More on SocGen's bearish gold (GLD) call: The price is in "bubble territory," say the authors -...


More on SocGen's bearish gold (GLD) call: The price is in "bubble territory," say the authors - driven there by fears aggressive QE would spur inflation. Instead, consumer prices have actually been trending lower for the last 2 years, and now economic conditions have improved to the point where the Fed can begin thinking about QE's end. "It seems unlikely that investors would want to add much to their long gold postions."

From other sites
Comments (21)
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
     
    If they are correct on the $1375 target, this might mean silver reaching lows of $22. QE does indeed spur asset price inflation, and they know it.
    2 Apr 2013, 03:09 PM Reply Like
  • Hendershott
    , contributor
    Comments (1752) | Send Message
     
    QE1, QE@, QE3, 15 years of Japanese QE and there's no inflation. Quite the opposite for the Japanese.
    2 Apr 2013, 08:27 PM Reply Like
  • mstrong1
    , contributor
    Comments (89) | Send Message
     
    Cool, will you sell me YOUR physical gold and silver, quick before it tumbles more ??? I prefer AGE's or Maple Leaf's
    2 Apr 2013, 03:18 PM Reply Like
  • OdysseusCA
    , contributor
    Comments (92) | Send Message
     
    Yeah,… I'd like a piece of that action as well.
    2 Apr 2013, 05:40 PM Reply Like
  • Optionsleuth
    , contributor
    Comments (40) | Send Message
     
    It's incredible to me that anyone on the street can make such a bold proclamation. I'm no "gold bug" either but the idea that gold has no future as the Fed creates another bubble (this time in equities) is myopic.
    2 Apr 2013, 03:27 PM Reply Like
  • casper1918
    , contributor
    Comments (29) | Send Message
     
    So we have no inflation and the economy is improving. Amazingly gasoline and food aren't figured into inflation numbers anymore. If you want to show a rosy economy, just use whatever data you want to support your theory. Real unemployment is now between 14-20%, food stamp recipients now almost 50 million, welfare and disability claims through the roof...........but the according to this, the economy is recovering and the fact we've added a couple trillion to our money supply isn't a factor to worry about.
    2 Apr 2013, 03:28 PM Reply Like
  • bertrandrighi2
    , contributor
    Comments (35) | Send Message
     
    Yes Casper. Nothing really new under the Sun. It's called "Propaganda". By the way Societe Generale is a French bank. So far it deserves a "E", for its management and opacity.
    And just being a FRENCH bank in today's context, another "E". Like in "Goofies".
    Not interesting indeed: when they say something, I bet it's safe to play "contrarian".... Have a nice day !!! :-)
    2 Apr 2013, 10:09 PM Reply Like
  • htmortimer
    , contributor
    Comments (304) | Send Message
     
    I continue to believe that the real danger continues to be deflation. That, of course, is the opposite of inflation - which is why most people have been buying gold. To those who ignore history, gold has always risen during periods of deflation. We are perhaps now at a transition point where people no longer fear inflation, but do not yet fear deflation.
    2 Apr 2013, 03:40 PM Reply Like
  • ziggysdad
    , contributor
    Comments (42) | Send Message
     
    I own gold and silver and TRQ a copper and Gold stock. I will not sell into this down trend as I'm a long term investor. Look back at 2008 those who sold lost in the long term.
    2 Apr 2013, 03:40 PM Reply Like
  • grange402
    , contributor
    Comments (151) | Send Message
     
    I have never lost any sleep by owning pm stocks. Even better are the precious metals themselves. Can't say the same for any other stocks. Throughout history, and until the end of human civilization, they will retain a substantial intrinsic value. After all , they are precious.
    2 Apr 2013, 03:51 PM Reply Like
  • whidbey
    , contributor
    Comments (3539) | Send Message
     
    Depends on why one holds PM. It is insurance, not an investment but people get the two confused.
    2 Apr 2013, 03:57 PM Reply Like
  • Imi
    , contributor
    Comments (4) | Send Message
     
    in the middle ages, alchemy was the way to the riches.
    Today, the prosperity comes about because the FED printing press is running 24/7. If it breaks, heaven help us.

     

    Adam Smith is spinning in his grave
    2 Apr 2013, 04:31 PM Reply Like
  • Hendershott
    , contributor
    Comments (1752) | Send Message
     
    Imi...forget the Fed,pay attention to what's going on in the Dakota's, New Mexico, Texas, Oklahoma, Louisiana etc....the Eagle Ford, by itself threw $61B at Texas last year....real money, money that directly paid wages, bought trucks, formed businesses, paid taxes.....the Fed is becoming a sideshow.
    2 Apr 2013, 08:33 PM Reply Like
  • jakeymo
    , contributor
    Comments (7) | Send Message
     
    so gold is a bubble but total credit /gdp isnt?? if rates rise as socgen says the levered economy will grind to a sudden stop and debt/gdp ratios will explode- youll wish you hadn't read this report in that case.
    2 Apr 2013, 05:37 PM Reply Like
  • TheSlav
    , contributor
    Comments (3) | Send Message
     
    Was that one of the purpose of QE, to drive consumer prices lower? And how does that, while driving some asset prices hi
    gher lead to any thoughts of an end to QE. Doesn't indicate more than a bit of a failure of the QE strategy?

     

    [ driven there by fears aggressive QE would spur inflation. Instead, consumer prices have actually been trending lower for the last 2 years, and now economic conditions have improved to the point where the Fed can begin thinking about QE's end. ]
    2 Apr 2013, 05:37 PM Reply Like
  • Doni609
    , contributor
    Comments (10) | Send Message
     
    "Consumer prices have been trending lower for two years".....wow, what planet does this person live on? I think 'the author' should make a trip to the local supermarket or even perhaps fill-up the tank on his Prius. Buying this dung that the government is shoveling on the inflation numbers is dangerous stuff for an investor; even more dangerous for an investment advisor. Whoever wrote this article should consider a job in the Obama administration; they're hiring!
    2 Apr 2013, 05:41 PM Reply Like
  • inhocsv
    , contributor
    Comments (2) | Send Message
     
    Perhaps SocGen is trying to make a killing by shorting gold in the short-run, notwithstanding the fact that it is one of the few means of preserving wealth in the face of currency wars and/or deflationary periods. Seems like a 'dump-and-pump' strategy to get the 'sheeple' to rotate into equities and get killed in the ensuing 'correction.' Also, seems reckless in light of the situation brewing in Korea.
    2 Apr 2013, 05:42 PM Reply Like
  • doctortrout
    , contributor
    Comment (1) | Send Message
     
    Paper is just that. When the s...t hits the fan you will wipe yourself with paper not with gold, because that is all paper is worth. We all know what a mess the global economy is in. Given all of the bad things that have happened in the past decade, do you honestly believe that with all of the issues facing us here and abroad that holding paper money is safe. Get real. Please continue to sell, so that I can to buy into the dips. I am looking 5-10 years down the road to hell.
    2 Apr 2013, 11:56 PM Reply Like
  • mstrong1
    , contributor
    Comments (89) | Send Message
     
    I remember my grandfather wallpapered a bathroom with stock certificates after the depression and told me how the family got through it all with assets intact, PHYSICAL Silver and Gold...

     

    ... and that was a time before our total debt and future unfunded liabilities didn't equal many times GLOBAL GDP, not to mention the derivative black holes floating around.....
    3 Apr 2013, 11:06 AM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
     
    P O P P Y C O C K ! ! This article is pure rubbish and makes me want to puke in my wastebasket. How in the bloody HE double L can you say prices are trending down? I can't imagine how this article got past the editors for pure bunk.

     

    Capt. Brian
    The Lost Navigator
    3 Apr 2013, 01:09 AM Reply Like
  • captnbillsantiques
    , contributor
    Comments (4) | Send Message
     
    Gold and silver were king last week in Cyprus.........buy the dips and all those holding PM's will eventually be rewarded. If any of you have cash in money market funds you all know that you are literally receiving pennies of interest on thousands of dollars. Wake up America, the banks think we are stupid!
    3 Apr 2013, 06:14 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs