Why Gold has to go down...
- Thread starter PohPoh
- Start date
Interesting thread, I'm glad to see I'm not the only one shorting gold.
I just wrote up a detailed analysis of the monthly, weekly, and daily timeframes in the Gold's Action thread, here's a link:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=127353&perpage=6&pagenumber=168
most people participating in this thread are bullish, so I'd love to get some comments from the bears.
I just wrote up a detailed analysis of the monthly, weekly, and daily timeframes in the Gold's Action thread, here's a link:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=127353&perpage=6&pagenumber=168
most people participating in this thread are bullish, so I'd love to get some comments from the bears.
You conveniently forget to mention the prices the jewelers are buying and selling used gold (as in used jewelery) at. The bid ask spreads are gigantic. The dealers win.
Jewelers are not buying physical gold frantically at any price because there is a shortage of physical gold. They only buy from distressed retail sellers at rock bottom prices only.
They are putting low bids into the market because they know there are millions of distressed retail folks with old rings, necklaces and other jewelery out there who are short on cash who are willing to sell at any price.
Easy money.
okay..than one should load up on GLD puts...march and april, may expirations...okay
Why does paper currency have any value? Gold is not jewerly. Gold is money that cannot be created with a few punches on a keyboard. Nations have tranported their gold across oceans so they can trade it for goods and services when they arrive at their destination. Gold is the ultimate store of value and will not lose its value unless it can be created out of thin air like paper currency.
Well, one out of four ain't bad. mid 2009 is 120 days away. To say that we'll be well on the way to recovery in that time may be overly optimistic.
I like the bit about being a contrarian. I'm pretty sure there was a Time magazine cover story on 'The End Of Gold' in about 1999.
If you short gold here, all I can say is, stick to your stops.
What good is a Bentley? A Lexus is just as good, maybe better. What good is a Van Gogh? A Bateman looks nicer to a lot of people. What good is a Kiton suit? A mainline Armani suit can be had for 1/4 the cost and they are quite nice. What good is an iPhone? You can get a PDA with web access for 1/3 the cost.
Your argument can be made about any object on the planet. Why does anything have value?
The origin of money is the necessity for a portable store of value to efficate trade.
Asking why gold has value is a rare question on a site like this.
LOL. Gold is just like any other investment. You're trying to make money. Forget all the hedging bullshit, inflation, deflation, etc, etc.
If all the doom and gloomers have their day, the dollar becomes worthless and the world goes back to the caveman ages then my can of chicken noodle soup, pack of vegetable seeds, bottled water, gun and ammo will be worth much more than your 10,000 ounces of gold.
I guess the guy with the 10,000 cans of soup will trade it for your gold, so he can buy-----------oops, he wants to keep his soup. no deal.
I haven't tried to eat any gold lately, please tell me what it taste like.
If all the doom and gloomers have their day, the dollar becomes worthless and the world goes back to the caveman ages then my can of chicken noodle soup, pack of vegetable seeds, bottled water, gun and ammo will be worth much more than your 10,000 ounces of gold.
I guess the guy with the 10,000 cans of soup will trade it for your gold, so he can buy-----------oops, he wants to keep his soup. no deal.
I haven't tried to eat any gold lately, please tell me what it taste like.