Monday 11 August 2008

Gold's Down - What's Up ?













OK, time for taking stock. Having been following gold for well over a year now, I had it firmly identified as a hedge against bad news.


Now we have fairly heavy fighting in Georgia, with Bush huffin' n puffin' - this is serious, folks - and it plummets.

Need to recalibrate here ...

ND

8 comments:

Sackerson said...

We were due some disinvestment to settle margin calls, from what I've read. But Marc Faber has recently indicated a renewed interest in gold, looking ahead.

Mark Wadsworth said...

Oil bubble started deflating a couple of weeks ago, why wouldn't the same happen to gold?

Sackerson said...

Seen this? Jesse ("London Banker")first forecast $875, now he's re-set the clock to $790. THEN...

http://jessescrossroadscafe.blogspot.com/2008/08/long-term-gold-and-us-dollar-charts.html

Old BE said...

Has this got anything to do with the firming up of the dollar?

Nick Drew said...

Sackers - interesting, thanks. (I see Paris Hilton is taking the opportunity to buy gold while the offer lasts ...)

The potential (very strong potential) for there being strategic political forces at work in all this shows (a) how ludicrous it is to make price forecasts (e.g. when does OPEC start taking sides ? or China ? and what will they do) and (b) how dangerous things are for the little guy

Mark - point entirely taken but I'd satisfied myself gold wasn't simply a commodity & am wondering whether a complete re-think is in order

BE - maybe in the sense that Sackers' link alludes to, (i.e. market manipulation for geopolitical ends) but otherwise I'd say not

for what it's worth, I'm guessing if the Georgia situation worsens / spreads elsewhere - and let's face it, with GW & his pal Big Dick calling shots / trying to make Obama look like a wuss, who knows what maladroit moves might be made - gold might still see some renewed interest

Unsworth said...

And the strengthening Dollar is indicative or causative?

Mind you, if Bush does decide to 'take action' I'd expect the Dollar to ease back.

hatfield girl said...

Lots more gold where gold comes from; positional goods are nice - much better than cash and you just try buying a pretty house overlooking the sea from Forte dei Marmi to Nice, or some unpolluted, water-resourced, electrified land near a decent urban centre and with a reasonable level of civil infrastructure. Gold won't do it. All sorts of things gold cannot confer come with positional goods too.

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