Gold Prices might go up to over US$2,000 by year 2009

[spezlezz]

Just curious.

Is it possible for the US Govt to reduce the money supply i.e. retract back those money that they have printed?

[alvin]

The Fed will not do it because it will lead to deflation. The current Fed chairman, Bernanke, prefers inflation to deflation if he has to choose between the two.

He did mentioned about throwing money from helicopters to prevent an economy downturn which earned him the title "helicopter Ben".

[ahvyee]

I think if the US raise the interest rate, US dollar will go up, and gold will go south.. That's my opinion..

[Dennis Ng]

I think if the US raise the interest rate, US dollar will go up, and gold will go south.. That's my opinion..

My opinion is even if U.S. dollar goes up, Gold prices might stay high....as Gold prices is UP not 100% becos of US$ falling...

For instance, Gold prices have gone up by 48% since Jan 2009....US$ didn't go down b 48% in the same time period.

[wemakebread]

Some recent news about gold.

This week, IMF announced the sales of 403.3 tons of gold.
Notably, 200 to India, 10 to Sri Lanka & 2 to Mauritius.

IMF remains the 3rd largest holder of gold reserves, after US & Germany.
The 403 tons represents about 1/8 of its 3217 tons stock pile.

[wemakebread]

Hi friends,

I agree with Dennis on bullish outlook on gold in the long term, based on fundamentals.

For technical analysis:
On 3 Dec, it touched above 1220.
On 4 Dec, it corrected downwards to 1147 before closing at 1160.

When riding an up trend, I like to buy on dips.
Today we have such a situation at hand.
I am the opinion that this was due to strong surge in USD yesterday.
I also believe there has been significant profit taking by traders/speculators who wants to take a break for the year end Christmas season. Once they sell off their positions, they can take a long holiday without worrying about price movements & having to monitor them during their vacation.

In the long run, I believe gold price will go further up.
In the short run, there is a possibility that gold price might dip lower in the next few days.

Since I take a long-term view, I have no problems buying at current price.
Subject to liquidity considerations & composition of my overall investment portfolio, I may buy some more if it dips even lower.


SILVER
High = 19.42
Corrected downwards to 18.26 & closed at 18.42
Similar "buy on dip" opportunity for those who are interested.


Just sharing my thoughts for mutual learning & knowledge

[Dennis Ng]

Hi friends,

I agree with Dennis on bullish outlook on gold in the long term, based on fundamentals.

For technical analysis:
On 3 Dec, it touched above 1220.
On 4 Dec, it corrected downwards to 1147 before closing at 1160.

When riding an up trend, I like to buy on dips.
Today we have such a situation at hand.
I am the opinion that this was due to strong surge in USD yesterday.
I also believe there has been significant profit taking by traders/speculators who wants to take a break for the year end Christmas season. Once they sell off their positions, they can take a long holiday without worrying about price movements & having to monitor them during their vacation.

In the long run, I believe gold price will go further up.
In the short run, there is a possibility that gold price might dip lower in the next few days.

Since I take a long-term view, I have no problems buying at current price.
Subject to liquidity considerations & composition of my overall investment portfolio, I may buy some more if it dips even lower.


SILVER
High = 19.42
Corrected downwards to 18.26 & closed at 18.42
Similar "buy on dip" opportunity for those who are interested.


Just sharing my thoughts for mutual learning & knowledge

thanks for sharing.

As mentioned, I buy Gold and Silver as "insurance" against uncertainties and possibility of rising inflation, not to really make money. I currently have about 7% in Gold/silver, the percentage drops a bit becos my wealth has grown, not becos I sold any Gold or Silver.