Gold Discussion

http://www.valdostamuseum.org/hamsmith/Asteroids.html

Gold is known to be a common element in asteroids. Not to mention platinum, silver, etc. The solar system, and one would assume, the galaxy and beyond, is littered with metallic rocks just whizzing around, waiting to be mined.

Why wouldn't these aliens just do that instead of bothering with another planet overloaded with aliens (that's us)?

Gold is used in medical situations because it is so stable a mineral- we may see more need for this as our science progresses I would argue-

I would also offer that is has many uses- showing affection to women is one which is very important!
-Also another is gold is used as a store of value in the Arab world- An Arabian friend of mine told me that all the women in his family collect gold- now his mother has 4 kilograms of gold-

When the father gets short of cash she cashes some in and lends him the money-


I think the best way to play this gold market is to buy junior exploration companies that have made a discovery - as they build value into the situation by finding more ounces the market cap of the companies can double or triple quite easily-

The earth can sustain life and an asteroid can't. Plus the Aliens are really lazy and rather have someone else do the work for them.

I like to drink it.

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http://templewines.co.uk/images/Blow...ldschlager.jpg

The theory of the gold standard rests on the idea that maximal increases in governmental purchasing power during wartime emergencies require post-war deflation, which would not occur without monetary institutions like the gold standard, which insist upon return to pre-war price-levels and therefore deflationary wartime expectations.

The gold standard limits the power of governments to inflate prices through excessive issuance of paper currency. It may tend to reduce uncertainty in international trade by providing a fixed pattern of international exchange rates. Under the classical international gold standard, disturbances in price levels in one country would be partly or wholly offset by an automatic balance-of-payment adjustment mechanism called the "price specie flow mechanism."

Many economists believe that economic recessions can be largely mitigated by increasing money supply during economic downturns. Following a gold standard would mean that the amount of money would be determined by the supply of gold, and hence monetary policy could no longer be used to stabilize the economy in times of economic recession. Such reason is often employed to partially blame the gold standard for the Great Depression, citing that the Federal Reserve couldn't expand credit enough to offset the deflationary forces at work in the market. Opponents of this viewpoint have argued that gold stocks were available to the Federal Reserve for credit expansion in the early 1930s. Fed operatives simply failed to utilize them. In this case, a causal factor of the Great Depression was not the gold standard but rather a politically usurped monetary system.

It is also true that current global monetary system relies on the U.S. dollar as a reserve currency by which major transactions, such as the price of gold itself, are measured.A host of alternatives have been suggested, including energy-based currencies, market baskets of currencies or commodities, gold being one of the alternatives.

Both gold coins and gold bars are widely traded in liquid markets, and therefore still serve as a private store of wealth. Some privately issued currencies, such as digital gold currency, are backed by gold reserves.

The US Dollar was once backed entirely by gold, thus earning the term “greenback.” The Swiss Franc (CHF) was once 40% backed by both gold and silver, until 2006 when the country had to sell its gold and silver reserves to join the IMF. Today, not a single solitary currency on the face of the world is backed even 1% by gold or silver, as all nations have inflated their currencies to unprecedented levels in the past 50 years.

Correct me if I'm wrong

I like the idea of a currency backed by as basket of commodities rather than just gold itself.

It's true that our currencies should be actually backed by something, but the gold supply is open to manipulation and the market could be easily cornered.

What does this really mean?

Think about it. There are some $600 billion in circulation, the GDP is $14 trillion and gold in priced in $.

Are you saying that the $600 billion in notes that the FED has printed should correspond to
600,000,000,000/1,200 ounces of gold
that are in Fort Knox or somewhere?

Exactly, and that is just the base money supply. Fractional-reserve banking expands that figure drastically. And in my opinion that is the problem, not that our currency's value is issued merely by decree.

Whenever you have a centralized private bank supplying the government and people with their money, you will run into problems. That and politicans don't know jack about economics.

Wooo hoooo bearish rally today....

Overall trend is still bullish I think. And i put my position at 1223 >,<.

What do you guys think?

I am assuming you shorted, otherwise you wouldn't be wooo hoooing.

What do I think...? I think you could be sitting on the "Trade of the Year"! Set your stop at BE and let it have the chance to completely crash. Every market bubbles, every market crashes, gold is no different. Gold could recover easily and move to new highs next week... it could also easily be sub 1000 by Christmas Day, if not lower. Once oil decided it was finished... it went sub "launch" levels.

I am looking to enter long on this retrace. From what I can see, the US economy is still in the toilet. I'd imagine central banks holding US Bonds understand this too and will further diversify away from the dollar in the future.

That being said, I am not saying Gold will not fall farther. Gold has risen faster than I would have anticipated. Who knows, I sure don't have a crystal ball.

I also see it as a retrace otherwise Gold is still having it's head up for the time being. Anyway retrace was due and I even allowed myself to say it publicly in advance click here.

All bubbles will crash, so says Nouriel Roubini, & gold is in bubbles but if you look at the long-term charts (monthly & weekly), you could only see a 'blip' last Friday because over the long term, gold is on the way higher & higher, nothing can stop it. Just my two cents!

How about back to 1000? That's the previous swing high & the 61% retracement of this recent run up.

I posted a nice weekly chart on my blog by the way

1000 is very realistic in my opinion. I also feel that if we see gold come down that much then we will see a lot of buyers move into the market. Myself included.

There is a lot of speculation in this market but I think there are very strong reasons to hold gold and silver long term.

I do not see it going sub 1000 though.

I'm looking at the 2007-08 move as a guide to the phase we're in now, which I believe is quite similar. Back in 2007, when gold took a respite around November, it only fell back to the 38% fibo before setting off on another big run through April. A similar 38% retracement now off the July low would mean about 1,100 [EDIT: Typed 1,000 by mistake earlier] (or 1,085 if you're going back to April).

Now if we look at just this move, doing the fibo from the last low at the end of October, we've already touched on the 38% fibo around 1,150, which is consistent with the pullbacks in September and October. But with this being a much bigger move up, I'd also expect a bigger pullback. Say we get a 62% pullback that brings us just to 1,100. Such a 62% retracement would also be consistent with the 62% we saw off the previous low in that November 2007 consolidation.

We also have the 50-day moving average that should offer support and now that's about 1,115, though it could break through that a bit, which again puts us around 1,100. So until we a decisive break beyond that, personally I think the stars are aligning for a move to around 1,100.

It should retrace to around $1,080 where it should hold before setting off again (refer 4-hour, daily & weekly charts as per attachments) but currently, $1,150 is a strong support. Let's see how it actually plays out.

1000 is a bit far, the steep uptrend is still intact unless it breaks 1100 (.618 of the november high low)

sure 1000 looks like a good price to buy, but after an 18 months consolidation breakout? to back down from its former inflation un-adjusted all time high 1032 to 700 it needed 7 months

btw, aren't the aliens buying? where are they when we need them

Anyone buying silver at these levels?