Skip to comments.This Hasn't Happened to Gold Since 1998 (Gold price drop)
Posted on 02/25/2013 4:26:40 PM PST by Nachum
The last three weeks have been torrid for gold investors. Over that time, the gold price has fallen by about $100 a loss of about 5%.
And unless gold closes above $1,605 per oz., gold will see a "death cross" of its 50-day and 200-day moving averages.
n other words, its 50-day moving average will cross below its 200-day moving average which hasn't happened since 1998.
I don't recommend you try to trade gold. Instead, you should think of gold as a form of "cash" that central banks cannot print.
(Excerpt) Read more at gurufocus.com ...
Gold has never been a buy and hold, long term investment in the sense that stocks are. There is no consistent trendline over time. It was in the $200’s per ounce for a while in 2000-2001. It was over $800 in the very early 80’s. Various governments and large financial entities have telegraphed the intent to drive gold down to the $1,200.00 per ounce range, and they’re doing it.
If you want to hold PM such as gold out of concern over profligacy with the currency and insane government deficits, it’s a logical thing to do, but expect to lose your shirt if you bought much above the announced target. What little gold I have, I bought in the wake of 9/11 so I feel no need to cash out, but many likely should do exactly that.
My thing about gold is that it’s a doomsday investment. It’s the thing that will buy you that last seat on the last plane to Lisbon out of Casablanca, or if there really is a true economic breakdown and all your other investments are worthless, gold will be insanely expensive and good to have even a bit of it. Therefore you don’t need it to be 10% of your portfolio, I think 2% of assets in metals would be a plenty.
But as a trading instrument you might as well bet on random number generators, the whims of the market are inscrutable.
Guess I need to buy more Silver
I tell you that looking at that beautiful metal, one cannot look with much respect at the greenbacks we are forced to carry.
So new supplies hit a small market exceeding the interest of buyers ~ that's the way markets work ~ and isn't news.
The markets are rigged, and unless you are on the 'team', you are going to get whipsawed by the international bankers.
they can have an intent all they want... but as long as they continue devaluing the dollar, the value of gold will continue to rise
yes, they are driving it down... which means they’re planning on buying it up once it hits some low magic number, or continually buy it up as much as they can
if you can tell me one thing they intend to do that will make the dollar stronger... then i may listen. until then, it’s all a shell game as the dollar shrinks and everything measured in dollars goes up
I prefer silver. With my old coins I probably have at least a couple pounds worth.
There are any number of well connected people who are expecting the dollar to spike markedly higher in the not so distant future. It’s done so several times since 2008. I’ve watched gold rise with the dollar, I’ve watched it fall with the dollar. The correllation isn’t nearly as precise or as strong as you’d like to believe.
getting ever closer to the collapse of the dollar (I’m surprised we’ve made it this far... but I guess we could get our debt to 160% of GDP before collapse... being just over 100% now). once collapsed, all countries will need another form of currency... and they know it. this is why they’re moving to snap up as much gold as they can, and get it back home.
Or it could be all the apparently fraudulent activity, “missing” gold, counterfeit tungsten “gold,” et c.
Practically every major currency in the world is a basketcase or verging upon it, that much is true.
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