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Katwomyn

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Part of one of my posts from elsewhere.

 

"Gold may rally from here. I don't know a great deal about these things so it is only my view but I notice that gold is sitting on its 200 day moving average from where it has bounced up in recent times."

 

I thought I would post a chart on gold as a line in the sand to see how things move forward from here. It seems that the 200 day moving average may be broken atm and so may hover around that level for a short time. Must head substantially below the 200dma to say that the upward trend has broken. Just my thoughts.

 

Cheers charles

 

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While I still think that gold will perform reasonably well in the short to medium term, I came across the following link and thought that it was worth posting here on governments of western democracies sell their bullion to lower debt and fund scientific research. Here is a snippet

QUOTE
Traditionally, gold has been coveted as a safe harbor in times of distress and a hedge against inflation. But inflation is no longer the threat it once was. And while the price of gold has rallied in recent years, few market experts expect it to climb back to the $800-an-ounce level of 20 years ago. In a sign of the precious metal's decline as an investment, NM Rothschild & Sons, the British merchant bank, announced on Apr. 14 that it will pull out of the gold market, in which it had actively traded for 200 years. Says Chairman David de Rothschild: "We have concluded that this is no longer a core area of activity and have therefore decided to withdraw from the market."

More central bank selling could seal gold's fate as an economic relic of the Old World. If France, Germany, and Italy start selling, "it will be another historic step toward the demonetization of gold," says Andy Smith, a gold analyst at Mitsui Global Precious Metals in London. "The pillars of the market are crumbling."
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Cheers Charles:

 

I think the exit of Rothschilds may have been (in part) the explanation for the recent dip in Gold from its recent highs.

 

Let's hope the increasingly insatiable Asian demand for gold jewellery replaces gold's more traditional monetary role and continues to push prices up.

 

As a prospector I can vouch for the increasing rarity of the metal in nugget form at least!

 

 

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There was a good article in the Weekend Fin about the World Gold Council beginning an advertising campaign in China, sounding the trumpet for young people to buy gold. They will begin a campaign that "brands" 18k and 24K gold as "must have" items for the up and coming young chinese yuppie. The article is interesting. China is now consuming everything that it mines and will ramp up imports to satisfy the demand that is ongoing. This consumer driven accumulation along with the spectre of a possible dive in the US dollar due to the enormous deficit adds to the positive story.

H

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Hi Jbeatty,

 

QUOTE
Let's hope the increasingly insatiable Asian demand for gold jewellery replaces gold's more traditional monetary role and continues to push prices up.

 

Absolutely right, it does not necessarily follow that because the 'old world' is getting out does not mean the 'new world' will not take up the slack. Furthermore, as you say that the recent dip may have due to Rothschilds (in part) eventually consumption will out strip demand. Gold does get consumed, just ask my wife she just lost two gold rings in the surf, doh!! Something for you to find no doubt http://www.sharescene.com/html/emoticons/lmaosmiley.gif

 

Cheers Charles

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I agree with the Asian interest in Gold.

 

Look at Indian, whom have and still value gold as a measure and holding of wealth. Their ecomony is ramping up and in the short term they had a great harvest and everybodies going to feel rich and buy gold.

 

Well that's the theory , but the gold story is just beginning. IMHO

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Gold bounced off the monthly 38.2 retrace level of 390 recently. This is the support at this point in time.

 

An interesting look at commodities is given on:

 

http://www.foxfutures.com/longterm042004/TOC.html

 

Kevin Riordan gives free seminars which are very good - recommended. He is very helpful and trades commodities using a variant on the Gartley 222 trades for those interested.

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