The strangest thing is rounds still outpace spot by about 20%

I have no purpose.

.

Gold tops US$1110

Gold has no purpose?
Why would you take this position?

http://www.thisismoney.co.uk/markets/artic...ticle_id=493225

Gold price smashes through $1,100 barrier
Philip Scott, This is Money
9 November 2009, 12:37pm

The gold price has hit yet another new high on the back of a floundering greenback and rising concerns over major central bank policies.


The G20 meeting at the weekend reinforced views that US interest rates are unlikely to rise any time soon.

The US dollar, which gold is a primary hedge against, hit the skids after figures were published on Friday showing that the US is enduring the highest unemployment numbers since 1983.

The dollar index, which tracks the currency's worth against other currencies, slipped 0.9% to a two-week low of 75 today. Recent gains in the gold price have tended to come as the dollar weakens.

In 2009, the dollar has already lost more than 7% against its main rivals. The price of gold is now up by some 45% over the past 12 months.

Nicholas Brooks, at ETF Securities, said: 'The most recent surge in the gold price appears to be directly linked to statements over the weekend by the G20 that they will keep the fiscal and monetary pumps operating at full speed despite the already unprecedented rise in global high powered money and deterioration of government finances.'

Discussions about possibly implementing a Tobin Tax on currency trading to try to reduce financial volatility also appear to have increased investor uncertainty.

The most recent move in the gold price builds on the sharp rise last week that was stimulated by the announcement that India will buy 200 metric tons ($7bn) of International Monetary Fund (IMF) gold. Many market participants view this purchase as just the tip of the iceberg, with China, Russia and other central banks also indicating their intention to build up gold holdings as part of their strategy to diversify away from the US dollar.

Brooks said: 'This morning's move in the gold price is a clear negative vote on the current trajectory of government monetary and fiscal policies.'

Mining shares soared on the news of gold's new high. By 12.30, Kazakhmys was up 5% to 1,272p and Fresnillo was 4% better at 874.5p. Rio Tinto and Xstrata also bounced 4% on the day to 3,028p and 999p respectively.

.

I never "put money" in gold but to la large extent it's my life's work and the focus of my business, the last month has been amazing for my share prices, if things hold up reasonably, that being gold not going below $900 that would make for a great cash in the second Q of 2010.

Anyone buying at these prices has to be careful.

Physical gold I've got only about 10oz including jewelry so it's irrelevant.

The one who said gold was a terrible investment, why?

I'm not really that much into investments due to my age, but wouldn't gold be ideal to invest in if you're looking for something long term and safe? Let's say you wait until the Au price is low, 800$ w/e. It will go up and down some but from time to time it will probably rise to about 1k?

Also, gold doesn't "go broke", like companies can do in hard times. The market will always want gold because, people get married, give eachother presents and engage themselves making a constant demand on the material and giving it a somehow stable price, and this again causing gold to be a more safe investment than putting it all in shares.

It will go up and down just like everything else but in the long term even my grandma will be able to sell with profit. It's all about having ice in your stomach and having a personal economy strong enough to hold, even though your investments are on a downswing.

.

Gold can be a good place to put a part of your portfolio but I would only recommend 5-10% of your assets but even though it is still going up you have missed most of the up side and buying now would be high risk. Unless you believe that the US$ is going off a cliff.

Today gold hit a new all time high of $1173

http://www.financialpost.com/news-sectors/...html?id=2255945

The dollar ... she ain't gonna be what she used to be. Everyone but the Chinese wants the dollar to be about 28 cents. Believe it or not, although you have much more connection to the industry of gold than I do, because I'm watching the politics of money, I think gold is still a bargain.


http://www.businessmirror.com.ph/home/opin...ll-devalue.html

More serious, though, is the risk of future substantial dollar depreciation. The US government is printing more dollars that are “worth” less. Why would the US government devalue the dollar? To more easily pay off its $20-trillion public debt in exactly the same way our butcher paid off his debt with smaller chickens.

http://www.forbes.com/2008/12/09/dollar-de...oapbox_inl.html
Here it is. Stand back. World currencies should be devalued overnight

http://www.goldline.com/market-news/gold-n...on-is-here.html
I still contend that we are headed for a massive dollar devaluation, regardless of the means--whether it is planned and accomplished by central banks, or by the markets reacting to huge government money printing that force the devaluation....

http://www.dailyreckoning.com.au/federal-r...lar/2009/03/27/
In my view, this latest development of the Federal Reserve monetizing debt is inflationary and confirmation that the Federal Reserve wants to debase the U.S. dollar


http://www.currencyconverter.co.uk/article...lue090404095854
Can the IMF force the dollar to devalue?
Theoretically this question should be a very easy one to answer. The IMF is the police officer, charged with policing economies around the world. So in theory, yes the IMF can force the United States government to devalue the dollar but since the IMF actually has a large share of the voting rights allocated to the US, then it would effectively mean that the rest of the world practically, would have to gang up on the US, to make this happen.

Welcome to New America.

Gold still on a heater at $1186 now.

Took a while but it broke $1200 today, still a ceiling but don't see the train stoping just yet.


please please please at least 6 more months at these levels.

John Paulson Likes Gold…More Than a Friend

John Paulson of Paulson & Co, the legendary hedge fund manager who made tens of billions betting on the mortgage crisis between 2007 to 2009, likes gold. He really likes it. He likes gold more than a friend.

To most market participants, this is not news, but here’s something you probably didn’t know: Paulson owns more gold than several major countries! Combined



Here’s how we get that 110 tonne abstract to represent his gold position:

Based on several analyses of his filings, Paulson’s wagering roughly 15% of his $30 billion hedge fund in the precious metal ($4.3 billion). His investment is spread out between ETFs, physical bullion and shares of gold mining stocks, but for the purpose of this discussion, we’re going to look at them in the aggregate as representational of a bet on gold (which they are).

I am using the “tonne” as my unit of measurement because that is how the World Gold Council measures a nation’s gold reserves. A tonne is a metric ton, it equals 1000 kilograms.

Assuming Paulson & Co currently owns $4.3 billion worth of gold and using the recent price of $1100 per ounce of gold, we come up with a total of 3.9 million ounces:

$4,300,000,000 / 1100 oz = 3 909 090.91 ounces

Paulson’s 3.9 million ounces million ounces add up to 110 metric tonnes (35,273 ounces in a tonne):

3.9 million ounces divided by 35,273 oz per tonne = 110 tonnes

As can be seen in the chart above, Paulson holds more gold than many nations with individual populations in the millions and economies in the hundreds of billions. His reasoning for being so bullish is that there are roughly $200 trillion investable assets (in dollars) in the world, but only $800 billion of that wealth is in gold.

Whether or not the world is truly under-invested in gold is up to you to decide, but Paulson’s bet is a big one by any measure.

Sources:

Reserve Asset Statistics (World Gold Council)

Paulson & Co 13 F Filings (SEC.Gov)

Read Also:

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What happened in the mid 2000's when everyone became a real estate investor overnight?


Just Sayin.

Yeah, I'm on the fence on this one. It seems that too many people are saying "gold is the way to go" right now. I saw a video interview with Jim Rogers this last weekend. This is a guy who is the classic value investor. He says he's not buying gold right now, for this very reason, but he's also not selling either. He expects it to go way up sometime in the next decade -- which is his investment time frame. Anything shorter than that he doesn't care about.

But the thing he says to buy now is commodities. He thinks farmers will get rich in the next decade. I believe he thinks African farmland is the way to go. Of course, you have to be a farmer in Africa then, but hey, small price to pay, right?
I'm sure he's found some way to profit from this, but it's probably not practical for us normal people.

In the end, though, Obama and the Dems are showing no signs of fiscal responsibility. In fact, it appears they are trying to spend as much as possible before their inevitable election defeat. As long as this continues, gold will not be a terrible investment. The only thing that could cause gold to drop back is for Congress to act responsibly. How much are you willing to be on that proposition?

Don't get me wrong, I don't think it's a bad investment. I am just tired of people asking why half of their portfolio is not in gold, as opposed to the 2-5% that is there now.

I think that guy with the 15% in gold is ballsy and if he can move quickly can make a lot. The problem with him is, he is holding such a large position it will be hard for him to find enough buyers if it turns sour.

i think that video is more than a year old.

No, the one I saw was new, but yeah I'd seen him saying the same thing a year ago. That's why he's very very rich. He figures out long term trends and sticks with them through thick and thin.

This is what you have to watch for but I don't think we are there yet.

People were talking about the housing bubble for at least 3-5 years or more before it popped, the dot com bubble lasted a good while too.

I remember $260 gold and all the main stream press was negative at that time but there was no way it should have been that low or could stay that low because more than 60% of the mines were losing money.

Now at $1200 gold we are on the third up leg in three years, there will be a pull back at some point and there will be flat out bad years too, there are signs that this is a fundamental shift, but if we see more signs of a mania it's time to cash out..

Personally I'm 100% in one Gold mining stock, except for our two houses, cars and emergency cash.

Can't sell because I'm an insider and our deal isn't done yet, but it feels so good.

Gold down about $100 to $1115 over the last few days.

Mostly because the US$ is up some, and a pull back was due.

I pulled a lot of people out in the last couple weeks.

$1074 today,

Still safely over a thousand.

Is the strength of the us dollar and the lag of European recovery a cause for a decline in gold?

No exactly, It's more the Greek financial crisis which is hanging over the Euro like the sword of Damocles. So the knee jerk reaction for many is to sell Euros and buy the US$ but there are no lack of fiscal problems on this side of the pond undermining the buck, which leaves us with gold.

Been waiting for this to start.

http://www.marketwatch.com/story/fed-raise...02-18?dist=news


Feb. 18, 2010, 4:56 p.m. EST · Recommend · Post:
Fed hikes discount rate to 0.75%, as signaled
Return to 'normal' operations, not sign of tighter monetary policy


WASHINGTON (MarketWatch) -- The Federal Reserve raised the discount rate Thursday to encourage banks to borrow from the private market for short-term credit instead of from the Fed.

In a statement Thursday, the Fed said it would raise its discount, or primary credit rate, to 0.75% from 0.5% effective on Friday. The central bank also said that, effective on March 18, the maximum maturity for discount window loans will be shortened to overnight.

Fed Chairman Ben Bernanke signaled last week that the Fed was mulling the move.

The quick move caught Fed watchers somewhat by surprise. Many had expected the move to come at the next Federal Open Market Committee meeting in March. Today's action may show a sense of urgency on the part of the Fed officials.

There was a sharp reaction in financial markets. The dollar spiked and stocks retreated. In fixed-income markets, Treasury prices fell and yields moved higher.

The market movement indicated that investors are expecting the Fed might tighten monetary policy sooner than previously thought. However, in its statement, the Fed reiterated its view that "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

The Fed said the move is intended to "normalize" its operations as it winds down its response to the financial crisis. "The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy," the Fed said.

The change in the discount rate was approved by the Fed Board of Governors on requests from all 12 district bank boards.

Former Fed Gov. Laurence Meyer drew attention to the possibility of a discount rate hike early this year. Meyer said Fed officials were unhappy that banks were engaging in a carry-trade, or borrowing from the Fed at ultra-low levels and then reinvesting the money elsewhere at a higher rate of return.

As a result of the Fed's hike, the spread between the target federal funds rate and the discount rate widened to 50 basis points from 25 basis points. Prior to the financial crisis, that spread had been 100 basis points.

The Fed said it will "assess over time" whether further increases in the spread are appropriate.

Greg Robb is a senior reporter for MarketWatch in Washington.

Close to an all time high

Gold Maintains Solid Gains, Close to All-Time High
By Jim Wyckoff
11 May 2010, 10:41 a.m.

Comex gold futures came within a couple dollars an ounce of scoring a fresh all-time record high Tuesday morning. June Comex gold hit a high of $1,225.20 Tuesday, which is just shy of the record high of $1,227.50, basis nearby futures, hit in December of 2009. June gold last traded up $17.70 at $1,218.50. Gold continues to benefit from safe-haven buying interest amid the European Union's sovereign debt crisis that just will not fade into the background.

London Fix
May 11th 2009 $912.50
One year later
May 12th 2009 $1241.25

Up $328.75 or 26%

Did you invest?

Thought adjusted for inflation Gold was over $2,000 an ounce back in the early 80s?

I don't know the exact figure, but yes, you got your ass handed to you if you aucu'd in early 1980

http://www.bullnotbull.com/archive/gold1980.html

No doubt but that high was basically a flash spike in the POG.

Todays market is very different.
Medium term prospects looking good with the sovereign debt crisis picking up steam.

POG is down to $1182 but generally holding just under the $1200

Late summer is often a bad time for gold such as in 06 and 08 due to buying and selling cycles in India amongst other things.

Could be a buying opportunity on a dip in the next 30-60 days, then a run up between by the end of the year as there has been in four of the last five years.

Gold is back up to all time highs,

If Steve would have bought on the first market day after starting this thread he would be up 39% by now.

May 11, 2009 London AM Fix $912.50
Today's London AM Fix $1270.40


Good read here
http://www.financialpost.com/news/mining/F...0175/story.html



Four key levels for gold bulls to watch

For the faithful who have crossed the desert and suffered the slings and arrows of critics and the ridicule of non believers, gold's move to an all time high of $1,276 delivers the greatest of all vindications. All it took was some comments by Ben Bernanke about quantitative easing triggering dollar weakness, and it was off to the races. It didn't hurt that the Indian wedding season, the largest annual purchaser of gold, is just beginning. Actually, it wasn't much of a desert, maybe more of a Zen rock garden, as the barbarous relic, (yes, Alison, it's barbarous, not barbaric) sold off for only six weeks, down to $1,155, before it resumed its recent ascent. The Chinese buying I predicted put a floor under the price much higher than traders anticipated, frustrating hoards of buyers lower down (click here for "China's Insatiable Appetite for Gold").

So now the question arises of what to do with your bounteous profits, and how much risk does the yellow metal present here. I get asked this question a dozen times a day, by some who have been long since the current move started more than a decade ago at $260, and others who stood on the sidelines and watched in awe as it went to the moon, kicking themselves all the way. Is it too late to get in?

They call the yellow metal the barbarous relic for a reason. Let's face it. We've had a great run. Gold is one of the top performing assets of 2010 by a long shot, soaring 16% YTD to its peak today, when most other asset classes sucked. Investors did even better in the futures, leveraged ETF's like the (UGL), and gold mining shares or their out of the money calls.

If you are the world's greatest day trader, and think you can grab something here on the short side, then go ahead and knock yourself out. But you will be going against the long term trend. Obama has not suddenly turned into a paragon of fiscal rectitude, and Ben Bernanke still has the keys to the printing presses. The Fed has yet to even admit its role in the credit bubble of the last decade. Fiat paper currencies are still running a frenzied race to the bottom. Politicians of both parties see the only way to win elections is to inflate.

Almost all short term money market alternatives globally are yielding close to zero, meaning that the opportunity cost of owning the gold is nil. It turns out that they aren't making gold any more. The output of gold has fallen by 12% annually for the past decade, compared to a doubling of production costs to $500/ounce. Reserves everywhere are playing out, and top producer Barrick Gold (ABX) isn't opening a new mine at 15,000 feet in the Andes because it likes the fresh air. The upcoming slugfest in Congress over whether to extend tax cuts for 97% of the populace, or the whole 100%, will almost certainly cause many investors to just throw up their hands in despair and start shopping for American gold eagles at Amazon (click here for that link).

Now that we have broken out to a new high, many traders think the yellow metal won't pause to catch its breath until we hit $1,300. I still think my long term target of $2,300 is a chip shot, but it might take three years to get there. There are higher predictions of $5,000, $10,000, and $50,000 based on ratios of gold to broadening definitions of monetary assets, but I won't bother with those here (click here for "The Ultra Bull Case for Gold"). First things first.

Below are the downside support points on the charts (above) , with my comments.

$1,212 -50 day moving average, probably holds, but a break signals a more serious pull back

$1,166 -- 200 day moving average held last time, should work again. Unlikely to get there, but the world is a big buyer if it does.

$1,050- The 2010 low, the old multi year high, and the place where the Reserve Bank of India kicked off the current love fest with its surprise 200 tonne purchase 11 months ago. Unlikely to get there, but the world is a big buyer if it does. Bet the ranch here.

$680 -- The 2008 low- In you dreams. We aren't going to get a full blown flight to liquidity we saw in that dreadful year. Relegated to the history books for good.

Use any serious dips to accumulate low cost, growing, gold miners with decent valuations, which are enjoying escalating operating leverage the higher the barbaric relic runs. Some new names you might entertain are Royal Gold (RGLD), Agnico-Eagle Mines (AEM), and Great Basin Gold (GBG).

This post comes courtesy of The Mad Hedge Fund Trader >



Read more: http://www.financialpost.com/news/mining/F...l#ixzz0zhxsAr4y

rofl. you sir should be ashamed of yourself.

if only i hadn't folded that 95o preflop i would have hit huge.

Really?
You equate investing in gold which has has very strong fundamentals for a long time, with playing rags.

No. He equates the results based thinking of: "You should have invested in... because you have seen a return of..." to the results based thinking of: "I should have played... because I would have hit..."

Results based thinking.

I prefer the 7 9 ....

October/Nov options expiring at 1300+ may drive this down with a big sell off.

Yes these are the results, I see your point, but a there is a group has been so blindly over the top against gold, they couldn't see what a premium hand gold was.

Good point. It isn't really results based thinking to say: "You should have bet Preflop with Pocket Aces - you need to get value for strong hands."

You're right, Gold is a pretty premium hand.

quoted the important tense

Didn't think you would be back after you did this to all your previous posts



At that time you had a negative opinion on gold, wrong call it was, it happens.

IMO Gold should be good for a while for at least two reasons

-As long as US Prime Rate don't start going up a real amount, anyone see that happening over the next few months? http://primerate.wsjprimerate.us/search/la...e_rate_forecast

and

-Another round of quantative easing/devaluations will help only help gold more
http://www.bloomberg.com/news/2010-09-27/j...-this-year.html
http://www.cnbc.com/id/39384098

So gold remains a buy.

some time ago, I deleted almost everything I'd ever posted to FCP. I have a LOT of free time, but not enough to worry about returning to aucu's golden funhouse to clean up any incriminating evidence.

I know a few people who are quite happy about the way gold's moving. the gold:platinum and silver:gold ratios have been whipping around for a while now, and one of my friends has twice been able to sell gold at a premium to platinum.

I don't remember ever giving a buy/sell on gold. most of what I posted has been quoted by other people, and I don't see one. if I had to guess today, I'd say gold continues to appreciate for a while, then look for a collapse with the economic recovery.

on the issue of the dollar, there just isn't much question that people with lots of them need to be hedging. gold may indeed be a good option there, I don't know.

Sounds a bit naughty doesn't it.

Sounds like something R Kelly would enjoy.

More Fun

http://www.kitco.com/reports/KitcoNewsOcto...010_update.html

Gold Powers Ahead to New Record High; No Signs of Market Top
05 October 2010, 11:05 a.m.
By Jim Wyckoff
Of Kitco News
www.kitco.com

December Comex gold futures on Tuesday hit another fresh contract and all-time record high of $1,339.50 an ounce as of this writing. December gold last traded up $20.80 at $1,337.60.

A slumping U.S. dollar index that has hit a fresh 8.5-month low Tuesday continues to funnel buying interest into the safe-haven asset of gold. Much of the greenback's weakness lies with a surging Euro currency following some better manufacturing data coming from the European Union Tuesday.

Generally stronger commodity futures prices Tuesday are also supporting the upside moves in gold.

The shorter-term and longer-term price trends in the gold market have been and continue to be up. On the daily bar chart for December gold futures, prices are in a nine-week-old uptrend from the late-July low of $1,159.30.
On the monthly continuation chart for nearby Comex gold futures, prices have been trending higher for the past nine years, from the 2001 low of $255.00 an ounce.

Importantly, there are no strong, early technical clues to suggest a market top is close at hand in gold futures. A close in December gold below the last "reaction low" on the daily chart, located at last week's low of $1,276.20, would dent bullish enthusiasm and at least temporarily negate the near-term price uptrend on the daily bar chart, to then begin to suggest that a near-term market top is in place.

Bulls' next upside technical price objective is to produce a close above psychological resistance at $1,350.00 in December gold. Bears' next near-term downside price objective is closing prices below solid technical support at $1,300.00. Near-term resistance is seen at $1,340.00 and then at $1,345.00. Support is seen at $1,322.00 and then at the overnight low of $1,313.30.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

Gold will push higher as currencies around the world are going have a declining ripple effect as countries try to devalue their way out of debt and into trade surplus. I see no near end to this cycle. Drudge had a report the other day about the super rich buying gold as fast as they can have it shipped. I can't see the ceiling for anywhere under $2000

I'm too lazy to reread this whole thread... I've been seeing multiple stories, in hushed conspiracy tones, that gold is oversold... basically, there are more contracts to own gold than there is gold in the world. The story is that when the world figures this out, gold prices will go to.... infinity.

Has anyone else heard this and can you tell me why, in all likelihood, this is false?

I think that there are probably any number of novices holding paper for "gold" that might get a nasty surprise one day. I think this is probably only caused by rolling worldwide currency collapses.