Comments on: A New Floor in the Gold Price? http://www.dailyreckoning.com.au/a-new-floor-in-the-gold-price/2008/04/04/ An independent perspective on the Australian and global investment markets Mon, 22 Mar 2010 03:14:12 +0000 http://wordpress.org/?v=2.8 hourly 1 By: biz http://www.dailyreckoning.com.au/a-new-floor-in-the-gold-price/2008/04/04/comment-page-1/#comment-15927 biz Mon, 07 Apr 2008 02:07:17 +0000 http://www.dailyreckoning.com.au/a-new-floor-in-the-gold-price/2008/04/04/#comment-15927 unpop i think that's more an argument against leveraged plays than it is about the resilience of gold prices. by nature, everything tradeable fluctuates in price. the amount of leverage used should be such that you can swing either way and maintain your position over the underlying assets, not just up. DR bill bonner style has always advocated going liquid from intangibles and moving to physical gold, not borrowing a motza and speculating on gold price cfds. anyone who tries to use these charts, which are as arbitrary as they come, as a tool for speculating needs to go to common sense 101, rather than brush up on their technical analysis skills. unpop i think that's more an argument against leveraged plays than it is about the resilience of gold prices. by nature, everything tradeable fluctuates in price.

the amount of leverage used should be such that you can swing either way and maintain your position over the underlying assets, not just up. DR bill bonner style has always advocated going liquid from intangibles and moving to physical gold, not borrowing a motza and speculating on gold price cfds.

anyone who tries to use these charts, which are as arbitrary as they come, as a tool for speculating needs to go to common sense 101, rather than brush up on their technical analysis skills.

]]> By: Unpopular Truth http://www.dailyreckoning.com.au/a-new-floor-in-the-gold-price/2008/04/04/comment-page-1/#comment-15501 Unpopular Truth Fri, 04 Apr 2008 05:38:33 +0000 http://www.dailyreckoning.com.au/a-new-floor-in-the-gold-price/2008/04/04/#comment-15501 I keep hearing this noise about gold prices going up, but since it hit $1030 USD an ounce, it's done nothing but go down. The chart above looks pretty arbitrary to me too, without any meaningful rallies in the gold price to indicate that the correction in price is just a short term drop before the rocket takes off. Now i'm not saying Gold wont go back up, again, but it's hardly as cut and dried as this website is making out. I know a lot of people who keep thinking "this is the bottom, time to get in" and watch their leveraged trade go pear shaped as gold prices turn bearish. I keep hearing this noise about gold prices going up, but since it hit $1030 USD an ounce, it's done nothing but go down.
The chart above looks pretty arbitrary to me too, without any meaningful rallies in the gold price to indicate that the correction in price is just a short term drop before the rocket takes off.

Now i'm not saying Gold wont go back up, again, but it's hardly as cut and dried as this website is making out. I know a lot of people who keep thinking "this is the bottom, time to get in" and watch their leveraged trade go pear shaped as gold prices turn bearish.

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