Gold price

[VERYSTORMY]

I suggest that bas most people have super that's currently heavily invested in gold or gold stocks you have a little look. Particularly for gold stocks as 1200 closes most Oz gold mines.

[Guest chris955]

Wow, that is quite a drop, it was never sustainable.

[Bobj]

Newcrest shares certainly took a tumble, being a gold miner and all that.

 

Cheers, Bobj.

[newjez]

Aren't most gold miners heavily hedged VS?

 

Any theories as to why it's falling? Personally, I think some countries are about to dump their reserves on the market.

[northshorepom]

Aren't most gold miners heavily hedged VS?

 

Any theories as to why it's falling? Personally, I think some countries are about to dump their reserves on the market.

 

I think it's just been over-pumped by speculators.....the more you see people believing in arrant nonsense and quoting it/printing it (eg "the dotcom boom isn't a bubble - it's a 'new paradigm' "......or "in an uncertain world, the only true store of real value is gold") then it's time to press the sell button IMO

 

As a commentator in the Fairfax press said this morning, Gold is more reliant than any fiat currency on faith and speculation. Any asset only has the value the market says it has, including Gold. There is no such thing as "intrinsic value"

[KIRK AND CO]

dental gold crowns will be cheaper to make now so make sure your dentist passes on the cheaper lab fees.

[nikki244]

IMO it's a fantastic buying opportunity for those with some spare cash, and I bet the central banks will keep on adding to their reserves.

 

I think that gold will go up again over the next few years.

 

It's a shame that people have automatic sell orders on their pensions, to sell gold off once it drops to a certain level (thus dropping the price further), because they'll lose out if they sell now and the price goes back up to a level where the pension companies invest in gold again...that means peoples' pensions will be selling a the low point and buying at a much higher value...with the pension fund losing a lot of money in between. Not a smart move IMO...it would be far better to just hang on the to the investment and ride it out, but unfortunately most people don't have individual control over their pensions.

 

I don't like the idea of investing in futures, stocks etc, but IMO as a long term investment, gold and silver are pretty safe bets, especially silver as it is used industrially for many things.

[VERYSTORMY]

No, most companies are not hedged anymore. Most spent a lot of money over the last few years to get out of the hedges they had as it was seen that the spot price would be a better deal.

 

The question is what it does. All of the experts are split, some saying it will continue to slide and settle around 1000 - 1200. Others are saying it will bounce. In reality nobody knows as know body agrees why it fell. One reason I like is that it was being invested in as a protection from inflation that would happen due to QE. However, there hasn't been much real inflation - $1900 assumes the US having 45% inflation. With the US now hinting at the end of QE, the price is not sustainable.

 

The Oz miners will be watching very close. If it breaches 1300 that closes most gold mines in Oz. Some of the most margin mines will already be in panic.