Gold Above $1,000: Indicative of an Imminent Market Fall?

Gold prices sprinted past the $1,000 an ounce mark this morning, and silver climbed even faster to approach $17. But this might also be taken as a warning that investors are about to shift out of stocks which are looking very overbought.

Shares have enjoyed a huge rally in most markets since the lows of March and have been riding for a fall for more than a month. Last week investors also ominously moved money heavily into bonds, depressing yields, and the gold and silver price surge may represent another shift to risk aversion.
$1,000 barrier

Will the gold and silver price rises hold this time? Gold has challenged the $1,000 barrier several times over the past year only to fall back.

If global stock markets now do suddenly take a tumble, correct or crash then precious metals are going to be sold down heavily to meet margin calls, although that will depend on how the players have positioned themselves after the experience of last year.

Seeking Alpha

Just here to post the news. I already know what is happening.

Do you?

Originally posted by Tentickles

Seeking Alpha

Just here to post the news. I already know what is happening.

Do you?

Not sure, you think maybe inflation is kicking in and that is being reflected in precious metals? Oil is up, DJIA is up, USD is down.

Granted, gold just slipped under $1,000/oz in the last hour or so...

I suspect there may be a lot of 'buzz' about this because $1,000 is a nice marker for gold hysteria. Is there really a push out of markets and USD to gold because something is up - or is it just an artificial panic because gold passed a nice even number?

Nice thread!

A family prospecting vacation to the motherlode area of California has never seemed like so much fun. Lets fill up the station wagon and head for the American River. Sniping requires little tools and you stay in the shallows.


Too bad the car is broken and I do not have gas money.

reply to post by nydsdan


Gold going over $1000 has always been an indicator of a weakening USD. I suspect gold will go up and down over the coming weeks but slowly and surely it will go up over $1000 and stay there.

Meanwhile everything in our day to day lives might see an increase in prices. Food prices might fall on the stock market but when they gain in the real world they hard ever fall back down.

Oil is another thing to watch, being near the winter time if the prices go high enough we will see some very cold people up north.

I'm curious as to who is buying these up. What else is going down at the same time? (I guess that doesn't mean much though) Isn't this the time of year when it's harder to travel in rough seas? I dunno. Does this always happen after labor day?

I should have watched the 700 club for Pat Robertsons latest stock market predictions. God only knows where that guy get's his information. I think he said up to $2,000 an ounce eventually.

Perhaps the one that has been manipulating the gold has been China, they were buying Gold like crazy last week, I guess they knew something we didn't. After taking 50 billion dollars loan from the IMF the shopping spree began.

reply to post by aleon1018


Also the UAE demanded their gold bullion back from the Bank of England.
Which might be adding to the gold buying.

Originally posted by Tentickles
reply to post by aleon1018

 

Also the UAE demanded their gold bullion back from the Bank of England.
Which might be adding to the gold buying.

I'm still confused about the gold certificates/bonds or whatever instead of the physical gold. How can people actually trust something that may not physically exist?

I suppose they may already claim the physical gold still in the mines, like with oil futures or whatever.

I personally wouldn't want to have to protect physical gold in my home.

So, would we be back to gold certificates again, or is this what they're offerring? ( as good as gold)

I know I'm out of my league with this so...........................

Originally posted by aleon1018
I'm still confused about the gold certificates/bonds or whatever instead of the physical gold. How can people actually trust something that may not physically exist?

I suppose they may already claim the physical gold still in the mines, like with oil futures or whatever.

I personally wouldn't want to have to protect physical gold in my home.

So, would we be back to gold certificates again, or is this what they're offerring? ( as good as gold)

I know I'm out of my league with this so...........................

Usually people are ignorant of the way banking works which is why they accept gold certificates.

Personally I would rather invest in a safe and have all my gold in that compared to a bank or in certificate form.

reply to post by Tentickles


Even if you were not ignorant...They are not going to give you gold bars are they? The only alternative would be to buy gold, well gold jewelry?
Right? ......Considering it is September, considering all the weird things in this world seemingly happen in the fall, I expect some kind of turbulence in the market. You mentioned several interesting factors, China, UAE...

reply to post by aleon1018


Buy some prospecting supplies and go out to the motherload on vacation.. Physical gold is the only guarantee in tough times. Paper certificates are not worth the paper they are printed on when the SHTF.

Also you never know where others have buried or cached gold. After the Civil War the Knights of the Golden Circle, mostly Civil War veterans sympathetic to the southern cause, buried vast amounts of gold all over the United States. Much of it is probably still there.

Floyd Mann put up the KGC page. I have been camping with him and he is a serious researcher who does not bs.

Gold and silver won't feed you in harsh times, it's as if people went through such times and were saved by them, matter of fact is that noone did It's all one big scam to steal what you have left and leave you with nothing.

When the # hits the fan your ounce of gold will be as valuable as a plane rock. Noone in his right mind will trade you his precious food and water for a shiny object that has no use.

Silver would be more useful as it allows you to make colloidal silver which is more effective than any antibiotic, and believe you you'll need lost of it when everything crashes around you.

reply to post by broli


You are right and wrong. The primary use of gold is not to survive on. The primary use is to preserve wealth. Wealth may be calculated by "x months of food/water/shelter". If a SHTF situation occurs, you want food/water/shelter of course. But once things lighten up and civilization starts humming along again, what do you have left? A few bags of rice and some paper dollars? That is where gold is important.

Say TSHTF: You were smart and had food, water and shelter all worked out. You survive the best you can - trading your skills for more food/water/shelter as necessary. You also had a bank account with $10,000 in it. Well, since TSHTF you no longer have that account. Before TSHTF that could have afforded you maybe 2 months of rent, 2 months of food and 2 months of shelter. Now it is nothing.

Had you invested half of that in gold, you would at least have 1 month of food/water/shelter after things start running again. Why? Because gold is a relatively fixed resource and a known international base of value.

You could also have had $5000 in rice, water and supplies but then you have no mobility, and potential perishables.

If you are expecting some sort of cataclysm, diversity is key. Gold and silver will give you long-term wealth preservation, a savings account will give you a solid "best case scenario" should things not go badly at all, and some dry food/water/shelter and good friends will give you temporary survivability to weather the storm.

During harsh times gold will only barter well with those that have excess food/water which will spoil. If you are lucky enough to have land, a well and a place to store a ton of non-perishable food, then gold is not too helpful. If you live in a city and depend on municipal services for water, and have little storage room for a ton of non-perishables then you need to have something of perceived value. Gold meets that standard and may get a person with a plane or car to take you someplace. It is also very transportable.

reply to post by groingrinder


I was living in Wisconsin and a younger guy found a green metal box in an old summer cabin wall with gold coins from around the civil war. I'm not really sure how they paid the troops back then or if they even bothered. It was my impression that's what it was anyway. Most likely a families coin collection at some point. The cabin was doubtfully that old.

My landlord found gold coins in one of his walls after he found a stash of old dollars in the one I was renting from him. They were falling apart in the return vent and were around the furnace.We thougth it was just from the mice.

The guy from the heat and air conditioning service was busted trying to walk out with it by the landlord. The stories of building contractors claiming these or just stealing them, makes me ill.

Maybe this is one reason they like to buy and or renovate these older homes?


I doubt very many honest people get a fair finders share anyway.

I know EXACTLY what is going on - most people don't though. Yeah, China is "Diversifying" it's holdings away from US dollars into gold and other currencies. The UAE has demanded it's gold back from BOE and BOE is not likely to be able to deliver on the contract due to "leases". COMEX has been lighting up like a Christmas tree, but the major problem again is that this is "paper" gold and doesn't even really exist. in fact, I've read somewhere that the COMEX contracts exceed the ability to be fulfilled by tens of times!!! Think of the implications here!

I would not mind going on a vacation where prospecting for gold is part of the package. It would be fun and you never know if you will find a nugget.

reply to post by kozmo


maybe why these people now have these programs of buying up gold jewelry......which seems more like a scam.

I think China also has a history with gold and jewelry when they had their revolution or whatever.

I noticed gold came back down and oil went up.

If anything, we're going to have a run on the physical gold by someone. I don't know what the trade laws etc. say about that. The government seems to like to keep the gold where it's safer for now; in the ground. I wonder how much if any gold is found in the crude oil sludge and sands they process.

I think some if not many states have mineral rights that restrict or prohibit digging, panning etc. of gold etc. etc.

I've seen those treasure hunter programs and wouldn't mind doing that myself. Except the life threatening ones like diving.

reply to post by aleon1018


The best place to buy gold is usually at your local Gold Exchange. Like in Houston we have a place called "The Houston Gold Exchange." They keep up to the minute data on how much gold is worth.

I do concede that food will be more handy in a SHTF type situation. Which is why I have a 3 month supply for myself.

Gold presents a kind of currency though which would allow you to by other things without bartering all your supplies away.

reply to post by Tentickles


There's several things I'd like to do to prepare. Having private property and a hidden bunker etc. But I don't have the money and I'm on on disability. I'm reminded of the movie: Blast from the Past.

All I have besides that fixed income is tied up in a 401k I was told not to move or touch until the year after I stop collecting disability. That was from someone at Social Security.

[edit on 8-9-2009 by aleon1018]

reply to post by aleon1018


Most cities have prospecting stores which will rent you a real good gold detector on a daily basis. You may not recoup your rental, but you will have lots of fun whether you are detecting your property for lost items or detecting for buried treasure or nuggets. You can also detect the walls of your house and outbuildings, but will probably only trace the plumbing and wiring.

I know where several ounces are in an underground pond. I am pretty sure nobody else knows it is there and I am waiting for my health to improve because there is about three tons of river rock that has to come off of it and chest pains won't let me work it.