The price of Gold


#4221

reuters.com/article/china-go … SL3N17G1Z5

**China’s yuan gold benchmark to launch with 18 members -source
**

*A yuan gold fix is not expected to pose an immediate threat to the gold pricing dominance of London and New York, but it could ultimately give Asia more power, particularly if the Chinese currency becomes fully convertible.
*

China continues to hoard…


#4222

dollar is weakening , commodities have bottomed , its bear market cycle came to an end , happens all sectors , it should continue to rise now for the next five years though is a little over bought now


#4223

So, the EUR bottomed at $1.057 in Dec '15 and spiked to $1.152 this month and is now about $1.13. Saying “its bear market cycle came to an end” is sort of handwaving rather than an explanation.

About 6 months ago gold was only at $1050, now it’s well over $300 up.

The last time gold rose $300 in such a short period, we know why that happened: there was a massive financial crisis that led to the greatest depression in the history of capitalism, which is still with us.

But right now, there’s no overt crisis going on. It’s the only time gold has risen so dramatically without there being a big ventilator-faeces interface scenario happening.


#4224

I believe there are one or two shoeshine boys involved in the stockmarket at the moment…


#4225

You think it’s a bubble cause everyone is buying?
Do you know people buying?


#4226

I believe there are one or two shoeshine boys involved in the stockmarket at the moment…

You think it’s a bubble cause everyone is buying?
Do you know people buying?

Elements of a bubble, yes. And I’m talking about the stock market.

I’ve met a few financial advisers advising me to get in.


#4227

It’s a massive bubble, you’d have to be blind not to see it. Stock valuations on just about any metric are ridiculous. The entire market is a farce.


#4228

Calling “bubbles” ain’t as easy as it looks. That quote is three and half years ago! S&P and Bonds both way higher since then.


#4229

Well, I think the P/E is probably not ridiculous relative to bond yields. The problem is when the E collapses…


#4230

en.wikipedia.org/wiki/Fed_model

Not a fan personally.

I’m not saying that stocks can’t go higher. Probably will until after the election. But the valuations of US stocks (to be more specific) are far too high. The buyback frenzy of the last few years is worrying also. I’ve sold all my stock holdings except gold miners.


#4231

trueeconomics.blogspot.ie/2016/0 … backs.html


#4232

I wouldn’t say the markets as a whole are in a bubble. Looking at the US, certain segments of the market are in bubble territory (tech stocks like Tesla, Amazon, Facebook, etc.), others are in seriously overvalued territory (mega cap stocks like Coca Cola, Johnson and Johnson, Kraft, etc.). I think there are vast swathes of the market that are either reasonably priced (Canada except for financials, most of Europe, UK, Japan), or downright cheap (China and Russia, neither for the risk averse). I think anyone expecting 50% declines in any market is likely to be disappointed. However, a 20% correction is something that people should be ready to take advantage of.

As for gold, I don’t see how it is cheap (and this is from someone who owns a little in anticipation of the coming zombie apocalypse).


#4233

https://im.ft-static.com/content/images/536c084c-39c5-11e6-9a05-82a9b15a8ee7.img


#4234

Pretty weak spike, far below previous peak so still a bear market for gold.


#4235

Weak spike, really? Bear market? I don’t think you’re paying attention as much as you want to be right. Gold stocks are up over 100% on the year. But I guess you’ll point to some other timeframe to suit the anti gold narrative that pervades this forum.


#4236

It’s currently $1,266.47 per Troy ounce.

Think it might be a good time to get in, what with warmongering Hillary a certainty to be (s)elected and the impending collapse of some fiat currencies. Silver looks cheap too.


#4237

Gold does well during financial panics, buy during periods of calm and sell it into extreme fear. Traditional arguments about deflation and inflation are largely moot.

One has to wonder how much manipulation it receives. Recent price fixing fines shows the tin-foil hat brigade were actually right. I think we only know a small fraction of the manipulation story. The accepted wisdom amongst the gold community is that the BIS are the chief manipulators. I dont know how true that is.


#4238

Well a decade ago some estate agent were replaced by Cash for Gold shops but now it’s a Gold for Cash game.
irishtimes.com/competitions … 2B42B1ABDD


#4239

The future is bright the future is gold…

schiffgold.com/key-gold-news/te … tor-beams/


#4240

Wait, gold is currency and the ultimate store of value and this fool wants to use it?