Gold up

[demeanor]

Gold also climbed as investors showed a lot interest due to weak dollar. Stephen Platt, a commodity analyst at Archer Financial Services Inc. in Chicago, said: "People are buying gold to protect themselves from the decline in the dollar. We’re going to see further devaluation in the dollar and there’s a desire for diversification into gold.”

 

[leanhussle]

Gold will keep on the up all the while Stocks are coming off due to investors seeking commodities to put their money into.

 

[lazerradial2003]

The Gold rally still bothers me though, the US mint actually stopped trading in their most popular coin (American eagle if I remember rightly) today because they'd run out. I get that historically gold was a safe place to put money but the reasons which made is safe just don't exist any more....time to start shorting perhaps?

 

[leanhussle]

The Gold rally still bothers me though, the US mint actually stopped trading in their most popular coin (American eagle if I remember rightly) today because they'd run out. I get that historically gold was a safe place to put money but the reasons which made is safe just don't exist any more....time to start shorting perhaps?

Looks like you set off a sell-off there this morning! Any more shorting quotes you want to make? There has definatly a large mass of profit taking soon. But the bigger investors will be quite happy to hold onto it and keep pushing through higher historic highs. Looks a good time to sell small rallies.

 

[lazerradial2003]

Who knew one little post could do that?! I just think that Golds intrinsic value is fairly minimal (I know it has industrial value but it's not like industrial output has soared recently or anything) so I can't see any reason for the rises except for speculators following those who went to gold for safety.

As for shorting quote perhaps tomorrow I'll try and call the collapse of the FTSE (On a Saturday, now that would be an achievement!)

 

[leanhussle]

You never know which big boys are reading threads!! I agree with you on the fact that the rise is mainly caused by the obvious long-term safety in gold.

That would be an acheivement!! Good luck with that one!

 

[lazerradial2003]

But do you not reckon that if the rise is now being driven by speculation that there isn't really any long term safety in it?

 

[leanhussle]

There is always going to be long-term safety in Gold due to it being a non-renewable commodity. So Gold prices in the long run can only go up. But it's obviously dependant on when the big investors move back into the stock market for the next rally.

 

[lazerradial2003]

V true but I'd be willing to bet (so to speak!) that a lot of the people in gold at the moment for safety haven't properly distinguished between safety and long term safety - it might be a stable investment over the next ten or twenty years but I reckon they might be in for a shock if they need to get to their money in say the next five.