Gold soaring amid economic fear

[Ad Orientem]

"Gold surge has no end in sight as market panic pushes prices above $1,200..."

http://www.telegraph.co.uk/finance/pers ... rkets.html

[MediumTex]

Now I remember why we are supposed to own gold.

[Cortopassi]

Damn powers that be must be manipulating gold to the upside now... bet we won't be hearing that statement from gold bloggers!

Glad to have gold as well!

[lordmetroid]

We are going parabolic!!!!

I expect a crash tomorrow. Not selling anything though. The stock market is still in free fall.
Stocks down 1,2% today, that isn't an unfathomably large drop. So why are everyone panicking even more than yesterday?

[Dieter]

We are going parabolic!!!!

I expect a crash tomorrow. Not selling anything though. The stock market is still in free fall.
Stocks down 1,2% today, that isn't an unfathomably large drop. So why are everyone panicking even more than yesterday?

Who knows.... Folks getting in early before it really jumps?

Momentum Byers? (Recently over 200 day am, 12months vs S&P)

Flashbacks to 2007/8?

What else is there? who would invest in long bonds at these rates?

With oil crash, lots of worry I'd imagine, and getting close to that 20% correction in S&P 500.

[Libertarian666]

The interesting thing is that this was not a currency move; that is, the CHF was almost flat against the USD, and EUR was up slightly against the USD (and CHF). So it was really a move in the gold price.

Also, gold was up more than any of the other precious metals, even silver, which is usually much wilder, meaning this move is monetary rather than industrial-use based.

Accordingly I think this may be very important in economic terms, not just a random fluctuation.

[MediumTex]

Stocks went into total freefall today.

No floor in sight.

Falling like a rock.

Blood in the streets.

Down 1.3%!!!!!!!!!!!!

[Fred]

This might have been my best single up-day since adopting the PP. Helped to cement my plan to retire at the end of the year (or at least tell myself that).

[Kbg]

Pure speculation on my part, but perhaps it's all the talk of negative interest rates. If you are freaked out about interest rates eventually rising and cash costs you to hold, suddenly gold isn't so awful as a store of wealth. (Though a thoughtful person would realize there is a contradiction in logic if you are freaked out about bond interest rates and cash interest rates are negative...just sayin.)

[Fred]

I don't know about the rest of you but in my limited PP experience of about 5 years it seems to me that economic fear is the best news that the PP can have. Last year it was just a little anxiety but now we have real fear.

[lordmetroid]

Many people are probably reimaging a 2008 or with these low interest rates with a potential to go negative, a japanification of the economy where the stock market will never recover and this is the 25 year ATH.

[dragoncar]

I don't know about the rest of you but in my limited PP experience of about 5 years it seems to me that economic fear is the best news that the PP can have. Last year it was just a little anxiety but now we have real fear.

for sure.  It's definitely skewed towards crisis and away from prosperity.  Some would say that's a feature, others a bug.

[Fred]

I don't know about the rest of you but in my limited PP experience of about 5 years it seems to me that economic fear is the best news that the PP can have. Last year it was just a little anxiety but now we have real fear.

for sure.  It's definitely skewed towards crisis and away from prosperity.  Some would say that's a feature, others a bug.

When prosperity seems intent on only delivering negative returns I'd say it's a welcome feature.

[ochotona]

We only maintain the current inflation expectations if oil goes to zero. Another classic case of recency bias and linear extrapolation error? Is the gold detecting future increasing inflation? How will the markets react if we show a year-on-year increase in oil price... in a year?