I am bearish on gold
- Thread starter nitetrader
- Start date
WE SHOULD FADE HIS TRADE 
After a 50 bps cut in rates how can you be bearish gold? It's an inflation hedge, as well as having to keep up with relative value of the dollar against other currencies. With grain prices so high and oil on a mission to the moon it won't take long for wage demands to start increasing. I don't have a position but if a gun were put to my head for a decision it wouldn't be a short.
seriously, the fucking metal is like a freight train. Going up and up. The while f'ing world is buying it now, china, india, japan. Small traders, large traders, collectors, survivalists alike - buy it.
Countries (spain?) sell their lot (in tons!) and everyone else is buying it. And here we have a guy who likely never traded and say, fuck man. I think this is too high. Based on what? Money is worth less and less, soon you can wipe your arse with it, but no. It is too pricey at $710 for him.
This is the number one trait of a novice....
Picking tops and picking bottoms. Like we have a huge fucking crystal ball what say. "Simon say oil is too expensive. Short it". But why we say? it is going up for the last 3 years....well "it is just too expensive". People like these wanted me to be a trader 25 years ago. Oh, the naivete, the innocence, the sheer stupidity.
Countries (spain?) sell their lot (in tons!) and everyone else is buying it. And here we have a guy who likely never traded and say, fuck man. I think this is too high. Based on what? Money is worth less and less, soon you can wipe your arse with it, but no. It is too pricey at $710 for him.
This is the number one trait of a novice....
Picking tops and picking bottoms. Like we have a huge fucking crystal ball what say. "Simon say oil is too expensive. Short it". But why we say? it is going up for the last 3 years....well "it is just too expensive". People like these wanted me to be a trader 25 years ago. Oh, the naivete, the innocence, the sheer stupidity.
Gold isn't going anywhere. It is still shiny and heavy, just like its been for 5000 years. Gold *IS* wealth.
What you are watching is the debasing of the dollar, to yet a new level.
There will be no avoiding it with the trade and budget deficits further rocketing the already unpayable debt levels to the stratosphere.
What you are watching is the debasing of the dollar, to yet a new level.
There will be no avoiding it with the trade and budget deficits further rocketing the already unpayable debt levels to the stratosphere.
Short term view gold may hit resistance at current level; depend on the bond market; IF the yield of 10 go over 5%; it will be a good setup to short gold.
My view is bearish on gold; bullish for equity; neutral for oil.
Gold doesn't create value; only preserver value in case wars or any event that causes massive destruction of assets.
My view is bearish on gold; bullish for equity; neutral for oil.
Gold doesn't create value; only preserver value in case wars or any event that causes massive destruction of assets.
Why would you be bearish on gold when the dollar is being devalued so intensely? If the market liquidity crisis is addressed, then institutions don't have to offload gold to correct their other positions.
(Btw, that isn't an accusatory "why", I am trying to understand why someone would look at the dollar situation and think to be bearish on gold.)
I lack sophistication on the metals markets, but I went long gold via the ETFs not too long ago and am very satisfied with the results. My motivation was to be shielded against the dollar decline.