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Gold As An Investment?


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I hadn't checked in a long time, fairly shocked that it has fallen so far. gives me hope that we might see sub-$1000 sometime in the future, so I can possibly buy gold without it being a big goddamn deal.

 

I guess I just sort of rooted for you to take a big loss so I can save a few hundred dollars. for that, I do apologize.

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I hadn't checked in a long time, fairly shocked that it has fallen so far. gives me hope that we might see sub-$1000 sometime in the future, so I can possibly buy gold without it being a big goddamn deal.

 

I guess I just sort of rooted for you to take a big loss so I can save a few hundred dollars. for that, I do apologize.

 

That's life on the wire.

 

We don't buy gold, just get it out of the ground and sell it.

The value of my stocks are down a shocking amount, but even at that I'm still well in the black.

If you are thinking of buying a couple of Ozs, this week could be a good time to start, as there will be a bounce at some point, just don't know if the cat will be alive or not.

 

No hurry,

Keep calm,

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15% of miners loosing money at these prices, if that number doubles we are definitely reaching a bottom.

http://business.financialpost.com/2013/04/18/meltdown-15-of-worlds-gold-miners-face-collapse-after-plunge-in-price-strips-169-billion-off-market-value/

 

Buying of the physical metal is way up and the opposite in the paper market.

http://www.reuters.com/article/2013/04/17/us-gold-coins-idUSBRE93G15Z20130417

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15% of miners loosing money at these prices, if that number doubles we are definitely reaching a bottom.

http://business.fina...f-market-value/

 

Buying of the physical metal is way up and the opposite in the paper market.

http://www.reuters.c...E93G15Z20130417

 

I've seen reports that people are snapping up physical gold in China and Hong Kong right now since it seems to be a bargain which isn't surprising.

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i've been trying to avoid the news about au/ag after just buying some. i'm trying to remind myself this is long term and i can't let the short term volatility freak me out.

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More reports of high Chinese retail demand for gold

 

 

Chris Adams ‏@chrisadamsmkts 2h

Shanghai #gold exchange saw volumes - proxy for demand - hit record high on Monday with queues forming outside some Beijing jewellery shops

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The price of gold has recovered about half of the drop off, buying of the physical metal is booming and the ETFs are still selling off.

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http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1102&MainCatID=11&id=20130502000110

 

Chinese mother investors beat Wall Street tycoons in gold buying

 

  • Staff Reporter
  • 2013-05-02
  • 15:18 (GMT+8)

 

C501N0057H_N71_copy1.JPG

Gold buyers crowd a jewelry store in Nanjing. (Photo/CNS)

 

Chinese investors, mostly mothers, swallowed 300 tonnes of gold within 10 days, accounting for nearly 10% of annual global gold production and resulting in a sharp rebound in international gold prices on April 26, the Chengdu Evening News reports.

 

On April 26, the New York Mercantile Exchange's COMEX gold futures price rose 2.7% to US$1,462 per ounce, the biggest single-day rise in a year. It was a strong rebound after international gold prices tumbled on April 12 and April 15 to US$1,321/ounce from US$1,550/ounce.

 

The US sold 196,500 ounces of gold coins in April, a 10-fold increase year-on-year. Analysts attributed the gold price rebound to the buying craze in Asia, especially in China, with most Chinese cities seeing heavy gold buying.

 

According to foreign media reports, in COMEX's spot gold sales over the past three months, JP Morgan accounted for 99.3%, indicating the company sold 1.966 million troy ounces of gold between February 1 and April 25.

 

Wall Street tycoon investors have been dumping gold, while Chinese investors, mostly mothers, have been buying gold crazily since mid-April amid tumbling gold prices. China's buying power is deciding the price trend for the moment, but some analysts still call for caution over the direction of gold prices in the near future, according to the report.

 

Analysts attributed the gold buying craze in China to abundant money supply, stagnant domestic stock markets, a contained property market and a consolidating bond market. When investors saw gold prices fall almost 20%, they jumped in to buy.

 

In Hong Kong, all gold stores are preparing for the May 1 holiday shopping season, having ordered four times of gold bars than usual from London and Switzerland, as they expect mainland tourists will hunt for gold.

 

The World Gold Council said on April 19 that it believes the strong demand and supply shortage of gold will boost the gold prices in the long run.

 

In 2012, the global gold demand reached 4,406 tonnes, down 4% from a year earlier, while at the same period, gold consumption in China grew 9.35% to 832.18 tonnes.

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Definitely down, may be a while before this boat floats again and it would be no surprise if the down trend stays intact. Prepared for 24 more months of down market, hope it doesn't last that long.

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Definitely down, may be a while before this boat floats again and it would be no surprise if the down trend stays intact. Prepared for 24 more months of down market, hope it doesn't last that long.

 

How is the drop in price effecting the mining companies. I have to think the break even point for a lot of production is more than the selling price currently.

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At $1200 gold about half of the worlds mines are losing money, this is quite amazing considering that when the POG passed this point on the way up 3 years ago no one could imagine that it would be a crisis level in such a short time. Real inflation, lower grade and increased taxes are the reasons. Some mines have been shut down and put on "care and maintenance" but they were smaller high cost operations, none of the big boys have shut down yet but the first ones to go will be those with additional problems like ABX getting screwed over by a couple of latin governments is in the worst shape, as well as everybody in South African with the high cost of power, blackouts (good times when you are 3Km underground), hostile government and unions that want a 100% raise in a bad market will probably finish off most of the SA production. Every company down the line has cut costs and people where they can.

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Yes real bad inflation in regards to machinery, parts, materials and so on has been ridiculous over the last couple of years with a few projects breaking their budgets by billions dollars. There is the hope of prices coming down with decreased demand but a lot of damage has been done.

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