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Gold slipping in the wake of the Fed's even easier policies doesn't surprise Uri Landesman, who...

Gold slipping in the wake of the Fed's even easier policies doesn't surprise Uri Landesman, who sees a dramatic correction ahead. The metal performs best as a "flight to quality," he argues, and the Fed moves take that bid away. His downside target next year is $1,400/oz.
Comments (25)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
    the extra trillions of paper printed does not mean anything
    13 Dec 2012, 11:21 AM Reply Like
  • keallen
    , contributor
    Comments (159) | Send Message
    I agree. Plus I've noticed GLD is not following raw gold. Very suspicious.
    13 Dec 2012, 11:26 AM Reply Like
  • Venerability
    , contributor
    Comments (3048) | Send Message
    Enough silliness.


    Really, enough.
    13 Dec 2012, 11:32 AM Reply Like
  • cihat
    , contributor
    Comments (28) | Send Message
    FED did what it did last 4 years and gold increased..why should gold act different this time ? Don't believe anyone including me..believe 5000 years of value and keep it tight.. keep your gold :)
    13 Dec 2012, 11:43 AM Reply Like
  • mstrong1
    , contributor
    Comments (82) | Send Message
    That's funny. Guess I would be a fool not to trade my physical gold for a variety of street name paper and paper gold leased out to zillions of people at the same time ???
    13 Dec 2012, 11:44 AM Reply Like
  • david roper
    , contributor
    Comments (74) | Send Message
    BernAnke and the Gold fake out means nothing to the entire world like Brazil, China etc. Gold will win out and GLD will follow real gold sooner or later because they buy gold like you do.
    13 Dec 2012, 11:44 AM Reply Like
  • mstrong1
    , contributor
    Comments (82) | Send Message
    No, they don't buy it like I do. I don't trust ANYONE anymore. If it's not PHYSICALLY in my hands I have a hard time having any confidence that my wealth actually exists in reality.


    When the fruits of my labor are traded for paper or computer digits they can be vaporized, stolen, or otherwise stripped away from me in a second or less.... like Corzine, who still says he doesn't know where the (customer) funds went, or the Sentinel decision, where MY segregated funds can be used to pay off others before me, etc.
    13 Dec 2012, 11:58 AM Reply Like
  • sudhindranath
    , contributor
    Comments (10) | Send Message
    Huh??!! The Fed decision to print more currency is "bad news" for gold??!! Up is down and down is up, right?!
    13 Dec 2012, 12:10 PM Reply Like
  • bobdavies123
    , contributor
    Comments (14) | Send Message
    The FED knew more QE would pump up the price of Gold and Silver, so working with the Bullion banks they engineered two major "stomp downs" on both metals, one pre the announcement yesterday and one overnight. They are scared as hell that the precious metal prices will expose their massive devaluation of paper money. But in a few weeks time we will be back, and climbing to new highs. China and the rest of Asia know this and are acting as a solid backstop every time we get a dip. We will probably never see it (GLD) go below $1550 again. They understand the importance of a solid currency and Gold's place in history. It is a minor set back.
    13 Dec 2012, 12:26 PM Reply Like
  • E.D. Hart
    , contributor
    Comments (934) | Send Message
    Gold trades as a flight to quality, really? So, for the last 12 years of the bull market, prices have been rallying on flight to quality? I guess out of the horrible dollar and into the more solid currency of gold is a shift to quality--so why wont that continue?
    13 Dec 2012, 12:42 PM Reply Like
  • eagle1003
    , contributor
    Comments (1494) | Send Message
    The goldbugs are having a hissy fit because things are supposed to make sense. Gold may prove not to be the invincible bastion of safety that so many want it to be.
    13 Dec 2012, 01:45 PM Reply Like
  • yeti786
    , contributor
    Comments (261) | Send Message
    MStrong1 - may thy tribe increase....!
    I pray God afford all who dabble in paper gold (GLD etc) a small "Revelation of Truth" so they actually stop being lazy, shun the convenience of GLD and go out there and actually buy physical. Only then will the real price of gold will be revealed - alike to believers like you and infidels like this author here! If not, we run the risk of being bulldozed flat by the paper currency lobby.
    Buying GLD and then complaining of price manipulation by powers-that-be is like using coal and then complaining of smog.
    13 Dec 2012, 01:50 PM Reply Like
  • Rousseau SC
    , contributor
    Comments (284) | Send Message
    Buying gold with US dollars is a bet against the dollar just as much as it is a bet in favor of gold. Just like buying yen or euros. Printing has to matter. The exchange rate ("price") for gold/USD fluctuates with the relative confidence in each.
    13 Dec 2012, 01:54 PM Reply Like
  • mstrong1
    , contributor
    Comments (82) | Send Message
    "Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. "Stand and Deliver or Go Home" should be the rallying cry of the gold longs to the paper gold shorts." --Trader Dan Norcini


    My Dear Extended Family,


    Gold will trade at $3500 and above on its own merits with Eastern demand in the cash market being the engine of price.


    The Fed via Goldman has capped gold in the paper market for months. They were so obvious between $1775 and $1800 that Petunia can call the strategy.


    Goldman is, in all practical senses, the Exchange Stabilization Fund because ESF is only a brokerage account. There is no fund in terms of what one thinks a fund's office should look like. Read the law.


    The President or US Secretary of the Treasury may appoint ANY person or entity to act on their behalf as the manager of the Exchange Stabilization Fund. The Exchange Stabilization Fund has a broad mandate that allows it to trade many things including GOLD. The USA is not the center of the Gold price in the full valuation move into 1980.


    Right now the geniuses in charge of the ESF are driving gold via the paper market directly into Eastern hands. There is much speculation about the amount of Gold the USA holds and its deliverability as much gold and silver was used in the Manhattan Project and no audit has ever been carried out.


    The gold price will in the not too distant future go through the cap and that will take it to full valuation above $3500. If you're speculating in gold in futures without at least 20 years of positive history and training as or under a professional you have a financial death wish.


    If your reason for owning gold and silver is an exchange failure you are fundamentally challenged.


    The volatility in gold and counter intuitive moves, thanks to Goldman as broker for the Exchange Stabilization fund investor, will migrate back to good gold shares with the real beef.



    13 Dec 2012, 02:07 PM Reply Like
  • Donald MacLeay
    , contributor
    Comments (42) | Send Message
    By the authors logic it cost the Fed $85 billion to lower the cost of gold $2 dollars (this month).
    13 Dec 2012, 02:43 PM Reply Like
  • solarcircle
    , contributor
    Comments (283) | Send Message
    I've read some stupid articles before but this one takes the cake. Increasing the money supply by trillions over the next few years will devalue gold - really!
    13 Dec 2012, 04:04 PM Reply Like
  • kvatchik
    , contributor
    Comments (499) | Send Message
    They just create confusion in the market and punish us retail investors,


    or wait... what am I saying, they fighting an evil gold bubble and punishing evil speculators which are trying to undermine us currency. it is very unpatriotic, gold bugs! Terrorists!
    13 Dec 2012, 04:19 PM Reply Like
  • Jimbob57
    , contributor
    Comments (17) | Send Message
    Wow. How do you get to the conclusion printing sends gold down?! Pass the koolaid and double soma!
    13 Dec 2012, 07:33 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
    After the Fed announcement this week...I think many people came to the conclusion that the dollars they are holding today...will be worth less tomorrow...and they will make changes in their investments now and in the future....the people are buying...the Central Banks are trying to keep the price down to make their currencies look keep the faith..and that is all they have...and they are losing it...
    14 Dec 2012, 08:40 AM Reply Like
  • Anne Bonney
    , contributor
    Comments (84) | Send Message
    If the currencies don't 'look good', we all knows what follows. It is a matter of time with the fiat money. Remember, that if you tell a lie long enough, it becomes truth. This blog seems to have an abundance of independent thinkers and/or heretics. It is appreciated.
    14 Dec 2012, 11:26 AM Reply Like
  • TheMONYReport
    , contributor
    Comments (20) | Send Message
    The spot price of gold and the USD Index currently have a 13-day correlation at 0.52. This is a 15-month high and an above-average positive correlation between two traditionally inversely correlated securities. To put the long-term relationship into perspective, the 233-day correlation is generally constant at -0.75. Albeit a 13-day indicator is relatively short-term, this is a noticeable disconnect between the two markets over a three week period.


    So if buying gold in dollar terms is a hedge for a declining dollar, then where were all of the buyers this week? The Fed stepped on the gas with another $45 bil/month treasury purchase program. From an intermarket perspective, either USD or GLD will head higher in the coming weeks. Both cannot continue to move in the same direction. The short-term positive correlation will not last.
    14 Dec 2012, 06:01 PM Reply Like
  • mstrong1
    , contributor
    Comments (82) | Send Message
    "where were all of the buyers this week?"


    Well, personally I took advantage of the price to buy more PHYSICAL metals. As well as more gold and silver, it was a timely opportunity to buy more brass & lead, as well as more AR's
    19 Dec 2012, 08:34 AM Reply Like
  • eagle1003
    , contributor
    Comments (1494) | Send Message
    It's interesting that even though inflation is officially at a historically low rate, people are behaving as if it at a double digit rate. Hoarding has begun at the supermarkets , particularity in dry goods that are on sale. Toilet paper just flies off the shelves!
    14 Dec 2012, 07:28 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
    Eagle that is called losing the faith....they see the train wreck coming too
    15 Dec 2012, 08:00 AM Reply Like
  • hokkaido77
    , contributor
    Comments (2) | Send Message
    Gold will continue upwards for another decade or two because the U.S. will not be able to pay the 84 Trillion in liabilities we owe.
    19 Dec 2012, 12:52 AM Reply Like
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