Gold

[etftalk]

"Anyone who owns Elements MLCX Gold ETN (GOE) needs to be aware that the price is likely to drop more than 90% very suddenly.

Sounds like a buy. No one is ever right.

I do know when it will drop... when I buy it.

[etftalk]

Unless stocks are about to start a major rally, gold may have finished its pullback.

[Bullitt]

GOE is toast for sure. It's like the guy in the gym who everybody is watching lift huge amounts of weight on the bench press. Just because he's doing one thing that nobody else can do and everybody is watching doesn't mean he's not an idiot.

I'm not a gold bug type, not by any means, but I added to GDX at 29.89 last week when one of my GTC orders hit. Could have gotten 'em a bit cheaper, but I'm taking advantage of any pullbacks to add. Average cost right now is around 26.50. There's so much panic buying and selling when it comes to precious metals, especially now, that you really have to tune out the week to week moves in order to see the bigger picture here.

[Bullitt]

Nice head fake by the boys in GLD today by dipping it below the 50 DMA. Word is, last week Dennis Gartman told his readers to buy gold when it kisses the uptrend line at the 88 area.

[alevin]

And to think I considered selling my 24 GLD shares this morning when I saw things headed below. I hung tough the last couple days becuz thought it might stay above the 50 but wasn't sure so was ambivalent this am. Decided to bail DDG as priority, save GLD for one more day anyway. wow, glad I did even if they snookered me a little on the DDG-much smaller investment to begin with.

[Bullitt]

Lots of head fakes and technical games are played in GLD. That's the way they want it to be.

[XL-entLady]

One of my paid guys is admittedly a bit of a gold bug. He thinks that when, not if, GLD hits 100 you're either on the train or you're under it. My words, not his, but you get the idea.

Lady

[Bullitt]

I'm not a gold bug and it's very difficult to find much unbiased information out there about gold and silver, but if he thinks we're going to one hundo, I should easily be able to pay for the home improvements we've got lined up this summer.

[XL-entLady]

3/24/2009 VR Trader:

"GOLD and METALS - ACTION alert -

You should be buying all sell-offs. Don't even hesitate! Pray that gold declines so you can add to your position. Such a decline could take it to 850. The world economic system needs gold and you need to own it!

Precious metals fell at the end of the day yesterday as the stock market continued to rallied, getting hit as traders exit their flight to safety trade and move back into the stock market. Gold fell 14.40 to 938.20, silver slipped 0.07 to 13.66, but platinum was up 12 to 1125.

Earlier in the day, silver hit a new one month high of 13.96 and platinum hit a recovery high of 1145. For the day, copper was up 0.0450 to 1.841 and also hit a recovery high of 1.8750. With most of the metals hitting intra-day recovery highs along with new recovery highs in crude oil, as discussed below, the market is obviously concerned about the inflationary impact of the actions taken by Fed and Treasury along with the fiscal stimulus coming from Congress and the President.

We are currently long GLD and SLV in our platinum portfolio. But remember, these are trading positions. You should continue to own physical gold as a long term investment.

We saw huge advances in the precious metals in the 24 hours following the FOMC announcement. From Wednesday's low to Thursday's high, we saw gold gain 80.90 (9.2%) while silver rallied 1.83 (15.4%). Many times I've written that one morning you'll wake up and all of sudden gold will be up $100 per ounce. While it mostly occurred Wednesday afternoon and it fell a bit shy of the $100 dollar figure, the rally we just saw is what I've been writing about. Gold is in a long-term uptrend and the Fed's printing press is running at full speed. As a result, I wouldn't be surprised to see a few more of these sudden spikes higher.

Holdings in SPDR Gold Shares, the biggest gold ETF, hit a new high of 1,114.60 tons Friday, up 11.31 tons from a day ago, according to the latest data from the fund. We continue to see solid demand for the GLD, regardless of whether the spot price is rising or falling. Underlying demand is obviously very strong. My concern, however, is just how accurate those reports are, whether there is truly gold backing that fund at all. I want to see it! Also, remember, owning GLD exposes you to 'counter-party' risk. If you could physically claim you share of the gold at any moment and load it up in the trunk of your car, I would be less cynical. But, that's not the case. Instead of GLD, IAU or SLV, please consider CEF - the Central Fund of Canada which does have the same 'counter-party' risk.

Gold hit 1007.20 on February 20th and retraced to a low of 882.80 on March 18 (spot). If key upside resistance at 963.75 (spot) is penetrated, we have a shot back to 1007.20 or higher. A break under 882.80 will likely send gold down to next support at 850. Further support lies at 780 and 680.

Silver (spot) touched 14.66 on February 22 while the SLV (ETF) touched 14.45. Silver found support on March 19 at 11.89. Next support is 1154-1189, 1061-1085 and 961-980. There are still unfulfilled potential into the 15.00-17.00 range. My bias is for a continuation of the rally.

Copper touched 1.8750 on March 23, a new recovery high. The bear market low at 1.26 was posted back on December 16. With volume positive I'm willing to give the upside the benefit of the doubt with potential to 2.25 at this time."

http://www.traders-talk.com/mb2/inde...owtopic=103613


Lady

[alevin]

Not sure I understand about the counterparty risk with GLD, SLV vs. CEF. Can someone here explain it to me?

I looked into buying physical gold from Perth Mint a few weeks ago, but they want minimum buy of $10K, which I do not have laying around. So I need to stick w/ETFs I guess, and chickens and garden (diversification)! Physical's a good idea if you've got the wherewithal, I think.

I read this morning where excess inventories are clearing across the board to balance with lower demand, which means insufficient supply later on since takes longer to gear production back up after factories, mines shut down. leads to....more money chasing fewer goods? does that mean producer prices start going up?

Wish I understood timelines for shift better.