fxtrader07

Countdown of Manipulated Gold Price Running Out

calm down. the increased investor demand (mostly retail) is just sufficient to compensate for the sharp drop in indutrial demand (i.e. jewellery production). gold, in fact, has held up pretty well - just look at silver which has virtually crashed. Deflation is here big time and though reflating efforts by central banks and govts. will perhaps avoid a depression they will not lead to any meaningful inlfation for the coming 2-3 years. Thereafter, they may. gold mining stocks have fallen as if gold were to tank to $400/500. I am not sure it will, but if anything here, i would by quality gold miners, not bullion anymore.

Leveraging Up on Precious Metals Ahead of Fed Meeting

@User 52095: Ted Butler talks about the ishares-silver (SLV). Not a single word about Silver Wheaton (SLW)

20 Guidelines for the Individual Investor

the proper headline for this article was ' 20 guidelines for the individual trader'. almost none of these 'rules' has anything to do with investing but all the more with short-term price movements.

Is it Finally Time to Sell Gold and Related Mining Stocks?

Hey Alan, you may be right, but the question is, is it really worth the risk to sell at $930 in the hope of getting in at $700 again ? Two major risks are here: one, that $700 will never be seen - quite likely, imho. I haven't seen many people having the guts to reenter a market at a higher price than they exited at - missing out on the subsequent run almost in 98/100 cases. Will you buy into gold again when your drop to $700 doesn't play out and instead it hits 1.050$?
second: will you really get in at 700$ - when gold hits $700 , it might look like a terrible drop making many people rethink that earlier plan of re-entering)
regarding the miners, they have barely followed gold's rise. that is only in part due to escalating costs. It is also due to investors and speculators doubting the sustainability of gold's rise. I mean, everybody knows the chart from the 1980s, right, and nobody wants to buy a similiar top? If one carefully lokks at it, even if gold were to stay at $700-$950 for the next 2-3 years many gold miners will make a ton of money and you will see the reverse of the past 2 years: gold miners rising way faster than gold or rising in the face of a stagnating gold price.
So it may pay off, to hold back opn mining stocks for the time being but selling gold or GLD here will in all likelihood be a very costly mistake, imho.

Is it Finally Time to Sell Gold and Related Mining Stocks?

only clueless morons think that an inevitable slowdown in rate-cuts will mean less debasing of the dollar. hundreds of billions of capital injections, implied guarantees for gses, "tax rebates", unfunded future healthcare and pension obligations, bank-bailouts and junk mortgage-securities purchases will ensure that the dollar's purchasing power will go down the toilet going forward even faster than during the past years. It's more than ever before "inflate-or-die" for the govt and the fed (until the whole house of cards comes crashing down anyway, despite asnd because of all inflationary efforts). The problem with gold as the ultimate hedge is that it is sort of a digital investment. the moment the masses really get the fact that the fed and the govt have delibereately inflated their way out of current problems and will always do so (because no other choices exist anymore other than outright seizure of all assets from amrican and foreign citizen) the very moment they will all rush towards gold and silver. However, there is so little gold and silver available that at that point you won't be able to buy it in any meaningful quantities at any reasonable price. Until then, however, the price of gold will probably languish - going steeply up for a few years only to struggle for the next ones. And in all ikelihood, until that final day of reckoning occures, gold will underperform most financial assets.
So if you think you are the smartest of them all, you might hold stocks and bonds and switch into gold right on the eve of judgement day.
I for my part, certainly would not take the chance...
Keep a part of your wealth (at least 10%, better 20-30%) in physical gold and silver and put the rest into financial assets like high quality stocks and bonds (avoid us treasuries and most other govt bonds however!). and do not measure the appropriateness of your gold holdings by their performance versus stocks or bonds. keep in mind that they are an insurance - to be kept for the day that will come with ultra high probability but which will be impossible to time