Gold hits record high on debt fears and chance of more Fed stimulus

Lots of people were buying gold right up to its peak. By definition.

 

Gold Tumbles in Metal’s Biggest Decline in a Year

'Gold dropped the most in a year as some investors sold the metal after signs of slowing growth spurred a rally to a record $1,917.90 an ounce.'

http://www.bloomberg.com/news/2011-...ecord-above-1-910-as-some-investors-sell.html


This is actually good news - in my opinion.

Gold's upward climb was beginning to look a tad 'parabolic'. And that is rarely good news - imo - because it usually means things will get over-heated as speculators jump in too much, too soon. And that usually means a BIG over-correction will follow, like what happened with silver in the spring (though that was definitely helped by VERY major margin requirement changes whose reasons are still suspect to me).

I want gold and silver (which also - of course - corrected substantially today) to do what they have mostly been doing over the past 11 years or so...go generally upwards, fairly slowly and steadily.

 

wrong.....your problem is you dont know what a mania looks like...you said so yourself that gold is below its inflation adjusted 1980 high, so how then can it be in a bubble.....the dollar bubble along with treasuries......NOW THAT IS A BUBBLE LOL

 

nope...I was there....most of the panic buying was in the last 6-8 months by the unsophisticated lunch box Joe's......even though interest rates were exploding upwards, these dummies dont understand economics so naturally they went to slaughter!

 

as gold goes higher and higher then expect steeper corrections...once gold goes over 2,000 then even expect 100 dollar daily corrections from time to time!

 

Oh, I agree.

But I get a tad nervous when people start using the word 'parabolic'.

It doesn't mean gold won't end up going up the same amount in the end.

But I prefer a smoother ride to a rougher one.

And the longer gold/silver stays under the radar of most people...the smoother the ride should be for owners of gold like you and me.



But on the other hand, I hate to see people miss out on it.

So...

 

Even though it is ilegal in the U.S. to melt pennies you can buy copper pretty cheap. Just buy penny rolls and keep the pennies minted before 1981.

90% copper 10 zinc. except the steel ones minted during the big war.

 

like I said.....most people are clueless...this is why most people will die with lunchbox in hand!

 

you realize there are more americans that are selling gold through outfits like cash4gold than there are net buyers right? So long as thats the case.....the masses are still ignorant to the potential for gold.....oh I am sure eventially when gold tops 2500 or higher they will line up at coin shops like the clueless ideots that they are

 

yes.....I believe the ones minted after 1981 were made of mostly zinc I think!

 

I was there too. Your post affirms what I said. Who do you think is buying a lot of the gold now? The Glen Beck crowd.

 

Gold is not an equity, although its exchange traded fund now has more asset value than the spy(der).

The problem is that not everyone will be capable of getting out all at once (or even at a price that allows them to realize a profit).

 

That's what happened with the dot.com boom and the real estate boom and all booms...the ignorant masses jump on the bandwagon too late. They prop up the market long enough for the smart money to jump off...'bless 'em'.

And that's what will probably happen this time.

As soon as Bernanke starts to (or just says he will) aggressively raise rates...get out...don't wait for the market to react.

 

Gold Tumbles Most Since December 2008

'Gold plunged in New York, heading for the biggest drop in 18 months, on speculation that financial markets may be stabilizing, eroding the appeal of the precious metal as a haven.'

http://www.bloomberg.com/news/2011-...st-fall-since-2008-as-haven-demand-wanes.html

 

Yup...I was afraid this might happen.

Parabolic-type rises often mean huge drops.

But, now gold can go back to 'slow and steady'...until the next market 'crisis'

 

the glen beck crowd are buying from goldline and are getting ripped off! And most of the buying is coming from offshore....most americans are still clueless to gold! Oh trust me...they will be lining up at coin shops when it hits 2500 to 3,000

 

yup...when the ignorant dummies line up at coinshops then you know its time to get out

 

thats what you want...slow and steady...sort of like silver is behaving now!

 

Good point.

 

True.

Silver and gold have been rising and falling in relative unison lately.

I wonder why?

 

all I know is that as the price goes up it will get more volatile!

 

No doubt.

It should be fun.

I am sincerely looking forward to it.

 

???

Silver was up to almost $50 about four months ago, dropped 30% in price in about a week, was back up to $44 just two days ago, and has drop 10% in just the last two days.

If that is "slow and steady" to you I'd have to wonder what you consider volatile.

 

You could say that about anything. The last time you said it, gold was around $1,500 an ounce. Now, it's at $1,750. Irie...the investment guru extraordinaire...

 

I made no predictions about what gold would do.