Why you should be stoked about the sinking price of gold

The Week ^ | 04/12/2013 | By Carmel Lobello

[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.

[Maurice Tift]

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.

[Bon mots]

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.

[bicyclerepair]

“But now, with the economy recovering slowly”

STOPPED READING THERE.

[rw4site]

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.

[Col Freeper]

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?