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Why you should be stoked about the sinking price of gold
The Week ^ | 04/12/2013 | By Carmel Lobello

Posted on 04/12/2013 8:34:12 AM PDT by SeekAndFind

"Things are looking up for the economy and, as a result, down for gold," says Nathaniel Popper at The New York Times. The value of our safe and shiny investment has slipped 17 percent since 2011, after 12 straight years of growth. "It is a remarkable turnabout for an investment that many have long regarded as one of the safest of all," Popper says.

When investors are worried about the value of U.S. currency, the safety of securities investments, and the overall health of the U.S. economy, they often trade in their cash for gold. So in the frightening wake of the financial collapse, shell-shocked investors flocked to bullion. Between 2009 and 2010, $5 billion flowed into gold-focused mutual funds.

But now, with the economy recovering slowly but surely, gold's attractiveness is fading — and fast. The precious metal's price has dropped 5.8 percent this year. On Wednesday, the value of an ounce of gold dropped another $28, bringing it to $1,558.

On the same day, Goldman Sachs cut its 2013 price forecast for the second time in six weeks — to $1,545 an ounce from $1,610 — and predicted that average prices would tumble even more in 2014, adjusting the forecast to $1,350 from $1,490. Société Générale in France released a similar message last week, claiming that the gold price is in bubble territory.

 The Goldman analyst said in a report:

Given gold's recent lackluster price action and our economists' expectation that the acceleration in U.S. growth later this year to above-trend pace will support U.S. real rates, we are lowering our USD-denominated gold price forecast once again...While there are risks for modest near-term upside to gold prices should U.S. growth continue to slow down, we see risks to current prices as increasingly skewed to the downside as we move through 2013. In fact, should our expectation for lower gold prices continue to prove correct, the fall in prices could end up being faster and larger than our forecast. [Goldman Sachs, via ValueWalk]

So the good news: Gold is plummeting because the economy is recovering. And there's another silver lining, too: While those who invested in 2011 are losing, those who bought gold back in the late 90's are killing it. Even with the recent decline, gold is up 515 percent from 1999.


TOPICS: Business/Economy
KEYWORDS: deflation; gold; goldminicrash; goldprice; stockmarket

1 posted on 04/12/2013 8:34:12 AM PDT by SeekAndFind
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To: SeekAndFind

See also here:

http://economictimes.indiatimes.com/markets/commodities/gold-prices-on-track-for-worst-week-since-late-february/articleshow/19509280.cms

Gold prices on track for worst week since late February

EXCERPT:

Friday but remained on track for their worst week since late February as strong equities lured investors seeking better returns, while outflows from exchange-traded funds underlined the shaky outlook for bullion.

Escalating tensions on the Korean peninsula have done little to stir safe-haven buying, though Gold could regain some of its lustre if the latest US earnings season disappoints.

Gold was steady at $1,560.84 an ounce by 0628 GMT, heading for a more than 1-percent decline this week, its third such drop in a row.

The metal has slipped around 7 percent so far this year, after rising for the last 12 years, lagging gains of more than 11 percent in the S&P 500 index.

“US equities have continued to defy gravity,” said CIMB regional economist Song Seng Wun, adding that the market had also shrugged off the threat of conflict with North Korea.

“Normally, given rising tensions, there will be flight to safety and gold will benefit. But I suppose at this point, while we are mindful of the increased risk, nobody really believes that the North Koreans will actually carry through on their threats.”

A US government agency has said North Korea has a nuclear weapon it can mount on a missile, adding an ominous dimension to threats of war by Pyongyang, but the assessment was swiftly dismissed by several US officials and South Korea.

Setting geopolitical tensions aside, wary investors cut exposure to gold, with total holdings at the world’s major bullion ETF falling to their lowest since early 2012.

US gold for June delivery was $1,560.90 an ounce, down $4.00.

CLICK ABOVE LINK FOR THE REST...


2 posted on 04/12/2013 8:35:29 AM PDT by SeekAndFind
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To: SeekAndFind

Yeah, the economy is recovering. Laughable.


3 posted on 04/12/2013 8:35:37 AM PDT by b4its2late (A Liberal is a person who will give away everything he doesn't own.)
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To: SeekAndFind

Who needs Gold, when the FED is pumping $85 Billion a month into WallStreet?


4 posted on 04/12/2013 8:37:50 AM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
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To: SeekAndFind

Eye of hurricane - printing presses rolling


5 posted on 04/12/2013 8:38:34 AM PDT by jobim (.)
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To: SeekAndFind

The economy is not an “event”, while the current drop in gold prices is more of an “event”. If Cyprus is selling their gold to cover their larger than expected losses and Cyprus is a template for the Eurozone, wouldn’t the curent drop in gold prices be due to an expectation that large volumes of gold will soon enter the market; i.e. supply vs. demand expectations?


6 posted on 04/12/2013 8:42:31 AM PDT by LZ_Bayonet ( I AM THE TEA PARTY LEADER !)
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To: SeekAndFind

Economy... “Recovering!?”. BS Alert! (Elections have consequences. He actually told the truth that time! We have another 3.92 years of further decline ahead of us, gang. Get used to it. )


7 posted on 04/12/2013 8:47:13 AM PDT by faithhopecharity (()
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To: SeekAndFind

Who cares about phony paper trading, Gold should be held for the value it will have during times of financial/economic chaos which will eventually happen with the collapse of the global socialist entitlement state.


8 posted on 04/12/2013 8:49:34 AM PDT by ScottfromNJ
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Click The Pic To Donate

"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the government at defiance. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Thomas Jefferson

9 posted on 04/12/2013 8:51:39 AM PDT by DJ MacWoW (My faith and politics cannot be separated)
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To: SeekAndFind
All those fools who brought below 300 are really in trouble now. I just don't know what to do if it falls below 1500, good grief, if it hits 1400, I'll probably do what the wise statesman Gordon Brown did and sell.

In all seriousness, you can trade and sell often with gold. But, in reality most people purchase alittle as a hedge and or as a little emergency to barter with.

In the end, it will come down to trusting the dollar or Gold.

10 posted on 04/12/2013 8:51:54 AM PDT by Theoria
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To: SeekAndFind

Falling metal prices is good news because it means I can buy more of it. There may be a few weeks or months in our economic future where it runs counter-trend but if anyone believes obamanomics will produce solid growth in wealth, they can sell me their gold/silver/platinum/palladium. I’m buying.


11 posted on 04/12/2013 8:52:17 AM PDT by muir_redwoods (Don't fire until you see the blue of their helmets)
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To: Theoria

RE: In the end, it will come down to trusting the dollar or Gold.

OK, so tell me why we should trust the dollar.


12 posted on 04/12/2013 8:52:55 AM PDT by SeekAndFind
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To: SeekAndFind

What about lead?


13 posted on 04/12/2013 8:53:42 AM PDT by freedomlover
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To: SeekAndFind

I never said we should. Death to savers is the motto. But, part of the problem is that gold itself is primarily denominated in dollars. Your 1500 a oz today is less than the 1500 last year thanks to the dollar.


14 posted on 04/12/2013 8:54:45 AM PDT by Theoria
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To: b4its2late

Yeh, OK its all good. I feel so much better now.


15 posted on 04/12/2013 8:55:56 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: SeekAndFind

I am just wondering out loud if this is not a sign of deflation. The Feds money printing is not getting out to regular people, but instead is circling Washington DC and the Stock Market. Retail prices were off .6 % last month. Could it be that while the stock market seems to have no top, that he rest of us are getting by on less and depressing prices? The stock market is a great place for all those excess dollars printed by the FED to experience sudden death.


16 posted on 04/12/2013 8:59:29 AM PDT by BRK
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To: Theoria
".....But now, with the economy recovering slowly but surely, gold's attractiveness is fading — and fast." Does anyone with more than a sixth grade education believe this BS?
17 posted on 04/12/2013 9:00:21 AM PDT by Fred911 (YOU GET WHAT YOU ACCEPT)
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To: SeekAndFind
The 1st great thing about gold is it is, and has always been an “insurance policy” against inflation and fiat money......It still is!!...The powers that be know this and will manipulate it as they see fit.....But here's the deal...they can manipulate the “official price” but they cant control the demand of us “common folks”

I hope they take gold to under a $1000 officially but what would realistically happen is "premiums" would skyrocket
..(they cant control demand!)...$1000 gold would have at least a $200-$300 “premium” for anybody to actually sell an oz.

My uneducated advise.....If gold goes down...BUY CHEAP INSURANCE!!!...LOTS OF IT...BE INSURANCE POOR!

Look at it this way....If u could buy $100k life insurance for a dollar...How much would u buy???

18 posted on 04/12/2013 9:15:40 AM PDT by M-cubed
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To: Fred911

DID GOLD REALLY GO DOWN $55 DOLLARS?

No it didn’t.


19 posted on 04/12/2013 9:26:23 AM PDT by Therapsid (Communism has killed 50-60 Million people in only 50 yrs.)
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To: SeekAndFind
The value of our safe and shiny investment has slipped 17 percent since 2011, after 12 straight years of growth.

The value of gold has not changed. 1 oz. of gold is still worth 1 oz. of gold.

Gold is the standard. It is real wealth. The value of our fiat currency, the dollar, has changed. The simple fact that that the dollar is not stable shows it is not real wealth.

And the reasons why the dollar changes its value in terms of gold are always unclear while the change is occurring.

There Ain't No Such Thing As A Free Lunch!

20 posted on 04/12/2013 9:32:25 AM PDT by DakotaGator (Weep for the lost Republic! And keep your powder dry!!)
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To: DakotaGator

JP Morgan/Chase is massively shorting silver & gold and forcing the price down. I think the Fed is behind them and it’s just an effort to prop up the dollar.


21 posted on 04/12/2013 11:33:45 AM PDT by Maurice Tift (You can't stop the signal, Mal. You can never stop the signal.)
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To: SeekAndFind
The lapdog media is slamming gold and trying to convince the sheep into staying in the dollar and the stock market.

LMAO - the sheep buy the whole scam about a 'recovery'. They also buy the phony unemployment numbers. You must be a bit more clever than our evil overlords to find out the truth.

A recovery would be better defined through JOB GROWTH rather than the first round of hyperinflation puffing up prices in the Wall Street casino.

Where are the jobs?


That tells a more true story than those lies about the unemployment rate and the stock market bubble that will burst at some point.
Simply put: 1.) Add up all the people in the labor market (working age adults)
2.) Figure out how many of them are working.

The rest are unemployed.

22 posted on 04/12/2013 12:06:16 PM PDT by Bon mots (Abu Ghraib: 47 Times on the front page of the NY Times | Benghazi: 2 Times)
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To: SeekAndFind

“But now, with the economy recovering slowly”

STOPPED READING THERE.


23 posted on 04/12/2013 1:59:14 PM PDT by bicyclerepair (0bama is a POS, with all due respect to excrement.)
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To: muir_redwoods

I tried two gold dealers this morning and was told by both, quote “we ain’t selling!” “we’ll buy, though.”

These places normally have plenty of gold and silver on hand and more than likely still do.

I used to buy from another place, but had to wait up to two months for an order to come in. Now I only buy where I can take it with me. I’m also getting lower over spot prices with these two dealers.


24 posted on 04/12/2013 2:23:53 PM PDT by rw4site (Little men want Big Government!)
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To: SeekAndFind
What never ceases to amaze me is that the "Sage Elders" of the Financial World like Carmel Lobello (founding editor of DeathandTaxesMag.com), who have already made millions, no billions, no trillions, using their Financial wisdom, would take time out of their lives of leisure to inform the rest of us on how they accomplished their riches.

I mean, it's just amazing.

Kinda reminds me of that $10.00 book that came out way back when, titled "How to make a Million dollars like I did". Opening the book revealed this valuable get rich quick guidance: "Print up 100,000 books with this title on the cover and sell them to 10,000 other suckers." "You'll be a Millionaire in no time."

We should all really be thankful that there are such sharing rich people in our world, eh?

25 posted on 04/12/2013 2:38:47 PM PDT by Col Freeper (FR: A smorgasbord of Conservative Mindfood - dig in and enjoy it!)
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