Seeking Alpha

A sliding dollar is of no help to sensitive commodities, all tumbling in early trade. GLD -1.4%,...

A sliding dollar is of no help to sensitive commodities, all tumbling in early trade. GLD -1.4%, SLV -2.2%, USO -1.2% premarket.
Comments (15)
  • keallen
    , contributor
    Comments (165) | Send Message
     
    What? I thought the sliding dollar was a reason to have gold and GLD? It is supposed to be an equalizer in my portfolio.
    4 Dec 2012, 09:32 AM Reply Like
  • ugliramous
    , contributor
    Comments (3) | Send Message
     
    me too
    4 Dec 2012, 09:39 AM Reply Like
  • Gene Chan, CFA
    , contributor
    Comments (214) | Send Message
     
    GLD is no equalizer. The run up in the last few years has turned it into a speculative play rather than an inflation hedge. It has performed way above actual inflation and will need to correct significantly.
    4 Dec 2012, 09:40 AM Reply Like
  • wilburdobson
    , contributor
    Comments (45) | Send Message
     
    Agree, and adding to gold's negative outlook is the likelihood of
    seeing deflation going forward. Japan has been printing money
    for 20 years to fight deflation and a too strong yen. The US is
    copying Japan.

     

    IMO, the PMs are only trades, not investments. Therefore silver
    is better for its greater volatility, and also it's consumption as a
    commodity is a bullish driver. My goal is capturing volatility via
    the leveraged silver ETF AGQ and its inverse ZSL.

     

    Currently, the outlook for silver is bearish due to excessive
    bullish sentiment.
    4 Dec 2012, 11:32 AM Reply Like
  • presidentasp
    , contributor
    Comments (53) | Send Message
     
    Gold is the ONLY thing that has kept its value through the centuries and yes, the sliding dollar is GOOD for gold, not bad. Obviously other forces are at work here.
    4 Dec 2012, 09:44 AM Reply Like
  • keallen
    , contributor
    Comments (165) | Send Message
     
    Like foreign investors and day traders cashing in on speculation of the fiscal cliff?
    4 Dec 2012, 09:54 AM Reply Like
  • davidshelton
    , contributor
    Comments (310) | Send Message
     
    It's all just noise in terms of the bigger picture....
    4 Dec 2012, 10:04 AM Reply Like
  • Dave Shelton
    , contributor
    Comments (19) | Send Message
     
    Let's remember that gold is highly liquid and if sovereigns or hedge funds need to raise cash quickly, large chunks of gold will be sold and that will affect price in the very short term. Long term, gold is a terrific hold.
    4 Dec 2012, 10:37 AM Reply Like
  • Silver Rob
    , contributor
    Comments (28) | Send Message
     
    Let it stabilize like it always does. I have the book values from year to year on all my silver. I have yet to lose a cent on it's value. It has been a jumping game since day one. Yet it has not failed to come back around since the trading of beads for corn.
    4 Dec 2012, 10:38 AM Reply Like
  • QEasy does it
    , contributor
    Comment (1) | Send Message
     
    Gold is just consolidating here. Needs to shake out the weaker/spec holders. A weaker $ is definitely gold supportive and when Ben cranks up the printing press in response to the fiscal cliff, gold will go parabolic. With US, Europe and Asia all trying to print/inflate their way out of trouble, gold is only store of value left.
    4 Dec 2012, 11:23 AM Reply Like
  • ekimnaj
    , contributor
    Comments (6) | Send Message
     
    Gold:
    1) will fluctuate wildly in value, just look at the 2012 yearly chart, so far;
    2)as opposed to a stock of a company, will never be held hostage to,say, a greedy imbecile of a CEO, a smarter competitor with a better product, or new, unanticipated product line that makes gold obsolete;
    3) won't evaporate or burn, will still be there even if submerged in salt water for a few thousand years;
    4) could lose value for a time if almost everyone decides that Colorado pot companies, water for the west, some super new solar cell, or even tulip bulbs will bring instant and nearly infinite wealth;
    5) I am hugely into gold. I sleep well. I know I could lose a bunch, but then who is so clever as to avert that possibility with high certainty.
    6) the history of nations would make me uncomfortable trading my gold for dollars, euros, etc. I might consider Canadian farmland but they won't let me.

     

    e
    4 Dec 2012, 02:26 PM Reply Like
  • e lakeson
    , contributor
    Comments (2) | Send Message
     
    E.Lakeson: im new and impressed with your insights.
    4 Dec 2012, 03:09 PM Reply Like
  • e lakeson
    , contributor
    Comments (2) | Send Message
     
    enjoying your insights and views.
    4 Dec 2012, 03:09 PM Reply Like
  • terrygoldinfo
    , contributor
    Comments (23) | Send Message
     
    When I look back to my 1970's records of gold/retail price index,
    I know that physical gold is the only safe ploy at the moment.
    5 Dec 2012, 02:42 AM Reply Like
  • Dave Shelton
    , contributor
    Comments (19) | Send Message
     
    The recent negative downdraft on gold may be due to capital gains and taxes tied to the fiscal cliff. Some investors are taking year-end profits. Longer term, gold is still the place to be however.
    9 Dec 2012, 09:27 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|