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Gold dives

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March 19, 2008 – Comments (9)

How do you spell volatility?

The swings in the market are a strong statement of the level of uncertainty people are feeling.

So, gold has gone from a high of just over $1030 with the Asian market on Sunday night Monday morning to $941... 

9 Comments – Post Your Own

#1) On March 19, 2008 at 12:16 PM, MRTShorts (99.38) wrote:

gold is the safest investment! GOLD HAS TANGIBLE VALUE!

 

 

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#2) On March 19, 2008 at 12:20 PM, Tastylunch (29.41) wrote:

all prospects are suspects in a bear market, and nothing is more suspicious than sucess...

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#3) On March 19, 2008 at 12:26 PM, dwot (60.71) wrote:

My goodness, so have base metals taken a dive.

One my commodity post earlier this week I said my sense is that around $2/lb is the break even for copper.  Here's a guy that is talking about commodities and he's saying $2.43-$2.47.  My $2/lb estimate might be low as I came up with it when the US dollar was worth 20% more relative to other currencies, about a year ago.

What a lot of people are missing with looking at commodities is unless the operation is in the US, costs have been sky rocketing in US dollars because of currency conversions and earnings are plummetting.  

 What's kind of interesting to me here is that I think zinc has taken a hard hit relative to everything else and his chart seems to show the same.

Looking again, his $2.43 for copper is from a different time period, so he's adjusted for currency and thinks copper is fairly priced.  I disagree.  I think that $2.43 is an equilibrium price today. 

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#4) On March 19, 2008 at 12:52 PM, WillSurfForFood (78.45) wrote:

"gold is the safest investment! GOLD HAS TANGIBLE VALUE!"

Why does gold have a tangible value? It is shiny and is highly conductive but beyond that what good is it?  Why is such a high value placed on gold? 

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#5) On March 19, 2008 at 12:56 PM, MRTShorts (99.38) wrote:

does html have anything in the way of sarcasm tags?

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#6) On March 19, 2008 at 1:07 PM, leohaas (31.73) wrote:

Precious metals are a safe haven in times of a bad economy. If people trust the economy will be OK, they will abandon gold for stocks because stocks outperform gold in the long run. If people think the economy is gonna tank, they will abandon stocks for gold because in bad economic times gold outperforms stocks.

What we are seeing now is the eternal fight between bulls and bears. On days that the bears are winning stocks go down and gold goes up. On days that the bulls are winning the exact opposite happens. Hence the gold price is no more than the accumulated perception of the state of the economy. Considering gold is still near $1,000 that perception isn't too good.

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#7) On March 19, 2008 at 1:59 PM, dwot (60.71) wrote:

I think you did poorly if you panicked and bought at $1030.

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#8) On March 20, 2008 at 9:44 AM, dwot (60.71) wrote:

Will wonders never cease...  Gold low to 903?

Crude down to $99...

All the base metals are down...  Somehow copper continues much higher than I'd expect, about 1/3rd higher. 

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#9) On March 20, 2008 at 8:34 PM, lquadland10 (< 20) wrote:

We are bankrupt just read my other blogs. Soverin wealth funds will have to step in. the g-5 or g-7 bankers are manipulating the market in my humble thinking. They just don't want people to withdraw their money from the banks because the whole system will crash. If they can't cover city bank can they cover any bank? The answer is no they can't. Even if it FIDC insured. Just the cold hard facts. The country is bankrupted. Do the homework. With this week's bailout's we are stone cold broke in my humble thoughts.  Pay cash for what you want and does anyone have savings to get you through the rough time?

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