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Gold slips another 2.5% in evening trade to $1,181 per ounce. Silver falls 1.2% to $18.34.

Gold slips another 2.5% in evening trade to $1,181 per ounce. Silver falls 1.2% to $18.34.
Comments (37)
  • Gold is a buy at this price if you're interested in parking cash.
    27 Jun 2013, 09:03 PM Reply Like
  • Why is a rapidly declining commodity a 'buy' at this price?
    If one is interested in 'parking cash' why not just park it in a MM fund?
    27 Jun 2013, 09:13 PM Reply Like
  • with no return on investment for perhaps a decade !
    27 Jun 2013, 10:00 PM Reply Like
  • I'm still with Buffett on gold:

     

    "Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At $1,750 per ounce – gold’s price as I write this – its value would be $9.6 trillion. Call this cube pile A.

     

    Let’s now create a pile B costing an equal amount. For that, we could buy all U.S. cropland (400 million acres with output of about $200 billion annually), plus 16 Exxon Mobils (the world’s most profitable company, one earning more than $40 billion annually). After these purchases, we would have about $1 trillion left over for walking-around money (no sense feeling strapped after this buying binge). Can you imagine an investor with $9.6 trillion selecting pile A over pile B?

     

    Beyond the staggering valuation given the existing stock of gold, current prices make today’s annual production of gold command about $160 billion. Buyers – whether jewelry and industrial users, frightened individuals, or speculators – must continually absorb this additional supply to merely maintain an equilibrium at present prices.

     

    A century from now the 400 million acres of farmland will have produced staggering amounts of corn, wheat, cotton, and other crops – and will continue to produce that valuable bounty, whatever the currency may be. Exxon Mobil will probably have delivered trillions of dollars in dividends to its owners and will also hold assets worth many more trillions (and, remember, you get 16 Exxons). The 170,000 tons of gold will be unchanged in size and still incapable of producing anything. You can fondle the cube, but it will not respond."

     

    FYI, at this price, the sum of all gold in the world is down to about $6.5T -- about 16 Exxon Mobils...so in his example you don't even have to buy the farmland anymore! :-)
    27 Jun 2013, 10:06 PM Reply Like
  • Buffett's example doesn't make sense. He could have compared farmland to cash as well, and come to the same conclusion.
    27 Jun 2013, 11:23 PM Reply Like
  • > He could have compared farmland to cash as well, and come to
    > the same conclusion.

     

    Yes but cash hadn't skyrocketed in value over the past few years. :-)
    28 Jun 2013, 07:13 AM Reply Like
  • Honestly, this selloff is just annoying now. We get it, the markets want gold and silver to be worthless.
    27 Jun 2013, 09:15 PM Reply Like
  • They are not worthless. Even at $1100 the price of gold is pretty high. People forget how much gold has risen since the turn of the century. Historically speaking the present price is not "worthless" and it is not even that low.
    27 Jun 2013, 09:39 PM Reply Like
  • Well,no one complained when it was going up to dizzying heights? Back then, gold bugs were busy debating whether gold will go to $2500 or $3000 !

     

    $1100 isn't a low price ! Let it crash to three digits !
    27 Jun 2013, 09:58 PM Reply Like
  • yeah and people fail to remember that the price of gold was in the 400 range for a good part of the early 1980's.. Most houses, cars and big ticket items are up about 6 times since. The lunatics at the Fed will not disappoint us. They have been given the green light to take printing to a newer levels as arrogance grows they can solve or defeat anything in their path. Watch as they get bolder with their schemes since they drove down the greatest threat for now gold. However gold will not go away and as a few chart readers who think they have some secret think it's days are over I do not and will be adding physical to allocation.
    27 Jun 2013, 10:27 PM Reply Like
  • @CHRIS

     

    Gold jumped back over $1200 already. The buyers were lining up at the door !!

     

    Support is stepping in at $1200 right now. This will be interesting for sure as I discuss this on my blog. BTW Thanks for stopping by.

     

    All are welcomed to join in the conversation. It is a Top 3 blog. Take a peek.

     

    http://seekingalpha.co...

     

    Everything is open for discussion.
    27 Jun 2013, 11:39 PM Reply Like
  • I think this is what happens with liquidation of a crowded trade.
    27 Jun 2013, 09:33 PM Reply Like
  • Analysts now are calling for gold to go below $1,000/oz. If this happens I may just put 50% of my portfolio into UGLD and potentially NUGT.
    27 Jun 2013, 09:38 PM Reply Like
  • I have usually owned about 15x as much stock as PM but if we see $900 gold and $12 silver that ratio is going to change!
    27 Jun 2013, 09:51 PM Reply Like
  • I just want to see where the physical selling is happening? I know the small guys aren't selling. So maybe we have CB'S selling here? They have an agenda to get people discouraged and selling.

     

    Sorry, but I am holding on to my physical !!
    27 Jun 2013, 09:47 PM Reply Like
  • Physical ownership isn't what drove the price up to these levels...
    27 Jun 2013, 09:59 PM Reply Like
  • > Physical ownership isn't what drove the price up to these levels...

     

    Agreed. Like oil and almost anything else with futures contracts, there is a lot more paper gold than real gold, and the speculators use that fact to their advantage regularly.
    27 Jun 2013, 10:14 PM Reply Like
  • @THETADECAY

     

    It can be the paper that actually goes too low to expose the manipulation. We shall see. I don't see people running to the coin shops selling their physical yet!

     

    We shall see in a few months. The money printing will be kicked up a notch, see what happened when BB hinted it might stop, it can't, so this just turns out to be a great buying opportunity.imo
    27 Jun 2013, 10:34 PM Reply Like
  • i still have the silver spoon that my mother was given when i was born. that was a loooooong time ago.
    27 Jun 2013, 10:03 PM Reply Like
  • Is that blood I see in the streets? Not sure, but when I do see it I will be backing up a big, big truck.
    27 Jun 2013, 10:25 PM Reply Like
  • The problem with buying gold unlike other investments is there is no real service, product, management, goodwill, etc.

     

    When a quality company gets sold off with the whole market you can buy it on the way down feeling somewhat confident that even if it continues to fall eventually it will generate enough profits to turn around.

     

    Gold can't do anything unless people bid the price up. Gold can't open new stores, come up with a new marketing strategy, innovate, etc.
    27 Jun 2013, 10:39 PM Reply Like
  • @GUARD

     

    Gold IS money. It is protection you will get your money back unlike fiat money. Call it insurance if you like.

     

    If it wasn't so important then why do all the CB'S want to have it?? Or Germany wanting all of their gold back but being told by the USA it will take 7 years and not 7 weeks?

     

    Who says gold can't open stores? So you would rather buy a *quality* company falling and hope it turns around?? Funny as you state it *WILL* turn around.

     

    Ask those who owned Apple at $700 per share how they feel? Think they are buying it at $400 ? Trying to catch a falling knife is kinda tough don't you think?
    27 Jun 2013, 10:48 PM Reply Like
  • Gold probed under 1194 tonight, but didn't quite make 1171 before it fought back to flat! There are definitely buyers at this level. Don't know how much more liquidation is in the cards, but a lot of shorts joined in along the way down. Quit a bit of fuel for a short covering rally.

     

    The price of gold is totally emotional at this point - fibs, retraces, trend lines don't seem to matter much.
    27 Jun 2013, 11:14 PM Reply Like
  • @JERRY

     

    Can you spell manipulation ??
    27 Jun 2013, 11:20 PM Reply Like
  • Id rather be buying Apple then gold right now.

     

    In the modern world I highly doubt there will be a day where people are carrying a sac of gold and walking hundreds of miles to another country to use it.

     

    I think a more sound method for insurance is to have other currency such as the Canadian dollar or Swiss Franc.
    27 Jun 2013, 11:14 PM Reply Like
  • What makes either of those two safer than gold? Not too long ago the CAD was something like 0.60/0.70 USD and the swiss franc has been intentionally devalued like crazy over the last few years, to not stray too far from the Euro. Their values can just as easily be changed by their central banks.
    28 Jun 2013, 01:33 AM Reply Like
  • So our fiat money's lifespan is different then all of the others in History then? Please don't say were different.

     

    I would rather have my physical that has been around for 4 thousand years to be honest. You can have Apple ..

     

    So now were the modern world, just for a few years until the next modern world arrives correct?
    27 Jun 2013, 11:19 PM Reply Like
  • Not trying to promote anyone here, but I took this guy's advice back in early April to short gold 3x with GLL ... this has turned out to be the best trade I've ever done!

     

    http://bit.ly/16Dy6Mj

     

    His models target gold to bottom around 1028.
    28 Jun 2013, 01:19 AM Reply Like
  • Smart people realize that gold doesn't change in value...the dollar changes in value in relation to gold.

     

    The dollar is having an excellent run but ANNOUNCED, continuing debasement with no Plan B means that gold is a major bargain for those with patience.

     

    That is a fact.
    28 Jun 2013, 05:35 AM Reply Like
  • The other "fact" that needs to be plugged into that equation ...

     

    The bottom isn't in yet.. and the 'road" back will take years if not a decade to play out.. with no return on investment while u wait ....

     

    some thoughts to ponder..
    28 Jun 2013, 09:22 AM Reply Like
  • Fact? You r saying a bottom is not in and that it will take "years" to come back. That's your opinion. I call that arrogance calling an opinion fact.I have been around long enough to know that markets under and overshoot so i am hesitant to call a bottom, but imo we are getting close and does make sense to add slowly physical and select miners if you have to skill to analyze well.
    28 Jun 2013, 10:15 AM Reply Like
  • Hammer,
    please show us where parabolic moves like the one displayed with GOLD has not taken years to work itself out.

     

    Im merely suggesting that this commodity is not immune to what has transpired in individual stocks or indexes in the course of history..
    build a base over years , spike , then take same time or longer to resolve..

     

    i wil leave u and others to decide if this is different , I don't believe it is
    28 Jun 2013, 11:14 AM Reply Like
  • dude you should be spending your time looking at the "PARABOLIC" sovereign debts building up and the thirty year run down in interest rates. There is your bubble. The gold market has had a long long base. since early 1980's. My contention is you have not seen parabolic yet in metals. This major shakeout is "healthy" to build the wall of skepticism when the metals resume their climb. Some commentator said this morning Gold does not have intrinsic value nor is it an inflation hedge. I betcha this bigmouth eats his words.
    28 Jun 2013, 11:18 AM Reply Like
  • Hammer,,

     

    best of luck to you ,, live long & prosper..
    28 Jun 2013, 11:23 AM Reply Like
  • Hmmm..... 60 ozs of silver, or 1 oz of gold? I will take the 60 and dollar cost down my existing physical. At these prices, those silver coins certainly can be used as inexpensive gifts. If somebody had given me a silver coin for graduating high school, I would probably still have it all these years later, and remember who gave it to me. Let's take a few pounds out of circulation, multiplied by we the many.
    28 Jun 2013, 07:01 AM Reply Like
  • Well today is the end of the quarter, hedge funds are either adding or dropping positions. Let everyone look at what gold and silver are doing today??

     

    Today is one of those *telling* days . Investors know the metals are more volatile then stocks, that the punchbowl won't be pulled away, so I still see plenty of upside with miners slowing down their inventory.

     

    We shall see in a few months if this was a buying time people missed. But make no mistake about the window dressing going.
    28 Jun 2013, 12:08 PM Reply Like
  • Are Gold And Silver Worthless?

     

    http://seekingalpha.co...
    28 Jun 2013, 12:10 PM Reply Like
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