XAU/USD & XAG/USD - Gold & Silver Traders Thread

It is true that the use of gold is more here in India as it is a part of our culture. Do anyone think that if the usage of gold in India decreases it will affect the bullish movement of metal? What about the requirement for forex reserve compare to the ornaments requirement?

George

It is true. I am trading with FXCM and so far there is no problem with the broker, ( I am not advocating for them )

George

Dot Com is kind of a newbie if we compare it to gold we simply cannot compare it, we can compare it to $ and other commodities thats what i said



I first read it here:

http://en.wikipedia.org/wiki/United_States_dollar

Then upon your inquiry i went to their source:

http://www.measuringworth.com/ppowerus/

You can choose to ignore it. I simply will not.

To compare gold's boom with dot com boom, i'll first have to study what the dot com boom was all about? i have heard it but never went into it for a research.

It is 12 am here, i gotta go sleep, will see you tomorrow, Insha-Allah.

It's pretty basic, all markets eventually turn into manias which create bubbles. One day Gold will be in a mania and go parabolic. It will go so high people will be in shock. Just look for the 'we buy gold' places to turn into 'we sell gold' with the public buying hand over fist and the end will not be far away. In the mean time, keep stacking.

The "We buy gold" places are the public. Sheep as well.

I guess we just see it different, as usual. Haha! At least the 'we buy gold' sheep are making money hand over fist.

Are they? Do you remember the days pre-Blockbuster Video that there was a mom and pop video store on every other street corner.

Where are they now and how many of them even during the boom were making money hand over fist.

When bubbles break very, very few see it coming and it happens in a blink of an eye.

BTW I am not delusional to believe I will be one of the few who will see it before the masses. I just play the game and remain vigilant to the risk for once it does all goes pop!

Is it possible that you are underestimating the historical relevance of gold as a fall-back when debt bubbles cause currencies to collapse?

Don't you think that the biggest bubble we are dealing with now is debt? (This includes consumer and public debt).

Although that Maloney video is a bit over-zealous (no one should pretend to be certain about the future price of commodities), he does make an excellent point that currency regimes eventually fail and have so throughout history.

The euro is looking like it will have a rough go, and the USD likewise is dealing with an ever-rising debt (whether or not you blame Reagan for supply side economics and the new American budget deficit, or whether you want to use Obama as the wild-eyed rabid socialist whipping boy).

Gold's value MAY fall (I can agree this is a huge possibility), but it may also rise to a new high and sustain its higher value until we (the Western world) transition into new currency paradigms.

This is not a conspiracy of reptillian NWO - it is quite a plausible theory if you look back into history.

It wasn't that long ago that gold still backed currency.

We can't assume that the current economic order will remain indefinitely.

If it does shift, shall we assume that conservative money will dump their money into over-valued real estate?

Perhaps there is more to the gold story than we are hearing. Perhaps there is a justification for the amount of smart money we have seen flood into this play.

BUT - you may be entirely correct. Just offering an alternative analysis.

No didn't say there aren't plausible reasons to own gold.

And I think I do understand the history of markets and the bubbles that form - regardless of the economic, political and psychological reasons why they should or shouldn't.

Debt problem is beating a dead horse - waste of time. What will happen will happen. I listen to the market, not DC or, I like this one I heard, "MerKozy" Merkel/Sarkozy.

Gold will make a new high and go higher, question is when? I deal in here and now.

Paradigm was the tech bubble buzzword too.

End of the world?

http://www.moneyandmarkets.com/the-n...48021?FIELD9=2

First consequence: If the Super Committee fails to reach an agreement, the law mandates that across-the-board cuts will be implemented — split evenly between defense and domestic programs.
The defense budget will be cut by $492 billion — nearly a half-trillion dollars. U.S. Defense Secretary Leon Panetta has called further defense cuts “nuts,” while Army Chief of Staff Gen. Ray Odierno says he is “deathly afraid” of this outcome.
Plus, another $492 billion will be cut from health, education, drug enforcement, national parks, agriculture programs, and Medicare.
For government agencies and for a public that’s addicted to the money that normally flows from Uncle Sam, the cuts will be TOO MUCH, TOO SOON. They will drive the housing market even deeper into the gutter. They will push unemployment higher. They will add to the downward momentum in the economy.
But for global investors, who are hoping the U.S. can avoid the fiscal disasters that have hit Greece and Italy, the cuts will be TOO LITTLE, TOO LATE! They will take one look at the still-bulging deficits in the U.S. and dump risky U.S. securities, just like they’ve been dumping Spain’s and Italy’s.
Second consequence: Just as in Europe, the failure of the U.S. Congress to deal pro-actively with the deficit will set off a whole new round of earth-shattering downgrades of the U.S. government’s credit rating.
In fact, Moody’s itself has said that the reason it did NOT cut America’s AAA rating in August was precisely because it was waiting to see if the Super Committee could come up with more deficit reductions. If the Super Committee doesn’t come through on November 23, it sends the message that Washington is incapable of acting — a message that will almost surely result in mass credit downgrades by all the major agencies.
Merrill Lynch agrees: “The credit rating agencies,” writes Merrill, “have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan. Hence, we expect at least one credit downgrade in late November or early December when the Super Committee crashes.”
Third consequence: Another round of downgrades will crush the U.S. stock market. So don’t let the recent rallies fool you! Just look at what happened last time:
The Dow plunged 635 points in a single day and 2,000 points in two weeks. Bank stocks fell 30%. The price of junk bonds plunged 10%. Credit markets all over the world went wild.
This time, it could be worse.
Why?
Because last time, the other rating agencies did not follow S&P. So the Obama administration was able to single out S&P for ridicule and attack. This time, the downgrade is likely to be unanimous among all three major agencies.
Because last time, there was hope Europe would solve its debt troubles. Now that hope is also being dashed.
And because this time, the U.S. economy is in worse shape. After adjusting for inflation, the average household income of Americans has plunged far MORE during the so-called “recovery” since 2009 than it did during the recession of 2008. And the average duration of unemployment just hit 40.5 weeks. That’s over twice as bad as during the last recession. And it’s the highest in recorded history.

http://finance.moneyandmarkets.com/r...P509&e=4437101

according to d1 stochastic, gold now in the down trend and there is double top showing. what do you think?

It will prob go down to
s1=1770
and then maybe
s2=1760

Dunno about anything else.....it is not a strong very even double top....wouldn't bank to much on it.

Why don't they buy $1 worth of Metals, Property or any other reserve when they print $1 ?

How much have they printed in the recent years? they used to buy $0.3 worth of instruments when they used to print $1, where does it stand now? they say it is even lower now.

Isn't inflation created by themselves, the Bankers and the Government?

Why don't they buy at least $0.95 (they can keep $0.05 for printing, managing and other expenses related to currency) worth of Backing, when they print $1 ?

This maybe because, if they do so, then money won't make them more money, prices won't rise, so the Capitalists will suffer, please correct me if i am wrong

Instead of Trading, doing Businesses and hard work they have chosen Inflation to rule!

You are doing a good enough job by yourself.

ATTENTION PLEASE

NEW YORK (TheStreet ) -- Legendary hedge fund manager John Paulson made some bad bets this year and gold is paying the price.

More on Metals and Mining

1. , Advantage Plus Fund, has sunk 44% for the year, dragged down by Bank of America(BAC_) and Sino-Forest(TRE.TO). The big fear was that Paulson would be forced to sell good-performing assets like the SPDR Gold Shares(GLD_) to meet redemptions -- a fear that became a reality.

Reportedly, there was only 8% in redemptions requested of all the funds, according to Bloomberg, about $2.4 billion, but Paulson still dumped 11 million shares of gold, according to the latest 13F filings. He still owns 20.3 million shares.
Many experts have been worried of mass liquidation by Paulson and what that would do to investor psychology in the gold market.
Jon Nadler, senior analyst at Kitco.com, has warned of volatility in gold as "hot money" or hedge fund money comes out of the market, but he says that Paulson behaved exactly as he should have.
"It was to take advantage of probably the only profitable position he had in order to mitigate the damage from other decisions that were made in the portfolio. This is precisely why you keep a small cushion in gold in your own basket of assets. You then mobilize the gold when/if the time comes." Nadler is worried about a sizable chunk in a small market moving the price.
Scott Redler, chief strategic officer for T3Live.com, is more optimistic -- that Paulson's sale means that he is "out of the way ... now gold is acting much better." Redler says the technical levels of GLD look good and that the ETF could rally to $180. "It means there is less resistance, and it could be easier for gold to move to the upside. Tony Rochte, managing director of State Streer Global Advisors, admits it's not great that Paulson sells, but "I would say there are just as many new investors learning about gold about gold as an asset class and accessing that market through the GLD."

Hi Sreym, thank you for sharing your predictions. I'm guessing we're around your 1767 projected price right now... so, you expect a rebound above 1800 from here??