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Q&A with Gold Experts from GoldAlert

alainguillot:Greece Downgraded by Moody’s, 50% Chance of Default? What are the consequences? June 10

The consequences of a debt restructuring for Greece would likely include the following:
- banks invested in Greek debt would suffer steep losses and have to most likely raise additional
capital to remain compliant with Basel III regulations
- the euro currency would likely come under further pressure against all other currencies, as
well as gold
- investors may anticipate a restructuring in other members of the PIIGS – Spain, Portugal,
Italy, and Ireland – and drive interest rates significantly higher in these countries
- there are a host of other potential consequences, but it would depend on the exact form of
the debt restructuring so they are difficult to predict

Ta_Trader: Looks like a rocket ship ready to launch $GLD http://chart.ly/utaacnj Technicians: Is this an inverse H&S on the $GLD here? Apr 1

Yes it appears to be an inverses head and shoulders pattern on the GLD

Shoofly7:Because I have my doubts. Do you really think the CFTC will impose position limits? $SLV? $GLD? Apr 1

It is very difficult to predict if the CFTC may impose position limits in our estimation, but regardless,

the CFTC’s decision is highly unlikely to affect the long-term trajectory of gold or silver.

anil: sir i have made short of gold of april contact at the rate of 20121 of 8 lots and i am holding since 35days and now expiry is coming wath to do now.
Mar 21

Anil means he is short 8 gold futures contracts. If you are trading futures you should definitely know

what to do when a contract is set to expire, otherwise you should rethink trading futures. You can close

out your current position and recreate it in another contract that doesn’t expire until later in the year.

Do not take this as financial advice for your portfolio, consult your professional financial advisor,

We are not responsible for financial loss resulting from our answers.

tradeoutperform: To be clear: What’s the point of $SLV and $GLD if they do worse than US market / can’t protect you from the Japanese crisis? Mar 15

Just to clarify, GLD is a proxy for the gold price and SLV for the silver price. During

broad-based market liquidations such as today, precious metals often get dragged down with

other financial assets as investors are forced to raise cash. However, the policy response by Japan

is to create additional liquidity (i.e. more money printing), which historically has been

beneficial for gold and silver over the longer-term.

raoulduke_II: $GLD vs $IAU whats the diff…both gold etf’s…why one vs the other? Mar 1

GLD and IAU have the same investment objective, to mirror the price of gold, but GLD is

much more liquid and holds substantially more physical gold. GLD’s expense ratio is higher, at 0.4% vs

0.25% for IAU.

SOwais: What is the probability of rate hike by ECB? Feb 28

Trichet stated at the ECB’s monthly meeting that an “increase of interest rates in the next

meeting is possible” and that “strong vigilance is warranted” to fight inflation. However, he also noted

that any rate hike would not necessarily mark the beginning of a “series” of interest rate increases.

bondtrader83: Anyone with a thesis on platinum’s underperformance to other metals? Feb 24

It has a substantial industrial component to it that has caused it to lag gold and silver in

recent weeks amid the turmoil in the Middle East and North Africa, coupled with the crisis in Japan

PavolHollosy: what’s wrong with kinross gold? $KGC Feb 23

Market is concerned that Kinross overpaid for Red Back Mining and its flagship Tasiast

Project.

Angmar1967: Are the $GDXJ and junior miners showing concern for gold or concern for input costs to miners? Feb 23

GDXJ had a strong run-up in the fourth quarter of 2010 so some of the decline is a result

of profit taking and the gold price being flat year-to-date

Brysapp: Bonds rallying a bit. If oil, commods, and bonds are all bid up, where does the marginal equity money come from? $SLV $GLD Feb 23

Gold has recently lagged more countercyclical asset classes such as commodities and equities.

If risk aversion rises, we could see a strong reversal of this trend.

MRBosley: $GLD & $SLV better safe havens than treas LT? Housing sux, mid class shrinking, systemic unemploy, inflation = stagflation? Feb 23

With the mountainous debt and deficits facing the U.S. – not to mention ~$50 trillion of

unfunded liabilities – U.S. government securities face significant headwinds in the years ahead.

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Q&A with Gold Experts from GoldAlert