effect of euro crisis on gold

irishh_bob

i bought more gold today on the assumption that wobbles in the eurozone would make a rise inevitable , i only had 5 k in gold before today and bought another 5 k

from watching cnbc this evening , it appear gold and other commodities were down sharply today due to an increase in the dollar , now i can see why the dollar rose , what with the problems in the eurozone but im begining to wonder is the only real yardstick to use when predicting gold price , the value of the dollar , is it simply the case that it doesnt matter whats happening with other currencys , unless the american dollar is falling , gold simply cannot rise

ravima

Problems in far East as well, where they buy lots of gold. Worries about possible crash in China and Korea raised interest rates today as well.

Gold/silver may get a rocky ride in the shortterm, but if USD starts to fall, EURO disintegration fears increase, then both metals should move upwards.

We know well what bubbles do here, but I suppose, being human we'll never learn and will hope that the next bubble will get us through!!!!!!!!

Low Energy Eng

It may have plunged in dollars but the euro would have plunged against the dollar aswel so you should be fairly sound

If you have gold and people in the US try to hedge against dollar depriciation there'll be demand for gold, which should push your eur investment up

Plus euro has its own issues

irishh_bob

Low Energy Eng wrote: »

It may have plunged in dollars but the euro would have plunged against the dollar aswel so you should be fairly sound

If you have gold and people in the US try to hedge against dollar depriciation there'll be demand for gold, which should push your eur investment up

Plus euro has its own issues

gold down . 7% in euro,s today

but is an increase in the dollar more important for gold than a weakening of the euro , baschically a strong dollar dictates gold , not a weak euro

according to cnbc this evening , the outlook for the american economy is improoving , thus a strong dollar

OfflerCrocGod

It's called Risk On, Risk Off.

We are now in the Risk Off stage, hence Gold down and $ up.

Low Energy Eng

The corrections are usually the sharpist, interest rates still extremly low and QE ongoing, i'll stay put

Remember the green shoots, economy turning a corner etc

WildBoots

OfflerCrocGod wrote: »

It's called Risk On, Risk Off.

We are now in the Risk Off stage, hence Gold down and $ up.

Risk Off?!!

Are you serious?!

OfflerCrocGod

WildBoots wrote: »

Risk Off?!!

Are you serious?!

Look at Sugar, Wheat, Copper almost all commodities ended the day red, I would consider that Risk Off. Why would you disagree?

mickman

Low Energy Eng wrote: »

The corrections are usually the sharpist, interest rates still extremly low and QE ongoing, i'll stay put

Remember the green shoots, economy turning a corner etc

if the US economy turns a corner then the dollar could continue its rise thus putting lots of pressure on precious metals.

we wont know what kind of correction this is until we see the fund managers sentiment indicators in my opinion. if people get very scared and bearish then new highs are ahead of us (what will prob happen), if everyone stays as bullish as they are now then we will have a large correction

Jim2007

irishh_bob wrote: »

gold down . 7% in euro,s today

but is an increase in the dollar more important for gold than a weakening of the euro , baschically a strong dollar dictates gold , not a weak euro

according to cnbc this evening , the outlook for the american economy is improoving , thus a strong dollar

Fear and greed are the primary drivers in determining the price of gold and related precious metals.

And personally I would never investing in anything that depends on macro economic theory and psychology to determine value.

Good luck with that,

Jim.

ranger4

Gold next bubble, Not sure how much longer gold rally will last, If i had gold exposure i would think seriously about starting to take profits now.

RoadKillTs

Exactly. I've never understood the whole gold thing. How can you value it? What is a fair price for gold?

Its in a bubble no doubt but how long will it last is a lot harder to work out.

digme

gold has a long way to go yet.

Cavehill Red

RoadKillTs wrote: »

Exactly. I've never understood the whole gold thing. How can you value it? What is a fair price for gold?

Its in a bubble no doubt but how long will it last is a lot harder to work out.

You're looking at this the wrong way around. Gold is real money, paper money is fiat.

Therefore the question is, how to value paper money in gold?

Gold is the invariable here. It's value is essentially permanent. There's a finite amount. An ounce bought a good outfit from a good tailor in 1900 and still does exactly the same today. Try pricing that outfit in dollars or sterling and you can see the essential devaluation of paper currency in the interim.

The goldrush will only recede when either paper currency is backed by items of real value, such as precious metals or a commodities basket, or else the economic crisis is somehow reversed and people no longer fear their wealth being eroded by the inflation that is quantitative easing, currency speculation, and currency wars.

WildBoots

ranger4 wrote: »

Gold next bubble, Not sure how much longer gold rally will last, If i had gold exposure i would think seriously about starting to take profits now.

Bad idea imo. The only thing that will come close to stopping gold at this stage is some sort of miracle, or if the markets take a serious dive (gold will follow but will quickly resume heading north).

robbyvibes

I look at gold as a store of wealth, not an investment.

The price going up is indicative the value of hard currency like the US $ is going down.

So if you want to preserve your wealth, buy gold.

Low Energy Eng

As i stated earlier...My main reason for staying in it...We all know the US have a major debt problem, the Euro has a few big countries coming up over the coming months that will have financial issues, all of which are good for gold.