GOLD UP $25 in 12 hours... What is something happening?

Gold seems tp be going crazy right now! The kitco.com charts are down. Anyone got any idea?





There is also an intersting chart which overlays the 1936-37 DOW with Todays.

Saudi Arabia is starting a vending machine for gold business.
www.upi.com...

www.newser.com...

www.luxist.com...

blogs.wsj.com...

Yep, everybody loves gold. Except, that is, your friendly neighborhood MarketBeat scribe.

We know. We know. We’ve been skeptical during the entire run-up. But we remain convinced that this gold bubble is going to end badly. Though we don’t know when.

Yesterday, we pointed out one Reuters story that seemed to us a clear cut sign that gold mania is clearly crossing that ever important divide between clever and stupid: “A German firm that installs and manages gold vending machines aims to introduce them into the United States this year.”

A couple comments on our post seemed genuinely confused as to why we would see this as a giant neon sell signal on the yellow mental. “I do not know why this would be a reason to sell. I think it sounds like the beginning of gold becoming ‘mainstream,’” wrote one commenter.

That’s exactly the issue, some argue it’s a good sign of a top when assets go “mainstream” or attract a lot of attention from those that aren’t professional investors as a contrarian sell signal. That is, something akin to the ridiculous surge in interest in real estate among Americans ahead of the housing bust earlier this decade. Or the mass rush for tech and internet stocks that climaxed ahead of the tech bust in the late 1990s. At the peak of that flurry, stupid ideas such as Pets.com might have seemed at least somewhat plausible. And let’s be honest here, a gold bar vending machine is a dumb idea. (Though to be fair, Pets.com actually went public, where as the vending machines are apparently still in the works for the U.S.)
.

Thats from the Wall Street Journal.

Gold touched $1340 there for a moment. There seems to be something simmering beneath the surface. You can read in various news outlets and blog that there is a real sense of something happening. New bailouts and QE on the way etc... Non of the problems actually being addressed only the symptoms. Geopolitial tensions rising especially in Iran. It feels somewhat uneasy.

People are making sure their wealth is actually wealth. I don't know why anyone would have confidence in the dollar at the moment. Gold's going to the moon too, according to Jim Rogers and Peter Schiff;

www.cnbc.com...

Maybe this has something to do with it:

Super-rich investors buy gold by ton

Link from thread: www.abovetopsecret.com...

If ultra wealthy inverstors are now converting their value into Gold, then things could really get interesting very quickly. Dollar falls would be magnified, Gold, Silver and other items would also rise (to put it mildly).

Originally posted by Pentothal

Anyone else see this trend?
It's alarmingly similar!

Seems the market is right on point to crash.
I don't believe in coincedences, so...

I guess time will tell.

You also have to wonder about Iraq and Afghanistan. The US and other countries have been running around those countries looking for minerals for mining operations. They come up with new deposits of different types on a regular basis. Have they found King Solomans mines?

reply to post by JBA2848


Would not more gold equal lower gold prices?

Gold hit $1342. That is some gain in one session. Looks like everyone sees the DOW rise and thinks the economy is doing well. Service sector jobs rise a little, fine, but they don't 'make' anything. People can not all just work in shops serving each other. There has to be value added somewhere.

All eyes on the Fed to see what they do on the QE front.

4 years ago, gold was around $600 per oz. Now it's over twice that. That means that the dollar is worth less than half of what it was worth 4 years ago. That means I'm earning less than half of what I made 4 years ago.

Man this is depressing.

reply to post by havok


further bailouts simply mean government bonds become more toxic as they take on further bad debt. i think this is the reaction to that. if the rise continues and demand outstrips supply, it could mean certain currencies devalued and things could get nasty as those closer to the money making machines go on record to sell the bonds. if a certain country or corporation refuses to deal any further in bonds then the writing is on the wall.
regards fakedirt

Originally posted by harrytuttle
4 years ago, gold was around $600 per oz. Now it's over twice that. That means that the dollar is worth less than half of what it was worth 4 years ago. That means I'm earning less than half of what I made 4 years ago.

Man this is depressing.

This means it takes more dollars to purchase the same amount of goods.
Which means that more dollars will be in circulation.
Which means overseas debt is reduced by this devaluation.

Inflating their way out of debt. Crooks.

The US government has and continues to screw their own citizens. The same citizens that wave the flags on polling day. Who is laughing? It is not 'we the people' that's for sure.

The Bank of Japan may have acted first in a new round of central bank action to prop up the global economy as recoveries in industrial nations falter.

The unexpected decision by the Japanese central bank yesterday to drop its interest rate to “virtually zero” and expand its balance sheet follows the U.S. Federal Reserve’s move toward more unconventional easing.

Source

reply to post by Pentothal


Gold is supposed to be rare. But they have enough to stick them in bubble gum machines all over the world? Seems like you would not have enough gold to do that if it was so rare. Are they lying to us?

reply to post by Pentothal


Be careful of that chart. It goes from 1310 to 1340 so you're not seeing from 1 to 1310 at all. If you did a lineal chart, it wouldn't look anywhere near as dramatic. $25.00 is something like a 1% change. Obviously, gold is going up. I'm not disputing that. It's just that a $25 change is not anything to remark upon. The Dow Jones Industrial Average went up 194 points today, percentage wise almost double what gold did. People will say the Dow did okay today, but it isn't dramatic.

This looks like a gold bubble to me. I think I'd rather invest in beer.

There is no way it closed at 1337. That would be too crazy, every gamer net computer nut would be going crazy. But about Dow. It's going to come down just like the rain. After the cold wind blows

OP: do you have a source for the 1930's overlay graph.
That is incredible.

brill

Originally posted by fakedirt
reply to post by havok

 

further bailouts simply mean government bonds become more toxic as they take on further bad debt. i think this is the reaction to that. if the rise continues and demand outstrips supply, it could mean certain currencies devalued and things could get nasty as those closer to the money making machines go on record to sell the bonds. if a certain country or corporation refuses to deal any further in bonds then the writing is on the wall.
regards fakedirt

Almost every financial newsletter in the world is predicting the eventual [only a matter of time] collapse of
the United States dollar. Extreme hyperinflation when the world market finds out all the gold paper stocks
are not actually backed by real physical gold.

Some are predicting obama's next move is to take control of all investments and pension plans when the
SHTF. He will 'replace' the money in investment and pension plans with worthless backed government securities. People are buying gold like crazy so they will have something concrete to hold onto. At least they will
if they have been smart enough to NOT buy gold 'paper' stock.

Originally posted by FermiFlux
People are making sure their wealth is actually wealth. I don't know why anyone would have confidence in the dollar at the moment. Gold's going to the moon too, according to Jim Rogers and Peter Schiff;

www.cnbc.com...

edit on 5-10-2010 by FermiFlux because: Video

Predictions are $5000./ oz (yup, five thousand per ounce) before it's all over. Economic forecasters
also claim the gold to silver ratio will finally catch up, and silver going to $250./ oz.

Seems something somewhere is going on but we will all have to play the waiting game,keepin our fingers and toes crossed