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Thread: Is gold "bubble" over?

  1. #11
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    Oct 2014
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    I think part of it is the decline in the price of oil. We are finally drilling again here in the USA and are again a top producer of oil depending who you believe? As others have said there are many other forces on the price of Gold but it does always seem to be linked to oil going up or down.

    The economy here is still really tough for most people. The folks at the top 20-30% are doing fine as usual. My market for handmade culinary knives is the top 50% which of only about 1-2% will buy a custom knife. Affordability of materials is important for you Jewelry makers.

    www.rhinofingerskins.com
    www.rhinoknives.com
    Last edited by rhinofingerskins; 14-11-2014 at 09:17 PM. Reason: Content.

  2. #12
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    Jun 2013
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    Quote Originally Posted by rhinofingerskins View Post
    As others have said there are many other forces on the price of Gold but it does always seem to be linked to oil going up or down.
    www.rhinoknives.com
    I'm quite interested in the economics ... a few interesting things google threw up on the subject.

    Of course these things can't be taken in isolation: fuel cost v the low grade of ore being one example, where the high cost of gold used to justify the energy expended in the search equating to a low grade being economic to mine. With falling values, gold is less mineable at the low grades, but falling oil price is propping that up for the moment. It appears that an interesting junction may be soon to arrive if the oil price decline reverses.

    http://www.macrotrends.net/1335/doll...last-ten-years
    http://www.marketoracle.co.uk/Article38141.html
    http://srsroccoreport.com/gold-minin...e-in-a-decade/

  3. #13
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    Jun 2013
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    Yeow, I just got stung by the horrendous £-$ ratio: what's happened there? The £-$ is at near 2 year lows. Other currencies are at around 5. I didn't find much on tinter web to give any clues; does anyone know? Why is the £ tanking?

    https://www.bullionvault.com/gold-ne...gold-121220141

  4. #14
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    Jun 2013
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    Talk amongst those that (talk as if they) know is that the gold bounce is approaching a decisive moment - if it continues to rally it will be a return to bull, otherwise it is one more dead-cat bounce in the second biggest bear in 70 years apparently. Stocking up time perhaps.

  5. #15
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    Manchester UK
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    Im lost do I need to stock up on bulls or dead cats ?

  6. #16
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    dear old Blighty - (in deepest Wiltshire)
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    bears, definitely bears, oh wait..

  7. #17
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    Jun 2013
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    Quote Originally Posted by josef1 View Post
    Im lost do I need to stock up on bulls or dead cats ?
    Looks like you're ahead of the curve already ...

    did you get a head start by any chance?

    http://www.manchestereveningnews.co....d-cats-7626419

    (hope that's taken with the humour it is sent with - no offence intended!)
    Last edited by metalsmith; 25-01-2015 at 07:39 AM.

  8. #18
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  9. #19
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    Jun 2013
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    Latest instalment of this unending saga
    http://moneyweek.com/spread-betting/...its-big-rally/
    If you believe such chartist stuff

  10. #20
    Join Date
    Aug 2017
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    232

    Default Old thread but anyway my 2¢

    Too bad this is an old thread because I invest in physical gold and have been following the price action for many years.

    A brief outline: As you may or may not know, gold was once the world’s money. However, the last link to any form of gold standard was broken when President Nixon ended the convertibility of $US into gold in 1971 (The Nixon shock) thus ending the Bretton Woods system. Since then the world has been on a completely fiat monetary system with the $US maintaining its place as the reserve currency. Even though the world is on a fiat standard the price of gold still has a very close relationship to the money supply, especially the $US, as all commodities are priced in $US.

    Since the GFC in 2008 the worlds Central Banks have literally been flooding the world with newly created money via their low interest rate policies and Q.E. in an effort to avoid their greatest nemeses – deflation (I say “their” because as consumers we enjoy falling prices.)

    The $US officially ended it’s loose monetary policy in December 2015 when it hiked interest rates for the first time since 2006. This seems to have also marked the bottom of the gold bear market. The theory is that we are now entering an inflationary period and gold performs well in that environment.

    I personally think we are now in a new bull market and should see prices rise about 7% p.a for at least the next decade, with a possible bubble taking it close to $5000 t.oz sometime in that period.

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