GOLD play

It does seem weird that financials and gold are both rising quickly, it doesn't make sense at all. FWIW, I think that gold will come out the winner. Quite how devaluation, sorry quantitive easing, is going to play down the value of gold I don't know. Gold's now $955, and seems very strong

I also noted Gold and stock indices rising - something of an anomaly. I agree that gold is more likely to continue while I think that FTSE will be heading down for a few sessions.

KIS, is it that people have basically now lost faith in currencies as "safe havens" as governments have weakened their value and therefore their investment status? The big guys have to put the money somewhere so now they are placing it into "tangibles" ie. commodities? If QE is successful do you see gold still rising?

KIS. Thanks for your reply. I'm heavily in to gold miners and oil/gas/coal producers as I believe they are a necessity above all others - including food which can be economised. Buy blankets and duvets, we'll be needing them next winter.

Gold taking a little bit of a back seat the last week or so and continuing that trend while this rally plays out. Might well provide an opportunity to top up on a number of miners or even a long on the spot price / ETF

I was <--this close--> to shorting at $1000 with a stop. Hindsight trading is a wonderful thing

I don't think gold is a necessity and certainly no asset if you overpay for it. If all the gold came out of the vaults and were used as currency -what would it be worth ? Not very much and in dire circumstances of global catastrophe you would be bartering it would be useless.The central bankers need to defend their paper money value. Gold is not suitable for a global currency because it cannot be finite there is always more tucked away somewhere if you have to dig deeper. When it threatens to replace paper money -it is a warning that paper money is mis -managed. Yes the IMF should sell it. Trichet is right lax budget deficits are the problem The Bundesbank have it right.Oil is something different -it is a necessity -and divi paying oil shares are the best inflation hedge you can get. Gold isnot an inflation hedge -it is like the VIX index - it is a yellow substance!

Having said that -gold is protection against historic sterling weakness -though it needs to be said sterling may be temporarily a little undervalued -and at present no great reason for particular upside in the gold price -nor is it yet oversold. Some rumours of IMF selling gold -might they better wait until autumn when the price eventually peaksfor the year

Yes PAT gold is needed to help stabilise the world a bit,though not enough there to act as an alternative currency. It might be possible someday for a basket of commodities to be a kind of world standard on which to hang the economies,though once again that would disriminate against the poorer ones.