The GOLD scream room

[MachineGhost]

Last time gold had such a big rally in the first half of the year was... wait for it... 1979, six months before the 18-year bear market top.

Call me the anti-gold bug doom porner.

[MachineGhost]

Smart money is sure dumb.

They're a leading indicator, not concurrent or lagging. Sometimes they are wrong, but not often. What's interesting is the lack of dumb money participation. It seems like this move may purely be a hedge fund-driven momentum play.

Chinese, Indians, or foreigners won't show up unless they buy our futures contracts though. I do know the Chinese have shifted from speculating in Bitcoins to silver.

[buddtholomew]

Last time gold had such a big rally in the first half of the year was... wait for it... 1979, six months before the 18-year bear market top.

Call me the anti-gold bug doom porner.

Sweet. We have 6 months to party.

[dualstow]

Last time gold had such a big rally in the first half of the year was... wait for it... 1979, six months before the 18-year bear market top.

Call me the anti-gold bug doom porner.

Sweet. We have 6 months to party.

[Dieter]

Last time gold had such a big rally in the first half of the year was... wait for it... 1979, six months before the 18-year bear market top.

Call me the anti-gold bug doom porner.

Sweet. We have 6 months to party.

Or to hopefully hit a rebalance band.

[curlew]

I'm not trying to sound like Mathjak, but just because gold has been rising lately, it doesn't seem like such a big reason for rejoicing when you look at the overall picture. I mean, I'm not going to go over on Bogleheads and brag because a sector in my PP is almost at the break even point after 7 years.

That's strange. Did you overpay for your American Eagles? Unless you bought near/at the 2011 top (raises hand), you shouldn't have a paper loss with gold trading at $1350ish.

I bought from AJPM and Gainesville Coins at the current asking price whatever that was at the time.

[dualstow]

The other day, I was nervously wondering if I had put my gold back in the safety deposit box or had absent-mindedly left it in that little room where you view your box. (Always worry, but it's always there next visit). Today, I can't see my gold ETFs because Vanguard's site is partially down. Nowhere to run, nowhere to hide.

At least I don't worry about market fluctuations.

[Reub]

The other day, I was nervously wondering if I had put my gold back in the safety deposit box or had absent-mindedly left it in that little room where you view your box. (Always worry, but it's always there next visit). Today, I can't see my gold ETFs because Vanguard's site is partially down. Nowhere to run, nowhere to hide.

At least I don't worry about market fluctuations.

You take your coins out and talk to them in the room?

[JohnnyFactor]

That would be silly. The coins do all the talking.

[dualstow]

I add new friends so they can talk amongst themselves.

[JohnnyFactor]

True wealth is measured by how many (gold) friends you have.

[dualstow]

exactly!

[MachineGhost]

I don't like barbarous friends.

[MachineGhost]

Muslims can't own or trade gold as an investment under Sharia Law ('Ribawi item") but some organization that establishes standards for Sharia finance is preparing to clarify a standard as to what they can and cannot buy by the end of this year. This could be a major tailwind when all 1.6 billion Muslims start to buy gold en masse.

Here's a longer chart on the extreme dumb money sentiment:

[Kriegsspiel]

Muslims can't own or trade gold as an investment under Sharia Law ('Ribawi item")

Yes, they can.

[dualstow]

I wonder if you were thinking of this, MG

One common "stratagem" to circumvent of the ban on interest in the Ottoman era was known as istiglal and involved the borrower selling his house to a lender and immediately leasing it back. The proceeds of the sale served as the loan, the rent of the lease served as interest payment.[31] (According to another source—International Business Publications—the "common view of riba among classical jurists" of Islamic law and economics during the "Islamic Golden Age" was that interest charges on loans of gold and silver currencies were unlawful, but applying "interest to fiat money -- currencies made up of other materials such as paper or base metals -- to an extent" was not riba. Thus, when "currencies of base metal were first introduced in the Islamic world", Islamic jurists did not forbid interest charges on them as riba.[32])

[MachineGhost]

Muslims can't own or trade gold as an investment under Sharia Law ('Ribawi item")

Yes, they can.

No they can't. They can buy gold for jewelry or to use as money, but they cannot speculate on the future which means they can't buy gold to profit, non-Sharia compliant gold ETF's, futures, options, etc... It's purely retarted metaphysical self-flagellation but hey, I'm not a Muslim.

[MachineGhost]

I wonder if you were thinking of this, MG

One common "stratagem" to circumvent of the ban on interest in the Ottoman era was known as istiglal and involved the borrower selling his house to a lender and immediately leasing it back. The proceeds of the sale served as the loan, the rent of the lease served as interest payment.[31] (According to another source—International Business Publications—the "common view of riba among classical jurists" of Islamic law and economics during the "Islamic Golden Age" was that interest charges on loans of gold and silver currencies were unlawful, but applying "interest to fiat money -- currencies made up of other materials such as paper or base metals -- to an extent" was not riba. Thus, when "currencies of base metal were first introduced in the Islamic world", Islamic jurists did not forbid interest charges on them as riba.[32])

You're really asking me to understand all of the finest intracacies of gold in the Koran under Sharia Law? I draw the line somewhere and I think it'll be religion, especially one as whacko as Islam.

[MachineGhost]

Gold commercials are popping up again like in 2011.

[ochotona]

Gold commercials are popping up again like in 2011.

That's an anectodal sign of a top, for sure.

[dualstow]

Gold commercials are popping up again like in 2011.

Should I buy from APMEX or G. Gordon Liddy?

[buddtholomew]

Gold up .35, silver up 2%, all other metals higher.
What gives?

[dualstow]

Gold up .35, silver up 2%, all other metals higher.
What gives?

WSJ says

Gold Rebounds on Weaker Dollar
Market sentiment after productivity report also helps boost the metal

http://www.wsj.com/articles/gold-reboun ... 1470838605

[buddtholomew]

Should have been more clear.
I am referring to the disparity in gains across metals, with gold now positive .25%

[dualstow]

ah. Who knows.