Thank you.

Despite today's falls, still time to buy gold imo.

Buy the ****ing dip!

The two valid reasons in my opinion to own gold are as a hedge against inflation and as a doomsday currency crash reserve.

Considering its pretty evident we are in a deflationary period near to mid term and the dollar is rallying hard with no other obvious safe haven currency I don't see any reason to be bullish on gold.

There is a tail chance event in which a gold backed currency is introduced which would send Au soaring. The chance of a large QE program looks pretty remote right about now and I cant see congress passing it in any near term especially with the republicans on the deficit cutting witch hunt.

I'm short gold since yesterdays FOMC and I think it has a couple hundred $ downside over the next few months. Even if another QE were to be introduced it wont have much of an effect on inflation. It'll mostly end up on bank balance sheets to make up for credit contraction.

Notice the 30% correction in 08-09 which happens to be the closest parallel to today's environment. Don't get me wrong I'm very willing to change my mind in a second if the the USD starts to deteriorate or circumstances change but right now things are looking very very deflationary.

If you truly believe in it, I wish you good luck in timing the bottom.

Gold is not a hedge versus inflation though, it is a store of value doing both well in inflation and deflation. As I have stated before.

Meh to this PLAu downswong.

We were in the $1600 before the U.S. credit rating got downgraded, so we're still $100 north of that. People had to sell gold to cover losses elsewhere. So what would you rather own:

1) A Kruggerrand
2) $1745 10 year U.S. Treasury note that is now yielding 1.72%

Pretty easy decision imo.

and headline CPI registered 3.8% for the last year. If we assume it averages 2% over the next 10yrs as the Fed, IN THEIR EXTREME OPTIMAL CASE, plans for, then we still have large negative real yields. Commodities look amazing versus sitting in cash or bonds even they can just upkeep with headline inflation.

This last year I believe a lot of the CPI increase was due to cost push inflation rooted in commodity speculation. 12 months ago there was speculators betting on inflationary pressures due to QE and bought up commodities. I don't hear too much about inflation any more as the deflation camp as won (for now at least)

Consumer Demand continues to drop and credit in the shadow banking system is in a free fall. If crude, copper, and other commodities continue to fall where is inflation going to come from? there won't be cost push or demand pull (the sustainable kind) inflation.

Gold may hold be a store of value relative to other assets but if the dollar continues to strengthen, and it will I believe, gold should comedown in price. In this environment of higher savings and debt deleveraging the money supply is shrinking. less dollars=higher relative value vs anything including gold.

Strong dollar will bring all sorts of further problems down the road which will ultimately force another QE of somesort but I think we are some time away from that. Corporate profits from abroad will be the first to get smacked then equities, jobs, etc etc.

With regards to what currency is the $ actually strengthening?

What I see is a devaluation of all currencies (at least in the long run) and a short term loss of the €'s purchasing power as to the $.

Private credit sure is in decline, which means a lower demand for the currency that may (will) result in a loss of trust ultimately leading to the collapse of the same. (not saying that it will happen soon)

A appreciating currency is in high demand and therefore actually gains value - it has to be healthy - the $ is not healthy.

The $ was accepted as a store of value, particullary in the role of a reserve currency, untill now - this time has ended - the money will continously flow towards gold.

And 1698.10 for the low, I stand corrected.

Also, silver hit a 7 month low at 32.51.

We'll see how low this drops. I think stocks and commodities will continue to go down and markets won't be bouncing until late today or early monday.

the strong dollar portion of your comments I dont disagree with but the fact is they are a leading indicator to another QE and the present influx of dollar demands do not equate with a fundamental, more permanent strengthening of dollar buyers. IF you want to try time the situation fine. But to prosper the most in the long run, buying gold on these dips will not prove to disappoint.

guess I should have waited until toinght to buy that silver :X

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