Trading with PT style
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Wednesday, March 28, 2012Goldman Sachs issues "Buy" on Gold; Gold drops lower
Interesting recommendation by Goldman and even more interesting to see the market reaction in gold today. Can you say that someone is particularly overjoyed by the opportunity to take that recommendation?
Goldman's views in summary can be translated as follows: Gold market weakness has been tied to the fact that the markets were expecting "REAL INTEREST RATES" to rise in light of the recent economic data showing improvement in the US economy. However, the economic recovery is not strong enough to allow for higher rates and that coupled with Bernanke's comments that acccomodative monetary policy will be required for the foreseeable future means that gold has overreacted to the downside.
Goldman is looking for another round of QE which will pressure the Dollar and thus drive gold prices higher.
Rest assured that the hedge fund long liquidation and fresh short selling of today is being met by solid buying from Goldman's customers
Interesting recommendation by Goldman and even more interesting to see the market reaction in gold today. Can you say that someone is particularly overjoyed by the opportunity to take that recommendation?
Goldman's views in summary can be translated as follows: Gold market weakness has been tied to the fact that the markets were expecting "REAL INTEREST RATES" to rise in light of the recent economic data showing improvement in the US economy. However, the economic recovery is not strong enough to allow for higher rates and that coupled with Bernanke's comments that acccomodative monetary policy will be required for the foreseeable future means that gold has overreacted to the downside.
Goldman is looking for another round of QE which will pressure the Dollar and thus drive gold prices higher.
Rest assured that the hedge fund long liquidation and fresh short selling of today is being met by solid buying from Goldman's customers
....If you day trade or swing trade it makes not difference. There is always a swing high/low in a lower TF. But if you want to play long term, where would you say the dipping floor will be hit? 1715 or 1680 or 1550 or 1480 
?
Short you can't do with confidence, because we are talking gold here - it can run to any height overnight!
However, if I were to trade in gold long-term I would buy 1820+ or when it is about $400 less than CMP (1715), whenever either comes.
? Short you can't do with confidence, because we are talking gold here - it can run to any height overnight!
However, if I were to trade in gold long-term I would buy 1820+ or when it is about $400 less than CMP (1715), whenever either comes.
Warren Buffett Scorns Gold. Bad Move!
Warren Buffett doesnt like gold. In this years annual letter to Berkshire Hathaway shareholders, Warren Buffett scorned gold as an asset that is forever unproductive.
And hes right about that...
But investors dont buy gold because they hope it will produce something. They buy gold because they know that no one can produce it. Therefore, the more that folks distrust their national currency, the more they put their trust in the ultimate currency: gold.
The gold price has increased for 11 consecutive years a time frame during which, coincidentally, it has trounced the investment return of Berkshire Hathaway. Why? Because a new era of monetary destruction is unfolding throughout the Western world. Thats why a growing number of investors are devoting a growing percentage of their investment portfolios to gold and other hard assets.
China is not only the biggest importer of gold, it is also the biggest miner of the precious metal. According to the World Gold Council, China produces nearly 50% more gold (about 300 tons per year) than the second-place country... Australia. And not a single ounce of that newly mined gold leaves the country. By law, the Chinese government buys every ounce of gold that surfaces from a Chinese mine shaft... no matter what.
Clearly, the Chinese are taking the long view when it comes to gold accumulation. They believe they can trust gold more than US Treasuries.
Maybe Soros, Paulson, Gross and the Chinese are all crazy to buy gold. Or maybe Buffett is crazy not to. Place your bets!:thumb::thumb::thumb::thumb:
Warren Buffett doesnt like gold. In this years annual letter to Berkshire Hathaway shareholders, Warren Buffett scorned gold as an asset that is forever unproductive.
And hes right about that...
But investors dont buy gold because they hope it will produce something. They buy gold because they know that no one can produce it. Therefore, the more that folks distrust their national currency, the more they put their trust in the ultimate currency: gold.
The gold price has increased for 11 consecutive years a time frame during which, coincidentally, it has trounced the investment return of Berkshire Hathaway. Why? Because a new era of monetary destruction is unfolding throughout the Western world. Thats why a growing number of investors are devoting a growing percentage of their investment portfolios to gold and other hard assets.
China is not only the biggest importer of gold, it is also the biggest miner of the precious metal. According to the World Gold Council, China produces nearly 50% more gold (about 300 tons per year) than the second-place country... Australia. And not a single ounce of that newly mined gold leaves the country. By law, the Chinese government buys every ounce of gold that surfaces from a Chinese mine shaft... no matter what.
Clearly, the Chinese are taking the long view when it comes to gold accumulation. They believe they can trust gold more than US Treasuries.
Maybe Soros, Paulson, Gross and the Chinese are all crazy to buy gold. Or maybe Buffett is crazy not to. Place your bets!:thumb::thumb::thumb::thumb:
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