Monday, January 23, 2006

 

'Alternative Currency' Appeals As US Dollar Sinks

Bloomberg looks at the trading day. "Gold rose in New York as the dollar declined against the euro and the yen, boosting the precious metal's appeal as an alternative currency. The dollar declined today against 16 of the most-active currencies after officials at the European Central Bank suggested higher rates are needed to prevent a surge in oil prices."

"'Gold is considered an alternative to all currencies,' said Dennis Eich, a precious metals analyst in Chicago. 'Investors are going into gold instead of the dollar, the euro or the yen.'"

"Gold futures for February delivery rose $4.70, or 0.9 percent, to $558.70 an ounce on the Comex division of the New York Mercantile Exchange. Prices reached $568.50 on Jan. 20, the highest in 25 years. The metal has gained 7.7 percent this year."

"The dollar's decline began in Asian trading after the Dow Jones Industrial Average fell on Jan. 20 by the most since 2003. 'The dollar move actually helped act as an incentive for people to buy gold,' said Frederic Panizzuti, senior vice president at a Geneva-based precious-metals trading and refining company."

And this mining news site reports that the Placer Dome/Barrick merger is a done deal. "Placer Dome's chief executive handed in his resignation on Friday after Barrick Gold scooped up the majority of the smaller gold producer's shares and extended its takeover offer for the remaining stock. About 358-million, or 81%, of Placer Dome common shares had been tendered to Barrick's $10,4 billion offer by the Thursday midnight deadline."

Comments:
Check out this 2 day slide versus the Swiss Franc.
 
It's hard not to be bullish on gold, but the majority of the web sites I read (financialsense.com being the best) the experts aknowledge gold is probably due for a correction down in the $400s. I'd really like to add to my position (etf GLD 100 shares when gold was $455 and 100 shares when gold was $509)

What my question here is to the gold bugs, how far should I let gold drop (it's sure to drop a little right?) before I buy. $525? 495? 450? - or is now a good time to stock up in light of the uncertainty in Iran and the economy?
 
Ben:

Cheers...It's good to be right!! (I know you're long on the Swiss Frank)

I'm in great spirits myself. I have a large position in Talisman Oil and it was up $3.95 PER SHARE today. Up 17% in 2006 already. Like I've said before, if ya' can't beat em' join em'!
 
1000$+ thats gold potential this year, see my blog for charts and analysis.
 
I got in GLD at $515 but sold because of an expected "drop".. which was $525. I sold again at $535 because of another expected "drop".. which was 542. I'm scared to death to sell a share for fear it will "drop" to $575.. Any thoughts??? Do the chart guys know anything???!
 
you people are never going to make money by timing a drop. one day something is going to move the markets and you're going to be on the sidelines while you really need gold.

J.P. Morgan sees gold near $600/oz by year-end
 
opps, wrong link!

No tossup regarding legality of Liberty coins

 
Ditto what John said. Buy and hold. The chart guys have been calling for an adjustment since it hit $450.

I've said it before, and I'll say it again: If that charting crap worked, they'd all be billionaires and wouldn't be giving away free advice on the internet.
 
I have a question. Ben has purchased swiss franks. How do you go about doing that? I am going on a trip there in a few weeks. Are there any advantages to setting up an account?

Thanks,
Mark
 
Mark,

You can set up accounts in foreign currencies at everbank.com.
 
Mark,

The Swiss have a 'postal' account that costs around $600 to open. I use Everbank, and the fee is .75% each way, or that's what it was when I last used it.

I am an affiliate with Everbank, so if you click through the EB icon on this blogs sidebar, they will throw me a bone at no cost to you. Thanks!
 
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