Gold Vending Machines?

You read that right, Gold Vending Machines are in the news lately, in Europe so far. Complete with Gold plated outside, bulletproof and camera's to supposedly deter money laundering!

Last year I came across an article about a European company that was going to install these machines like ATM machines, with the first prototype installed in Germany.

At the time, I had thought this was a sure sign that Gold had peaked, and that prices would begin to decline.

Nope, that wasn't the case. That was last June, 2009 when Gold prices were around $900-$950 and ounce. Last week prices hit $1,370+ an ounce.

Gold Vending Machines

The first chart below is a 2 year chart showing the price movement during that time. You can see where prices were last June when the prototype was announced, May 2010 when the first actual machines were installed, and how they have moved since then up until the close of the most recent trading day.

Gold Prices 2 Year

The next chart below is a 60 day chart. Looking at this chart, if prices have peaked near term, the nearest support level comes into play near $1,250, almost 6% lower from the last closing price of $1,324.60.

Gold Prices 60 Day Chart

Gold to Go Vending Machine

I don't know if the recent articles about Gold Vending Machines in the news are the "tell-all" signal that Gold has finally peaked, but if prices have peaked, the timing of the recent artcles will surely be referred to as being the signal after the fact.

Here's a link to the recent article I read about the Vending Machines: Gold Bullion - Coming to a Vending Machine Near You

As a short term trader, is now the time to go short with a minimal stop loss set above the recent highs? Or is the current pullback a time to buy?

What about long term positions: Is now the time to add to positions? Sell and take profits? Open new long term positions?




Return From "Gold Vending Machines" To "Gold Investing"


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