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Gold Destroyed!!

By John Bailo   Follow   Wed, 14 Dec 2011, 1:33pm   3,170 views   10 comments
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It couldn't happen.

It wouldn't happen.

Guess what...It Happen!!

The gold bugs are throwing in the towel

"As a result, contrarians detect a very strong wall of worry forming in the gold market, one which could very well be the springboard for bullion rallying into new all-time high territory. "

http://www.marketwatch.com/story/the-gold-bugs-are-throwing-in-the-towel-2011-12-14?link=MW_story_popular

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1. Dan8267 Follow Befriend (16) 764 threads 7,709 comments Boca Raton, FL Premium

   1   3:16pm Wed 14 Dec 2011   Share   Quote   Permalink   Like   Dislike   Protected   So, how does one most effectively short gold?

2. uomo_senza_nome Follow Befriend (13) 787 threads 1,542 comments

   2   3:37pm Wed 14 Dec 2011   Share   Quote   Permalink   Like   Dislike   Dan8267 says So, how does one most effectively short gold? well, if you are bearish, you can buy long puts on GLD. Which means that when GLD goes down (GLD is a ETF tracking gold price), your put value goes up. if you are extremely bearish, you can do an iwog :) write call options while buying put options. Since options are not for everyone, there are other ways to play this too. I think GLL (2x daily inverse) or DGZ (1x monthly inverse). But it is tricky with inverse ETF's; they are very good for hedge fund managers, not so much for average investors -- who can't afford to get in and out of the market very frequently.

3. thunderlips11 Follow Befriend (13) 51 threads 2,636 comments Premium

   3   7:34pm Wed 14 Dec 2011   Share   Quote   Permalink   Like   Dislike (1)   Protected   This article is actually arguing for a gold rally, by virtue of contrarian investment ideas: We haven’t seen any such seasonal strength this year, needless to say. But gold’s seasonal tendencies are yet more evidence pointing in the same direction as contrarian analysis: Gold is due for a strong rally. Personally, I think Gold has had a fantastic run, but I wouldn't say it's the early 80s all over again. There lack of trust in financial institutions and government seems to be running very high these days. That being said a correction into the $1300-1400s wouldn't surprise me, but we could just as easily see a run up to $1800 and beyond, particularly come February after the Holiday Cheer wears off...

4. uomo_senza_nome Follow Befriend (13) 787 threads 1,542 comments

   4   7:40pm Wed 14 Dec 2011   Share   Quote   Permalink   Like   Dislike   thunderlips11 says Personally, I think Gold has had a fantastic run, but I wouldn't say it's the early 80s all over again. There lack of trust in financial institutions and government seems to be running very high these days. completely agree. we are far away from the manic parabola phase. although you never know what the future state of monetary system could be; given that the only solution for foolish politicians is print, print, print. See this: http://tradewithdave.com/?p=7173 And then there's FOFOA's inverted waterfall theory: http://fofoa.blogspot.com/2009/12/gold-ultimate-un-bubble.html I think it's wise to save in gold, you just have to be careful about entry/exit --as with any asset.

5. thunderlips11 Follow Befriend (13) 51 threads 2,636 comments Premium

   5   8:01pm Wed 14 Dec 2011   Share   Quote   Permalink   Like   Dislike   Protected   uomo_senza_nome says I think it's wise to save in gold, you just have to be careful about entry/exit --as with any asset. Nice links. Thanks Spaghetti Western Man. I particularly enjoyed the FOFOA bit about Gold being an un-bubble.

6. TMAC54 Follow Befriend (9) 70 threads 930 comments San Leandro, CA

   6   9:10pm Wed 14 Dec 2011   Share   Quote   Permalink   Like   Dislike   Last I heard Gold cost $1100 per oz to produce. http://www.miningweekly.com/article/what-does-it-cost-to-produce-an-ounce-of-gold-2009-03-16

7. uomo_senza_nome Follow Befriend (13) 787 threads 1,542 comments

   7   10:09pm Wed 14 Dec 2011   Share   Quote   Permalink   Like   Dislike   thunderlips11 says I particularly enjoyed the FOFOA bit about Gold being an un-bubble. If you haven’t read FOFOA, then you haven’t been into “the matrix” of gold :) His posts on hyperinflation are the best I've ever read.

8. iwog Follow Befriend (48) 274 threads 12,546 comments 47 male Lafayette, CA Premium

   8   9:57am Thu 15 Dec 2011   Share   Quote   Permalink   Like   Dislike   Protected   No bottom on gold until $1000 or March 2012. Gold was a bubble, and I think it was only the extreme turmoil of the Euro that caused it to hold on this long.

9. FortWayne Follow Befriend (13) 102 threads 3,764 comments

   9   11:27am Thu 15 Dec 2011   Share   Quote   Permalink   Like   Dislike (1)   iwog says No bottom on gold until $1000 or March 2012. Gold was a bubble, and I think it was only the extreme turmoil of the Euro that caused it to hold on this long. Are you going to be shorting it? You did well recently with it I remember.

10. iwog Follow Befriend (48) 274 threads 12,546 comments 47 male Lafayette, CA Premium

    10   11:38pm Thu 15 Dec 2011   Share   Quote   Permalink   Like   Dislike   Protected   Other than writing calls and letting them expire, I have all the big money on silver short positions that I took in September before the big crash. Gold and silver will move together so as gold crashes, silver will follow.