Gold plunge, sell or hold?

[Montaigne]

Dear peeps, I need advices. I bought 2 lots of gold at $1770 when it falls from $18XX. Now gold prices dropped to $1650. If I sell, I will realise a loss of about 10k. If I hold, I risk a margin call at a price of $1200, as I have $50k buffer in the futures account. So if I really hold and gold price drop to $1200, I will lose $50k. I am planning to hold for a year or two and wait for price to rebound, interest rate per lot is $1k per year. How is your view on this? Please help. Thank you.

[howgozit]

Jadey is the gold expert.

[devilplate]

Will qe3 help to push up gold px again?

[monsieur2]

my two cents, if you are seeking advice from forum on gold futures, it is best to stay out from the market.

i used to make money on corn futures. i liquidated all positions once i realised that i made money cos i was just lucky, too lucky.

[kane]

The gold chart looks ugly. Was thinking of of a put on gold, but the premium was pretty high. The $100 drop in gold last Friday was a bit of a surprise.

[hyenergix]

Dear peeps, I need advices. I bought 2 lots of gold at $1770 when it falls from $18XX. Now gold prices dropped to $1650. If I sell, I will realise a loss of about 10k. If I hold, I risk a margin call at a price of $1200, as I have $50k buffer in the futures account. So if I really hold and gold price drop to $1200, I will lose $50k. I am planning to hold for a year or two and wait for price to rebound, interest rate per lot is $1k per year. How is your view on this? Please help. Thank you.

If u can convert to real certified gold, u can pm me as I'm planning to buy some physical gold ;-) At a discount...

[heroes]

If you play with margin, pls remember money management,chart n emotion. I think gold hv a strong support at 1400. But when stock crash gold will follow...remember when 2008 gold also drop.

[1000g]

Dear peeps, I need advices. I bought 2 lots of gold at $1770 when it falls from $18XX. Now gold prices dropped to $1650. If I sell, I will realise a loss of about 10k. If I hold, I risk a margin call at a price of $1200, as I have $50k buffer in the futures account. So if I really hold and gold price drop to $1200, I will lose $50k. I am planning to hold for a year or two and wait for price to rebound, interest rate per lot is $1k per year. How is your view on this? Please help. Thank you.

Doubt it will correct to $1200. Hold. 10K you lose now can last 10years?

[devilplate]

Doubt it will correct to $1200. Hold. 10K you lose now can last 10years?

Futures r not meant to buy and hold

Only those who bot physical gold to hold

[Geylang OKT]

If you are asking for such advice in a property forum, thench you shouldn't be trading gold at all. Sell.

[kane]

not having stop loss levels when trading on margin is very dangerous.

[Montaigne]

Doubt it will correct to $1200. Hold. 10K you lose now can last 10years?

Thank you, what u said make sense. I will choose to believe that within this 10 years and at one point, I can at least breakeven. This will be my last game. Big mistake... TWICE. Lost and realised 8k in July.

[hyenergix]

If you hold for too long, it will be $2k per year of holding cost. It is not worth the trouble to buy paper gold. US$1800 you still see gold shops in China packed like crazy. Current price seems to be a discount.

[Laguna]

I would say, ur not a disciplined trader. It will be a long and costly lesson for u to learn the meaning of a disciplined trader. Go and get some good books on this.

It was read about a month ago, the first level to buy is US$1650. Someone PM me two weeks on this and i told him that.

But looking at the way gold move, I will still not going long at US$1650.

The program trading by the hedge funds is scary.

[hyenergix]

The world is getting more politically unstable and stagflationary. Good to stock up on gold. I'm comfortable with buying at US$1600 or lower.

[devilplate]

The world is getting more politically unstable and stagflationary. Good to stock up on gold. I'm comfortable with buying at US$1600 or lower.

i actually expect gold to drop somemore....

qe3 not coming....usd will rise abit more i tink.....den gold will drop somemore

i tink us govt wana keep their inflation low now so tat they can continue to keep int rate low?

[DC33_2008]

Will move in when gold drops to US$1200.

i actually expect gold to drop somemore....

qe3 not coming....usd will rise abit more i tink.....den gold will drop somemore

i tink us govt wana keep their inflation low now so tat they can continue to keep int rate low?

[hyenergix]

i actually expect gold to drop somemore....

qe3 not coming....usd will rise abit more i tink.....den gold will drop somemore

i tink us govt wana keep their inflation low now so tat they can continue to keep int rate low?

I'm monitoring the gold price now to see if it can be further discounted.

IMF will be running short of money soon.
http://www.telegraph.co.uk/finance/f...ro-crisis.html

Not sure which countries they will be asking for money to top up.
http://www.abovetopsecret.com/forum/thread756846/pg1

[Laguna]

see how it tests US$1500 first

Central banks have been building up their gold holdings since last year. It is about time to unload to cover up the debts..wait for IMF gold sales first

[Laguna]

Thank you, what u said make sense. I will choose to believe that within this 10 years and at one point, I can at least breakeven. This will be my last game. Big mistake... TWICE. Lost and realised 8k in July.

To put it the other way round
ur now bearish in gold...
u need to remember, gold cycle is the longest among all asset class...

[gap969]

There are monthly expiration on the gold futures contract.
Hence if you are going to hold this position for a long term you would have to roll this position into the next contract month on a monthly basis.

Plus position will be marked to settle daily hence your margin call could come sooner than later.

Have a stop in place

[Montaigne]

There are monthly expiration on the gold futures contract.
Hence if you are going to hold this position for a long term you would have to roll this position into the next contract month on a monthly basis.

Plus position will be marked to settle daily hence your margin call could come sooner than later.

Have a stop in place

I bought gold via POEMS mini forex futures, I am not aware that contract expires every month as I thought I can hold and just wait. Will check this out. Thanks. This is the worst decision I had made so far... Bad move..

[Laguna]

I bought gold via POEMS mini forex futures, I am not aware that contract expires every month as I thought I can hold and just wait. Will check this out. Thanks. This is the worst decision I had made so far... Bad move..

Since u mention u need to pay interest, most likely will be the spot gold rather than Comex gold. I dun trade spot gold. But u need to check, if u need to pay interest, which I think is 2%, but not sure whether it is per month or per annual, whether compounded or not, is it on the margin or contract sum? U also need to top up margin call if needed.

There is another indicator for gold traders. This is the price difference between gold price and gold mine stocks. Historically, these two indexes were very very close to each other. Recently, due to the sharp drop of equity, the disparity is 30% (this reading was taken two weeks before when I did the research), too big to be in the comfort zone. Equity will be down further...so...to close the gap, gold must go down to close the gap..

for u, I can only borrow one famous phrase
"I duno what to say"

[devilplate]

There is another indicator for gold traders. This is the price difference between gold price and gold mine stocks. Historically, these two indexes were very very close to each other. Recently, due to the sharp drop of equity, the disparity is 30% (this reading was taken two weeks before when I did the research), too big to be in the comfort zone. Equity will be down further...so...to close the gap, gold must go down to close the gap..

for u, I can only borrow one famous phrase
"I duno what to say"

totally agree the indicator

For montagine, i usually place stop loss 10% below my purchase px.....up to u to set.....some set 5%, some 10 and some 15%

[devilplate]

Gold stll dropping....still finding its bottom....1620 now

Silver 28+ neow! Can hit 20? I surely fry fry

[DC33_2008]

Asian indices are down. Are you going to buy physical gold and silver?

Gold stll dropping....still finding its bottom....1620 now

Silver 28+ neow! Can hit 20? I surely fry fry

[devilplate]

Asian indices are down. Are you going to buy physical gold and silver?

Buy some physical gold and gold shares

For silvers, i only fry futures....silver got ppl buy physical one meh....hehe

[hyenergix]

Gold price now is US$1594!

[Laguna]

there will be lots of margin calls..and margin will be up again

[phantom_opera]

Silver down more than 14% today

Dow futures -80