Let’s consider gold price in other currencies
Doc and I respond to a comment by Paul W regarding the gold price in terms of other currencies. We also touch on the Bullish Gold Miners percentage chart and our opinion if the bottom for gold is in (since there have been a lot of recent headlines on this topic).
Here is Paul’s exact comment…
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Uh oh, Doc and Core getting schooled!? Nah! Doc is still my main gold Intel source followed by GS
I got $500 on DUST and 500 on NUGT holding over night. Will sell the loser and add to the winner.
Good market wrap. It looks like the USD could make a big move up to 1.00 any time now. The $XBP chart could get taken to the woodshed. That said, the 20 DMA of the BBand on gold is heading south in a way that looks like gold could get smacked any time now.
Thanks guys. I am glad to hear that Doc is buying.
I have said this several times before.
The accepted position is the the price of gold and silver are set on the COMEX by paper gold or paper silver. This may be true for temporary, relatively short time periods.
I, however, believe that increasingly the price is being set in Asia, not the US, and while the apparent prices of gold and silver may fluctuate as the dollar exchange rate fluctuates, if the price of gold or silver in the US or on the LBMA drop too too much relative to China the amount of arbitrage is so great that the price in th US is forced to rise.
Thus essentially the price of gold and silver is NO LONGER BEING SET IN THE US or London.
The price of gold closed today on the SGE above $1270 equivalent and the price of silver above $18 equivalent.
The $18 for silver on the SGE appears to be a line that is not allowed to be crossed.
I hate to disagree with the Doc, but the clincher on price is that Dubai has now agreed to use the SGE fix for pricing.
Good point…..
With The Philippians moving towards China ,that should help gold price
Doc…I listened with interest to Chris Temple suggest that the dollar was going to remain the only game in town for as long as The Fed wanted to prop up the system by whatever means possible.
Makes sense to me.
Then…I also listened with interest to your comments about gold remaining under pressure until the dollar changes course.
So then – the question remains: Given that CT’s logic is correct how do you see the dollar ever weakening in our lifetimes (I think I got 20 more)? Seems to me that my fascination with Gold/Silver may be misplaced if Chris is going to be correct. What say you Doc?
Ex, have you been following Rainy Mountain Royalty Corp., they are Broker’s Pick for this month according to Resource World magazine.
Never heard of them DT. Thanks for the heads up and I’ll check them out.
Mr T…you state that Central Banks will continue to call the shots for currencies and, by extension, the markets. On the surface that makes some sense as they do have control of all the levers; but this line of reasoning leaves out any discussion of China, Russia, India et al where what? 4 billion or so folks work and play and who do not necessarily know that the so called west is omnipotent and all powerful. Therefore, could it also be reasonable to expect that, at least in part, the U.S. buck and the SWIFT System might be bypassed for a significant amount of world trade? If it is reasonable then I would have to think the U.S. buck will also fall in value.
Jes’ sayin’…jes askin’…
Vendetta Mining is now hitting gold and copper ore on it’s Pegmont lead, zinc, project.
http://web.tmxmoney.com/article.php?newsid=8067201434339628&qm_symbol=VTT
Cory and Doc, I think you are far too bearish. You need to throw away your USD charts once in awhile and look at the elephant in the room. The US is important but it is not the world economy and constantly talking about the USD price of gold is leading you astray.
If the USD went up 2% against all other currencies, and gold went up 1% against all other currencies, would you say that gold was going up or down? It is going up, of course, but you keep saying it is going down, flat or looking bad. Gold in foreign currencies bottomed over a week ago. Look at gold in Euros, Yen or Yuan. Gold is getting a buy….a strong buy. If India starts buying again (as they should), it will only go higher.
http://stockcharts.com/h-sc/ui?s=%24GOLD:udn
When it comes to the stocks, the Bullish Gold Miners percentage is telling you everything you needed to know. The bottom was a week ago. Rarely does it get so low as it did then. When it does this, it is almost always a great time to buy.
http://stockcharts.com/h-sc/ui?s=$bpgdm
I have many gold stocks up strongly the last few days on healthy volume. My gold bell- weather stock DGC is up well over 10%. Gary Savage has been calling right. The time to get in is now.