Current Gold Price

UndercoverElephant · Post by **UndercoverElephant** » 04 Aug 2011, 10:08

ujoni08 wrote:It all seems to be teetering now. SWMBO has bought some gold, too

Jon

Given how small the existing market for physical bullion is, it does not take many new people joining it before supplies run thin.

UndercoverElephant · Post by **UndercoverElephant** » 04 Aug 2011, 10:24

In related news....Japan prints a load more Yen because it is worried about the strength of its own currency (i.e. everybody is having to competitively devalue - if there's more dollars, euros and pounds, then there has to be more yen too...)

http://www.bbc.co.uk/news/business-14398392

The Japanese government and central bank have intervened to weaken the yen to protect economic growth.

Japan sold yen on the markets, weakening the currency so that the dollar was worth more than 79 yen, up from about 77 yen before the move.

The Bank of Japan (BOJ) announced further monetary easing in the afternoon.

These were unilateral moves by Japan, unlike an intervention in March, which was backed by the G7 group of nations.

And Switzerland has cut its interest rates for exactly the same reason - to weaken its own currency.

In a surprise move on Wednesday, the Swiss central bank cut interest rates in an attempt to weaken the franc.

It is no longer in any countries' best interest to have a strong fiat currency.

UndercoverElephant · Post by **UndercoverElephant** » 04 Aug 2011, 15:16

Gold has just broken through £1030/$1680.

The gold I bought this morning has already gone up £150, and I haven't even recieved it yet.

ujoni08 · Post by **ujoni08** » 04 Aug 2011, 15:23

Nice one

DominicJ · Post by **DominicJ** » 04 Aug 2011, 15:50

Did I mention I have a spare bedroom and am increasing my food stocks?

UndercoverElephant · Post by **UndercoverElephant** » 04 Aug 2011, 17:25

Somebody out there has just nobbled the silver price again. It was threatening to follow gold's breakout but now it has just dived by 2% in 45 minutes. There is massive manipulation of the silver price going on, IMO. Somebody out there is desperate to keep it under control...

Post by **adam2** » 04 Aug 2011, 18:09

DominicJ wrote:Did I mention I have a spare bedroom and am increasing my food stocks?

Very sensible in my view.
Take care WRT the weight if this an upstairs room. If in doubt try to find room down stairs for tinned goods, utilising upstairs storage for lighter items such as clothing and bedding.

If disaster strikes, then food stocks could save your life.
If no great disaster strikes, then money spent on food should at least be a hedge against inflation or devaluation.

Post by **adam2** » 04 Aug 2011, 18:14

UndercoverElephant wrote:Somebody out there has just nobbled the silver price again. It was threatening to follow gold's breakout but now it has just dived by 2% in 45 minutes. There is massive manipulation of the silver price going on, IMO. Somebody out there is desperate to keep it under control...

Might be genuine market forces. Silver has a number of industrial uses, unlike gold.
Concerns regarding the safety of banks and paper money would tend to increase the price of silver as people buy and store it.
OTOH, declining industrial activity would reduce industrial silver demand and tend to reduce prices.
These two forces would send powerful opposing price signals, and could reasonably lead to rapid price changes.

UndercoverElephant · Post by **UndercoverElephant** » 04 Aug 2011, 18:35

adam2 wrote:
UndercoverElephant wrote:Somebody out there has just nobbled the silver price again. It was threatening to follow gold's breakout but now it has just dived by 2% in 45 minutes. There is massive manipulation of the silver price going on, IMO. Somebody out there is desperate to keep it under control...
Might be genuine market forces.

The speed of the correction makes that unlikely.

Have a look at the silver price in sterling for today: http://www.bullionbypost.co.uk/charts/

Silver has a number of industrial uses, unlike gold.
Concerns regarding the safety of banks and paper money would tend to increase the price of silver as people buy and store it.
OTOH, declining industrial activity would reduce industrial silver demand and tend to reduce prices.
These two forces would send powerful opposing price signals, and could reasonably lead to rapid price changes.

I agree that there are two opposing forces, I'm just suspicious of the speed of the correction.

The gold price has now come back down to where it was this morning, according to CNBC this is because the stock markets have fallen so heavily that some traders have been forced to sell their gold to make up for losses on stocks. Dow Jones is down 300.

UndercoverElephant · Post by **UndercoverElephant** » 04 Aug 2011, 18:51

There's crazy shit going on in the gold price too. At 3pm it was at £1030, at 5.30pm it was down to £1007, by 6.15pm it was back up at £1020, it has just bounced down to £1014 and now it is heading back up again.

JavaScriptDonkey · Post by **JavaScriptDonkey** » 04 Aug 2011, 19:21

Lots of wealth was based on the value of companies.

European stock holders have Eur400,000,000,000 less than they had this morning with prospects of losing more soon. Buyers in the bond markets are shying risk and interbank lending is shrivelling up.

Looks a lot like there is a decreasing amount of liquidity around to support any commodity rally. Gold is a hedge against inflation but we're looking at deflation or even stagflation as we re-enter recession. Gold also doesn't generate an income so to cash in you have to sell up.

Is that the faint whiff of tulips on the breeze?

UndercoverElephant · Post by **UndercoverElephant** » 04 Aug 2011, 20:04

JavaScriptDonkey wrote:Lots of wealth was based on the value of companies.

European stock holders have Eur400,000,000,000 less than they had this morning with prospects of losing more soon. Buyers in the bond markets are shying risk and interbank lending is shrivelling up.

Looks a lot like there is a decreasing amount of liquidity around to support any commodity rally. Gold is a hedge against inflation but we're looking at deflation or even stagflation as we re-enter recession. Gold also doesn't generate an income so to cash in you have to sell up.

Is that the faint whiff of tulips on the breeze?

No. It has become abundantly clear in the last few months that every time the gold price dips sharply (for the reasons you've explained), it immediately starts drifting straight back up again. That is because there is a massive pool of buyers out there - private investors and central banks in both the west and the east - who think gold is on a long-term trajectory far higher than this. Gold doesn't have to dip very far below its long-term upward trend pattern before large numbers of people think "I'll have that."

DominicJ · Post by **DominicJ** » 04 Aug 2011, 21:59

JSD
The only way gold will decrease is if interest rates are jacked up massivly and central banks rain down hellfire on M3.
Interest ratye3s are at rock bottom and central banks are pumping up M3.

Gold will crash when we elect a Thatcher/Reagan

Adam
I dont have a spare bedroom full of food, I have a room and board for a gold rich food/shelter poor person.

Although other half has craciked on the 25kg of potatos, might as well pick up another 10kg of beans, maybe even a 25kg bag of rice....

UndercoverElephant · Post by **UndercoverElephant** » 04 Aug 2011, 22:14

JavaScriptDonkey wrote:
Looks a lot like there is a decreasing amount of liquidity around to support any commodity rally. Gold is a hedge against inflation...

Gold is not a commodity. Gold is money.

Lord Beria3 · Post by **Lord Beria3** » 04 Aug 2011, 22:37

Yes that is a official prediction by LB3

Regarding the massive moves in gold today, its insane, clearly a lot of people are losing alot of money on the equity market and are frantically selling some of their gold hedges to make up their losses.

The silver is more interesting, one theory I have read is that the recently big correction has scared a lot of investors (who lost money) from putting big bucks into silver again... at least for a while.

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