Gold Just Hit AU$2,000

Discussion in 'Gold' started by GoldenEye, Jun 20, 2019.

  1. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    My thinking is it's probably due to the FED reducing interest rates.

    Any other thoughts on the reasons for the recent rapid rise?
     
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  2. ddevil

    ddevil Active Member Silver Stacker

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    They haven't cut rates, they just said they might
     
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  3. jultorsk

    jultorsk Well-Known Member Silver Stacker

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  4. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    What's the RBA Gov being saying this morning???

    AUD back to 0.69 flat and this price increase is during Aust / Asian trading period, so not sure what's driving rise in last hour. The Fed comment overnight should have kicked in at opening of trading today.
     
  5. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Was just reading it was the Tokyo market reacting to the Fed's position. Given Tokyo is one hour behind east coast Aust, the time of the price rally seems to fit their opening of trading.
     
  6. JOHNLGALT

    JOHNLGALT Well-Known Member

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    It is only PAPER$ $#!T, an oz, is an oz, is an oz.
    It doesn't go up or down (unless you cut some off it). But we all know that, right?
     
  7. JOHNLGALT

    JOHNLGALT Well-Known Member

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  8. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    1 oz is starting to look too expensive...
     
  9. mongrelmaple

    mongrelmaple Active Member Silver Stacker

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    At one go, yes.
    If you’re extremely silver heavy like me, it might be an option to trade the ratio to balance the stack a bit more evenly? I thought I saw a thread by someone offering to take silver for gold at 90/1 but can’t seem to find it :confused:
     
  10. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Keep your eyes focussed on the USD value. We're still a long ways off its top.
     
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  11. jultorsk

    jultorsk Well-Known Member Silver Stacker

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  12. mrsilverservice

    mrsilverservice Well-Known Member

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    Fed No :rolleyes:

    Oops :D

    Take your medicine :)
     
  13. SilverDJ

    SilverDJ Well-Known Member

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    And that's the trick here. Gold is rallying but it is still a long way off the USD high. Add in that the USD is strong and the AUD is struggling to stay afloat (both of which will cause the AUD gold price to go up), and all this whilst at record stock market highs (stock crash usually means gold increases), then the future outlook for gold priced in AUD looks almost like a sure thing that it will keep rising. USD$1800 gold will mean a minimum of AUD$2600 gold price, as it's extremely unlikely the AUD will jump back up significantly enough to offset that rise.
    I've moved all my unallocated silver to gold.

    upload_2019-6-20_13-9-10.png
     
    Last edited: Jun 20, 2019
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  14. mrsilverservice

    mrsilverservice Well-Known Member

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    For who :D
     
  15. mrsilverservice

    mrsilverservice Well-Known Member

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    With our Reserve Bank cutting and the US Fed likely to do the same were to next :)

    More upward trend I would think :D

    Gold AUD = $ :p
     
  16. jultorsk

    jultorsk Well-Known Member Silver Stacker

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    Perth Mint chimes in:

    The rally in gold has been driven by a handful of factors which include:

    • Escalating geopolitical tensions in the Middle East, with two oil tankers attacked in the Gulf of Oman last week.
    • Expectations of monetary easing by the US Federal Reserve (Fed). Despite the Fed leaving the cash rate on hold in a target range of 2.25-2.5% overnight Wednesday 20 June, markets are still betting on a rate cut as soon as July. PIMCO, the world's largest bond fund manager, has suggested the Fed may cut rates by 0.50% if "tensions between the US and China are not at least scaled down before or during the G20 meeting" on 28-29 June.
    • A continued plunge in global bond yields, with US 10 year bond yields now sitting below 2%. Since late 2018, the market value of debt trading with a negative yield has almost doubled and currently sits at approximately USD 12 trillion, according to a 17 June article published in The Financial Times.
    Australian dollar investors in gold have received an additional boost from continued weakness in the local currency, which is back below USD 0.7000.

    Markets are now pricing in at least two more interest rate cuts by the Reserve Bank of Australia (RBA) over the next year.

    If the RBA delivers what the market expects, we may see added demand for precious metals, especially if it's accompanied by continued media speculation about the potential for quantitative easing (increasing the money supply) in Australia.

    High profile investors turning to gold
    Given the recent rally in gold, it is no surprise to see it find favour among high profile investors. Stephen Innes, Head of Trading and Market Strategy for Vanguard Markets, stated in an article published on 17 June: "Gold is reclaiming its rightful status as a must-have safe haven asset in everyone's investment portfolio".

    Innes went on to state that he is "unwaveringly bullish on gold and continues to buy as it remains one of my highest conviction trades into 2020."

    DoubleLine Capital's Jeffrey Gundlach, known in financial markets as the "Bond King" stated he was long gold in an investor webcast last week. He noted that he expected the US dollar to fall between now and the end of 2019, while he also sees a greater than 50% chance the US will enter recession within one year.

    Finally, billionaire Paul Tudor Jones, fund manager and founder of Tudor Investment Corporation has said gold is his favourite trade for the next 12-24 months. In an interview with Bloomberg last week, Jones noted that gold has "everything going for it" and that if the price can push through USD 1,400oz, it will get to USD 1,700oz "rather quickly".

    Of course, it must be said that prices aren't guaranteed to rise and after a 5% rise over the past month, some consolidation would not be unexpected. Nevertheless, we remain optimistic about the medium to long-term outlook for gold. We believe it should be on the radar of most investors given its unique qualities and the benefits it can bring to well diversified investment portfolios.


    Jordan Eliseo
    Senior Investment Manager
    The Perth Mint
     
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  17. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    For me. If you consider that 1 oz is the minimum size to buy gold without paying ridiculous premium, it's not cheap if we are to profit from it. Let's say we target a 100% profit from today's price, AUD4000. Can you imagine how many people will be willing to pay AUD4000 for a lunar coin?

    On the other hand, silver can rise 3 folds and it is still very affordable.
     
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  18. JOHNLGALT

    JOHNLGALT Well-Known Member

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    Yes @sgbuyer , you are swapping paper & ink for REAL MONEY. Well spotted Sir. _JLG.
     
  19. SilverDJ

    SilverDJ Well-Known Member

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    Not true. If you want to "profit from it" you have to sell your gold, and the best way to do that with the lowest loss is to buy/sell unallocated (or allocated) gold.
    Current Perth Mint prices that apply to any quantity (I think there is a $50 minimum order though)

    upload_2019-6-20_16-46-31.png

    Then don't buy a lunar coin, buy (un)allocated) gold. Or buy a lunar coin from a depository that holds the coin and will buy it back from you.
     
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  20. JOHNLGALT

    JOHNLGALT Well-Known Member

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    "Not true. If you want to "profit from it" you have to sell your gold,"

    LOLOL, you must be a gold-pumper, are you?
    Real people buy GOLD & SILVER as Insurance, not to make FIAT (make-believe) profits on it.
    We buy it cos it is REAL MONEY.
     

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