Gold, Oil & the Dollar: Correlation Breakdown Is Concerning Says Yamada

GOT GOLD?

So...New Value...how you feeling about gold today? Oh, maybe your "billionaire" wasn't happy about you spending time on Yahoo instead of "managing his finances". LOL You've got the L sign on your forehead.

Jeff has GOT to be happy he moved back into gold! S&P down almost 4% while gold is climbing to yet another record high!

You can't eat paper stocks!!! Stocks are only worth what people think they are worth. Paper has almost no intrinsic value. It doesn't even glitter. It blows away in the wind.

Physical gold and silver!!! Forever!!!

What happened to the gold bubble? It looks like the bubble is going to get bigger as long as the current legislators are in place...for at least another year. As long as the dollar loses value, gold will continue to go up, and inflation is showing no signs of slowing down. It has occurred to me many people talking about the gold bubble don't understand the technicals.

Watch for OPEC to peg the price of oil to gold instead of the dollar or any other currency.
"Those who are foolish are not always fools."
...Dasafac Jack

if all I had were paper gold, I'd short it tomorrow. With Chavez demanding Venezuela's gold and saying he wants physical possession of it, gold prices are going to take off. Paper gold however is going to tank. Why? If Chavez gets his way, banks like JPM will lose ALL of the physical gold in their vaults. Call it a governmental bank run. Try to take possession of your paper gold tomorrow and see what happens. They sold what they had in physical storage a hundred times. Sort of like how they borrow money out but only have 5% of the loaned out available. You may see 1,850 or worse by close on Friday. Tomorrow is going to be a gold field day. Going to be interesting to see if the Central Banks that have been manipulating the price to remain below 1,800 (and barely succeeding) can keep it up as people the world over clamor for physical. Kitco is OUT of 1oz bars and starting to run short on other types of bullion. Coin shops might be buying old gold up, but they are also running out of bullion. Yep, going to be an interesting day tomorrow.

Be careful with buying Gold. It is at a all time High. The dollar will always tell the true value of Gold, not the other way around. We may see $2200 an oz. of Gold, but it will be back to $800 as we correct this Major Economic issue. If the economy does not correct then your $50,000, $100,000 or $100,000,000 worth of Gold will not save you.
The one's that will be hurt the most are the $5,000 to $50,000 Gold investor. Be Careful.

The most telling comment she made is the dollar is going away as reserve currency.That is enough to sell me on buying gold and silver.If reserve status goes away the dollar will be as worthless as the peso.

$4,000 gold, $4,000 Dow by 2020. Massive defaults needed on baby boomer entitlements to right this ship of fools. Own what you use, commodities. Trouble ahead. Beware.

Gold right now is being bought then delivered....demand=price. Silver is "played" in the commodities...no delivery. If silver was bought and delivered....the price would rise quickly
Texas Hunt bros took silver from $4 to $50 merely by taking possession ...30 years ago.
When bank A sells bank B 500,000 ounces and only on paper; nobody could argue with that volume...nobody until the London traders happily told their friends how the bankers were doing it and "killing" the market. Just one fat cat with a checkbook...and a vault ..and up..

People say it is impractical to carry a pocket of gold for everyday purchases. What if some group were to serve as a numerical depository for a person's purchased physical gold reserves (a gold bank). Then you would make payments for everyday purchases with a debit card that would transfer your gold assets just like you do with current banks and your dollar holdings. Sounds to me like a monetary system built on gold would be fairly easy to implement on a worldwide practical scale. Talk about a one world currency that would be hard for governments to regulate without police-like action...I don't know if the outcome would be good or bad for the world if this happened. Probably like everything else - there would be winners and losers, just different winners and losers perhaps.

Do any of you know whether anyone has proposed this yet or not; i.e. someone in a position to make it happen?

We've had years of economic disasters and natural disasters that affect our economy. I expect that to continue and an eventual inflationary period where currencies are pitted against each other and gold. Therefore long term bullish in gold, Swiss Franc and the like.

An ounce of gold is an ounce of gold of constant value: therefore, it is the dollar (and other currencies) that decrease in value because of the increasing supply. The supply is constantly increasing because of politicians using their authority to borrow money from their people (increasing deficits); and then, monetize it through the banking system via fractional reserve banking.Ordinary people can fight back by using their fiat money to accumulate gold and silver, coins and bullion.

Yes. I am much more concerned about the lack of correlation between gold, $, and oil than I am about our $14.4T of debt, our $1.5T deficit, and the Islamic terrorist we have in the White House.

No sector is defensive when it comes to a slowing global economy. My healthcare stocks plunged 30% or more over the past few months, even when I bought under cash value.

I agree 100% with the analysis, which is rare or never when reading most mindless YF articles. I echo the author's view on gold. I was in a few years ago, then got out at $1250 because the charts/growth seemed unsustainable. Recently I have bought back in because of the dollar woes and US deficit debauckle. There is no good news for US or dollars, so that is a recipe for at least $2500 per ounce gold.

Jeff...I know you don't want to hear this...buy silver also. It will only take one rich guy buying to send it way up. Study resources and reserves; weigh against use...sort of like oil. How much is there?...will use go down? If the answer is finite and continued use....place a bet...its cheap

Now more two third of the demand for gold comes from investors....what does that say ?

Gold and Oil are doing better than the dollar today, but when OEMs start producing hybrids in masses, dollar will be back and the other two will see DEPRESSION. Having a hybrid already, I don't need gold or oil to live. Natural gas or solar plants will all be needed to make plastics or lighten up homes. Oil and Gold both are overrated just as they were in 1970s.

Value of US treasuries are up and gold is up. They are pretty stable though.