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The bounce in precious metals continues, gold (GLD) +1.6% and silver (SLV) +2.1% as buyers of...

The bounce in precious metals continues, gold (GLD) +1.6% and silver (SLV) +2.1% as buyers of the physical apparently used the rout to load up and - if anything - global central banks are leaning towards even easier monetary policy. A survey shows low bond yields are no longer doing it for central bankers and they're now looking at loading their balance sheets with equities.
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Comments (18)
  • DeepValueLover
    , contributor
    Comments (10027) | Send Message
     
    Boy, the gold bears disappeared incredibly fast!
    25 Apr 2013, 07:41 AM Reply Like
  • Jeb Handwerger
    , contributor
    Comments (630) | Send Message
     
    "Gold (GLD) and silver (SLV) are undergoing capitulation and a series of downward gaps. Be careful not to sell into hysteria as this panic cannot continue for much longer"

     

    http://seekingalpha.co...
    25 Apr 2013, 08:28 AM Reply Like
  • kmi
    , contributor
    Comments (4527) | Send Message
     
    The question you should be asking yourself if after such a massive liquidation you expect a similar amount of money to come in and take you back over 1540 or so. I suspect it'll move up as the small specs continue buying but then collapse again, to cries of woe and despair and claims of manipulation by big players and central banks....

     

    Chart is short term bullish, long term bearish, good luck.
    25 Apr 2013, 08:34 AM Reply Like
  • J Collins
    , contributor
    Comments (178) | Send Message
     
    Well I am guessing, the tussle between paper gold and physical gold is just about beginning. Both gold bears and bulls would have to tighten their seat-belts as it is gonna be one heckuva bumpy ride!
    25 Apr 2013, 09:43 AM Reply Like
  • stang1969
    , contributor
    Comments (4) | Send Message
     
    No, the chart is long term bullish short time bearish. You just need to redefine your definition of time. If we look at the velocity of the money supply from any angle we can see how it does overall correlate with the price of gold. Further, do you expect the US to sit by while Japan and other nations improve exports. We will continue with QE well beyond what we've seen to date because it will mean jobs and without it our exports will shrivel to nothing. To short gold and silver at this time would be a massive mistake.
    25 Apr 2013, 10:24 AM Reply Like
  • mstrong1
    , contributor
    Comments (88) | Send Message
     
    The other thing disappearing incredibly fast is ACTUAL PHYSICAL METAL, although there seems to be no shortage of shortable paper metals.
    25 Apr 2013, 07:48 AM Reply Like
  • churn
    , contributor
    Comments (206) | Send Message
     
    Yea, Nice try goldman sachs. Maybe you want to try it again?
    25 Apr 2013, 08:24 AM Reply Like
  • mickmars
    , contributor
    Comments (1322) | Send Message
     
    I'm guessing the Goldman Sachs elite loaded up on physical last week..... They never lose.
    25 Apr 2013, 08:27 AM Reply Like
  • J Collins
    , contributor
    Comments (178) | Send Message
     
    Central banks now have to contend with a new variable: the middle classes in countries like India and China, who have a rapidly rising purchasing power. There is no doubt that Asian societies in general and Indians and Chinese in particular, have since time immemorial, loved "physical" gold. After the 2008 crisis, the purchasing power of the Asian middle class has grown rapidly while that of their Western counterparts has deteriorated, And if one understands the Eastern cultures, it will be fairly accurate to assume that a decent percentage of this increased purchasing power on a global scale will be allocated to acquiring culturally preferred hard assets like gold. To put things in perspective, according to a WSJ article, Indian public currently owns more gold than the Federal Reserve which is by far the single largest holder of gold in the Western world. And the Chinese government AND public are playing catch-up with Indian middle class and are in fact rapidly gaining on them in ownership of physical gold.
    25 Apr 2013, 09:29 AM Reply Like
  • kmi
    , contributor
    Comments (4527) | Send Message
     
    Interesting. Your thesis is that as China and India get wealthier they will buy up all the gold. Have you looked at how their economies are performing lately?

     

    And out of curiosity, what impact does a non-productive asset like gold have on further enhancing and increasing their wealth? I mean, a gold hoard sure is nice and sparkly, but I'd sure rather have a bunch of workers employing their labor to produce stuff...
    25 Apr 2013, 10:08 AM Reply Like
  • J Collins
    , contributor
    Comments (178) | Send Message
     
    Yes I most certainly have looked at their economies as well have noticed the the almost parabolic increase in purchasing power of the MIDDLE CLASS in these countries.

     

    Have you lived in any of these countries for a length of time to understand the fact that the average person's perception about physical gold in Eastern cultures is very different from ours?
    25 Apr 2013, 01:54 PM Reply Like
  • kmi
    , contributor
    Comments (4527) | Send Message
     
    20 years ago throwing money on the floor and walking away was an act of cultural significance in Greece.

     

    I hope your thesis has more depth than betting on 'national character' over economic productivity and growth.
    25 Apr 2013, 02:10 PM Reply Like
  • bertrandrighi2
    , contributor
    Comments (37) | Send Message
     
    And...WHO would be buying the "stuff" you are speaking ? What's the heck to produce when consumers are broke ?

     

    Henry FORD was saying: " I pay my workers a nice paycheck as they are the ONES to buy my cars "...
    This is the basic of Capitalism, and consumerism...

     

    Ca be A FEW of the "1%" are spending IN THE US, 300,000 $ / month. For the 99% left over, it's for certain they'll spend 3000 $ a month IF THEY HAD IT.

     

    Numbers beat power in economics.
    25 Apr 2013, 10:57 PM Reply Like
  • divinecomedy
    , contributor
    Comments (463) | Send Message
     
    Long term bull, but the fact that silver is missing on the rally is making me think that the rout is not over yet.
    25 Apr 2013, 09:32 AM Reply Like
  • J Collins
    , contributor
    Comments (178) | Send Message
     
    I agree. Paper gold seems to be setting up a classic bull trap over the medium term. But the long-term buyers of physical gold all over the world actually seem to be looking forward for that to happen.
    25 Apr 2013, 09:51 AM Reply Like
  • anthonymaw
    , contributor
    Comments (54) | Send Message
     
    Here in Vancouver, Canada, gold and silver one ounce physical bullion product has been completely sold out for the past week. Somewhere between retail demand and large account buyers, there isn't enough gold and silver to go around.
    As it was in the 80s and 90s, the physical bullion is being sold at marginally above the cost of production right now.
    25 Apr 2013, 09:42 AM Reply Like
  • Jeb Handwerger
    , contributor
    Comments (630) | Send Message
     
    The technicals show a potential bottom and that the long term uptrend is intact. None of the fundamentals warranted this recent gap lower except panic and fear instilled by the same players who helped cause this entire financial mess. This widespread negative pessimism may indicate the consolidation and the panic may be coming to a conclusion.

     

    See this technical video...

     

    http://bit.ly/ZKEe3M
    25 Apr 2013, 11:32 AM Reply Like
  • Ben Bernankes friend
    , contributor
    Comments (473) | Send Message
     
    I've seen a dead cat bounce more than this. Common, of course there was going to be a slight up tick. Worst sell off is 30 years.
    25 Apr 2013, 10:47 AM Reply Like
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