Golden Highs 2020

Discussion in 'Gold' started by STKR, Jul 23, 2020.

  1. SilverDJ

    SilverDJ Well-Known Member

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    Anyone game to call the correction date and level?
    Last major corrections have been in the order of $200, so I don't think $1800 is touchable again.

    upload_2020-8-5_16-36-48.png
     
  2. JulieW

    JulieW Well-Known Member Silver Stacker

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    Kitco commentary on $4000 gold in this bull run:

    The fiscal and monetary conditions have never been stronger for gold prices, and while the yellow metal already broke records this week by hitting $2,000 an ounce, Frank Holmes, CEO of U.S. Global Investors, doubled down on his $4,000 an ounce by the end of this bull cycle call.

    Price corrections can happen along the way, Holmes said, but gold investors should buy on the dip.


    “Every time you have a secular bull market, there are many 10% corrections. So you can easily get a 10% correction in stocks, if you get a 3% correction in bullion,” Holmes told Kitco News. “It’s just recognizing that that ratio of 3-1 is important, and if you have the stomach to weather it.”

    On the economy, Holmes expects inflation to rise, but rates to stay low, creating a negative real rate environment.

    “The greater the negative real interest rates, the greater the price of gold,” Holmes noted.

    Holmes comments come as gold has breached the much anticipated $2,000 an ounce last week. Spot gold last traded at $2029.70 an ounce on Wednesday.

    However, money velocity, a measure of the frequency of consumer transactions and is used as a gauge for economic health, has been decreasing, suggesting the people are not spending money.

    [​IMG]

    Holmes argued that money velocity is no longer a valid metric for measuring inflation.

    “You just can’t use money velocity now as an indicator of inflation. That’s really an important factor. I think more important is to remember that since 1980 when gold went through $850 and silver $50 and the gold-silver ratio back then was 17-1, you had very high interest rates. It’s very important to put that into context with what we have today,” he said. “The calculations for CPI [the consumer price index] for when gold had hit $850 has changed many times.”

    https://www.kitco.com/news/2020-08-...s-next-Frank-Holmes-doubles-down-on-call.html

    Although I'm not sure I agree with dropping M2 .
     
  3. Karoi

    Karoi Active Member

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    A Perth Mint 1oz coin is now over 3K !!
     
  4. President Trump

    President Trump Active Member Silver Stacker

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    AUD is rising as Gold rises. Will be interesting if AUD falls as gold continues to rise.
     
  5. SilverDJ

    SilverDJ Well-Known Member

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    US$4000 gold is AUD$5500 at the current exchange rate.​
     
  6. Karoi

    Karoi Active Member

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    Yeah I'm also very interested to see what happens with the exchange rates going forward! Once Brazil is finally able to ramp up iron ore production and shipping, I suspect the AUD will weaken a fair bit.
    I don't want to even contemplate the knock on effect for us if (hypothetically) the property market were to crash in China!
     
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  7. President Trump

    President Trump Active Member Silver Stacker

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    AUD should benefit from governments trying to dig themselves out with infrastructure spending. But that is assuming that nothing comes along to end this ridiculous belief that debt doesn't matter and you can print what you need.
     
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  8. Karoi

    Karoi Active Member

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    Good point.
    If it does end, I wonder how and when that eventuate. If the “printing presses” go into overdrive to keep with/compensate for inflation, it could be quite a dramatic end!
     
  9. Dave Jerry

    Dave Jerry New Member

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    Gold is always setting up a new record. Gold reached an all-time high of $2074.88 this month. Nobody knows where it stops so it is better to start investing now. Buy 1 gram gold bar or 100 grams gold bar from most trusted dealers in New York.
     
  10. leo25

    leo25 Well-Known Member Silver Stacker

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    This was done on the 7th of August. Can go either way from here, but I'm betting it will drop down for a short while.

    gold chart 2020_08_07.jpg
     
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  11. Stoic Phoenix

    Stoic Phoenix Well-Known Member Silver Stacker

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    Near double? Firstly who was the commentator? Importance question to establish credibility
     
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  12. slavaja

    slavaja Well-Known Member Silver Stacker

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    It's sliding fast $1991
     
  13. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    [​IMG]
     
  14. hardyakkagold

    hardyakkagold Active Member

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    Horror of Horrors!

    You mean to tell me that gold can actually fall ( after the recent gold action I have almost forgotten.:p)

    Actually, that may not be such a bad thing as many of us are still accumulating the yellow metal.

    I'm mostly through with purchasing silver though, so I hope the two decuple and go in separate directions,
    so that I can sell some silver and buy more gold.:)
     
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  15. hardyakkagold

    hardyakkagold Active Member

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    I remember the late Bob Chapman saying that in the future there would be $100 up and $100 down days in Gold.

    Looks like those days are upon us now, no time or place for weak faint hearted stackers from now on, they will fall by the wayside,
    and be swept away by the wayward wind.

    I miss Bob, he was a great individual in the fight against the forces of darkness.

    He financed the book 'None Dare Call It Conspiracy' great read if you can find a copy somewhere.
     
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  16. madaw1

    madaw1 Well-Known Member

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    Very good betting...
     
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  17. leo25

    leo25 Well-Known Member Silver Stacker

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    I remember listening to Bob Chapman on the Alex Jones show back around 2008, they were the good old days. :)
     
  18. hardyakkagold

    hardyakkagold Active Member

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    Never had much time for Alex the showman, I used to listen to Bob on the Financial Survival Radio Show with Melody Cedarstron, religiously each week.
     
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  19. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    I'm up so much on my stack right now any small dips are child's play. I'm enjoying the ride and still buying a little, last purchase at $23.?? usd of almost $1000.
    I might hold off buying physical for now and just do more paper. It's faster to sell, easier and I dont get so danged attached to it.
     
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  20. hardyakkagold

    hardyakkagold Active Member

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    Well, looks like the correction is nearly over gold at $1960 already, and silver on a tear up nearly 8% on the futures!

    We might be back over $2000 if not today then maybe tomorrow, and I might have to celebrate with some bubbly again:p

    This action on the charts sure is addictive, I find it hard to leave them alone and go to sleep:D

    Hope some of yours managed to buy some discounted metals courtesy of the cabal smackdown.;)
     
    Last edited: Aug 13, 2020

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