Gold Fundis please help...

[Theater_Cat]

To date I have learnt that a weaker USD generally tends to cause Gold price to rise (as it is priced in USD to foreign buyers). Yesterday, the day started with gold down +- 20USD in Toyko. By the close of yesterday, it was actually up a few USD on COMEX. I then went to look at the USD to EUR price (expecting to see a dramatic weakening) and noticed that the USD had hardly weakenend and was trading at around 1.34 to the EUR. Today, the USD to EUR has weakend significantly to around 1.37, and I would have expected the gold price to firm up, yet it is now down 17USD on COMEX! Alas, I now need some expert explainations from those gold followers. Thanks.

[john_1]

Relic!

[barry_1]

Grummf!

[#4]

I am interested in this question too. If the metal price has an inverse relationship to the dollar, then in theory it is a zero sum gain for South African's, because what we make up in the metals price, we lose in the exchange rate. Much as I hate to say it, the SA mines are probably a better bet?

[Dutch]

Read trader Dan summary on WWW.JSMINESET.COM for good daily analysis of the spot gold price

[GQ]

The only real solution is to hold the physical metal. Not the miners of the metal. The wolrd recession is going to hit them hardest. Get your hands on the bullion. I'm getting mine bought, stored and perfectly liquid through www.aurumgold.co.za

[Theater_Cat]

Thanks for good tip!

[PaulC]

I hold physical gold and silver in small quantities and I have a larger holding using www.goldmoney.com. YOu'll have to get SARS clearance to get money out SA but assuming you not a completely dodgey individual there should be no trouble. As for the relationships I cant really shed much light. I trade GLD and haveing a USD gold price and the R/$ to worry about does make it tricky all I can say is watch both get a feel for both and trade your strategy. I do buy into the gold price being suppressed by various non-commercial bullion banks. I find the weekly COT reports very usefull (When the non-commecials position themselves hugly net short expect a fall in the $Gold) I also subscribe to the casey report and they also publish a thing called "Casey's Daily Resource Plus" and they have a bit about precious metals, energy, base metals and currencies. There is also generally a tail piece by a chap called Ed Steer about the gold market which I have found insightfull as well. - P

[Theater_Cat]

Thanks, Paul! Very insightful! Which are the best websites to monitor the weekly commitments of traders?

[PaulC]

I read John Nadlers posts most days, Hes www.kitco.com, they also have nice (almost) realtime proces of gold in the 12 major currencies so you can get a *rough* idea of the currencies against each other as well as gold itself. They also have a sister site kitcosilver.com (I think) for silver, they also have plat and rhodium prices too. Commentary like I said Im a casey subscriber. Doug Casey is the owner and his managing editors surname is Galand or something like that. I came across the through Agora financial serives. They have a paid and free subscription. I can highly reccoment their free web letter whisky and gunpowder. Other commentators I like are Ted Butler and James Turk (who is the founder of goldmoney.com) Dont knwo what else I can tell you but if you want we can take this offline ([email protected])

[Theater_Cat]

Thanks Paul - will do.