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re: Gold (took a small short position today on 5/25)

Posted on 1/28/11 at 10:03 am to
Posted by LSU0358
Member since Jan 2005
7919 posts
Posted on 1/28/11 at 10:03 am to
quote:

U.S. consumer prices.


I don't think it's that big of player in gold prices...The consumer price index formulas have been so manipulated they aren't really a good indicator any more.
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 1/28/11 at 11:45 am to
Scoop:AAPL::LSU0358:gold
Posted by Doc Fenton
New York, NY
Member since Feb 2007
52698 posts
Posted on 1/28/11 at 2:05 pm to
quote:

I don't think it's that big of player in gold prices


So if you don't mind me asking, what is?

It seems to me that most of gold's price right now is composed of people sitting on the sidelines to avoid investing in equities, real estate, or the Great Bond Bubble. So if Fed policies cause asset prices to start rising again, it seems like a lot of people will start leaving gold behind and jumping back into other assets.

Now if you're saying that international events could trigger a surge into gold, then that's a theory that might make sense to me. I'm just wondering what in particular you have in mind.
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