Gold = $1109
By Barry Ritholtz - November 9th, 2009, 8:34AM
Wow, that’s an impressive number.
Our intermediate target for the yellow metal is $1350
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Chart via CBOT
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Previously:
Gold Passes $1,000 (September 8th, 2009)
http://www.ritholtz.com/blog/2009/09/gold-passes-1000/
Gold Inflation Adjusted (October 7th, 2009)
http://www.ritholtz.com/blog/2009/10/gold-inflation-adjusted/
The Recent History of Gold, 1954-2009 (February 10th, 2009)
http://www.ritholtz.com/blog/2009/02/the-recent-history-of-gold-1954-2009/
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November 9th, 2009 at 8:38 am
…and what do you forecast for a pull-back low on the way to $1350/oz?
November 9th, 2009 at 8:58 am
“MF Says Dollar Being Used to Fund `Carry Trade,’ May Still Be Overvalued”- Bloomberg
“The International Monetary Fund signaled record low U.S. interest rates are funding global “carry trades” and the dollar is still overvalued as concerns mount that new financial imbalances are forming.”
there we have it-
market rally on tap on this awesome news
November 9th, 2009 at 9:29 am
Good for exporters. For consumers, not so good. Regardless, a weaker dollar and more expensive imports are necessary aspects of the adjustment process. The sooner the better to stabilize the economy. The J-curve won’t be much fun however.
November 9th, 2009 at 9:33 am
Well, BR, someone else thinks gold still has room to go. I was shocked to open my Sunday Newspaper and find this full three page SCREAMING AD:
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GEMCO IS BUYING! SIX DAYS ONLY STARTING TOMORROW! (you are told to show up with your goods at the local mall 9AM to 6PM)
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Three pages of Blaring Type asking for coin collections, Silver Dollars, Gold & Platinum “junk gold jewelry,” or signed fine items like signed Tiffany and Cartier items. Also offering big cash for sterling silver flatware and “Granny’s” solid silver tea service, large diamonds, Grandpa’s gold pocketwatch, and $1 for the JFK half dollars dated 1965-1970 plus any “wheat pennies” or other coin collections plus any foreign coins. Large photos of the Morgan Dollars and Flying Eagles and all kinds of coin collecting sets.
Ad goes on to say:
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“DID YOU HOLD ONTO YOUR GOLD DURING THE LAST GOLD SPIKE IN 1980? IT TOOK almost *30 YEARS* to get back to THOSE LEVELS. WHY HOLD ONTO IT NOW! CASH IN ON THE HIGHEST PRICES IN 28 YEARS!
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November 9th, 2009 at 9:38 am
Bubbles, bubbles, toil in troubles. Mission accomplised, Ben. There are bubbles all over the place.
November 9th, 2009 at 9:41 am
And look what’s on tap; another unemployment extension (3rd), extended first time home buyers tax credit, proposed national health care & cap and trade plans and possibly stimulus II. The rout is on in the USD and that isn’t going to change anytime soon.
November 9th, 2009 at 10:19 am
Watching this slow-motion financial train-wreck, part deux, is excruciating, but at least I have some gold. I think it will be a rather more effective strategy (owning gold) than relying on the kindness of strangers (i.e., the Fed Res; 535 congressional morons, and the Messiah de jour and his minions in the oval office).
November 9th, 2009 at 11:01 am
Curmudgeon:
I am carefully buying GDX too…and FXA since the Australians have decided that they’ve had enough bubbles to last awhile…
B in T
November 9th, 2009 at 11:14 am
Is it good time to get into gold or late. is GLD the best way to play gold upmove.
November 9th, 2009 at 11:14 am
Any techinical vies on gold. Does it break out any major levels. Is that the reason for Barry 1350 target.
November 9th, 2009 at 1:21 pm
The “Paperback” catches a bid-Thesis , isn’t looking to0 strong..
http://quotes.ino.com/chart/?s=NYBOT_DX&t=f
Au http://quotes.ino.com/chart/?s=FOREX_XAUUSDO&v=d12
rustum,
you have to understand your own objectives, with that, remember, at least, two things: 1) if ~100 % of your “liquid”‘Wealth’ is tied up in Financial Assets, you should wonder, and 2) GLD is Paper, not Gold..
others may have some additional thoughts..
November 9th, 2009 at 4:23 pm
“Wow, that’s an impressive number.”
Not if it’s in U.S. $, it isn’t – praise be to Banana-Republic Ben and his Band of Merry Monetizers!
November 9th, 2009 at 4:48 pm
Is deflation officially dead now?
November 9th, 2009 at 5:45 pm
India bought 200 metric tons of gold the other day from the IMF at an average cost of $1045 an ounce. Below that price, I’m buying more.
November 9th, 2009 at 9:50 pm
From what I’m reading…doesn’t one need to be a savvy trader to even mess with this Gold Thingy..?
I’ve gotta admit when ‘Carnie Barkers” are coming to my local Mall and asking for EVERYTHING in my CLOSET or what Gramps and such Left me to “Trade In,” I think it’s maybe my BIG CHANCE!
BUT…while Barry and the Gold Party Folks are trying to say is…it’s a “while longer” does that mean that you would give up your “family sterling silver and Grandpa’s pocket watch (left to you to pass on…or Grandma’s Sterling Tea Service or the rings her Great Grandma left to your and yours and Grand And Great Grands as Family Memorie…Continuity?
I don’t think it matters if we live in a pending “Dickens America” whether one sells or not. I just worry about a frenzy where some Crap People are taking away your legacy…for less than it will be. Somewhere down the road…we might be sorry for getting rid of what others “before us” felt was worth leaving us…and even though “Crate & Barrell” is where everyone buys wedding presents and “sterling silver flatware and tea sets, etc…from Grannies…is set to go to the DUMP…
Maybe we should RE-THINK? PRIORITES? China and Stainless Steel from “Crate & Barrel.” (What value down the road?)
What are we really passing on? Or should we think about “passing on anthing to fickle kids who are of the internet age…as we ourselves are…and there’s little value in anything except INFORMATION…and BEING FREE!
ASKING?