Seeking Alpha

Gold at $800 maybe doesn't sound so funny anymore after plunging $200 in two days. Mark Hulbert...

Gold at $800 maybe doesn't sound so funny anymore after plunging $200 in two days. Mark Hulbert points to a study from Claude Erb and Campbell Harvey, who looked at gold’s long-term correlation with inflation and declared gold should be trading at ~$800/oz. The study was dismissed when it was released last year, but now it's getting a fresh look.
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Comments (12)
  • DeepValueLover
    , contributor
    Comments (9393) | Send Message
     
    If gold hits $800 I'm going to buy a rig with an empty semi trailer!!
    16 Apr 2013, 08:05 PM Reply Like
  • J Collins
    , contributor
    Comments (178) | Send Message
     
    The western banks could successfully control the prices of gold and silver because the GDP share of gold loving economies like India and China was negligible until very recent times. With their burgeoning middle classes clamoring for physical gold and silver, and their purchasing power following almost parabolic growth curves, it is just a matter of time. as in the past (from the ancient era right up to the dawn of the industrial revolution), China and India will once again control most of the world's gold. As of today, according to WSJ, Indian public has hoarded more gold than the Federal Reserve! And Chinese middle class is rapidly trying to catch up! So it's western paper gold versus eastern physical gold which will eventually decide the fate of gold.
    16 Apr 2013, 11:04 PM Reply Like
  • kvatchik
    , contributor
    Comments (499) | Send Message
     
    Hysteria, sell your gold, not the paper but real thing cuz bakers are short on phyzz
    17 Apr 2013, 12:18 AM Reply Like
  • wadaman711
    , contributor
    Comments (2) | Send Message
     
    Good for you. I'm buying gold now!
    17 Apr 2013, 01:41 AM Reply Like
  • alange
    , contributor
    Comments (7) | Send Message
     
    As usual the bankers have their trolls talking down gold as they try to get out of their paper short positions and maybe even accumulate some physical. A lot of gold has been going to China in the last few months, and this will provide a lot of support, especially when the LBMA runs out of real gold. The latest smash in the price of gold was done because of too much QE by the bullion bankers who are the lap dogs of the Fed and are working to hold down the price of gold in USD to keep the dollar ponzi scheme from unraveling. The paper gold house of cards will soon collapse when LBMA can't deliver any more gold.
    17 Apr 2013, 01:43 AM Reply Like
  • ginatrader
    , contributor
    Comments (6) | Send Message
     
    Not to be a dummy, but what's the LBMA? I'm confused... the dollar bears have been screaming for years that the bottom will fall out of the USD, and gold will hit $2000 - $5000. But with Europe's woes, I just see the USD strengthening. Had I positioned any trades recently based on gold rising, or the dollar falling, I would've lost my shirt. (Of course, I lost my shirt being bullish on AAPL instead, but that's for another blog). I have only one question - WHEN the heck is the bottom going to fall out of the USD? Any estimates on when this "ponzi scheme" will unravel? Thanks.
    17 Apr 2013, 04:24 AM Reply Like
  • Calimero Galletto
    , contributor
    Comments (9) | Send Message
     
    Can't run an economy/country on gold! Only the black stuff. 22 gallons from every 44 goes into manufacturing & 22 into transport.

     

    Wonder who controls the taps and what you need to get hold of some that stuff - hmmmm, let me see, could it be the green stuff ....

     

    and not the green you put in your pipe to smoke :)
    17 Apr 2013, 03:34 AM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (3289) | Send Message
     
    Can't run a Central Bank without the illusion their gold backs currencies.
    17 Apr 2013, 05:09 AM Reply Like
  • Bi9b0ss
    , contributor
    Comments (4) | Send Message
     
    Classic.. People screamed 2500 whe gold was nearing 2000, and now people are stating 800 when gold are nearing 1300
    17 Apr 2013, 09:37 AM Reply Like
  • hummerh25
    , contributor
    Comments (99) | Send Message
     
    $850 is probably the right number. Buy the DZZ short gold. At least protect your longs.
    17 Apr 2013, 09:43 AM Reply Like
  • Golden Gun
    , contributor
    Comment (1) | Send Message
     
    I am a small time investor starting on bullion investment just a few years back and I have been following all the comments in SA without really understanding the mechanics of the price movement. I exited on Tuesday Apr 16 Far Eastern Time(as in Singapore) to preserve my capital after watching the unprecedented vertical drop in gold price for on Fri and the following Monday.
    I would like to enter the market again and buy some physical but are really unsure where gold is heading.
    After watching Mike Maloney and Chris Martenson of Peak Prosperity in .http://bit.ly/ZrggKQ, I understand now that there was massive manipulation that caused the price to spiral downwards but why can't authorities take action against the parties concerned? Will it happened again?
    Is the price of gold overpriced as what certain parties are saying?
    17 Apr 2013, 12:07 PM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (3289) | Send Message
     
    Golden, believe what you want to believe from those you read. My father is a retired CBOT trader and the trader who took his place told him there was a hedge fund that had to liquidate a position where there were no ready buyers for that size. Once the order started to get unwound, the short sellers jumped on board and brought the price down. Since the hedge fund had to sell, the other traders knew it and did all they could to profit from this knowledge.

     

    I can't prove this was the case, but there really wasn't much else that makes sense from any other perspective. The heavy selling triggered stop loss orders and the carnage took place. Now we see how the market reacts. Goldman threw fuel to fire by adding a lower call on the price of gold yesterday.

     

    17 Apr 2013, 12:46 PM Reply Like
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