Quote from: cypherdoc on August 09, 2011, 04:50:51 AM

never buy parabolic blowoffs. buy when there's blood in the streets. now is not the time for gold. when deflation really kicks in (and there's no sign of the PPT) you could wake up and gold could be down hundreds of dollars and headed back down to $500 w/o a chance to get out. just look at the Dow.

edit: for clues look at silver. and the USD has not broken down out of the channel yet.

It's raining red right now. There was no statement of buying gold at this point. I had recommended silver instead. The general premise is merely that being short gold is extremely dangerous at this point, while being long you can sit and wait for the price to rise. Also beware of a divergence between the paper and physical markets.

Gold and stocks are completely different animals.

Silver is tied to industrial uses that will drag it down on economic slowdown expectations and it can act as leverage to hold gold back, but not indefinitely. It still has a historical purpose as money alongside gold.

Gold has broken to multiple new highs, but the dollar is still range-bound. Why?

Quote from: johnyj on August 09, 2011, 09:47:48 AM

It's a pity that I bought lots of silver and short some gold, although I'm overall long in PM, that do not bring me profit due to the sluggish trend in silver Cool

Patience

A better trade would be long gold/silver and/or mining stocks and short the equity indices.

* Note that gold has formed a double top on the short term charts (1hr or shorter) after a push down from ~$1770 to ~$1730. The $1650-1680 range is the initial target followed by $1600 and $1550. Any spike down from here on out will be met with immense buying, so the drops will be very short-lived. Trade short at your own risk; I recommend buying physical metal.