Current Gold Price

[UndercoverElephant]

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.

What about today's big correction?

[Lord Beria3]

In this week's podcast, Chris and Mish tackle:

•Gold: The yellow metal is up $180/oz since July 1, fueled in part by expectations of quantitative easing around the world. While likely not imminent in the US, speculation of a future announcement by the Fed is growing as the swoon in the financial marktes deepens. And news like that from the Swiss National Bank - which has announced it will take steps to ease in order to weaken the fast-appreciating Swiss franc - are signalling to investors that there are no paper options for those looking for "safe" currencies. Add to this the negative real rates offerd by traditional 'safe havens' like T-bills, and gold is increasingly becoming the only option for the risk-averse crowd
•Market risk: Crash risks go up when the market is oversold. Mix in weakening economic data in the US and Europe. Add increasingly reckless and poorly-conceived intervention by central planners. At some point, market participants may decide their self-preservation outweighs their faith in the status quo. If they do, it will happen under conditions like we're seeing now - and happen fast.

http://www.chrismartenson.com/

[Lord Beria3]

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.

What about today's big correction?

Hedge funds selling their gold positions to make up big losses in the stock market is my best guess.

[Lord Beria3]

Rumours were swirling around the City that hedge funds were being forced to sell assets such as gold in order to cover deepening losses on other investments. This led to a surprise 1% drop in gold, which in recent weeks had hit record highs of more than £1,000 an ounce as a safe haven bet in the eurozone and US debt crisis. Brent crude fell 5% to $107 a barrel amid signs of slowdown in the west's economies.

http://www.guardian.co.uk/business/2011 ... rmoil-fall

[UndercoverElephant]

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.

What about today's big correction?

Hedge funds selling their gold positions to make up big losses in the stock market is my best guess.

What has that got to do with silver? Look at todays silver price in sterling.

[Lord Beria3]

Most likely explanation for silver as well.

[UndercoverElephant]

BullionByPost has now run out of all its bulk cheap bullion sovereigns and half sovereigns. They still have some specific types, but you have to pay more for them and the number you can buy to get a discount is lower. You can't buy fifty of anything from them right now.

[Lord Beria3]

BullionByPost has now run out of all its bulk cheap bullion sovereigns and half sovereigns. They still have some specific types, but you have to pay more for them and the number you can buy to get a discount is lower. You can't buy fifty of anything from them right now.

I suspect that the demand on physical has surged the last week - something the paper future price we report here from the market doesn't factor in.

[Lord Beria3]

http://www.telegraph.co.uk/finance/mark ... -gold.html

Good interview. Interesting tip on gold equities and how undervalue they are.

Might be worth a investment with a decent 50 to 100% return in the next couple of years.

[Lord Beria3]

http://www.caseyresearch.com/pdfs/20110 ... 11-cwc.pdf

Good interview over the economy and the role of gold potentially in the future.

[Lord Beria3]

http://www.ft.com/intl/cms/s/0/0341757c ... z1UCHndxL0

Amid this week’s turmoil, investors seemed to cling to a sliver of hope: QE3. In the rout of the first four days of this week, US shares eked out their one session of gains on Wednesday as markets speculated that the Fed might be poised to engage in a third round of asset purchases, or quantitative easing.

And while the slightly better than expected July non-farm payrolls report might temper the pessimism in the markets, talk of QE3 is sure to persist.

The effects of QE2, whose end in June coincided with the recent sharp decline in global markets, are still much disputed. Many seem addicted to the idea that QE can help.

But do the world’s largest investors really expect the Fed to rise to the rescue?

“Although it is politically contentious, the probability of the Fed announcing QE3 is increasing,” says Robert Parker, senior investment adviser to Credit Suisse.

Michael Hintze, chief executive of CQS, the London-based hedge fund, says: “Yes, I believe QE3 will happen because I am not sure [the Fed] has any choice but to do this.”

The biggest reason for believing the Fed will act is the weakness of economic growth. US GDP grew by an annualised rate of about 0.8 per cent in the first half of the year and many analysts have pointed out that every time it has been below the “stall speed” of 2 per cent – at least in recent history – a recession has ensued.

Peter Fisher, head of fixed income at BlackRock, the world’s largest asset manager, says: “Given the extremely slow growth this year, the US is just one adverse shock away from recession. Indeed, we could be just one data revision away from learning that we’re already in recession.”

He argues that the Fed must be considering “further balance sheet expansion or more targeted credit support programmes” in an attempt to boost the economy.

“If the Fed’s forecast has too great a risk of one or more quarters of contraction, they will act,” he says.

A complicating factor for investors is inflation. Figures for June suggested that US inflation was running at 3.6 per cent, a relatively elevated level, and one that many economists and investors believe scuppers QE3.

“The issue with a QE3 is that it would likely set off another round of commodity price inflation, which undercuts the stimulative effect of the additional liquidity,” says Bill Miller, chairman and chief investment officer of Legg Mason Capital.

“Higher oil and food prices, and higher precious metals prices, just reinforce negative trends and reduce confidence and spending.”

In a previous link it said that a US bank had concluded that QE3 in America would lead to $1000 per ounce silver and $5000 per ounce gold.

Silver is currently $40 per ounce... thats a pretty massive gain.

If Faber and Roubini are right that it is only a matter of when QE3 is announced - and how big - than we could see potentially big gains in both PMs - the only question is how much?

[Lord Beria3]

Ambrose Evans-Pritchard writes:

“It is very scary: the flight to gold is accelerating at a faster and faster speed,” said Peter Hambro, chairman of Britain’s biggest pure gold listing Petropavlovsk.

“One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money.”

China, Russia, Brazil, India, the Mid-East petro-powers have diversified their $7 trillion reserves into euros over the last decade to limit dollar exposure. As Europe’s monetary union itself faces an existential crisis, there is no other safe-haven currency able to absorb the flows. The Swiss franc, Canada’s loonie, the Aussie, and Korea’s won are too small.

“There is no depth of market in these other currencies, so gold is the obvious play,” said Neil Mellor from BNY Mellon. Western central banks (though not the US, Germany, or Italy) sold much of their gold at the depths of the bear market a decade ago.

http://sgtreport.com/2011/07/if-qe3-act ... r-at-1000/

[Snail]

Wow, i'm silver heavy so such a massive gain would suit me. But surely $1000/oz is extremely optimistic, especially so soon as qe3 will probably be. Why would silver rise so much, but gold only 5-fold?

[JavaScriptDonkey]

Looks like some peakers accept that continued exponential growth is unsustainable except when it comes to their financial investments.

Good luck with your positions but I would urge you to diversify a little.

[Snail]

Looks like some peakers accept that continued exponential growth is unsustainable except when it comes to their financial investments.

Good luck with your positions but I would urge you to diversify a little.

I don't see my gold&silver as a financial investment. I haven't exchanged pounds in the expectation of profiting from interest, income, or even from appreciating value. Rather, i see pm's as a wealth storage, as ue said above as money. If i want to buy something next week with my silver, it's a simple matter of selling some silver for cash and using that cash to purchase something. Maybe in the future i'll be able to use pms more directly. If pm's increase in value relative to pounds, then that's a bonus. If they decrease, then hard luck. Investors give away their money in return for financial future gains. How much they hope to receive depends on the riskiness of the investment. Interest is simply a measurement of risk. Buying physical gold isn't like this.