Gold Price are starting to scare me.

I don't know how many of you guys are following the gold price. I do, since I got some gold investments.

The thing is though, recently the price of Gold has been skyrocketing. And this is starting to scare me.

Like all other commodities, it's about supply and demand. At this moment somebody is buying huge amounts of gold up, pushing the price higher and higher. This can only mean one thing.

Somebody knows that something is going to happen in the markets very soon. Gold is a very safe investment, should something go mayorly wrong in the markets. As to what is going to happen, that is open for debate.

Although I do have a feeling the markets might be very severly hit very soon. I think I will just hang onto my gold for now.

Read the following stats and see for yourselfs.

Sept 16-22, 2010 - Gold hits record highs for five successive sessions, peaking at $1,296.10, as investors flock to bullion after the Fed signals it may consider further quantitative easing, weakening the dollar and raising fears over future inflation.

* Sept 27 - Spot gold prices touch the $1,300 an ounce mark for the first time.

* Oct 5 - Gold extends its record highs to above $1,330 an ounce, lifted by renewed weakness in the dollar, and as the Bank of Japan announces moves to combat yen strength.

* Oct 6 - Gold rallies to a record high just shy of $1,350 an ounce as the dollar comes under pressure from building expectations for the U.S. Federal Reserve to take extra measures to keep interest rates low and prop up the economy.

* Oct 7 - Gold hits third successive record above $1,355, fuelled by the weak dollar and comments from Vietnam's central bank that it might allow gold imports if prices kept rising. (Compiled by Atul Prakash and Jan Harvey; Editing by Clarence Fernandez

Here is the link to the full Reuters article.

What do you guys think?

VVv

reply to post by VreemdeVlieendeVoorwep


I hear ya VVV. I've been watching this for nearly two decades now, and even tried to expat myself to escape the guillotine.

Although, watching it happen now... irrespective of any lack of surprise I may have... it's terrifying to watch. It's a slow motion train-wreck, watching the windows bulge then pop slowly. Sending spiraling shards of glass into the air all slow-like. Reminds me of the movie Saving Private Ryan.

I'm with you. I emailed a buddy yesterday when I saw silver at 23.03 FRNs. I started buying almost 20 FRNs ago! The comment I made him immediately after the silver price? "Watch to see if bread rises accordingly. The tinder is dry now."

Creepy to see it unfold, not unlike I believed it would (although, it's happening thus far much slower than I would have guessed). Plenty of time to fill the gas cans, stock the larder, and walk to the bank to close a few accounts (to anyone who hasn't yet figured out what is coming).

I'm filled with both joy and dread. The next stage is a slate-wiping type of event.

thought maybe I could put your mind to ease some, the metals were heading down a little last night....but nope, still going up this morning!!!

I've seen a bunch of alarming stories out there.....
the IMF said the western countries are teetering on depression, or something like that.....
many of the foreclosures have been done with fraudulent records......many states have put a halt on foreclosures till they figure out what is going on. basically the ones doing the foreclosures don't have any legal right to foreclose, the only ones that do are the investors that bought the deriviatives, or whatever you want to call them...some say this will cause another round of bankruptcies on wall street.
Japan and the US fed are getting ready to dump a few more billion...

and well, if you look around on the web, you can find alot of stories...
oh ya, forgot one...
super wealthy buying gold by the ton!!!

reply to post by sakokrap


Thank you Sakokrap. At least you see what I am on about, and how serious and important this issue is.

It might be escalating slowly now, but the ball is on the roll. It will gain momentum, and the price is rising very quickly in market terms.

I do believe something is coming. And no, this is not a prediction, please don't take it as such. It is an observation of current market trends. Gold and Silver, even platinum is being bought up in huge numers, hinting to something happening in the near future.

VVv

reply to post by dawnstar


Indeed mate, I saw the story about the super wealthy buying gold by the ton.

Very suspicious, do they know something we dont?

VVV

I have heard about it for some days ago. And personally I dont do anything to watch the market and such. But I still find it interesting, when you point it out like that.

but my question is, what could they use that gold for? why does this scare you. Please, I dont know much about all this, and it may sound like a stupid question yes.

basically if you see the commodities and wall street both rising, I think it means that the value of the dollar is dropping....dollar worth less, everything costs more....
at least, it seems like it drops when both those things are rising.

here's the latest goodie I found...

Fed Officials Mull Inflation as a Fix

online.wsj.com...

People are starting to realize that the US dollar is worse than worthless - By having them you actually lose wealth.

*If you cannot buy gold, get silver. The system is starting to enter the final stages of collapse.

Well I'm not into gold or anything but recently someone on ATS predicted that their would be another market crash on 20th October.

Also something about China trying to prevent the USA from selling their gold,or well going try and prevent it from happening.

Was Mabus.angus.

Just throwing it out there.

reply to post by SlovenlyGhost


I remember reading that, before he got locked.

But yeah, the steadily rising gold price really is a matter for concern. Even here in my country, our currency called the ZAR (South African Rand) is at an 10 year high against the dollar. Not to long ago it costs about R10.00 for $1, now it's down to about R6.70 for $1.

Economists here are saying the rand is strong, but actually it's the dollar that is very weak. So at the moment they are trying to come up with plans to weaken our currency, because exports are suffering because of the strong rand. But by weakening the rand, they are contributing to the fall of the economy in general. South Africa is one of the largest exporters and producers of gold, and by selling the Gold in huge quantities they dollar is weakened and the rand made stronger.

It is an double edge sword situation, and something is going to get cut.

VVV

reply to post by VreemdeVlieendeVoorwep


Yeh,I know.

You forgot I'm also South African.Do you think nationalisation of the gold mines would affect it anyway?seeing as the youth league is pushing for the nationalisation of mines.

Its a game...the wealthy hyperinflate something for a short time, get tons of stock in it, then push it onto the people...selling off at record highs as the smaller people come in and try to cash in on what they see is a good thing
when it hits a tipping point, the big investors sell off, keeping a good profit while they unload the stocks...eventually the value drops once they are out and the little people get hammered with what they thought was a good thing.

yes, somebody knows something...its called brokers and big investors knowing how to make more billions off of a scam..

Consider what in even the last 15 years have taught us. The stock market will go up infinately (crash). The dot com businesses with no commodity will go up forever (crash), The housing market will go up forever (crash), gold value will go up forever (.....what goes here?...). This is repeatable and has been the standard way wall street soaks up money...and they go hand in hand with media personalities to fuel the overvalued stock purchases..

Stock Market...its not gambling...its a grift.

reply to post by SlovenlyGhost


The nationalisation of the gold mines will be the biggest mistake ever.

Gold mines should stay private enterprises, without goverment interference. For once goverments world wide start to control the gold, they control the world.

VvV

the demand is increasing,
JPMorgan is reopening their gold vault in NYC, & starting a brand new vault in Singapore
the Central Banks world wide are activly buying Gold instead of the selling they have been doing

Bullion itself is just the lead engine of this Precious Metals train pulling out of the station
wait till the fund managers are forced to buy all the gold related equities for their funds


Most savvy investors understand that the Federal Reserve is engineering
both the stock market run up and the demand for gold bullion:


a thought to the wise,

My guess is that any [market] decline from here will be shallow because the
central bank has issued what traders are calling a "Bernanke put"
- a takeoff on the "Greenspan put" that was believed to underlie
the market in the 2000s [dot com balloon].

A put is a derivative that swells in value if its underlying
instrument goes lower in value. So the idea is that if the economy
goes lower, Bernanke's efforts to save it will get larger. This should
create a cushion of safety - real or imagined - especially if it is
increasingly seen to be "at the money," or triggered by near-term events.

We can mutter about it under our breath and wonder if it's the
right thing to do, but it's happening nonetheless.
So what I want you to
grasp is that the greatest financial bubble in the history of mankind
is being formed right in front of our eyes.
And the only sensible thing to do is take advantage.

gold & PMs are part of the makeup of this Maxi-Bubble
which is designed to allow the astute elites to excape
the austerity & rationing & obligatory subsistance life
which will presently unfold under the Fascist State decade !

reply to post by St Udio


that's only if they haven't lost control....
remember, through the years, the big fish who had vaults full of gold and silver have oversold....if all those people who bought that gold decide they want the physical product, well, these guys will be forced to buy at very high prices in order to deliver.
or...admit the scam.....

I´m also watching this for some time and I can say it looks very strange indeed.
This doesnt look like normal rise it´s rising with rocket speed every day.
If someone invested few bucks in Forex two months ago then he is a rich guy now.

I´m really expecting some crash soon.

just another bubble friends. when an investment is on every news cast and a thousand companies pop up offering to buy your gold RUN.
dont buy into the "its different this time" jargon, gold blew up before and crashed just as fast. happened with dot.coms, housing, oil, etc.

I hear so many talk about gold being the thing to have when things go bad. Well gold will not put food in my belly.

I think when times get bad lead or steel will be the metal to have. With those you can take food, gold, or just about anything else.

It might be someone is buying it up to try and sell at a high price. In the end the guy who spent his paycheck on a small amount will lose money. I agree with a few others gold is going to bust before the market.

Raist