I am constantly amazed at the ignorance of so many posters on ET. Wake up people, gold is not just a commodity. Stop thinking of it in terms of its uses. Gold IS a currency. You've just been conditioned to believe that the US is the worlds reserve currency as it has been through the majority of your lives. Gold has been the worlds reserve currency throughout history, save the period from 1971 till now. Short the hell out of it for all I care, but you will lose money. Like I said in a previous post to Sumosam, if you don't understand why something is going up, you have 2 options that won't cost you money. Sit on the sidelines or join the trend. Trading against a trend simply proves your lack of ability as a trader or investor. Remember there is only one point at which you will be right with a trade against the trend and that is at the end of that trend, yet there are literally hundreds of entry points along the trend that will make you money if you trade with it. Both Gold and Silver HAVE been manipulated for a substantial period of time now, by those whose interests are not served by a rising gold price (because it is also a barometer of economic conditions). Whether you believe it or not, GATA has provided ample evidence of this. Therefore Gold is substantially undervalued at the moment. Bear in mind oil is at an inflation adjusted high, while Gold is still approx US$1,500 shy of this. Personally I couldn't care less whether you believe me or not, I'm simply trying to assist those of you who for whatever reason seem unable to draw logical conclusions for yourself. Short the hell out of it if you want, I'll be happy to take the other side of the trade, but don't say you didn't know. Gold's got far more chance of going to $3,000 than $400.
Top pickers, please print this out, enlarge it, print it off and paste it on your wall. The thing is, there is no problem with taking a nibble when you feel that a change is imminent, and getting stopped out and trying again. A lot of traders do this successfully. However, why try this when the instrument is showing huge bull strength and no end in sight? Gold has just broken up strongly out of a lovely triangle formation. What is the point in picking a top now??
next week could be interesting huge jump in open interest late this past week in comex gold futures was it was placed by "strong hands" or even "stronger hands" or a hedge against something else (?)
Everything that goes up must correct, also recession fears on rise so lower interest rates do no good to gold although other factors like weakening dollars etc. should also be considered
Gold & Silver's 1 hour and 10 min charts point to yet another likely thrust starting in pre-market hours (leading into tomorrow Nymex RTH). Divergences on hourly charts point to a retracement in both metals that is about to be bought. I would not short it here AT ALL, bears beware! Your stops will fuel the rally (ImO) If anybody here trades/analyses stock market indexes then having a glance on their monthly charts reveals a strong possibility of great weakness having formed that may lead to 1 of 3, we calmly retrace or we go into a monthly bear phase or bear phase may evolve into some "cataclysmic" type of price action. In any of those 3 events Gold will, as it has always been, remain the most convertible currency. Of course there is always a 4 where monthly weakness is completely negated by involvement of PPT. I wouldn't be at all surprised to see spot reach $900 tomorrow
I really do hope your right. There does seem to have been a little strength in the last hour or so in spot prices
Okay oh mighty trader guru. Calling me ignorant makes you right, huh? Well buddy, "save the period from 1971 till now" is 37 years! So, if "They" manipulate the price lower and keep it there for another 37 years, you'll die broke. You are a moron if you think gold has a better chance of 3000 than 400. You are completely delusional making a statement like that. Credibility = 0 And for the record I am not short gold.