Replies to post #1966 on Russian Oil , Gas and Gold

[dreaminofsailin]

There is a belief in a connection between Gold and Crude Oil prices. In most of the last 100 years an ounce of Gold would buy 9 barrels of crude. So the people who believe in this say no matter what is done, Gold will seek this level. They may drive the price down temporarily, but unless we see a huge drop in crude prices they may not hold long term.

I know it is just a theory, but it has a 100 year track record. Only the last few years have seen this deviation, with a constant pressure on on Gold prices to rise. The theory is based on Gold being the monetary standard, always the same buying power despite inflation.

So with $100 Crude, Gold should be $900.00, right where we see it today!

It could get interesting.

DOS

[golden08]

WRONG WRONG WRONG. Benz you know nothing of IMF.
Look benz. If you actually followed gold......You would remember they sold about a year ago around 600.
And what has happened since............
Come on benz you can speak of aurus
But you have no clue about gold and the coming upleg
get a clue bro and invest it fast cause may is comin

[shortfloat]

I would say if your holding gold short term, its time to sell. Long term should be fine. The Central banks have been selling gold like this for many years trying to control the price, one look at a long chart and you can see how well this has worked. One huge problem the Bankers face is the depreciating dollar and many country's wanting to sell down their dollar reserves. The best way for China, Russia, ect to get out of the US fiat paper without tanking the dollar is to buy gold, and they have been. Couple that with the realization coming mainstream that the dollar is in a bad way if not toasted we will see gold prices do the same thing they did last yr and the yr before when the Central bankers sold massive amounts of gold. True, it will go down some, but it will find buying support at some level just like each time in the past. Certain bankers last time said they would sell their quota allotment but backed out at the last min. and refused to pass on their allotment to other bankers, Germany was one. Each time they do this, its less of a force than the prior yr, and some now say they are about out of gold and many of these banks have been selling leased gold of all things. I have found the best way to find the bottom is to watch the bigger miners, when you see them step up to buy back hedges they have done in the past, we are close if not at the bottom. I expect to see a hard battle this yr between the Bankers and the Bugs, its do or die for the bankers, but there's SO many waiting on the sidelines to buy gold this time that most dont see gold dropping below $835. Time will tell, but the Bull is alive and well. As hard as the Bankers may try to kill this bull, the end result will be bankers making the bull mad and he will give them the horns! Keep printing Mr. Banker, and I will keep buying gold.