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-   -   Gold Has Dropped 17%? (http://www.orangemane.com/BB/showthread.php?t=110679)

Rohirrim 04-12-2013 06:06 AM

Gold Has Dropped 17%?
 
I suspect that like most commodities, gold rises and falls along with the emotional state of those who believe it is the answer and the market flucuates along with the intensity of that belief at any given time. So much of markets seem to be emotionally driven, as much as we don't want to believe that.

After all, historically, gold has been anything but a safe investment. Sometimes it yields big gains, as it did in the late 1970s and again between 2001 and 2011. But that 1970s run-up was followed by an epic plunge, with the real value of gold falling by more than two-thirds.

Meanwhile, the modern world’s closest equivalent to the classical gold standard is the euro, which puts European countries back under more or less the same constraints they faced when gold ruled. It’s true that the European Central Bank can print money if it chooses to, but individual countries, like nations on the gold standard, can’t. And who would hold up these countries’ recent experience as an example of something we’d like to emulate?

So how can we rationalize the modern goldbug position? Basically, it depends on the claim that runaway inflation is just around the corner.

Why have so many people found this claim persuasive? John Maynard Keynes famously dismissed the gold standard as a “barbarous relic,” noting the absurdity of yoking the fortunes of a modern industrial society to the supply of a decorative metal. But he also acknowledged that “gold has become part of the apparatus of conservatism and is one of the matters which we cannot expect to see handled without prejudice.”

http://www.nytimes.com/2013/04/12/op...old.html?_r=1&

peacepipe 04-12-2013 07:51 AM

Truth is something cons don't believe in. I've been pointing this out for quite some time. As the the economy improves,be it not as fast as I would like,the price of gold will continue to drop.

baja 04-12-2013 08:37 AM

The fed is buying short gold in a desperate move to prop up the dollar.

Pony Boy 04-12-2013 10:56 AM

Quote:

Originally Posted by peacepipe (Post 3828089)
Truth is something cons don't believe in. I've been pointing this out for quite some time. As the the economy improves,be it not as fast as I would like,the price of gold will continue to drop.

I think you mean as the economy improves, Bernanke keeps printing money like a mad man. Maybe he can print it faster...............

DenverBrit 04-12-2013 11:07 AM

Quote:

Originally Posted by baja (Post 3828115)
The fed is buying short gold in a desperate move to prop up the dollar.

Central banks selling would cause gold to drop, not buying.

Here's the main reasons:

Gold prices slide on speculation that the Federal Reserve could start pulling back on stimulus

Quote:

NEW YORK - Gold prices slumped Wednesday on speculation that Federal Reserve officials could start pulling back on support for the economy before the year is out.

Minutes from the Fed's meeting last month showed that some central bank officials want to end the Fed's bond-buying program relatively soon, saying the costs could eventually outweigh the benefits. The Fed's stimulus effort has kept interest rates low and driven traders into precious metals like gold.

The news helped push gold prices down 1.8 percent. Contracts for June delivery fell $27.90 to settle at $1,558.80 per ounce.

Reports that Cyprus will sell more than $500 million in gold added to the selling pressure, said James Steel, chief commodities analyst at HSBC in New York.

Quote:

Traders often buy gold and other precious metals as protection against inflation. Low interest rates also support gold by making bonds less attractive by comparison. So, if the Fed takes away some of its support, "it's a negative for gold because it increases real interest rates and slows inflation," Steel said.
http://www.startribune.com/business/...1.html?refer=y

mhgaffney 04-12-2013 11:16 AM

As usual, Brit is clueless.

The fed is manipulating gold & silver down -- thwarting what would otherwise be a bull market.

Ask yourself why?

For the answer, read on

http://www.informationclearinghouse....m_medium=email

mhgaffney 04-12-2013 11:23 AM

p.s. It's time to buy gold!

DenverBrit 04-12-2013 11:23 AM

Quote:

Originally Posted by mhgaffney (Post 3828202)
As usual, Brit is clueless.

The fed is manipulating gold & silver down -- thwarting what would otherwise be a bull market.

Ask yourself why?

For the answer, read on

http://www.informationclearinghouse....m_medium=email

LOL

http://www.secretsofthefed.com/wp-co...y-theorist.jpg

Pony Boy 04-12-2013 11:56 AM

It's very easy to buy and sell with the gold ETFs that are available at your fingertips but you need to realize you are dealing with paper that is supposed to be backed with real gold.

It's a pain in the ass to buy and sell physical gold but well worth the effort if you actually own some. There is nothing like the feel of real gold when holding it in your hands.

peacepipe 04-12-2013 12:23 PM

Supposed to be? Dude,money hasn't been backed by gold since 1933. We got off the gold standard for good reason.

Pony Boy 04-12-2013 12:59 PM

Quote:

Originally Posted by peacepipe (Post 3828239)
Supposed to be? Dude,money hasn't been backed by gold since 1933. We got off the gold standard for good reason.

Pea-brain we are not talking about money, we are taking about buying gold EFT's or physical gold. You do understand there is a large market for investing in gold and the reasons some investors do this right?

baja 04-12-2013 01:04 PM

Quote:

Originally Posted by Pony Boy (Post 3828227)
It's very easy to buy and sell with the gold ETFs that are available at your fingertips but you need to realize you are dealing with paper that is supposed to be backed with real gold.

It's a pain in the ass to buy and sell physical gold but well worth the effort if you actually own some. There is nothing like the feel of real gold when holding it in your hands.

I had some of mine smelted in the shape of a vagina and I have sex it every night.

Still not pregnant though....

ak1971 04-15-2013 05:40 PM

You all laughed when I said we'd see $1k gold before $2k..we may see it

Buying the crap out of the miners now..

cutthemdown 04-15-2013 05:47 PM

It just doesn't make sense for gold to be worth 2 grand. The world is about what products and services you can create. Gold is only really worth what you can sell it for to make jewelery etc. The notion it represents a countries worth or any production at all is fantasy.

ak1971 04-15-2013 05:51 PM

Quote:

Originally Posted by cutthemdown (Post 3829366)
It just doesn't make sense for gold to be worth 2 grand. The world is about what products and services you can create. Gold is only really worth what you can sell it for to make jewelery etc. The notion it represents a countries worth or any production at all is fantasy.

Now I can buy a fat gold chain to go with my new Kangol

Rohirrim 04-16-2013 05:50 AM

Gold continues to plunge.

http://money.cnn.com/2013/04/15/inve...html?hpt=hp_t3

How are pork bellies doing?

orinjkrush 04-16-2013 09:07 AM

Investing Rule #1: Don't fight the Fed.

Euro? Check.
Bitcoin? Check.
Precious Metals? Check.
Ron Paul? Check.
CPI? Check.
Renminbi? Hmm.

TonyR 04-17-2013 10:34 AM

Quote:

What the system needs is a stark reminder that fear-based assets can be just as risky as greed-based assets. Rising interest rates can eat away the value of your bond portfolio, inflation can erode your cash, and as for gold (or bitcoins, for that matter), well, it can plunge in value literally overnight. My hope is that the price of gold will continue to fall, that goldbugs will look increasingly silly, and that as a result Americans with savings will conclude that the best thing to do with those savings is to put them to work in a productive manner, rather than self-defeatingly trying to protect what they have.
http://blogs.reuters.com/felix-salmo...bubble-bursts/

Tombstone RJ 04-17-2013 10:43 AM

I wonder how China feels about this. Haven't they been buying up gold? Yes, there is a reason people keep gold as a long term asset. It's a finite resource and perhaps the most stable standard by which other commodities can be valued. Ask yourself why the uber wealthy have gold. It's not becuase one day it's worth twice as much as it is the next day. It's because over a long period of time, it will steadily increase in value.

Rohirrim 04-17-2013 11:13 AM

Like a wealthy man once told me, "Money is like water. Let it flow and it stays clean and continues to come in. Stop the flow and it goes stagnant and evaporates."

mhgaffney 04-17-2013 07:18 PM

Quote:

Originally Posted by baja (Post 3828115)
The fed is buying short gold in a desperate move to prop up the dollar.

Ditto. The Fed is up to its old tricks.

The Chinese are buying gold -- big time. This says it all.

If you still don't believe it -- check this out.

Scroll to the interview with Jim Willie:

http://sherriequestioningall.blogspo...2013-real.html

mhgaffney 04-17-2013 07:20 PM

Quote:

Originally Posted by TonyR (Post 3830080)

Anyone holding bonds now is just stupid.

mhgaffney 04-17-2013 07:29 PM

The (continuing) Attack on Gold

By Paul Craig Roberts

April 17, 2013 "Information Clearing House" -"PCR" - Tuesday, April 16. The orchestrated attack on bullion in the paper gold market took the spot prices of gold and silver down on Friday and Monday, but actual physical purchases rose during this period. The sales were of paper claims, not of real metal.

The demand for physical possession of bullion rose so strongly that large wholesalers such as www.tulving.com and large retailers such as Gainesville Coins reported sold out items. Also, dealers raised the premiums above the spot price that is charged for coins. From Friday to Monday the premium on Silver Eagles at the large online retailer, Gainesville Coins, rose from $3.75 to $5.99 above the spot price of silver. The percentage increase in premium was larger than the percentage decline in the silver price. Thus, the price of a silver one Troy ounce coin did not drop despite the drop in the spot price. Today (April 16) the price of a silver eagle purchased with a credit card from retailer Gainesville Coins is $30.36. You would never know that the market had fallen out.

Today (Tuesday, April 16) Tulving reported 29% of its bar and coin bullion categories sold out and had almost no silver coin stock. The premium over spot on new gold eagles was $63.95. At large online retailers the premium was $71. Gainesville Coins has no silver Buffalos and lists shipment of orders to commence when coins are available, estimated to be May 10.

What I am reporting are facts, not a theory. We have just had two days of massive sales of paper claims on bullion, but during these days when the price of gold and silver collapsed under short sales, it was difficult to get your hands on the metal itself. On telephone orders you wait in long queues to place an order and are told that delivery awaits availability.

Listening to the media and to academic economists such as Paul Krugman, you would think no one any longer wants gold and silver. But try getting your hands on some.

for the rest...
http://www.informationclearinghouse....ticle34648.htm

DenverBrit 04-17-2013 08:33 PM

Quote:

Originally Posted by mhgaffney (Post 3830286)
Anyone holding bonds now is just stupid.

Why?

DenverBrit 04-17-2013 08:37 PM

Quote:

Originally Posted by mhgaffney (Post 3830290)
The (continuing) Attack on Gold

By Paul Craig Roberts

April 17, 2013 "Information Clearing House" -"PCR" - Tuesday, April 16. The orchestrated attack on bullion in the paper gold market took the spot prices of gold and silver down on Friday and Monday, but actual physical purchases rose during this period. The sales were of paper claims, not of real metal.

The demand for physical possession of bullion rose so strongly that large wholesalers such as www.tulving.com and large retailers such as Gainesville Coins reported sold out items. Also, dealers raised the premiums above the spot price that is charged for coins. From Friday to Monday the premium on Silver Eagles at the large online retailer, Gainesville Coins, rose from $3.75 to $5.99 above the spot price of silver. The percentage increase in premium was larger than the percentage decline in the silver price. Thus, the price of a silver one Troy ounce coin did not drop despite the drop in the spot price. Today (April 16) the price of a silver eagle purchased with a credit card from retailer Gainesville Coins is $30.36. You would never know that the market had fallen out.

Today (Tuesday, April 16) Tulving reported 29% of its bar and coin bullion categories sold out and had almost no silver coin stock. The premium over spot on new gold eagles was $63.95. At large online retailers the premium was $71. Gainesville Coins has no silver Buffalos and lists shipment of orders to commence when coins are available, estimated to be May 10.

What I am reporting are facts, not a theory. We have just had two days of massive sales of paper claims on bullion, but during these days when the price of gold and silver collapsed under short sales, it was difficult to get your hands on the metal itself. On telephone orders you wait in long queues to place an order and are told that delivery awaits availability.

Listening to the media and to academic economists such as Paul Krugman, you would think no one any longer wants gold and silver. But try getting your hands on some.

for the rest...
http://www.informationclearinghouse....ticle34648.htm

LOL

There's 'tons' available, wtf is he talking about? :rofl:


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