Gold Speculators Rushing In? 13 comments
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From a purely technical perspective, the parabolic rise in gold may be partially due to the flood of speculators into the commodity. This may not be too dissimilar to the recent spike in oil and oil futures trading.
The August 21st article in The Wall Street Journal titled, The Eagle Has Been Grounded ($), notes the U.S. Mint stopped selling the American Eagle gold coin because the mint's inventories have been depleted. The Journal notes:
"Due to the unprecedented demand...our inventories have been depleted," the Mint -- part of the U.S. Treasury Department -- told its dealers Friday. "We are therefore temporarily suspending all sales of these coins."... The Mint has sold 311,000 ounces of gold coins this year which is about 50% more than was sold in 2007.
When the speculators head for the exit, one could see a rapid decline in the price of gold.
Source:
The Eagle Has Been Grounded ($)
The Wall Street Journal
By: Ianthe Jeanne Dugan
August 21, 2008
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This article has 13 comments:
Many experts claim adjusted for inflation/time value Gold should be around $2200 per ounce, I am not holding my breath for that either..
There seems to be alot of funny business going on with the Gold market.. maybe manipulation is a better word..Either way a stable Dollar and Gold will run...(see inflation)
..if it's big n hairy and trips over a rock it could be a Yeti..it falls down too..TripRockYeti (i.e.this is a work in progress)
We are in disinflation and gold is headed down now. We are just coming out of another bubble. Short commodities and gold.
Remember that gold is a real money that can not be manipulated.
When they are holding billions of our debt and see no sign of any fiscal responsibility on our part what do you think they are going to do to hold value? You got it. They will trade-in the fiat currency for metal and the USA will experience a massive collapse in currency value.
Perhaps that's why the recent manipulation occurred... Our Fed sees it coming and decided to protect the largest amount of gold it could control with the use of some fancy paper work.
Don't bother telling me this can't happen, the sub prime mess is still unfolding and the banks are in the process of covering their losses with cooked books and we all can see it happening in real time.
In fact, most of the business owners on these boards work as hard as possible to write off every possible deduction real or imagined and hope they get away with it... this is just on a bigger scale and they are much , much better at it than you are.
Like a thermostat on your car, it serves the purpose of letting you know when your engine is overheating.
If you think the turmoil in the credit derivatives and credit crisis are over, perhaps its time for more research.
www.rapidtrends.com/bl.../
G-r-r-r-r
Bill
No doubt if millions were hoarding food he would see this as the sign of a top in soft commodities?
Pathetic journalism. The people want PMs, demand is too high and so they are being denied. Look on Ebay to see how desperate people are to get hold of real money (and remain anonymous). £12-16 for 1oz silver. £500-£650 or a 1oz Britannia.