Gold prices- take a guess

Whenever "gold" is mentioned. I always kick myself in the @ss cause Awgee was telling everyone to buy gold back when it was hovering over $400/oz. Arghh!
 
[quote author="reason"]Whenever "gold" is mentioned. I always kick myself in the @ss cause Awgee was telling everyone to buy gold back when it was hovering over $400/oz. Arghh![/quote]

Hmm.. I remember lot of people selling when it hit 800, and 900, and almost everyone when it hit 1200.. Did Awgee say when would be a good time to sell?
 
[quote author="Cubic Zirconia"]
[quote author="reason"]Whenever "gold" is mentioned. I always kick myself in the @ss cause Awgee was telling everyone to buy gold back when it was hovering over $400/oz. Arghh![/quote]

Hmm.. I remember lot of people selling when it hit 800, and 900, and almost everyone when it hit 1200.. Did Awgee say when would be a good time to sell? [/quote]

As far as I know Awgee has not joined this community. Therefore if you don't mind, I'll relay an answer that Awgee has given to me on the topic in the past.

Awgee felt that the value of an ounce of gold and 1 mythical share of the Dow Jones Industrial Average would eventually meet. Whether that meeting occurred as a result of the Dow collapsing towards the present price of gold, gold rallying to the level of the Dow (currently 10,452), or even both gold and the Dow rallying and meeting somewhere north of 10k, he felt that they would eventually meet.

About a year and a half ago Awgee mentioned that he no longer felt comfortable trading around a core position in gold that he had and wanted to hang on so that it couldn't run away from him.

While I'm not as convinced as Awgee is that gold will eventually reach parity with the Dow (it has twice before in history - a brief period in the 30's before private possession of gold was outlawed, and during the 70's), I do feel that totally divesting yourself of gold is a mistake.

As I said earlier, what is going to happen to gold is more a question of "when" than "if".
 
He is right about the when part. I don't know about Dow meeting gold though..
People are selling because they think markets are improving, and it will like 80s when gold fell back after the market recovered. But is it really recovering? And this time things are diff. at a global level- how will that affect gold?
 
Well with ALOT of people investing in precious metals I get the feeling that things will continue to rise steadily. If not from general appreciation, then from inflation.... But with most currencies going into the toilet, i think everybody will want somewhat of a hedge.

-bix
 
You are right about gold being a good hedge against failing currencies.. Whatever the reason is gold is shining, and will probably continue to do so, but I still don't see a 5000 (Read an article about that yesterday). At least not in the current light of events..
 
This gold thing reminds me so much of the housing bubble. I find it funny that, given the origins of this board, so few are calling it.

Just like with the real estate debacle, the people saying gold will never go down are the people financially invested in that projection. Just like the head of the Realtor's association of america (or whatever it is) going on the news and saying that there was no bubble.

Gold's value has almost nothing to do with its practical applications, or even its luxury (jewelry) applications. Its all emotion based. Something, at some point, is going to pop this whole thing and people who got in late in the game (like now or any time recently) are going to lose their shirt.
 
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Gold broke 1100 today..
Panda, will you load up if it comes around/drops to 1000? I remember you were looking for below 1k buying window..
 
My GLD puts went green today and my GLD short position went green as well in the Panda challenge game today.
 
Be warned!!

http://money.cnn.com/2010/01/06/pf/buying_gold.moneymag/index.htm

Coming down with gold fever

Gold has always been a favorite of doomsayers and conspiracy theorists. But last year it started to go more mainstream. Some of Wall Street's most successful investors are now into gold, including star hedge fund managers such as John Paulson and David Einhorn.

But before you join this movement, consider who these converts are. Paulson made money betting correctly that tens of thousands of mortgage loans would go bust in 2007 and 2008. As for Einhorn, he's best known as a short-seller -- someone who wagers that stocks are going to go down. In other words, it's really Wall Street's version of the same doomsday crowd that's caught the gold bug. It would be different if, say, Warren Buffett was buying up this stuff. He isn't.

So you'd do well to heed the warning of economist Nouriel Roubini, who was ahead of the pack in predicting the credit crisis. People who argue that there's economic justification for gold prices continuing their rise, he wrote recently, "are just talking nonsense."
 
I prefer to listen to Jim Rogers over Nouriel Roubini. Morekaos, what is your best guess where the USD and Gold prices will end up in very near term? Are you still shorting gold? I did not take the bait when gold got down to $1080, as i am hoping to get in a lower price. Near term, I'm waiting for USD to rise to between 80 - 82, and I am going all in on the yellow metal when this happens. I will be very suprised to see gold under a $1000 once again.
 
[quote author="morekaos"]At the hight of the Internet bubble I remember being invited to numerous investment club parties. In 2005 I remember being invited to more than one Nouveau Riche party. And now this...

http://finance.yahoo.com/banking-budgeting/article/108445/gold-is-the-new-tupperware-and-youre-invited-to-the-party

Gold Is the New Tupperware, and You're Invited to the Party

...the end is near.[/quote]

Doesn't this mean that the dumb money is selling? Wouldn't the masses be buying if the end was near?
 
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