Traders by nature, do not see things long term.

Also, most traders lose money. I think that is a fact.

If gold was at 1900, I would never have recommanded people to buy.

It is also pretty easy to look at "expert's recommandation". The thing is, they never realize that those expert could be wrong.

The expert said that gold will go to 900 by end of this year. Did it happen?

It is really easy to "point out mistakes" just because short term price action happens to go the other way.

The thing is, those people who "point out mistakes" are the one who just keep quiet once things happen against them.

If gold went up, I am pretty sure Max and icemanfx will just keep their mouth shut and pretend nothing happen.

This post has been edited by sylar111: Dec 4 2014, 11:29 AM

You really think actual supply and demand dictates gold price.

Yes, right now it is like a casino. No doubt. The way gold price is trading right now is more of a game rather then based on supply and demand.

In fact, most people who trade gold are not even interested in the actual delivery.

So if people listened to you. They would not have sold when gold reached 1900.

And I am pretty sure when it went to 1900, you kept quiet. Because you know you were about to be wrong. You took the opportunity though when it went to freefall mode after that. That's pretty cheap actually.

I can bet with you right now that the most gold can go down to is 1000 but it cannot stay there for too long. You are oblivious obviously to the actual supply and demand of gold.

If you are so sure that gold would go to 800 -1000 why dun you buy put positions. If you were so sure that it is not sustainable, why didn't you short when gold went to 1900.

Talk is cheap. It's real cheap.

Unfortunately, it will not make you a somebody.

This post has been edited by sylar111: Dec 4 2014, 02:29 PM

You can wait forever.
I got to admit that after the swiss referendum, there was a chance it could go down to 1000.

But looking at price movement right now, nope. Impossible.
The swiss ref was the best chance you got.

You can wait forever to make your next purchase.

As I said,
you probably went all quiet. The fact was at that time, anything could have happened from 1900 onwards. It could continue to go up even shoot up. If that happened, many people who head your advise would probably be cursing you.

No I did not say you were wrong. But then when it went to 1900, did you tell others to stop buying gold? Nope. Because at that point, there is a huge possibility you could be very wrong.
Again you did not read what I have said properly.

You compare Properties with Gold.
The thing is for properties, there is no fundamentals for the upward trend.
For Gold, there are fundamentals backing up why it should go up even based on simple supply and demand.

The problem is. You really take the spot gold price too seriously. As I said, the spot gold price does not reflect supply and demand. Spot Gold price is only based on sentiments of what the paper gold price means at that time. The people are not interested in the real gold as I have said countless time.
The thing is, you probably take the spot gold price seriously even though I have said countlessly it is not a reflection of real supply and demand.

I am not.

I am in favour of gold because I know what is happening right now.

When gold becomes over valued, I will still exchange it for something else that is undervalued.

This post has been edited by sylar111: Dec 5 2014, 02:38 PM

Who says you cannot earn dividend on gold investment.

You can buy mining stocks right?

But I rather not earn dividend because they are taxable.

Just because the fed does not value gold, does not mean others dun.

You are obviously myopic. Just looking at 1 side of the coin.

Many central banks every where are starting to accumulate gold silently or openly.

Obviously it shows that gold is in demand right now.

This post has been edited by sylar111: Dec 5 2014, 03:00 PM

Really.

Did I put a gun onto your head to force you to follow me?

There are already direct currency swaps agreement that China has arranged with other countries.

Yes, in the past, there isn't any other choices.

Now there is. The fact is, people are now looking for alternatives. Russia is accepting payments for oil using gold. The thing is, it already shows crack of the USD because generally, USD is supposed to be considered the petrodollar. Right now, people are starting to find alternatives.

No doubt that USD is rising. The reason why is because of QE being done by Euro and Japan. Also on news that China is lowering interest rates. This give the perception that USD is strong because Euro and Japan is weak.

USD can engage in the QE program because it is the reserve currency.
Unfortunately when Euro and Japan engages in this, it will not do well in the long term.

If gold was so "useless". Why is holland asking for the actual gold. Why not ask for USD? Why is Germany asking for the actual gold.

A gold backed currency gives confidence and strength to that currency because people do not have to worry about inflationary pressures. Right now, in our current system, because currency can be printed, there are lots of inflationary pressures associated with that currency. The thing is, keeping the currency for too long will result in your wealth being dwindled.

Really.

How many traders actually request for the actual gold delivery?

How much gold does Comex actually has.

Supply and Demand. Yeah Right.

Of course. If central banks are responsible. I agree.

Gold is not the best money.

Problem is, central bank policies have created an unfair distribution of wealth. The stock market is at an all time high due to the low interest rate policies.
They are now not able to raise interest rate because they know a crash will come once interest rates are raise.

Central Bank policies promote a lot of inefficiencies. Because of central bank policies, you now have too big to fail etc. In a real capitalist society, when companies make mistakes they are supposed to go bankrupt. But what we are seeing right now is that those banks are not allowed to go bankrupt because they are being viewed as too big to fail. What happens when that happen? Those too big to fail companies now take enormous risks because high risk means high return and they know that if they will never go bankrupt because central bank will always bail them out.

Because of easy money, banks lend money easily without validating the credit health of the borrower.

The thing is, you are assuming that wealth can be created out of thin air. But then, when central banks print money to bail out banks or finance the government, the public eventually pays for it.

Often times, war are financed through money printing because with money printing, governments can now have the budget to expand their military at the expense of the people.

Of course, if we have responsible government, then paper money would be a better idea for reasons you discuss. But then, absolute power corrupts. Most people get corrupted whenever they have power.

A gold back currency system ensures that government become fiscally responsible as they now cannot print money just to solve problems. Companies do not have unlimited budget. I do not see why government which is less efficient as companies having an unlimited budget.

The question has been answered a few pages ago. But you obviously do not have the brain cells to compute.

Now i know why you are never taken seriously ever.

Good answer.

But then. I bet he will not be able to compute.

Deflation or in another words recession is actually good. It removes inefficiency from the system.

A gold backed currency limits the power of the government or central banks. The thing is, if governments are responsible, then the fiat system would be advantageous. Unfortunately, all governments are corrupted.

This post has been edited by sylar111: Dec 10 2014, 01:06 PM

You obviously cannot link the ability to have "unlimited" resources with corruption.

If say you have the ability to print money at will, are you saying that you cannot use that to your advantage?
As I said earlier, a gold backed currency forces government to be fiscally more responsible. They cannot simply print money just to fix problems.

Deflation or economic slowdown looks bad in the short term, but it is a necessity in the long term.
When the fundamentals are wrong. Prolonging the boom will only lead to a harder crash in the end.

This post has been edited by sylar111: Dec 10 2014, 02:19 PM

You forgot that capital inflows to the country can be used to increase the gold reserves in the country so if the country is productive, there will be more monies to back the system as more gold flows into the country.

And you obviously do not understand the fractional reserve system.

Based on your argument, US would not have developed before 1933 since their currency was gold backed before 1933.

Why not.
So you are saying the ability to print money is not a power by itself?

Well, printing the money can prolong the boom. But it will cause massive inflation like what you are observing in Japan.

The boom is in the nikkei.
Yes, QE or printing money can boost the stock market and give the appearance that the economy is doing well.

But the consequence of that QE is that the currency falls as evident in the USD YEN.

The thing is. A "booming" stock market is often seen as an improvement in the economy. The thing is, on the contrary the consumers get affected and the general economy does not really improve. The stock market goes up because of the extra liquidity that's all. It does not improve anything. But then it also delays the crash.

When the fundamentals are already off. Pouring money in will become less and less effective.

The thing is, you cannot stop the inevitable.

I have already said that deflation or recession is a necessity to remove inefficiencies in the market. I never said that it's not painful but then it is a necessary pain. I hate repeating myself so I will not repeat what I written earlier.

This post has been edited by sylar111: Dec 10 2014, 03:44 PM

Wow. Why would deflation benefit the rich?
After all rich generally do not keep cash. So deflation will actually cause their networth to decrease in dollar terms.

That is why you cannot take that icemanfx guy seriously.

Come on. Repatriating the gold just to save on storage cost must be the greatest joke I ever heard.

That is why I no longer reply to him.