Goldman Sachs says BUY GOLD NOW!! and its dirt cheap.

[noob_trad3r]

http://www.cnbc.com/id/46877251

Looks like they need liquidity and want to dump a large position in Gold. Think about it if Gold is such a bargain why would GS tell the world this secret and drive the price up when they can buy cheap as they claim quietly without moving the markets.

 

[trefoil]

The gold market, like every other market, looks ahead, not back. So far, looking at what's happening in the US, the dollar price of gold is at minimum fair since if the stats keep coming in mediocre to OK that will keep the Fed from doing a QE3. At this point, that amounts to a tightening, for all practical purposes. So yeah, that analyst is right that gold is sensitive to interest rates. It's just that he hasn't factored in that those rates are going to rise, if things keep going as they have.

 

[ocean5]

Quote from trefoil:

The gold market, like every other market, looks ahead, not back. So far, looking at what's happening in the US, the dollar price of gold is at minimum fair since if the stats keep coming in mediocre to OK that will keep the Fed from doing a QE3. At this point, that amounts to a tightening, for all practical purposes. So yeah, that analyst is right that gold is sensitive to interest rates. It's just that he hasn't factored in that those rates are going to rise, if things keep going as they have.

What about deleveragin?Less money supply less in turnover.I think gold won't hit the previous top for years from now.Maybe I'm wrong though.

 

[trefoil]

Quote from ocean5:

What about deleveragin?Less money supply less in turnover.I think gold won't hit the previous top for years from now.Maybe I'm wrong though.

I agree with you. Not sure about years, but let's just say the odds are low for the next year anyway. Reread what I posted.

 

[budcampbell]

Quote from trefoil:

The gold market, like every other market, looks ahead, not back. So far, looking at what's happening in the US, the dollar price of gold is at minimum fair since if the stats keep coming in mediocre to OK that will keep the Fed from doing a QE3. At this point, that amounts to a tightening, for all practical purposes. So yeah, that analyst is right that gold is sensitive to interest rates. It's just that he hasn't factored in that those rates are going to rise, if things keep going as they have.

Please educate us on how the US Fed can start raising rates, when the debt is taking on characteristics of exponential growth and entering a "deadly phase"? Bernanke is buying time as he knows the solution is out of reach in a monetary sense, based on current incoming Federal receipts compared to entitlements and spending.