Aren't Germany and China repatriating their gold reserves?
I agree with the massive correction theory - can't believe how astronomically high it went.
GIve. Me. a Break!
So when it's low, is that a good time to buy?
LOL@ R6 and R7
Let's do the TIME WARP again
Great time to buy buy buy. Protect your family, be a patriot, USA USA USA.
The EXITS, the EXITS! Where are the EXITS?!!
Certainly not "inexplicable."
The right will say it's Obama's fault
Some twitmeyer is trying to corner the market!
It was a classic speculative bubble dressed up as "protection" against threats that were never real.
R12 apparently didn't read the NBC news brief.
Sitting here, in our earings and caftans, clutching our pearls and wearing our suddenly less-smart golden tiaras.
The horror, the horror!
I'm scared, hold me...
I still love you, my precious golden dildo!
What's the next thing righ people are throwing their money behind? Before it was tech stocks, then the housting market, then gold. Now what? For once I'd like to know ahead of time.
[bold]LBMA Default Triggered Gold & Silver Takedown[/bold]
"“Gold and silver only have this type of selling when there are extreme shortages of the physical metal. I am totally aware that before this takedown occurred there was an imminent LBMA default.
We had already seen COMEX inventories plunging. In 90 days COMEX inventories saw an incredible decline. So immediately available physical gold was disappearing. People around the world don’t understand what has been happening since Cyprus....
“Entities went to the LBMA and said, ‘We don’t trust anybody anymore. We want our physical metal.’ They were told they would be cash settled instead by a bullion bank. The Western governments have been trying to plug holes, and the reason for it has to do with the default that was taking place at the LBMA.
This is why this smash has been orchestrated because of the run that has been taking place on physical metal. So Western governments had to do this because of an imminent run on the unallocated LBMA system. The LBMA bullion banks had become so mismatched at one point on their trading positions vs real world demand that they had to orchestrate this smash.
This orchestrated smash in gold and silver was nothing short of a bailout for the bullion banks. So there is a run on physical gold that is taking place and the Ponzi scheme the West is running is being threatened because of it.”
“We are nearing the end of this decline. Physical demand is already beginning to catch up with leveraged paper. If gold were to trade into the low $1,300s it would be unsustainable for very long.”
Holy Shit!! R22 is quoting, of all things, King World News, which is like the National Enquirer and the John Birch Society rolled into one. Flake off, Freeper.
R22 and R23 are shills for the commodity sellars that advertise on Fox news. Their information is bullshit and biased, they are in the business of SELLING precious metal and have probably lost their shirts this week. It is the old pump and dump. Get your information from reliable sources, not these hacks.
Hey asshole bullshitter R23, how can an absence of product and a drop in that product's price coincide in any model of economic theory?
what is kingworldnews? The enquirer and the John Birch Society rolled into one? Sounds like a hoot to me.
Next to 9/11, only gold generates this much conspiracy. Nobody wants the boring reasons - that it was way over priced, it had a good run and was due a correction. That, and a recovering US economy points to cash, rather than bullion, as a store of wealth. Its cyclical. In twenty years when ya'll hissing elder gays, we'll be having this conversation again.
I'm so glad I got out of gold 6 months ago and put it all into earrings and caftans futures.
But...wait...I thought it was going to $20,000 an ounce!?
Give it a rest, op!
If there's a shortage of gold and high demand, HOW can the price go down?
I don't understand it..........
I bought in at $850. Still smiling!
White edrusgay problems.
I am with r35.
We're not on the gold standard anymore, OP.
People bought gold because somehow, some way, Obama was going to ruin the country, and this was their safety net. Same way they ran out and bought bullets when they were told he was going to take their guns in 2009. Idiots. We just need to figure out what their next scare tactic is going to be, and make some money off of their fear. The Koch brothers are probably behind 99% of this, knowing these morons will buy the hype. Just watch whatever Glenn Beck is pushing and we'll have our answer.
The "calamity ahead" is for people who over-invested in gold.
MarketWatch (WSJ) has a couple good short pieces on the decline, one suggesting a sensible market value of gold is in the $800/oz range, and this one:
golders are mostly truthers.
i.e. dumb, paranoid assholes.
This might be good news for us that collect 22 or 24 kt gold jewelry not for investment but for wearing or as gifts. I am getting ready to design a new piece but was waiting to finish paying off my vacation a few weeks ago before buying the 30 grams I'll need for the piece.
There's a reason the Sell your Gold for CASH! places are in the delapidated strip malls next to Payday Loans and Rent-a-Centers.
I sold all of my gold when it was at 1800. I had less than 10 grand worth but glad I sold when I did because I had held for a number of years and the profit was substantial.
Golders = freepers
From now on, I'm only going to invest in internet start-up stocks and tulip bulbs.
[quote]Gold and silver only have this type of selling when there are extreme shortages of the physical metal...
I stopped reading there since this is bullshit. Gold was in a classic bubble, at a historically high price adjusted for inflation. And just as happened the last time gold was in a bubble, the price fell. This isn't rocket science and it's amazing that these gold bugs are still trying to jump through hoops to avoid acknowledging that gold was in a bubble and that the bubble is popping.
[quote]If there's a shortage of gold and high demand, HOW can the price go down?
Because neither of those is correct: there isn't any real shortage and the demand is falling, not rising.
The "paradox" of the fall of gold paper and the demand for physical gold isn't so difficult to understand.
GLENN BECK: Something Does Not Smell Right About The Gold Crash
"The only thing I have to fear is the government, quite frankly," he said. "The government lying to you, the media not telling the truth. I mean, gold is the original gold standard, and something doesn't smell right. Such a currency of last resort that it's so unstable that the central banks are buying it up."
"Let's say this turns out to be a terrorist operation with multiple bombs around the city. The stock market tanking, things going awry — wouldn't this exactly be like how it would happen? September 11, now that we are in this precarious situation, this is the way it will happen — it will happen really, really quickly. You better have a plan and know what you and your family are going to do in the time of more difficult days ahead."
To sum up, anything bad that happens is all part of the government conspiracy. Therefore, hoard more gold to get ready for the end days!!! And buy it from that crappy company Glenn is shilling for.
Frankly, I always wore my platinum because of how lovely it looks on me, not because of its price.
What will the freepers do now, since they insisted putting all of one's eggs into the gold basket?
They're now collecting silver. How's that doing?
Gold is OUT!
Bitcoins are IN!
From the link:
The Rules of Goldbuggery
1. Gold is a Currency: This is rule number 1. It is not a decorative or industrial metal, it is a permanent store of value, as dictated by Greeks in Lydia around 700 B.C. And, it shall be ever thus.
2. The price of gold cannot fall, it can only be manipulated lower: When gold’s price falls, it is an unnatural act. It can only occur as the result of an international cabal of Central Bankers and politicians. Its a conspiracy, and we know who the guilty parties are.
3. If the price of gold is rising, it is doing so despite enormous and desperate efforts by manipulators to prevent the rise: This is the corollary to the prior Rule of Gold manipulation. Gold runs up despite the overwhelming opposition to it.
4. The world MUST return to the Gold Standard one day: It is inevitable that we will return to a Gold Standard. We all know this to be true. When we compare the size of the money supply to past amounts when there was a Gold Standard, we can derive prices of Gold in the $7,000, $10,000 even $15,000. Hence, we know its cheap even at $2,000.
5. Central Bankers are printing money relentlessly, and this can only drive Gold prices higher: NOTE: You must ignore, for the moment, that Gold has not gone higher for the past 2 years as Central Banks around the world have ramped up QE. This only means that ultimately, Gold will go much much higher.
6. Gold works whether the economy is good or bad: When we have a red hot economy, Gold is your hedge against inflation. When we have a bad economy, Gold is a safe harbor against collapse. It is a one way trade that never fails!
7. Gold will survive after the world economy crumbles: Gold is the ultimate currency, as it has a value that will survive even after the whole world tumbles around you. Get yourself some gold coins and a Glock and you will be just fine when the whole world goes to shit. We welcome the era envisioned in the movie Mad Max.
8. Never admit that Gold is essentially a sucker’s bet: Never discuss how in the last century, gold has run up only be to trounced in repeated massive sell offs (always blame rule #2 for this). Do not discuss how this has happened in 1915-20, 1941, 1947, 1951-66, 1974-76 1981, 1983-85, 1987-2000 and 2008.
9. Gold is a rejection of government, and their control of fiat money and finance: There are no printing presses that produce gold, it is finite, natural and God created. How much we scrape out of the ground each year is limited, and the only variable to the old equation. (Just ignore Man’s natural tendency to organize into to City-States over the past 12,000 years).
10. All Gold discussions must contain ominous macro forecasts: Your description of why Gold is going higher must consist of spurious correlations, unprovable predictions, and a guarded expectation of bad things in the future. Avoid empirical data at all costs.
11. Gold is always rallying in one currency or another: Sure, it may be down 30% in Dollars, the reserve currency it is priced in, but you can always find a currency falling faster than it does and claim you own it in that denomination. Last week, it was up in Japanese Yen. This week, it is up in Zimbabwe dollars.
12. China & India know the value of Gold; the Western world does not: The massive buying of gold by consumers in Chindia reflects the culture, intelligence and investing savvy of the people in these countries. The West doesn’t get it, and it is their loss.
Bonus rule: Never admit Gold might be falling because it trades on human emotions and psychology and has no intrinsic value whatsoever.
I just got a freeper email blaming the Federal Reserve for manipulating the gold market and causing the crash.
(That's the updated version of blaming the Jews, right?)
Anyway, here it is:
I was the first to point out that the Federal Reserve was rigging all markets, not merely bond prices and interest rates, and that the Fed is rigging the bullion market in order to protect the US dollar’s exchange value, which is threatened by the Fed’s quantitative easing. With the Fed adding to the supply of dollars faster than the demand for dollars is increasing, the price or exchange value of the dollar is set up to fall.
A fall in the dollar’s exchange rate would push up import prices and, thereby, domestic inflation, and the Fed would lose control over interest rates. The bond market would collapse and with it the values of debt-related derivatives on the “banks too big too fail” balance sheets. The financial system would be in turmoil, and panic would reign.
Rapidly rising bullion prices were an indication of loss of confidence in the dollar and were signaling a drop in the dollar’s exchange rate. The Fed used naked shorts in the paper gold market to offset the price effect of a rising demand for bullion possession. Short sales that drive down the price trigger stop-loss orders that automatically lead to individual sales of bullion holdings once their loss limits are reached.
According to Andrew Maguire, on Friday, April 12, the Fed’s agents hit the market with 500 tons of naked shorts. Normally, a short is when an investor thinks the price of a stock or commodity is going to fall. He wants to sell the item in advance of the fall, pocket the money, and then buy the item back after it falls in price, thus making money on the short sale. If he doesn’t have the item, he borrows it from someone who does, putting up cash collateral equal to the current market price. Then he sells the item, waits for it to fall in price, buys it back at the lower price and returns it to the owner who returns his collateral. If enough shorts are sold, the result can be to drive down the market price.
A naked short is when the short seller does not have or borrow the item that he shorts, but sells shorts regardless. In the paper gold market, the participants are betting on gold prices and are content with the monetary payment. Therefore, generally, as participants are not interested in taking delivery of the gold, naked shorts do not need to be covered with the physical metal.
In other words, with naked shorts, no physical metal is actually sold.
People ask me how I know that the Fed is rigging the bullion price and seem surprised that anyone would think the Fed and its bullion bank agents would do such a thing, despite the public knowledge that the Fed is rigging the bond market and the banks with the Fed’s knowledge rigged the Libor rate. The answer is that the circumstantial evidence is powerful.
Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tons? There are 2,000 pounds to one ton. 500 tons equal 1,000,000 pounds. There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.
Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money?
What happens when 500 tons of gold sales are dumped on the market at one time or on one day? Correct, it drives the price down. Investors who want to get out of large positions would spread sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means the seller or sellers lost up to $73 dollars 16 million times, or $1,168,000,000.
Who can afford to lose that kind of money? Only a central bank that can print it.
I believe that the authorities would like to drive the gold price down further and will, if they can, hit the gold market twice more next week and put gold at $1,400 per ounce or lower. The successive declines could perhaps spook individual holders of physical gold and resu
I love reading the cluelessness in the linked thread. Fascinating stuff, particularly with respect to the confident predictions about inflation, the price of gold, and so forth. So much that is simply, and foolishly, wrong.
These right (and the odd left) gold bugs can never admit they are wrong. They are always victims of some conspiracy to confound their predictions.
Gold bugs on DL:
Gold coins are cheap now. At $1700+ they are a steal. Wait until the government defaults and it will be worth 10x that. Or more.
Gold will always pace or outpace inflation, when held over long periods.
Gold is much safer than any other stock or commodity.
Until the government is no longer in control of the money supply, gold will just go higher and higher.
Gold is a hedge against major inflation. Like Weimar or Argentinian level hyperinflation.
Gold is the best performing asset in the market.
Gold will keep going higher and higher until the Federal Reserve quits inflating.
Gold is still the best asset to hold compared to S&P or DJIA.
When the dollar is worth nothing, people will still want to trade gold for food, gas, etc.
That is why gold is not in a bubble. Trust me, I know more about this than you think you do.
When the public gets involved, gold is tulip bulbs and Las Vegas subdivisions.
R62...you sound desperate.
Not me, R64: I'm quoting our resident libertarian/anti-Fed/gold bugs from prior threads.
The U.S. Government has been manipulating (stabilizing) the markets since the crash of 1987.
After the crash, Pres. Reagan created "Working Group on Financial Markets" (i.e. The Plunge Protection Team) which has increased its involvement ever since.
When the market drops too much, they BUY Index Futures to stop the slide and drive the market back up.
Governments do not want a stock market crash. They DO want a gold market crash.
There is a lot of government gold on the books as reserves, but most of it is gone. It's been "lent out" and sold into the market years ago. Replaced by I.O.U.s.
This gold crash was not cause by people selling physical gold, but by central banks selling gold futures to drive the price down.
If you can get the price below certain price "triggers" then automatic stop loss programs kick in. Selling begets more selling and then panic selling. All of it paper gold.
Why? Because if the bullion banks had to deliver the physical gold that they "owe", it would drive the price over $20,000 oz.
The U.S., EU, and Asia, cannot afford to let this happen.
Meanwhile, everyone (including countries) are buying all the physical gold they can find.
The shit is starting to hit the fan.
Out of curiosity, R66, do you realize that every word you wrote was bullshit? That it was both false and loony?
I don't think r66 is aware of that.
It's like watching Crazies Gone Wild.
According to R58, we should invest our savings in Zimbabwean dollars???? Isn't that kind of like the Nigerian Prince who keeps wanting to send us money in those emails?
r62, shame on you for posting such blatant misinformation.
R70, your reading comprehension skills are patently abysmal.
How is it not clear to you that he is quoting (and by proxy, making fun of) OTHERS who have posted that nonsense here on DL?
Jesus, you're stupid.
What's funny is that they had to come up with elaborate and far-fetched theories as to why gold wasn't in a bubble and hyperinflation wasn't happening and now that gold is dropping, just as everyone predicted, they have to come up with even more elaborate and far-fetched theories as to why gold isn't climbing ten-fold.
It never seems to occur to them that their quasi-religious view of the economy isn't based on reality. Given a choice between reality and their "religion," they pick their religion every time, regardless of the data. Hell, Ron Paul has been predicting 50%+ hyperinflation for over 30 years and the fact that it has never occurred hasn't stopped him from continuing to predict it every few years (most recently two years ago).
Watch: gold will have a bit of a rebound in the coming days and some of them will be crowing that see, they were right all along and gold really is going to climb ten-fold, no, really, this time we mean it.
R71, he also got it wrong in R69, since that, too, was a post highlighting the idiotic things that Gold Buggers say.
R66--The Working Group is a meeting of regulators from the SEC, CFTC and federal banking regulators to coordinate regulations and investigations. It does not participate in markets.
Sorry to spoil the fun.
Funny how the Libertarian Idiot Troll(TM) hasn't bothered to respond, since he's been salivating over prospects of the exact opposite for years.
Games and theatrics.
Any credibility that the insider letter posted by [R-59] might have had (and that would be very little) is blown away by the math.... while there are 2000 pounds in a ton, precious metal is sold and priced by the troy ounce, of which there are only 12, not 16, in each pound.
[quote]I just got a freeper email blaming the Federal Reserve for manipulating the gold market and causing the crash.
The Federal Reserve does not have that kind of power.
That was amply demonstrated during the financial crisis.
Any business interview I've ever seen said that gold was rising based on specific events, and it was over-valued. (The economic slowdown and power shift in China were mentioned amongst other factors.)
I also saw in interview with a gold company owner; this guy owned most of the production chain. He said it was an extremely expensive, long and difficult process to mine gold. The profit margins were thin.
Why gold and not diamonds, silver, platinum, selenium, oil or any other naturally limited commodity? Because gold is pretty? No! The value of gold comes from God!!
LOL@R80! You are right! And God keeps changing his mind about its value.
My palladium ingots are now WORTHLESS!!!
water will be the new gold of the future
If you were buying gold in the form of First Spouse coins from the US Mint, at least your loss was buffered by the numismatic value of the coins. If you bought paper gold or generic bullion instead, you don't have that protection.