Why the heck is even GOLD going down?!

Discussion in 'Commodity Futures' started by SoyUnGanador, Sep 29, 2022.

  1. TrAndy2022

    TrAndy2022

    Short ETFs
     
    #31     Oct 1, 2022
    Gazillionaire likes this.
  2. The gold market is one corner of the market where things are especially not always as they appear to be. The main bullion banks like JPM have an extraordinarily large impact, and central banks.

    The relative "strength" of the dollar is a major key, note the quote marks. Real interest rates on the 10 year US treasury note tend to be directly correlated, at least over the medium term. For now at least.

    There are those like Rickards and others with connections who believe gold is destined to become a key part of a new monetary system after an implosioin. We will see... in any case, it is always instructive to look at gold's price in various other currencies, note in the chart below how different the gold price looks when priced in Yen. It has held up pretty well. Look at both the one and five year charts:

    https://www.usagold.com/gold-charts-in-various-currencies-and-timelines/
     
    #32     Oct 1, 2022
  3. SunTrader

    SunTrader

    If you look at from mid 2020 on Yen and Euro are the only two that have held up. Others are either range-bound or down. So cherry-picking is not my idea of finding a strong market.

    As for the coming implosion that and the end of times are .... "out there" IMO.
     
    #33     Oct 1, 2022
  4. tiddlywinks

    tiddlywinks

    If your life was transacted in those currencies, there is NOTHING cherry-picked about it!
     
    #34     Oct 1, 2022
  5. SunTrader

    SunTrader

    You can do better than two out of nine.

    BTW are you long?
     
    #35     Oct 1, 2022
  6. tiddlywinks

    tiddlywinks

  7. SunTrader

    SunTrader

    #37     Oct 1, 2022
  8. tiddlywinks

    tiddlywinks


    Really?

    Can I use futures (or options) to hedge physical holdings?
     
    #38     Oct 1, 2022
  9. SunTrader

    SunTrader

    Not AFAIK unless you deposit physical into a futures account. Now why would you want to do that?
     
    #39     Oct 1, 2022
  10. tiddlywinks

    tiddlywinks

    The correct answer is no, congratulations!!
    As a retail piker, my holdings do not meet deliverable requirements.
    But futures and/or options do allow, at a minimum, to indirectly "protect" physical holdings from adverse movement.

    Don't be a schmuck.
     
    #40     Oct 1, 2022