Looks like gold took a big hit today, although i'm sure it is temporary as gold has seen a big upsurge as of late. comments?

article:
http://finance.news.com.au/story/0,10166,1...0-14305,00.html


Doogy

you been selling your hoard??

Temporary correction, the overall trend is still upward.

nope, bought another today. i'm still bullish on gold, and antique gold coins are quite beautiful!

Always and forever.

The quantity of gold is constant throughout the universe.
(Even transmutation of elements is limited by the total energy in the universe.
You can put no limit of zeroes on the end of a $1 note.)

Michael
AuH2O in 64!

[quote=Doogy] Looks like gold took a big hit today, although i'm sure it is temporary as gold has seen a big upsurge as of late. comments?[ /quote]

Gold fell from its highest price in 20 years to its highest price in 18 years. Wow! Maybe the time has come to go long on Federal Debt.

Gold is an objective value.

The only way for the dollar to gain value relative to gold is for there to be FEWER dollars tomorrow than yesterday. To do that, the Federal government would have to raise taxes to an unacceptable levels, deny entitlements, or both. Therefore, over the long run, the dollar will always lose ground to gold.

I've only been investing for ten years. I have learned in that time not to get too excited one way or another when an asset class takes a dive or shoots the moon. It is far too easy to lose money by trying to guess what a result this day or that day means.

Gold has typically been uncorrelated with other assets and thus has a place in a well-diversified portfolio should one subscribe to "modern portfolio theory". I do, for reasons that would take far too long to explain.

However as of late gold has been behaving a bit differently. the dollar is up, and gold is up. Normally they are inversely correlated -- Buying gold was typically a hedge against a falling dollar. Taken to its extreme, gold has been a hedge against currency failure.

Some folks have been predicting for years a sea change in the gold market due to rising demand for non-monetary uses for gold. Perhaps this is what we're seeing. The commodities market has awakened after years of doldrums allegedly due to the growing economies of china, india, the former warsaw pact, and other emerging markets.

The gold market may also be "mean reverting" -- after 20 years of uncharacteristically lousy returns, it is recovering from being dumped as a monetary standard and the speculation of the late 70s/early 80s.

That was certainly temporary, we closed up $14.70 with spot back at $564.80 bid this afternoon.

For gold to be the same price as in 1980 it has to go to 2250 $ per ounce
So imagine if it started rising above mere inflation compensation