Gold jumps $40 and counting...

just read now that morgan stanley is predictiing an 80% chance of QE3 because of the job numbers etc. Gold silver: Aiming sky high and shoot!
 
Just perfect, I was working out a deal with a guy to buy a few of his premium ounces of gold, never really finalized the price and now I gotta cough few hundred dollars extra (at least).

Oh well, it's only (paper) money ;)
 
If you read between the lines, you can see politicians, including Australia starting to position themselves for another QE. Lets hope Australia, spends QE funds on long term infrastructure.

Regards Errol 43
 
I struggle to understand, yes i am new to this, why people get so excited when it goes up and how they want it to go more. Wouldn't you, i mean i would, like it to stay lower so you can keep stocking up and then rise next week?
 
Reeve said:
I struggle to understand, yes i am new to this, why people get so excited when it goes up and how they want it to go more. Wouldn't you, i mean i would, like it to stay lower so you can keep stocking up and then rise next week?
Click to expand...

Yes, it's the PM investors dilemma!

You want prices to go up, so that the stack you own is worth more, particularly if you want to trade or liquidate it. But you want prices to stay down so you can get more oz's.

But climbing prices also give you piece of mind that you've made the right choice :)
 
There maybe more behind it than meets the eye

http://www.alphavn.com/2012/05/27/a...com/2012/05/27/and-the-currency-wars-heat-up/

The Three Signs

The CME Group was involved in three major announcements this week, individually they mean very little but in conjunction say a lot:

The margin requirements for Gold and Crude Oil contracts were cut by 13% and 10% respectively.
They announced a 5 for 1 stock split and extended grain trading hours.
Both CME and Intercontinental Exchange (NYSE:ICE) were designated as systemic by the U.S. Dept. of the Treasury
 
Reeve said:
I struggle to understand, yes i am new to this, why people get so excited when it goes up and how they want it to go more. Wouldn't you, i mean i would, like it to stay lower so you can keep stocking up and then rise next week?
Click to expand...

It excited SS stackers here :p . It has been a dead wood lately.

Now the prices started climbing up n "kooks galore" is here...there will be plenty of activities in this forum :)
 
.M. Kitco Metals Roundup: Comex Gold Soars on Safe-Haven Demand, Panic Short Covering after Very Weak U.S. Jobs Data

Friday June 1, 2012 2:32 PM

Comex gold futures prices closed sharply higher, near the daily high and hit a fresh three-week high on Friday. The precious yellow metal bulls are right back in business as strong safe-haven demand and panic short covering put a strong bid into prices Friday. A much-weaker-than-expected U.S. jobs report quickly put U.S. quantitative easing of monetary policy back on the table. August gold last traded up $66.20 at $1,630.50 an ounce. Spot gold was last quoted up $68.50 an ounce at $1,929.25. July Comex silver last traded up $0.703 at $28.45 an ounce.
http://www.kitco.com/reports/KitcoNews20120601JW_pm.html
 
$1630 - been watching the price from mid 1550s - was going to wait another week before buying but I think gold is going up !
Scary to watch that price surge. G-d knows the price at the end of the year - been using up all my savings and buying now.
 
Dogmatix said:
Reeve said:
I struggle to understand, yes i am new to this, why people get so excited when it goes up and how they want it to go more. Wouldn't you, i mean i would, like it to stay lower so you can keep stocking up and then rise next week?
Click to expand...

But climbing prices also give you piece of mind that you've made the right choice :)
Click to expand...

That's the key thing for me.

When all of the gold you added to your stack since August 2011 is technically underwater, you start doubting whether you made the right decision and get depressed thinking about all the "what ifs" (what if I'd kept my cash in the bank earning 5% and waited until now to buy, etc, etc).

A convincing swing back to the upside brings peace of mind.
 
Argentum said:
just read now that morgan stanley is predictiing an 80% chance of QE3 because of the job numbers etc. Gold silver: Aiming sky high and shoot!
Click to expand...
When would they most likely announce QE3? I remember hearing June 6th a while back?
 
GoldenEgg said:
Argentum said:
just read now that morgan stanley is predictiing an 80% chance of QE3 because of the job numbers etc. Gold silver: Aiming sky high and shoot!
Click to expand...
When would they most likely announce QE3? I remember hearing June 6th a while back?
Click to expand...


I think Fed meeting is near end of month Egg.

I'm not buying this as a bottom however tempting it should be. Neither do I feel The Bernank will announce QE3 in June. I just don't see we've had the scare where the week hands are really pushed out and the banks come in and scoop it up at rock bottom. They've been playing this game a long long time :)

Now QE3 is expected by this move what happens if it doesn't come soon? Gold could fall easily double what it just went up. Saying that I'm buying a little today as cover because it's still at a reasonable price here.
 
is this move up even relevant? any price prior to the announcement of QE3 should be considered cheap, as we all think that QE is inevitable, and we all know that the price of gold following QE will sky rocket. unless your following the tops and bottoms for trades, imo, the price of gold, irrespective of what it is in nominal terms, will be cheap for the purpose of hedging prior to the announcement of QE

what happens when china announces how much gold it has been stock piling? if they tell us theyve doubled their holdings, people will go crazy and the price will go up. its the average joe responding to headlines which determines the price
 
Personally I think that they engineered gold to fall significantly before QE3, so as to take some steam away from it.

For them it is better that gold go from 1500+ to 2000 after QE3, rather than from 1700 to maybe 2500 or higher.

It probably relates to some BS key resistance levels on charts and all that ;)

Edit: Also, consider that gold as an investment is looked at on a 'annual' growth basis. Eg, if gold goes to $2000oz, that is up how much from January? But if it goes to $2500 it is up significantly more.

The higher gold goes in consecutive calendar years, the more attractive it looks as an investment to others, particularly for longer term investors who expect to see gains, and consistency. So I would argue that the Fed tries to break that attractiveness as much as possible.

Plus, in the same vain, gold is considered a measure of economic/currency confidence. They know gold will go up on a QE3 announcement, but they'd rather it didn't get too high. If they can engineer some volatility into the price of gold, they take away some of its credibility (maybe for fools who don't understand gold).
 
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