Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Wonder What This Means?
Old 06-13-2006, 03:09 PM   #1
Recycles dryer sheets
 
Join Date: May 2005
Posts: 287
Wonder What This Means?

"Gold for August delivery plunged $44.50, or 7.28%, to close at $566.90 an ounce. It was the worst single-day percentage decline for gold since January 1991, according to brokerage Miller Tabak.

The selloff was even more pronounced for silver, with the July contract losing $1.44, or 13%, to $9.62 an ounce. Copper for July delivery dropped 21 cents, or 6.8%, to $3.01 a pound. Both routs were the worst percentage declines in more than a decade. "
__________________

__________________
boont is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Wonder What This Means?
Old 06-13-2006, 03:12 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Wonder What This Means?

Given that almost everything has been dropping lately, it just shows how poorly correlated some of these supposedly safe and uncorrelated asset classes actually might be. At least in the short term.

The folks predicting $1000 gold sure have disappeared.

Bet its back in the 350-450 range in no time.
__________________

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 03:14 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Wonder What This Means?

I think it means that the market finally believes that Helicopter Ben will be a serious inflation fighter at the same time all the other central banks have decided to do the same thing. *Gold shot up because people were getting scared that inflation would get away from the Fed. *Opinion has apparently turned, and now the equity market is plotzing because market participants are terrified that the Fed will raise rates high enough to choke the economy.

Buy some pearls amongst the porkchops while they are temporarily cheap. *Eventually things will calm down/go back up and you will wonder why you didn't take more advantage of all those fantastic bargains.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 03:14 PM   #4
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Re: Wonder What This Means?

Quote:
Originally Posted by Diaper Bunny
Bet its back in the 350-450 range in no time.
Yeah, but what a screaming good deal that'll be!!
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 03:19 PM   #5
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: Wonder What This Means?

Quote:
Originally Posted by Diaper Bunny
Given that almost everything has been dropping lately
Everything except for oil. I expected some of the speculative gains to burn off, but nothing has happened. If you're chomping at the bit for commodity exposure, I think oil is the new gold.
__________________
wabmester is offline   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 03:21 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: Wonder What This Means?

Gold was just the latest "best investment evar". Then it went down. How much longer till oil does the same thing?
__________________
justin is offline   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 03:22 PM   #7
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: Wonder What This Means?

Quote:
Originally Posted by justin
How much longer till oil does the same thing?*
I think a better question is why didn't oil do the same thing as central bankers took monetary liquidity out of the market.
__________________
wabmester is offline   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 03:24 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Wonder What This Means?

Quote:
Originally Posted by justin
Gold was just the latest "best investment evar".* Then it went down.* How much longer till oil does the same thing?*
Probably won't have the same dynamics. Every idiot with a few hundred bucks could buy some coins and stash them in the sock drawer. Can't do that too easily with barrels of oil...
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 03:27 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,456
Re: Wonder What This Means?

Seems to me the sudden drop in gold just goes to show how much speculative money was in metals. *Sure, it started out as an inflation hedge, but then the johnny-come-latelies and momentum players drove it up to dizzying heights.

Amazing how fast things can whiplash when the speculators run for the exits en masse.....

This whole thing (commodities, foreign, market averages) has been quite a spectacular selloff. *

Wow - I guess Fed jawboning can be very effective!

Audrey
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 03:30 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,456
Re: Wonder What This Means?

Will such a sharp selloff the last two days, unless the CPI is an absolutely miserable number, we may be set up for a rebound tomorrow.

Audrey
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 03:42 PM   #11
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: Wonder What This Means?

Quote:
Originally Posted by brewer12345
Probably won't have the same dynamics.* Every idiot with a few hundred bucks could buy some coins and stash them in the sock drawer.* Can't do that too easily with barrels of oil...
What's so hard about buying an ETF?
__________________
wabmester is offline   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 03:45 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Wonder What This Means?

Quote:
Originally Posted by wab
What's so hard about buying an ETF?
I don't think that's how gold was sold to Mom& Pop. Listen to the untermensch that calls in to radio shows like Goldline. They want to hold it in their hand and see how purty and valuable it is. Newfangled eeeeelectronic brokerage accounts are risky, dontchakow. And what in tarnation is a futures contract? Nosir. I wants me some physical gold. After all, its the "people's money."

Plus I think it is a lot easier to pump more oil than it is to mine and smelt another ounce of gold. Since gold appears to have a supply elasticity than oil, the swings can be bigger and faster than in a bigger, more liquid market like oil.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 03:57 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,456
Re: Wonder What This Means?

Actually, Brewer, I think the big recent run in gold corresponded to the newly introduced gold ETF. Seems like that let a lot of new folks in.

Just remembered recent discussion of this after the run up, but before the big selloff - wasn't looking at the numbers myself.

Audrey
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 07:56 PM   #14
Full time employment: Posting here.
Alex's Avatar
 
Join Date: May 2006
Posts: 696
Re: Wonder What This Means?

Quote:
Originally Posted by brewer12345
I think it means that the market finally believes that Helicopter Ben will be a serious inflation fighter at the same time all the other central banks have decided to do the same thing. Gold shot up because people were getting scared that inflation would get away from the Fed. Opinion has apparently turned, and now the equity market is plotzing because market participants are terrified that the Fed will raise rates high enough to choke the economy.

Buy some pearls amongst the porkchops while they are temporarily cheap. Eventually things will calm down/go back up and you will wonder why you didn't take more advantage of all those fantastic bargains.
I think you are spot on.
__________________
Oh, you hate your job? Why didn't you say so? There's a support group for that. It's called EVERYBODY, and they meet at the bar.--Drew Carey
Alex is offline   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 10:20 PM   #15
Dryer sheet wannabe
 
Join Date: Jun 2006
Posts: 11
Re: Wonder What This Means?

Waiting to see what happens on triple witching day--isn't it this Friday?
__________________
nvtashak is offline   Reply With Quote
Re: Wonder What This Means?
Old 06-13-2006, 10:45 PM   #16
Full time employment: Posting here.
TargaDave's Avatar
 
Join Date: Jul 2005
Posts: 588
Re: Wonder What This Means?

Quote:
Originally Posted by Diaper Bunny
The folks predicting $1000 gold sure have disappeared.

Bet its back in the 350-450 range in no time.
I'll take that bet (that it'll see $1000 before it ever sees $400 again). What should we bet?

__________________

__________________
TargaDave is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
At, Below, or Above your means Sam FIRE and Money 27 03-30-2007 11:23 AM
Another ER candidate gets it, and this time she really means it! Nords Other topics 19 06-27-2006 10:54 AM
What it means to be a debtor nation ESRBob Other topics 17 06-24-2005 11:53 PM
Inflation Adjusted Home Profits Means ?? astroboy FIRE and Money 5 03-26-2005 04:42 PM
Being "Early Retired" Means........ Telly Other topics 21 01-28-2004 08:14 AM

 

 
All times are GMT -6. The time now is 07:50 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.