Is Gold's Plunge an Opportunity in the Making?

[frankq]

The longer gold stays sub $1400, the more evident that the plunge wasn't a trading fluke. It will be interesting to see where this all ends up.

[Aman A.K.A. Ahamburger]

I agree Q, and from the comments around here I would say that the reason it stopped dropping for now is because enough salesmen where able to convince people to buy more gold and cover their leveraged positions in EFT's, and just the general denial that the Prof is talking about in the link above. 

[Steady As She Goes]

What do you mean, "right now"?

IMHO, gold (or silver for that matter) hasn't been a "pretty picture" for the last couple of years.

[frankq]

Looks like gold is making a new trading range.....about 10%-12% below the old one.......which was about 15%-20% off of the highs......

[Aman A.K.A. Ahamburger]

How long the new trading range will last is my question..... 

Rush for gold coins, jewels peters out

Gold coins, jewellery and bars looked like a bargain after prices crashed more than $200 an ounce in two days last month, the steepest two-day plunge in more than 30 years.

Shops reported an unprecedented surge in demand and mints and refineries were working overtime to keep up.

But retailers say this enthusiasm, which helped push prices back up again, is faltering with some investors looking for another fall before they buy more.

Ryotaro Tomori, shop manager of Ginza SGC in Tokyo, said some forms of coin and ingot are in short supply but more customers now want to sell gold after the mid-April rush.

Gold prices edge up; ETF holdings at 4-year low

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.42 per cent to 1,057.79 tonnes on Tuesday. In terms of ounces, ETF holdings dropped to 34,008,852 ounces - the weakest since early 2009.

[frankq]

I'm tempted to but some GLD, but the latest gold (mis) action has got me spooked I'll have to admit.....

[frankq]

I agree. I don't view gold as an "investment". I'm looking at a short term trade to turn some bucks.

[sunrnr]

[Aman A.K.A. Ahamburger]

May 18, 2013 10:48:18 GMT -5 frankq said:

I agree. I don't view gold as an "investment". I'm looking at a short term trade to turn some bucks.

IDK Q, it hit the $1338 again here a little while ago.  Credit Suisse just put $1100 out there as a price target. Since gold was at $1500 DZZ has gone from about $4.80 to $6.80, however, a short can be a widow maker.  At the same time i'm kicking myself because I was talking(there is a thread over on IP), and thinking about picking up some AMD before their earnings, and they are up quite a bit since then.  AMD is going to make all the chip for all the next generation of video game systems...  What you think about that company?

[frankq]

What you think about that company?

Today is the day that Microsoft was supposed to announce who will supply chips for the Xbox.....

[Aman A.K.A. Ahamburger]

They did announce the new Xbox today and it will use an 8 core AMD chip.  It was pretty much known before hand that they were using it though, that's why it popped like 80% or whatever after their last earnings call, IMO.  

What I am starting to like is the fundamentals here though.  Say the console market is in decline and that this last generation wasn't hindered by the recession and high price points.  That still puts around 200 million AMD chips out there at minimum.  Three years from now they will still be producing the same chip that there are today for it, except it will be smaller and cost less to produce and what the console makers have been able to pull off this generation is putting bigger hard drives in as opposed to just dropping the price on the systems.  I would expect this to continue for two reasons, one, because the content over the internet is growing, and two; the new xbox also has a Blu-Ray drive.  Which means that the new generation of games could be up to 50 gigs, easy.

[sunrnr]

Personally, I'm waiting for the home version of the Holodeck ...

[frankq]

Sounds like you've thought it out pretty well to me aham. Buy any dips.....

[Aman A.K.A. Ahamburger]

I am really thinking about it Q, I want to wait for a bit though I have read a few different opinions that suggest that chips for game systems wont be enough to offset losses from PC's.  On the other hand....

May 22, 2013 0:55:52 GMT -5 sunrnr said:

Personally, I'm waiting for the home version of the Holodeck ...

We could very well see the first steps into true VR this generation sun it's crazy. As gamers age and have kids, a playstation, xbox, or Wii could very well be the center piece for the living room and if that happens AMD will be a very profitable company in the near future.

What have you decided about GLD Q?

[frankq]

What have you decided about GLD Q?

I think the downside is limited, but it's a little crazy in that market right now and I'm no expert so I'm going to leave it alone. I bought back into the markets this last week on the dips at about 30%. I'm going to hold for a while.

[Aman A.K.A. Ahamburger]

I hear ya, the fear run up is really still there isn't it?

 Nothing wrong with holding some key stock long term. 

[frankq]

Boy am I glad I didn't try to trade this stuff.......Sometimes the best move you can make is to make no move at all......

[Aman A.K.A. Ahamburger]

Couldn't agree more Q.