Gold: same level despite Dow surging 50%

[morganist]

isn't the precious metals market negatively correlated to the currency market. i read that the silver market is 70 percent based on us dollar value.

thus the value of the dow is not it self directly linked to the precious metals market but only through the effect it has on the currency value.

if that is the case and the dow has an impact on the currency market. i think that the seniorage (quantitative easing) supersedes the dows impact. even though inflation hasn't hit yet there is the potential (high) that it will so the gold price is not affected.

 

[peilthetraveler]

Quote from slapshot:

I have an idea that is radically simple: supply and demand on Gold (and related issues) is at parity. It is a simple ABC.

A) Every time I turn on my TV, some new company is trying to sell gold to the public, telling them how much it has gone up in 10 years and how it COULD double again. In the past, this has been a very reliable indicator that Professional Distribution is taking place.

(The same thing was happening right before oil collapsed. The pitchmen on TV were saying that "NOW is the time to get involved in oil futures and options!" - this is when crude was over $100 to $140 per barrel. Again, Distribution to the poor sucker Public.)

B) The fact that the Pros are dumping gold to the Public at these high prices is offset by the fear in the markets (especially inflation/USD printing) and a lot of people (Pro and Public) are still buying gold as a hedge.

C) = Supply/Demand is fairly balanced. Hence prices not moving too much.

This gold commercial (some kind of radio ad it says on youtube although it seems like it was definately geared for people to see it on tv) came out in may 2006 when gold was 550$ per ounce telling people to buy gold

http://www.youtube.com/watch?v=IEAb8Hbk_Q4

You also say that the pros are dumping...but I'm seeing tons of those Cash4gold.com commericals that are trying to buy your old gold. In fact I believe i have seen more cash4gold commericals than these commodities brokers. And besides...those brokers always sell whatever product is most talked about. Before gold went up, i saw the same commericials back in 2000 using 1980 gold prices and saying that gold could go back to those levels soon(which they did)

 

[milktruck]

Quote from peilthetraveler:

This gold commercial (some kind of radio ad it says on youtube although it seems like it was definately geared for people to see it on tv) came out in may 2006 when gold was 550$ per ounce telling people to buy gold

http://www.youtube.com/watch?v=IEAb8Hbk_Q4

You also say that the pros are dumping...but I'm seeing tons of those Cash4gold.com commericals that are trying to buy your old gold. In fact I believe i have seen more cash4gold commericals than these commodities brokers. And besides...those brokers always sell whatever product is most talked about. Before gold went up, i saw the same commericials back in 2000 using 1980 gold prices and saying that gold could go back to those levels soon(which they did)

Yes, but I believe the cash for gold business model is raping joe public who is in dire straights by paying him well below spot and making their money on the spread. I see that more as taking advantage of the average americans hard times than an opinion on gold.

However they arent asking for silver jewelry, so who knows. Maybe because the price per ounce is too small and margins get squeezed.