To many it is quite surprising that gold is getting closer to $700 an ounce rather than the $2,000 many were calling for. When gold was trading at the $1,000 level many people were expecting this market to zoom to $2,000 an ounce.
When we first suggested that gold had actually given us a sell signal we received numerous e-mails, many of which were not flattering and some were just downright ugly. "How could you short gold are you an imbecile" and that was one of the nicer emails.
Emails aside, to trade successfully in any market you must listen to the market. This is the one true voice that tells you what is going on.
During my career in the commodity markets, I have heard many stories, some of which were fabricated and some of which are true, but either have little or no bearing on the market itself. The very best indicator of all is to follow the price action which tells you when the insiders are selling or buying. In the commodity markets you have insiders who actually produce a commodity or the actual end-user of that commodity. Everything else is speculation. These insiders have extensive networks of global information that they plug-in to their hedging models. They also have extensive experiences and know what it's like to be in the trading trenches of any market.
Take a few minutes and look at the short video I just produced to show you exactly what I mean and how the patterns are different this time in gold and why it may have still further to fall.
Every success in the markets and in life,
Adam Hewison
President, INO.com
Co-Creator of MarketClub.com
TRADERS CONTEST: Do you have a good trading story? First prize is an Apple iTouch! Enter your story here. There is no entry fee.
We now seem to be living in a world where the prices we pay for commodities etc. are determined by hedge funds and not fundamental reasons ( supply and demand)...
With so much default turmoil in the financial markets, it should come as no surprise that the "price of gold" has shown some recent weakness -- because at the present time gold's price-discovery is driven largely by action in its derivative markets (COMEX futures, etc) and you have to ask yourself, "What RATIONAL person at this time is putting their faith in any form of leveraged derivatives?" Given that actual metal sales are booming, we are already seeing signs of prices for real physical gold beginning to separate from the discounted prices of the mere "promissory gold" that prevails within the financial scene.
So until this separation runs its full course, the resultant price path for gold/papergold may frustrate ill-informed investors in the interim, I think it is safe to say that over the longer term, the value of gold (metal) will both please and surprise investors with respect to its magnitude to the upside.
And speaking of metal, I really like the image of the little bars at the top of this column -- but maybe I'm biased because I'm the guy who originally made it for the USAGOLD website back in the good ol' days of super-cheap sub-$300 gold (see below). And in regard to the current market fundamentals in both the solid metal market on one side and the shaky financial market on the other, gold prices at the current level are a bargain of similar magnitude, if not better -- but only if you are getting real metal (not an IOU) for your money.
(original image source)
http://www.usagold.com/gold/coins/bars.html
Thanks for your consideration.
Randy
The recent downturns in the commodity sector(gold and oil) are likely to be due to hedge funds selling winners to hedge against losses in the financial sector ( Fannie and Freddie Mac, Lehman Bros., etc). Possible downside targets for gold and oil are $600 and $80, respectively.
copperprices7100$
Hi,
I am Harb from India. Here are my reasons from this end to tell why gold is/will be going down to $700 and beyond within the next month or so.
I anticipated gold going up from Rs 6500 ($550?)a few years back when with our stock market giving us lot of money to spare and more importantly, our government allowing the people to buy hallmarked gold in bars etc from banks and other reputed stores rather than from goldsmiths who will not give back the same amount of gold when one were to sell it back. Now we had got the opportunity to really invest in gold. We did so and the gold prices zoomed.
Now, with the market crash people are rather selling the same gold to make both ends meet or meet their other social obligations rather than further invest in it. They simply have no money to spare. No wonder the demand from India etc is drying and the price of gold is going down not being supported by physical demand. It may take about half a year to stabilize.
Thank you for reading...
I trialed your service. During the trial made many attempts-all unsuccessful- to find out what time your signals come out, because as we all know things change quickly and the trade triangles have dates on them, and we trade much quicker than that
---
David,
I'm sorry to hear that you were unsuccessful in tracking the times of our Trade Triangles. I'm sure you understand how the Trade Triangles and proprietary algorithm work. There is a formula containing an X value. As the data flows through the algorithm certain thresholds will be met and the trigger will be mapped on the chart. In this day in age it is impossible to be glued in front of your monitor all day to watch for signals. That is why we created the Trade Triangle Alerts (read more about the Alert System by clicking here). You will be notified when the various market condition has been met (included a Trade Triangle if that is one of the alerts that you select for your portfolio). I will be more than happy to answer any question you may have. Also I can relay your suggestions of time stamps for the Trade Triangles to our technical team. They have a series of new features and improvements waiting in the wings... so definitely stay with us.
I wish you the best of luck no matter what service you are using to help make your trading decisions. Contact me if you would like.
Best,
Lindsay Thompson
Director of New Business Development
INO.com & MarketClub.com
Very helpful video, it helps to put the recent price action in gold into a proper perspective as well as giving indications of where we go from here.
I cannot help feeling that so long as the dollar continues its rally, we will see gold going down towards $700.
But what might happen if there is a combination of another major banking failure, heightening tension in the Middle East between Israel and Iran, and higher than expected demand for crude oil together with the announced cut in OPEC production by 520,000 barrels a day within the next 40 or so days?
Might gold then retrace back up towards $800 an ounce?
Hi Adam, I am new to INO: How do I access the market club red / green triangle data for buying and selling oil and gold, for example, as shown in your latest videos? Thank you. Kind regards, Mike
---
Hi Mike,
Sorry it's not Adam... hope I didn't disappoint you. You can read about MarketClub and all the service offers at http://club.ino.com/join/whatyouget/. However, if you have ANY questions feel free to give us a call at 1.800.538.7424 or shoot us an email at
su*****@in*.com
. I will also be more than happy to help you.
We look forward to you becoming a member. Remember we have a 30-day Risk Free Policy so that you can see if MarketClub will fit your trading style.
Best,
Lindsay Thompson
Director of New Business Development
INO.com & MarketClub.com