Speculation & Gold

[Austrokiwi]

I get the impression gold more than the last few years is trading on the fumes of emotion. There are a large number of people who want it to go up and they are taking it that way. On the technicals Gold looks very sick its been in a death cross( 50-60 day moving average is below the 200 day moving average : a very strong sell signal) territory for a considerable time. Gold used be negatively correlated with the stock market but that negative correlation has been reducing and actually trending towards a positive positive correlation.

[Moses Opondo]

Yes it's all speculation, but a bet on growth without cashflow is generally regarded as inherently more speculative.

For those buying gold, are you expecting growth or are you just expecting less loss compared to other 'investments'?

Gold can achieve both.If there is economic recession, gold is likey to suffer less loss, if there is a boom gold value will increase most.

[Austrokiwi]

Interesting bit of news from Bloomburg. Funny thing is I saw it on kitcos web site briefly then it was no longer visible. Almost gave me the impression Kitco doesn't want bad news "told".

http://www.bloomberg.com/news/2013-06-05/taurus-shuts-gold-fund-on-redemptions-after-price-tumbles-1-.html

[eri]

gold doing another tank

sub us $1300

http://www.kitco.com/charts/livegold.html

[Austrokiwi]

Love to know what Stevenet writer thinks ( At a guess "buy")

[muppet]

Gold Crashes Through Production Cost Levels


Gold fell to its lowest level since 2010 on Friday to under $1,200, which is what it costs many miners to produce an ounce of gold, and analysts tell CNBC that miners will be "severely" impacted if prices stay here.

Andrew Su, CEO at brokerage Compass Global Markets said the average cost of producing gold in Australia, home to some of the world's biggest gold miners, has jumped from $500 an ounce in 2007 to over $1,000 an ounce this year.

"What I believe is that the official costs, the costs in reality, are significantly higher than $1,000. So we've had quite a few gold mines close in Australia," Su said on Friday. "We've had some companies actually go bust and we've also got significant job cuts by big miners like Newcrest, Barrick, and Silver Lake Resources."

Su adds that fixed costs like paying workers are actually rising quite significantly while gold prices have fallen, adding more pressure to miners' operations.

According to industry experts, the total cost of production varies between $1,000 and $1,200 an ounce depending on the scale of a miner's operations.
Gold Selloff Overdone, Around $1,000 a 'Crazy Buy'

http://www.cnbc.com/id/100851209

[Memphis Turnkey Property]

More to come, this ride ain't over by a long shot!

[drelly]

Gold fell to its lowest level since 2010 on Friday to under $1,200, which is what it costs many miners to produce an ounce of gold, and analysts tell CNBC that miners will be "severely" impacted if prices stay here.

Damn, this is going to affect the viability of one of my favourite shows!

[Memphis Turnkey Property]

The gold shows are mostly finished over here Drelly, it's back yard oil shows now in ascension.

[muppet]

I know what you mean, Drelly.

[drelly]

The gold shows are mostly finished over here Drelly, it's back yard oil shows now in ascension.

You mean shows about urban fracking?

[eri]

1200 didn't last long

quick bounce back to 1240

http://www.kitco.com/charts/livegold.html

[Memphis Turnkey Property]

drelly no we have backyard oil drillers in Kentucky, similar style show to gold rush plus Blood and Fire about a small oil company trying to survive with the big boys.

[Austrokiwi]

Whats happening with the NZ mint? Are they finding hard to find gold? See this link to the Perth mint read down you will see the Perth mint produced the gold Dr Who coin for the NZ mint:

http://www.perthmint.com.au/catalogue/doctor-who-50th-anniversary-2013-1oz-gold-proof-coin.aspx


The silver Dr Who coins were also made at the Perth mint!!

[eri]

previous debt bubbles have been eventually deflated by inflation

this has encouraged real estate investors to load themselves up with the maximum debt the banks would allow them to carry

and then wait for rent inflation to dig them out of the morgage hole and basically gift them a few houses and a retirement income for free

that's still working, at least in auckland

but as the whole the world seems to be struggling to keep out of a japanese deflation spiral

gold just dropped back through us$1300

like oil and other commodities