The 3 Week Plunged 120 US Dollars; &Nbsp; Gold Investment Letter Buffett Or Rodgers?

After diving for nearly a hundred dollars at the end of 2, last Wednesday, gold began to "dive", and once lost 1650 dollars / ounce.

As of last Friday's domestic closing, the international spot gold price has dropped to $1660 / ounce, compared with the highest gold price in February 29th, 1780 US dollars / ounce plunged 120 US dollars.

Gold has plummeted and the market has once again heard "bull bear" argument.

"Commodity king" Rodgers recently

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Media interviews said that as long as the price of gold fell below 1600 U.S. dollars / ounce, more gold bullion positions will be established.

And "stock god" Buffett pointed out: gold has produced a huge bubble.

Sin Buffett or Rodgers?

3 weeks, "diving" hundreds of dollars.

In February 29th, the international spot gold price opened at $1770 / oz, reaching the highest level of $1780 per ounce, but on the same night, with the chairman of the Federal Reserve Chairman Bernanke, avoiding the third round of quantitative easing (QE3), the gold hedge fund launched a massive sell-off in the market. Gold fell nearly $100 on a single day, with a minimum of 1688 US dollars / ounce, the biggest decline since then, and gold prices rebounded slightly, recovering 1700 U.S. dollars / ounce.

However, last Wednesday, the international spot gold price dropped again more than 50 U.S. dollars / ounce, followed by two consecutive "diving", fell to 1650 U.S. dollars / ounce mark, the lowest once dropped to 1634 U.S. dollars / ounce, to Friday, the Asian midday times received 1660 U.S. dollars / ounce.

"The recent decline in gold is mainly due to the market's profit taking in 1 and February," said Yang Yijun, chief analyst at Weil Xin.

However, there are also some gold investors who are puzzled by the market. "The reason for the recent sharp decline is not sufficient." a senior gold investor said that although the Greek debt crisis eased, the debt crisis in the eurozone remained undeveloped. The situation in the Middle East was still tense. There was no obvious trigger for the ten point drop. "There may be some information that we have not grasped," the source pointed out, especially in February 29th, when the hedge fund launched a massive sell-off of gold in the market.

Sin Buffett or Rodgers?

Whether the gold market has reached the crossroads of "ox bear"? Rodgers, the "king of commodities", believes that even after the gold price has been rising for 11 consecutive years, it is not surprising even if it is adjusted in 2012.

"I certainly pay close attention to the gold trend. If the gold price falls to $1600 / ounce, I am sure to build more gold positions.

If the gold price drops to 1200 dollars / ounce, I doubt if I have enough money to buy it.

Rodgers said he would not sell gold before the arrival of the gold bubble.

What is interesting is that recently, "stock god" Buffett took a clear-cut look at gold.

Recently, the media disclosed in advance the content of Buffett's letter to shareholders, which will be released at the annual general meeting of shareholders in May 5th this year. In the letter, Buffett is strong in stock investment and empty gold.

Buffett divides his investment choices into three categories: the first is cash assets; the second is non renewable assets, such as gold; the third is productive assets, including enterprises, farms and real estate.

Buffett said that there are two major defects in gold, one is that it does not use much, and the other is that it does not have the ability to regenerate.

Investors need more information.

Yesterday, the Chengdu Commercial Daily reporter interviewed a number of gold analysts.

"Buffett has always been not optimistic about gold," Yang Yijun believes that Buffett is more inclined to choose his own concept of investment varieties, and therefore will be strong in stocks.

"There is no basis for gold in the long term," Yang Yijun said. The fall from last year to the recent period is not the gateway to "bull bear" pformation. It is because the speculative increase in the third quarter of last year is very large. There will be an adjustment and digestion process in the first quarter and the two quarter of this year. The following 1600 dollars / ounce is the opportunity to buy.

Although the Federal Reserve "QE3 is expected to cool down" now, QE2 will expire in June, and the US debt has a hole of up to US $3 trillion and 600 billion. "It is estimated that there will be another way to release water."

Huang Xiao Feng, a public economic management research center of Peking University, pointed out that Buffett's view has a very clear national interest tendency.

"Buffett told us that investing in US manufacturing enterprises and firmly believing in the credibility of US Treasuries and the US dollar is not a risk, but it is a bit of a conspiracy in the words. I think every investor should allocate a certain amount of gold instead of considering the unit price of paper money."

However, some analysts said that investors need to pay attention to the time node of "golden bubble" coming, "we need to understand who is selling and who will take up the plate." an analyst pointed out that Rodgers said that gold had the ultimate bubble. Then the physical purchase of China and India and the ETF fund of the United States could finally be accepted. The bubble stage should come before the completion of such a large-scale handover. He believed that investors should not blindly follow the "masters". If they were too blind to do more, they might become sedan chairs.