Wednesday 2 January 2008

Don't underestimate The Drew


In his predictions of just yesterday, Mr Drew of this house predicted gold would hit over $1000 an ounce.

I scoffed at this suggestion in my cereal this morning, as much as I am a gold bug, it seems outlandish to think that the market will get so jittery and the dollar fall so much as to make this a plausible scenario.

Then gold shoots up today to $851, just $150 shy of Drew's prediction and it is only Jan 2!

Time to stock up in bits and bobs from Hatton Gardens per chance?

11 comments:

  1. I notice that the BBC is touting the gold surge and the FT is touting the Euro surge. Why can't we have a truthful headline that the pound is sinking fast?

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  2. dear dear Ed, Don't you know the nulab pinko's at both those organisations can't see the wood for the trees...

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  3. fog in Channel, Europe cut off

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  4. Let me know if you'd like me to look after any of that jewellery until you sell it later in the year.

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  5. CU well obviously, but it does frustrate to read upside down stories just to satisfy NL. Balance of payments crisis, run on the pound, police strikes threatened, power cuts threatened, the state to interfere in beer prices. It's like the 70s all over again.

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  6. Anonymous10:57 am

    It's a worrying development. The market has taken a long hard look at what the US Fed and the US Treasury is doing to resolve the credit crisis and it is saying "That ain't working. Time to buy back into gold". With gold rising rapidly again there has to be a good chance of it exploding upwards. Take a look at the Asian stock markets and you will see they are well off their highs. The Asians are certainly not averse to investing in gold.

    By the way, I'm the anonymous contributor that probably posts about 75% of the anonymous contributions here - the one that gets hot under the collar about housing and social policy! I have decided to use the handle "Real Schadenfreude" from now on. It was just going to be "Schadenfreude" but someone else took to using that handle on the Guido Fawkes blog so I decided to keep it real.

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  7. ... and now the oil !

    actually, oil was a no-brainer (I will take the points anyway)

    was going to put gold in at $ 1,200, but like a coward stuck to round numbers

    since its already 3rd Jan, what price an oil blip @ 200 ?

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  8. I wonder on gold (where, I am well in via funds, to make my position clear) how much ETF's and hedgies running for cover are pushing the price.

    So many hedgies are getting cut to pieces trying their old shorting formula in such volatile market; shows you how far fancy maths will take you.

    Still, back to the point, I do think it quite possible that like the end of 2007, gold could easily drop a couple of hundred dollars quick sharp due to all the over-leveraged trading.

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  9. oh, and nice to see you real schadenfreude. I look forward to your first guest post here shortly...

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