market even though the economy sucks. Market
> will close green. When it's time 2 sell I will say so.
>
> good articles: urlshort1.blogspot.com//
On Sep 10 11:46 AM The EconomicJoker wrote:
> There is never a bad time to own gold.
Another driver is pressure by the CFTC in that they are monitoring short positions, and considerinig caps on futures. This should attenuate the recoil from testing 1K gold.
To echo Bill L, one has to be wise and buy in the dips. However, metals still look strong fundamentally IMHO, and bargains are out there. I prefer emerging producers over the large producers at this point.
It appears that nearly simulataneously with Barrick's decision, China was moving there physical reserves from London to HK.
There is extreme bull sentiments for gold, and extreme bear sentiments for dollar! Usually at a extreme, is when things start reversing....let's hope this is true, because i want a stronger dollar to have more buying power oversees! :)
Not positive for the stock, or for gold, IMO. Had they wanted to let their hedges roll off without replacement would be one thing, but to spend real dollars to terminate them is a speculation on the price of gold, not a business decision.
Techinically, $1000 gold was toppy in March 2008. That is hardly the case today, where $1000 gold is now "dirt cheap," to quote Richard Russell, from back in 2003 (when gold was in the $300-400 range).
www.gold-eagle.com/gol...
We'll soon be reading, "$1000 gold - no longer available."
laurencehunt.blogspot....
On Sep 10 11:18 AM James Lewis wrote:
> Anyday now the USA Government is going to smash the hell out of gold.
> Be very careful, trading gold is a very hard thing to do. When there
> is stress in the fiat money system governments need to make it clear
> to investors/its people that gold is not safer than the government
> run fiat money system.
>
> To do this, huge amount of gold are sold over short period of time.
>
> $1000.00/Ounce could become $900.00/ounce shortly.
>
> If the governments do not jump in, then we are going to $1250.00
>
> My bet is the governments have a vested interest in take the market
> down
No one sends hate mail like the gold bugs.
What I think is significant is you only got 16 hate mails, last time I said something rude about gold I got 50, could that mean gold is going to go down?
> Good article and good sleuthing.
>
> No one sends hate mail like the gold bugs.
>
> What I think is significant is you only got 16 hate mails, last time
> I said something rude about gold I got 50, could that mean gold >is going to go down?
----------------------...
Wow, you know Andrew, that's a clever idea. I tend to ignore the cranky comments, but there may well be an some interesting sentiment data in them. It never occurred to me to do frequency analysis on the inane, but one does suspect that so long as we keep hearing "Goldman-bankster-vampire squid-fiat currency" the market will keep going up.
Physical gold is no longer traded. Only paper derivatives. Watch and learn a valuable lesson in the coming weeks and months. You are going to be shocked and awed at what you are about to witness in regards to gold and silver.