After Huge Gains in Gold, Hedge Funds Sell - NYTimes.com

The True Color of Gold

At 12:42 EST gold has dropped to $1657,  more than $250 off  highs of $1907 just a scant two weeks back as people predicted $5000.  What gold does from here time will tell, what should be clear is that the price of gold is volatile. A golden mirror of our moods- shinning ring on the newly weds finger reflecting the pinnacle of joy-   the glimmer in the eye of the hoarder-  not a chart-  the prayer for border crossing for the fleeing refugee- The value of gold is set by mood.  Speculators and investors beware- gold is slippery as well as shinny 

After Huge Gains in Gold, Hedge Funds Sell - NYTimes.com:

'via Blog this'

Inspired by Paul Krugman

The Only Game in Town

I read Paul Krugman's piece from September 6, 2011, 9:18 PM

Treasuries, TIPS, and Gold (Wonkish)

 http://krugman.blogs.nytimes.com/2011/09/06/treasuries-tips-and-gold-wonkish/

The subject seemed to be.  What's driving the price of gold? Struggling to comprehend the "Economic Speak" I gleaned that he might be suggesting that, while most investments are dull to depressing with seemingly little prospects any time soon, gold has been all "Hoots and Hollers."  It seems the gold rush is the only game in town.  If in fact, this is the phenomena driving gold prices, then "Long Gold" should watch closely for the sell signal of the next game afoot, and move deftly to that Arena, profits in hand, well ahead of the crowd, avoiding the stampede away from gold and consequent huge losses.

A parable of gold bulls and bubble dynamics - FT.com

Psychology and Citizenship
Perhaps we all have an inkling that our psychological disposition toward things some how is connected to how life plays out; and perhaps we recognize that  life as we now enjoy it, depend on the our society uninterrupted.  I ask you, with these thoughts in mind, to read this recent piece from the Financial Times

If you have not already registered with The Financial Times you will need to in order to read the article.  It is a free registration and perhaps you will find it becomes a welcome news source for you.  I certainly have.

A parable of gold bulls and bubble dynamics - FT.com:

'via Blog this'

Gold Extends Biggest Slump in 18 Months - Bloomberg

Undaunted
Two day of steep declines this week foreshadow the inevitable.  At some point in the future the spot light on gold will have dimmed and folks will have moved on to another  "Golkonda"  


Sifting through the tea leaves of news, blogs and chatter during and after this recent price move I am struck by an undaunted spirit of belief in the reality of our current valuations of the yellow metal that I have spent much of my life forming into adornment.  I am struck by gold's enigmatic glimmer.  As we have moved from the garden or the cave into our current dwellings, we have transformed the yellow paste into our storehouse of sentiment and it would seem our perceived last vestige of intrinsic value.


Lest we  find ourselves victims of short shortsightedness,  intention and outcomes should be considered in these endeavors. Is the goal to park gold or to make money? 


Buying for parking would have been less painful some years back, but if things are to go to hell in a hand basket, then perhaps a wise decision  Monday morning.  


To make money the inevitable question is when to profit and to do that  at what point we are in this price cycle must be determined in order to choose wisely. 


I will close this musing with a question and a hint to my answer. 


Is Gold or the Dollar our currency?  


What do you expect to be holding in your hand when the profits are paid.


I have included the following News article for your consideration.


“Gold is a trade, gold is a position, gold is volatile, but gold is not safe,” Dennis Gartman, an economist, wrote today in his Suffolk, Virginia-based Gartman Letter.

Gold Extends Biggest Slump in 18 Months - Bloomberg:

'via Blog this'

About Gold, Platinum, Silver, Palladium, Rhodium and Buying or Selling

Thoughts on the metal market 

As gold prices continue to rise,  questions rise as well. 

The obvious questions and my answers.

Bubble?  Obviously.  How high?  Remains to be seen.  Buy?  Seems Risky.  Sell?  Profit is a good thing.   

Food for thought in deliberations on these matters-   "Sell high- buy low."  "You make money when you buy (not when you sell).",  "Pigs get fat hogs get slaughtered." 

Finally I prefer  buying or selling incrementally rather than attempting to call highs and lows. 

Below I have enclosed links to recent illuminating news.

Please help me by forwarding this to friends that would find it of interest.

 

Reuters Tue Aug 16, 2011 

http://www.reuters.com/article/2011/08/16/us-hedgefunds-holdings-gold-idUSTRE77F3TI20110816

The Wall Street Journal  8/18/11

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http://blogs.wsj.com/source/2011/08/18/gold-at-record-prices-yet-demand-has-slumped/

In Forbes 8/18/2011 

http://www.forbes.com/sites/anthonydemarco/2011/08/18/global-gold-demand-fell-17-value-rose-5-india-and-china-account-for-more-than-half-of-total-demand/

http://www.mydigitalfc.com/commodities/gold-inches-towards-1900-analysts-see-repeat-1980-rally-130

I include the last with the thought- mathematical musings lack anchorage to the events that actually shape these processes. However, it must be remembered they are highly seductive predictors to the believer, and an important driving force in all this mayhem.