“Goldman Sachs now says it expects the gold price to average $930 this year.”
Comment
Well, well. They must be reading us.
Because readers of our humble blog will note that holding to our guns staunchly we’ve said the gold is not performing as well as it might….and unlike Goldman, we didn’t wait for a drop to say that… We’ve been saying that right through even when gold looked like it was going to take out $1000 (Of course, we wish we’d bought a little and taken a quick ride too)
We’ll change our tune in a hurry if we have to, but our own experience over the past year has been that it’s better to wait for the dips.
Quote:
“Gold has gone sharply down below 900. Already I feel better, although it puts my SLV nibble in the red.I held off buying because I thought GLD showed more strengths on its down side moves – but recently I was just wondering if I was wrong after all and whether it was making a solid base at around 900-920. Good thing I held off. That plunge down was sharp and shows that the corrective thrust is stronger than the upthrust still….”
That’s from an earlier post, “Gold Below 885” (March 18) Also check out “Dollar Index Imponderable” (March 20)
You can check them, and others, by using the search function on the right…..or just search “gold” and you’ll get my take on it over the past year…I’m long term bullish but bearish in the short term, and possibly also in the midterm.
Beware of GLD and SLV — the former fund managed by JP Morgan, the latter by Barclays. JP Morgan in particular has a truly scummy reputation for fraud, market suppression, and other unprosecuted criminal activity.
Neither GLD nor SLV allows audits of their vault holdings. Why, do you suppose?? Certainly the prices of GLD and SLV always rise when the price of gold and silver do — but that’s due to investor expectations, hm? Do these ETFs really have all the gold and silver they claim to have? Or have they leased out some of it? Or a major part of it? And are they actually using the gold and silver of the ETF to SUPPRESS the price of gold and silver, by leasing it out to people who sell it into the market? I guess you have to trust JP Morgan and Barclays on that. And if you do, you’re a damn fool. Also check out the GATA website discussions of those ETFs. A better choice for a gold & silver ETF is probably CEF. http://www.kitco.com/ind/degraaf/mar172009.html
Yes, I agree about the ETF’s – that’s why I only trade them. I have my doubts about the holdings
For long-term purchases I would recommend
Bullion Vault, where you can buy bullion and hold it in one of a number of sites.
I believe them to be reputable.
For ethical reasons, I dislike holding gold and only do so because it’s a store of value. Gold mining causes huge environmental and other problems and nothing is so wasteful of water.
But, while mining procedures can be improved, I doubt the current system can be…so it’s the best of a number of bad choices.