You're insane if you don't own gold, investors told

You

www.telegraph.co. uk

Not owning gold during the current financial turmoil is "a form of insanity", according to an investment analyst at a leading City firm.

Robin Griffiths, a technical strategist at Cazenove Capital, told CNBC: "I think not owning gold is a form of insanity. It may even show unhealthy masochistic tendencies, which might need medical attention."
He added that the dollar was heading for "oblivion".
Mr Griffiths predicted that gold's 10-year bull run would continue and even intensify. "Although it's

(visit the link for the full news article)

been a top performer for each of the last 10 years, it's still in a linear trend," he said. "Eventually it will go exponential and make more in the last little bit than the whole of the 10-year trend." He said investors should regard any short-term falls in the gold price as a buying opportunity, adding that gold was still not an "over-owned trade". His comments come against the background of the US Federal Reserve's huge monetary stimulus from quantitative easing, which many believe will result in inflation and a fall in the value of the dollar.

Obviously the comment is slightly tongue in cheek, but as any market watcher knows: 'sentiment is all'. The dollar is doomed if this sentiment is replicated across the different investor types.

www.telegraph.co. uk
(visit the link for the full news article)

watch gold triple again in the next ten years:

reply to post by spacedonk


Interesting title.... just had to look in.

I mostly invest in futures and do OK but...

The deal with holding tangibles is that when you really need to sell...no one will be buying; at least that's the way I see it.

reply to post by whaaa



I assume he means a gold holding should be an integral part of any portfolio, ten years ago no-one would have been suggesting that it should be a must to hold gold.

He seems to say even to the point that one should replace all their dollar holding with gold - fairly easy for a non American to say I would guess.

The man i've always trusted and who has NEVER once EVER let me down or led me astray - Dave Ramsey, makes fun of gold investors.

I have to agree with him and stick to his advice. Don't fall for the doom & gloom. Gold is a sham. Thats why they're selling it to you on TV.

My software can't even extend that far, but close.

GC contract from 1980 - > current.

Do you really believe this is going to happen?

Chart

You're insane if you don't own gold.
Yup.

Either this is true, and we're looking at a future Armageddon where we will have to come out of our fallout shelters with nothing but Gold to use as currency (or bottle caps! )

Or

We're being forced to buy more gold.

Just my opinion >.>

Its Insanity not to have gold? Its insanity to not be growing your own food and preparing for something like this to happen. A bar of gold is not a mars bar.

Originally posted by Dance4Life
My software can't even extend that far, but close.

GC contract from 1980 - > current.

Do you really believe this is going to happen?

Chart

can you do a chart showing dollar against GBP or YEN or CHF and overlay it on your gold chart please:

one big reason for the gold upward trend to continue is demand from the Far East:

link

On December 2nd, China's Shanghai Gold Exchange revealed that it had imported 209 tonnes of gold in the first 10 months of 2010 compared to 45 tonnes in all of 2009. That amounts to a 500 percent increase so far this year. China is rapidly becoming the world power when it comes to the world's gold market.

reply to post by spacedonk

EUR USD - OHLC Bars

GC Contracts - Candlesticks

1990 -> Current


Chart

GOLD and SP500

Chart

Classic "pump and dump" scheme. worked for stocks for a long time.

The people pushing gold want a lot of demand and that will raise the price of gold.

When the price goes up they dump.

Then while the price is down they buy and run it all over again.

The big boys need volatility in the gold market to make big money.
The swings in gold prices have been small for a while and they need big swings in prices.

reply to post by ANNED


It's going to be the short opportunity of a lifetime somewhere down the line. Although there is a possibility you will lose your house and family before you turn a profit holding on to the contracts.

reply to post by Dance4Life


Thank you very much!

Now bearing in mind gold has quadrupled in the last ten years and the dollar quantitative easing is set to continue in the early part of this year at least - and as we have seen the far east is increasing its gold holdings I think it is entirely possible that gold will treble in the next ten years.

There is no 'gold' standard currency (pun intended) that is a ready alternative to the dollar for the governments of the world to stockpile. I'd say gold is really the only alternative.

Some investors are obviously locking in some of the gains they have in gold and gold stocks.
However, what has surprised me is how fast the narrative turned negative toward gold. You'd think most would see this pullback as a buying opportunity. Instead most are calling for declines into the $1,200-$1,300 range.
This is very positive, in my view. I am a big-time contrarian. When I see a small 4 to 5 percent decline and then all the sudden many turn bearish on the assets that sees this decline, it makes me feel very, very bullish.
Soon focus will go back to the poor fundamentals in the U.S. and the “money printing” program that the Fed has going on over here on this side of the pond.
When that happens, the dollar will dive again and the euro will get a break simply because the focus has gone to the dollar.
Once the dollar begins its next sell-off, it’s going to be very ugly.
When the Dollar is ugly; Gold is beautiful. I like gold mining stocks and gold ETF’s. Very liquid

reply to post by spacedonk


Either that or it doesn't.

We will never back off fiat currency. But what happens when xyz new technology is invented and turns the earth upside down like the Internet? Another huge growth catalyst that you cannot account for now. These are the types of things that demolish the gravy train that only hindsight yields in retrospect.

My guess is gold is going to cool off again, come back with another leg and that will be it. I am not going to step in front of the train though. I've been a victim to that crime too often before. There is opportunity for both sides of the equation to make money.

Personally, I rather keep dollar cost averaging into Natural Gas. Much better long term opportunities, IMO.

GL to us both!

There is a saying buy low sell high. Please explain to me cause well I must be retarded why in gods name would you buy at the peak of the market for some mineral resource. For that extent there are better mineral resources you could invest in that would probably have a higher return after the market picks back up.

For that matter my point is, gold is at its peak or near peak and buying now would just loose you money. So dont be a fool and fall into this old buy fruitfull trick for those that know how to play it.

Originally posted by Dance4Life
reply to post by ANNED

 

It's going to be the short opportunity of a lifetime somewhere down the line. Although there is a possibility you will lose your house and family before you turn a profit holding on to the contracts.

I have gold but i did not buy it.

I mined it so my profit will be a lot greater then just about everyone else.

I am a retired hard rock gold miner/mine superintendent