How high will gold price go?

[GasoLane]

Whoops. Looks like the End of the World/Doomsday/GFC 2/World Recession 10 has been postponed for a while.....

http://www.abc.net.au/news/2011-09-0...uarter/2874974

http://www.abc.net.au/news/2011-09-0...leased/2875106

Geez, it's a bugger living in Oz and being so out of touch with the rest of the world

[AU101]

^^^ Funny the comments in that story put a different spin on it

[AU Mont]

its slightly amusing for me looking back a few years ago i joked to a wealthy mate ( owned a few properties ouright) how an ounce of gold was valued the same as an ounce of pot (roughly $400 back then i have no idea now lol)

and when it hit $800 an ounce he should jump on it, and he said no it would be a bad investment ....

[AMGC63]

Originally Posted by GasOLane

Whoops. Looks like the End of the World/Doomsday/GFC 2/World Recession 10 has been postponed for a while.....

http://www.abc.net.au/news/2011-09-0...uarter/2874974

http://www.abc.net.au/news/2011-09-0...leased/2875106

Geez, it's a bugger living in Oz and being so out of touch with the rest of the world

Fancy that, the economy grew 1.2% for the June 1/4... ! might have to halt the nuclear shelter project...

[GASWAGON]

Wow a whole 1.2 %.....Might go out and buy new cars, a house and all the rest tomorrow as the future is soooo bright now.

[flappist]

Alright, back onto topic.

This thread is about the price of precious metals, keep it there or it will suffer the same fate as the others.

[FGII-XR6]

just shows how things can go south quickly http://au.finance.yahoo.com/news/Cop...767123349.html

Copper, silver and gold led a broad sell-off in commodities on Friday as worries lingered about the lagging pace of the global economy.
The concerns are focused on the US economy, Europe's struggle with sovereign debt issues and slower growth in China. Future demand for commodities such as copper and other manufacturing metals, oil and agriculture products is unclear.
Many investors sold holdings for cash, to cover losses in other financial markets or to stay on the sidelines during weekend meetings planned by the International Monetary Fund and World Bank, analysts said.
Gold for December delivery fell $101.90, or 5.9 per cent, to finish at $1,639.80 an ounce. The price has fallen 9.6 per cent in the past week but remains 16.1 per cent higher since the first of the year.
"I'm kind of surprised by the amount of selling we've seen in this market," Kingsview Financial analyst Matt Zeman said. "People just want cash, period."
He and other analysts say gold prices could continue to fall until there is a better idea of what's next for the economy.
December silver fell $6.477, or 17.7 per cent, to end at $30.101 an ounce. CPM Group analyst Carlos Sanchez noted that silver is traded both as a safe-haven asset and for its industrial uses. The market is smaller than gold so price swings are more volatile.
December copper fell 20.85 cents, or 6 per cent, to finish at $3.28 per pound and October platinum fell $97.40, or 5.7 per cent, to $1,613.20 an ounce. December palladium fell $21.55, or 3.3 per cent, to $642.50 an ounce.
In other trading, benchmark oil dropped 66 cents to finish at $79.85 per barrel on the New York Mercantile Exchange. Heating oil fell 5.2 cents to $2.8059 per gallon, petrol futures fell 1.93 cents to $2.5244 per gallon and natural gas fell less than a cent to finish at $3.701 per 1,000 cubic feet.
September wheat fell 7 cents to end at $6.4075 per bushel, corn dropped 11.5 cents to $6.385 per bushel and soybeans fell 25 cents to finish at $12.58 per bushel.

[pottery beige]

this house here is comes with its own goldmine....

http://www.adelaidenow.com.au/proper...-1226144931703

no sookys about property price crash k...

[mik]

interesting stuff gold just thought i`d share my experience and a bit of an insight from when i did a stretch years ago with a precious metal refining mob, it is resistant to most acids, but while it`s in dust size particles after being treated a few times with single acids to remove other metals, rinsed and waste pumped into a tank for metals extraction later,

it is then subjected to a a combination of nitric acid hydrocloric and a very small amount of sulfuric added drop by drop very slowly, (or else it gasses hydrogen and clears the building ) it will dissolve it into a liquid, it can then be reconstituted onto the walls of a glass lined vessel by adding sulphur dioxide (mustard gas ), the remaining liquid is pumped into a tank again for metal extraction, the gold is scraped into cone filter rinsed a sample taken and checked for purity with cyanide, if any other metals are present the liquid goes black, if ok it gets gets melted down at that stage it`s 99.9 % pure ,
the the silver is removed from the waste liquid by electrolysis just like electroplating, any waste liquids after any treatment are processed for metals in a like fashion, that`s a very simplified version of the gold refining process it`s a tedious and dangerous and takes days , forgive me if i left a step out it was some time ago i did this,
it`s sorta funny doing the job, you are fairly often pumping liquids with special plastic pumps from one vessel to another, we did`nt use hose clamps to secure the hoses , we used plastic tape as the acids would eat thru even stainless clamps, you can sorta see why in part it`s so expensive, i believe in some jet engines gold is coated on the tips of the turbine blades, no idea why, ............ but it would`nt surprise me if it one day made the 5k an ounce.

[jcxr]

Read today that gold is down by 10%'ish

[ebxr8240]

I think I'll go through all my stereo connectors and remove the gold..Lol...

[trippytaka]

Looks like GOLD is tanking again today!

Europe markets just opened and they are tanking, will be interesting to see if gold continues to slide.

http://www.smh.com.au/business/gold-...926-1kt81.html

Not so safe haven, afterall.

In recent months, the price of gold has rocketed towards the $US2000-an-ounce mark as investors bet the decade-long run-up in the value of the yellow metal had some way to go. All that debt in Europe and the US must only add to the inflationary pressures that make so-called stores of value like gold so attractive, or so the conventional wisdom went.

In the space of a couple of weeks, though, another market certainty has been sunk. Gold, silver and other precious metals has seen their prices smashed, as rumours of a shift to selling by a handful of funds help prompt an actual stampede.
Advertisement: Story continues below

Gold, which ended last week with its biggest two-day plunge since 1983, has dived further today, losing another 6 per cent, or about US119 an ounce, to as low as $US1532 in spot trading.

Silver fared even worse, sinking another 18 per cent, or $US5.61, to drop to $US26.07. Today's tailspin adds to silver's 18 per cent drop on Friday, then the biggest one-day dive for the metal since at least 1979, according to Bloomberg data.

The jolts for the gold and silver bulls come as little has improved in the basic economic issues that had previously driven prices of the metals to record levels. Gold, for instance, peaked at $US1921.15 on September 6 as investors bet the flood of debt and the danger of sovereign defaults left few other safe places to park money.

US appeal

Those issues haven't abated - in fact, have become worse - but what's changed is that US assets, particularly the greenback and US treasuries have suddenly become more appealing. The rising US dollar alone has helped push US-dollar-denominated commodities lower.

"Support for the US dollar has promoted natural weakness across the commodity space with the safety of gold not even immune to the decidedly risk-off atmosphere," said Go Markets currency analyst Christopher Gore.

As sentiment shifted, though, investors have jumped on a bandwagon - selling off commodities - that's gaining momentum if anything.

ANZ Bank commodity analyst Natalie Robertson said gold had suffered because of the volatility of its prices through August and September and more archane issues, such as changes for metals investors announced by the Chicago Mercantile Exchange on Friday.

In perhaps a symptom of gold's rising popularity, the CME lifted the minimum requirements of investors trading in gold on the market.

The decision by the CME caused "a whole heap of forced-selling," said IG Markets analyst Ben Potter.

Aussie loses friends

"The heightened risk aversion is actually being reserved for the ultimate safe haven of US treasuries and cash rather than gold," said Ms Robertson.

The jump to US debt is coming despite the downgrade of its top rating by Standard & Poor's in August. Even comments by the US Federal Reserve last week that the global economy was worsening hasn't put them off buying US assets - partly because most other assets have become even more unattractive.

These assets include the currency market's favourite until recently: the Australian dollar. The Aussie dollar has lost another US cent to drop to 96.3 US cents - a fresh nine-month low today.

Investors in Australian mining stocks have also been pummelled with the ASX sub-group of gold miners dropping almost 10 per cent. Newcrest lost 8.5 per cent to $32.86, making it the largest single drag on the ASX200 benchmark share index.

ANZ's Ms Robertson chalked up the falls in gold prices to a short-term factors that may soon tempt investors back into the precious metals.

"These falls are the result in a shift in sentiment rather than a shift in fundamentals and should represent very attractive buying opportunities," Ms Robertson said. "Certainly a lot of speculators have been washed out the market and once prices do start to bottom, things should bounce quite hard."

Mr Potter agrees that the forces making gold an attractive investment have not been dimmed by the short-term falls.

"The fundamentals that gold has been rising on are still firmly in place," said Mr Potter.

In perhaps unfortunate timing, an Australian-based exchange for precious metals will begin operating month, allowing buyers and sellers to trade online as well as offering storage in its Brisbane vault.

The Australian Bullion Exchange, scheduled to open on October 24, will cater for trade in investment-grade gold, silver and platinum, the company said. Let's hope there are some buyers around when it opens for business.

czappone@fairfax.com.au with Bloomberg

[charles_wif_xf]

Oooooh, an Australian based ETF.

I have this to say about ETF's: you don' hold it, you don't own it.

[BHDOGS]

My jeweler friend who makes her own jewellery says invest in silver instead of gold as thats gonna rise higher in the end

[charles_wif_xf]

Silver has more industrial uses due to its abundance (compared to gold). They have similar electrical and thermal properties.

[DJR-351]

Instead of buying silver why not go find your own....

http://www.bbc.co.uk/news/uk-15061868

[dave289]

Originally Posted by DJR-351

Instead of buying silver why not go find your own....

http://www.bbc.co.uk/news/uk-15061868

Have always wanted to go gold panning , when I sell my house I might go out for a stint on the goldfields just to get it out of the system , never know , might find a nice big nugget.

While we did see a dip in gold last week , we did see a simliar dip in may this year but it then continued on its way , and it will continue on its way once again.

These things below will help ensure gold continues on its way for a long time yet. Not to mention an economy that is dying a slow inevitable death .

http://www.news.com.au/money/propert...-1226150555477

http://www.news.com.au/money/propert...-1226149144413

[Keepleft]

Originally Posted by charles_wif_xf

Silver has more industrial uses due to its abundance (compared to gold). They have similar electrical and thermal properties.

But, depending on which part of the silver mining industry you believe, silver will "run-out" 15-25 years time, with gold many years later than that. Silver is not found 'deep' so they say.

Gold is of value owing its big part played in economic history, and holds value as its highly financially regulated; add in demand etc = price. What we are seeing of late is a market 'gold correction', I'd suggest.

I love gold, but silver is stable, atm I'd argue undervalued. I buy a kilo bar each year for my kids, they can have their bars at 19. 25 if their immature:-) (Bets off if the bar prices skyrocket in 12 years time).

Not comfortable with fiat currencies atm, won't be for ten or so years. (Tin foil hat - off).

NB - Various MINTS will buy silver and gold, paladium etc - see their asking price vs their sell price. Perth Mint, ABC Bullion etc.

[BHDOGS]

yeh at my work i watch them drop off a delivery of gold every 2 weeks of about 170-200kilos the jewelers are flying through the stuff so many ppl come in and buy in bulk of that or silver for investment its just staggering

[jcxr]

Originally Posted by Keepleft

But, depending on which part of the silver mining industry you believe, silver will "run-out" 15-25 years time, with gold many years later than that. Silver is not found 'deep' so they say.

Gold is of value owing its big part played in economic history, and holds value as its highly financially regulated; add in demand etc = price. What we are seeing of late is a market 'gold correction', I'd suggest.

I love gold, but silver is stable, atm I'd argue undervalued. I buy a kilo bar each year for my kids, they can have their bars at 19. 25 if their immature:-) (Bets off if the bar prices skyrocket in 12 years time).

Not comfortable with fiat currencies atm, won't be for ten or so years. (Tin foil hat - off).

NB - Various MINTS will buy silver and gold, paladium etc - see their asking price vs their sell price. Perth Mint, ABC Bullion etc.

They just found $220M of silver 4.7K's down, sunken bullion.

[LyleXR8]

When I first came to kalgoorlie in mid 06 gold was 640 an ounce, now it's 1000 bucks more, I hope it stays up for a while or I'm out of a job, even in 06 the place was pumping but a lot of people in town are saying if it drops reasonably quick to 1000 an ounce a lot of places will shut up shop in fear even thou they were still making money at 600 an ounce. It's all a bit like a recession, the money doesn't just disappear, people freaking out and selling up causes the recession to hit harder, if everyone just kept calm and held on to what they have we could ride it out without such massive drops in the value of the dollar, property, and commodities

[Resurrection]

Back on its way up to $1,800.

[noosacuda]

Originally Posted by BHDOGS

yeh at my work i watch them drop off a delivery of gold every 2 weeks of about 170-200kilos the jewelers are flying through the stuff so many ppl come in and buy in bulk of that or silver for investment its just staggering

I find that amount very hard to believe! Do you realise how much gold that is??? 5466 to 6430 OUNCES! Considering the average mens wedding ring in 18ct would be 8-10 grams.
When gold hits $2000/ounce i'm scrapping a lot of our old stock of chains and wedding rings!
As for investing in silver, i have heard that but am not convinced of it.
And gold being a "useless metal" it's used in mobile phones,computers, electronic etc and space shuttle windows as it's the only metal that can be made thin enought to be translucent, 1 gram can make 7 miles of wire......

[DANNO178]

Originally Posted by Resurrection

Back on its way up to $1,800.

I purchased almost two kilos at the beggining of July when it was 1565 an ounce and am happy with the results so far.