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Dmitri Lifatow  

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  • Time To Sell Gold [View article]
    You are welcome!
    Nov 24, 2011. 05:26 AM | Likes Like |Link to Comment
  • Time To Sell Gold [View article]
    @User 33747,

    Thank You for your comment and remarks. To be precise - 15.3 per cent. But with the exception of the late Middle Ages (this was a unique time due to the reasons mentioned in the article), only in 1349, 1980 and 2011 the gold price exceeded 800 GBP per troy ounce (in 1348-1349 the Black Death reached England). From my point of view, we do not have such deep imbalances in gold supply and demand now, as in the late Middle Ages. Certainly, You can argue that paper claims in the form of derivatives far exceed the underlying assets. But this is a very unstable pyramid. It can collapse at any time. But I want You to know, that this graph is not the only interpretation of the gold price movement. There are plenty of other charts. Google it, if time permits.
    Nov 24, 2011. 04:36 AM | 1 Like Like |Link to Comment
  • Time To Sell Gold [View article]
    Actually, John Maynard Keynes said that "the gold standard" was a barbarous relic. Not gold itself. ("In truth, the gold standard is already a barbarous relic" - Source: Keynes, J. Monetary Reform. Harcourt, Brace and Co., 1924. P. 172.). If You do not have this book, open Wikiquote (http://bit.ly/ulCdtC) and read this information.
    Nov 24, 2011. 03:10 AM | Likes Like |Link to Comment
  • Time To Sell Gold [View article]
    Time to sell gold - it is a strategic decision. If You have a large volume of gold, You should, from my point of view, start to diversify your portfolio right now (as in "Time to sell gold"). Because during the downfall (if any) You will be unable to sell large quantities of gold at the current price. But if You are a holder of only a few gold derivatives, You should trade accordingly and sell on rallies, rather than buy on dips in 2012.

    Thank You for your comments.
    Nov 23, 2011. 08:08 AM | 1 Like Like |Link to Comment
  • Time To Sell Gold [View article]
    "The long run is a misleading guide to current affairs. In the long run we are all dead". John Maynard Keynes.
    Nov 23, 2011. 08:08 AM | Likes Like |Link to Comment
  • Time To Sell Gold [View article]
    @Debutant,

    I will sell gold in 2012 (not "physical gold" - I do not have bars and coins - here You are right). You know what I am talking about.
    Nov 22, 2011. 11:48 AM | Likes Like |Link to Comment
  • Time To Sell Gold [View article]
    @gordonq,

    Thank You for your comment. I think, the fundamental analysis can at best explain the past price behaviour or its general direction. So I did. But only technical analysis can predict the future dynamic of prices. The trend of gold is apparently ascending (due to the reasons You have mentioned), but the deep correction in 2012 is very likely.
    Nov 22, 2011. 11:47 AM | 1 Like Like |Link to Comment
  • Time To Sell Gold [View article]
    @wyostocks,

    1. I agree with you, that the factors that drove the gold market in the past, do not explain its current dynamic. But since the graph shows the gold price movement over a period of almost 750 years, it is logical to explain its past behaviour.

    2. No, You are wrong here. The article is published for the first time in English-speaking world. But those who are proficient in Russian, can turn their attention to the following material: http://bit.ly/ucJroC

    Thank you for your comment.
    Nov 22, 2011. 10:57 AM | 3 Likes Like |Link to Comment
  • Gold Demand Hits New Record With Central Bank Buying Up Sixfold [View article]
    The annual average inflation-adjusted gold price since 1791 was in general lower than $600 per troy ounce. Only in the 1970s and 2000s it considerably exceeded this level. As we know, gold was in a bubble in the 1970s. So, it is logical to assume that gold is in a bubble now (as we do not have imbalances between gold supply and demand deep down). That is why I cannot agree with the author that gold under $2.000 will be very cheap. The historical records suggest that the gold price around $2.000 is extremely high. And, in addition, all bubbles eventually burst. As the experience of the 1970s shows, the gold price was already on an unsustainable trajectory when it exceeded $1.200 per troy ounce. With the gold price hitting a record of $1920 per troy ounce in September 2011, the affair is coming to a head.
    Nov 21, 2011. 01:41 PM | Likes Like |Link to Comment
  • Gold Price Down, GLD Gold Holdings Up [View article]
    Gold itself is not a barbarous relic. John Maynard Keynes who coined this phrase, actually argued that "the gold standard" was a barbarous relic ("In truth, the gold standard is already a barbarous relic" - Source: Keynes, J. Monetary Reform. Harcourt, Brace and Co., 1924. P. 172.).
    Nov 18, 2011. 02:55 PM | 2 Likes Like |Link to Comment
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