It'll be interesting to see which way gold runs if we hit some slower economic news, might even correct a bit (it could just be the new highs but there sure is a lot of people out there getting bullish on gold again)...
Interesting... even gold got slapped hard in today's bloodbath. And it also looks as like if the jitters take hold of the market again, the AUD will go with it and everyone will once again run to the USD despite it's obvious troubles.
Well gold got smashed last night on the good employment figures coming out of the US - down 4%! Will be interesting to see where it goes from here, and whether the good economic news continues.
Bank of Korea Sees ‘Illusion’ in Gold, No Cash Return Bank of Korea Sees ‘Illusion’ in Gold, No Cash Return Dec. 8 (Bloomberg) -- The Bank of Korea, diversifying foreign-exchange reservesaway from a falling dollar, said that additional gold holdings aren’t attractive as most other central banks aren’t buying and the metal offers no cash returns. “There’s an illusion in gold,” Lee Eung Baek, head of the bank’s reserve-management department, said in an interview. “We follow the big trend. Gold isn’t the trend. Out of more than 200 nations, how many countries have bought bullion?”... more...Bank of Korea Sees ?Illusion? in Gold, No Cash Return (Update1) - Bloomberg.com
My understanding is 2009 will be the first year in two decades that central banks will become net buyers of gold: Mineweb - GOLD NEWS - Central banks to be net gold buyers this year - Blackrock So it seems to me central banks might be preaching something and practicing something completely different (though they have a bad habit of doing this). It's important to remember that currency also provides no return, yet people still happy to hold currency in low or no interest accounts and their wallets, even while central banks around the world are printing like crazy. So the fact that central banks talk about it being a bad idea to hold assets that offer no returns seem hypocritical given holding the very asset they control (currency) which they, by their own policy, attempt to debase at a rate of 2 - 3% per year. Moral of the story - don't trust bankers! They are worse than politicians.
Feb. 5 (Bloomberg) -- Hedge-fund billionaire John Paulson’s gold fund lost 14 percent in January, its first month of operation, two investors said. The fund invests in mining companies and bullion-related derivatives, according to the investors, who asked not to be named because the fund is private. Paulson’s $32 billion Paulson & Co., based in New York, bought gold companies in its other funds as well as bullion rose about 24 percent in 2009. Gold futures fell to a three-month low of $1,044.50 in New York today as the dollar’s rally reduced demand for the precious metal as an alternative investment. Paulson, 54, is the largest investor in the fund with a $250 million personal stake, the people said. He started the fund as a long-term bet that gold will rise. Investors can’t exit the fund for three years. Paulson earned an estimated $2 billion in 2008, according to Institutional Investor’s Alpha Magazine. His Credit Opportunities Fund soared almost sixfold in 2007 on bets that subprime mortgages, or loans made to homeowners with bad credit, would plummet. John Paulson Gold Fund Said to Tumble 14% in Its First Month - Bloomberg.com
Gold Stocks To Sparkle On Rising Bullion Price Another point of view is here...TheBull.com.au Upside-(possible levels): $1117...$1218 (longer term).
George Soros doubles bet on gold BILLIONAIRE investor George Soros doubled his bet on gold at the end of 2009 amid rising prices, a filing with the US Securities and Exchange Commission shows. Filings this month show Mr Soros wasn't the only one to up exposure to gold in the final months of last year. The filing for the financial period ending December 31 comes after Mr Soros made comments during the World Economic Forum in Davos, Switzerland late January calling gold an asset bubble. He told media at the time that the low-interest-rate environment creates a condition for bubbles to develop and that gold is the ultimate bubble. ...Mr Soros' SPDR shares account for about 1.7 per cent of SPDR's 364.1 million outstanding shares. The Soros fund also held 11,000 call options that would allow it to buy further shares. That is down from the 31,000 call options held at the end of the third quarter... more ... George Soros doubles bet on gold | The Australian
It's Ponzimonium in the Gold Market It's Ponzimonium in the Gold Market People involved in the markets have known/suspected for years that they have been manipulated by certain large entities, notably JP Morgan and Goldman Sachs. Analysts like silver maven, Ted Butler, hedge fund giant, Eric Sprott, and the Gold Anti-Trust Action Committee (GATA) have been collecting evidence of this manipulation for years. Nathan Lewis: It's Ponzimonium in the Gold Market I would take this story with a grain of salt & pepper. It sounds a bit overdone to me, but...you never know...
I have been watching this interesting news in the gold market for the last couple of days on YouTube (so much better than TV : )) Former Goldman Commodities Research Analyst Confirms LMBA OTC Gold Market Is "Paper Gold" Ponzi | zero hedge I don't know whether it's true or not, but if it was it would make Gold a great investment once the truth was revealed, but sounds like they got a lot of media black outs when it comes to topics of gold (conspiracy theory, probably; interesting, definitely). Another rumour on the alternative news grapevine was that the IMF when it recently sold it's hundreds of tonnes of gold to india it was caught with its pants down with a significant portion of it being nothing more than gold plate tugston, which is apparently all the rage in the gold counterfieting circles (conspiracy theory, probably; interesting definitely).
Gold (on the upside) is peddling towards 1300+ (long term...). Resistance is at: 1169...[1195,1218,1228,1249,1272,1289]. Have a nice trip...
Looks like gold is on the march again... If these Euro issues continue you'd have to think it's going to continue to be bullish for gold both in USD and in AUD... It's already up nearly 9% in AUD over the last month or so. And even with the strengthening USD it looks like the Euro may pose a big enough currency concern to take it to new highs. Should be an interesting next few days and weeks.
Well so far US$ rising against the aussie as well as the POG rising tonight so far. Gold and shorts look like making a profit Friday.
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