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Hey, what happened to gold? (Why has it FALLEN by 6% in the past 3 months?)
Marketwatch ^ | 12/12/2011 | Mick Weinstein

Posted on 12/12/2011 4:41:39 AM PST by SeekAndFind

Gold has fallen about 6% over the past three months, amid macro conditions that would appear bullish for the metal. What's going on? Bespoke encourages a longer-term perspective - the yellow metal's still up about 20% this year, and doing just fine in comparison to its average 5-year and 30-year returns on a yearly basis: "relative to just about any other asset class this year, gold is still glistening." Robert Sinn adds a technician's take on the metal and its miners.

With all the uncertainty from Europe, the market could rise sharply from here or drop another big leg down. Brendan Ruchert-Dixon is positioned for either outcome.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: dollar; gold

1 posted on 12/12/2011 4:41:42 AM PST by SeekAndFind
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To: SeekAndFind

I think the only people making money on the gold purchases are the brokers


2 posted on 12/12/2011 4:45:26 AM PST by Core_Conservative (No longer a Republican - A Proud Constitutional Conservative)
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To: SeekAndFind

The monetary event is called ‘deflation’ when money goes out of circulation faster than it is created by the government.

That is why holiday sales began so early: the value of money has increased, so the prices drop, as retailers notice that (1) items in inventory don’t sell at the old price and
(2) replacing inventory is possible at lower prices.


3 posted on 12/12/2011 4:48:18 AM PST by donmeaker (e is trancendental)
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To: SeekAndFind

My bet is that vast sums of European money are being moved in to US dollars. This has slowed the rise of gold temporarily.


4 posted on 12/12/2011 4:49:34 AM PST by circlecity
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To: circlecity

Ther has been a number of margin calls and rising minimums pushing the quick highly leveraged investors to the sidelines


5 posted on 12/12/2011 4:57:08 AM PST by rstrahan
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To: SeekAndFind

It means the market is saturated and some folks who bought in, between 300 and 900, took some profits.

Discovering the gold is inedible, they thought selling 25 - 50% of their holdings for substantial profit was worthwhile.


6 posted on 12/12/2011 4:59:34 AM PST by G Larry ("I dream of a day when a man is judged by the content of his Character.")
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To: circlecity

Maybe due to various controls being placed on precious metals in Europe? Or is it just that Europeans have experience and want to hold a stronger currency until things settle out over there?

The dollar is the strongest it has been in a while. US bond yields have risen, too. And commodities are declining on reports of increased supply.


7 posted on 12/12/2011 5:08:37 AM PST by reformedliberal
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To: SeekAndFind
-----the yellow metal's still up about 20% this year----

- Last week I asked the question and looked up the Kittco 5 year chart. If you plot the trend line and extend it off the chart, and then draw two new vertical grid lines, you see the trend line crossing $2,000 in about July, possibly early August of 2012.

I calculated the slope and got 22%, a slightly higher figure than in this article. That can easily result from choosing the numbers for the slope calculations.

By drawing the trend line the question is answered. The spike is just that. The spike is anomaly and can be thrown out. The price has now settled and resumed to rise on the established trend line. Gold $2,000 by July

See for yourself


8 posted on 12/12/2011 5:11:56 AM PST by bert (K.E. N.P. +12 ..... Crucifixion is coming)
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To: SeekAndFind

Central banks are selling huge amounts of gold to build capital for the coming Euro-crash.


9 posted on 12/12/2011 5:21:39 AM PST by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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To: Core_Conservative

yup!!!


10 posted on 12/12/2011 5:25:09 AM PST by dps.inspect (the system is rigged...)
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To: dps.inspect
So China, Korea and India can buy gold cheaper! The fed and new world order can purchase as much land and gold with cheap federal reserve notes! 0 interest
11 posted on 12/12/2011 5:51:55 AM PST by man from mars
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To: dps.inspect
So China, Korea and India can buy gold cheaper! The fed and new world order can purchase as much land and gold with cheap federal reserve notes! 0 interest
12 posted on 12/12/2011 5:52:10 AM PST by man from mars
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To: dps.inspect
So China, Korea and India can buy gold cheaper! The fed and new world order can purchase as much land and gold with cheap federal reserve notes! 0 interest
13 posted on 12/12/2011 5:52:28 AM PST by man from mars
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To: man from mars

Man from Mars speaks with three tongues.


14 posted on 12/12/2011 6:12:08 AM PST by diogenes ghost
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To: SeekAndFind
Because of my powers to crash any market when I get into it.

I can buy high and sell low, buy low and sell lower, or buy really low and get mailed a company bankruptcy notice.

15 posted on 12/12/2011 6:38:14 AM PST by KarlInOhio (Herman Cain: possibly the escapee most dangerous to the Democrats since Frederick Douglass.)
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To: donmeaker
The monetary event is called ‘deflation’ when money goes out of circulation faster than it is created by the government.

More like normal dips in an upward trendline

Gold is still up 20% for the year,

That is why holiday sales began so early: the value of money has increased, so the prices drop,

LOL!

Have you brought groceries recently?

16 posted on 12/12/2011 6:54:02 AM PST by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
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To: SeekAndFind

Some of the people who have made money in gold are selling to take profits and raise cash.

If we get a huge credit crunch like we had in 2008 and Wall Street has to sell everything to cover their debts and redemptions, Gold will fall further. It fell almost 30 percent in the 2008 crash.

Rather than endure the depression and chaos that will follow the worlds central banks including the Fed will try to “monetize the debt” by printing even more money and the price of gold will shoot up again.

Gold is now more than double what it fell to in 2008. If and when it bottoms this time, it should do a repeat performance to far above 2K an oz


17 posted on 12/12/2011 7:19:12 AM PST by Uncle Lonny
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To: SeekAndFind

Just wait when GLD gets caught with their pants down. The temptation for paper gold ETFs to leverage is enormous.


18 posted on 12/12/2011 8:03:55 AM PST by grumpygresh (Democrats delenda est; zero sera dans l'enfer bientot.)
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To: BfloGuy

“Central banks are selling huge amounts of gold to build capital for the coming Euro-crash.”
And to pay welfare...
to pay pensions...
to pay debt payments...
The new mideast govs are certainly looting the gold in their treasuries- right after the old govs looted it to try to stay in power.


19 posted on 12/12/2011 8:23:24 AM PST by mrsmith (Start electing a 'Tea Party' Majority Leader in 2012 now!)
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To: SeekAndFind

FR’s goldpimps sleeping on the job, maybe? Need to post more from the b.i.-blog and marketoracleblog with lots of exclamation points. Need more exclamation points!!!!!!!!!!!!!!


20 posted on 12/12/2011 8:28:43 AM PST by Larry Lucido
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To: SeekAndFind

But, but, but....

“Kerry Lutz and David Banister—Gold and Silver are Screaming Buys!z”

http://www.freerepublic.com/focus/f-bloggers/2816305/posts

Kerry Nutz said so!!!!!!!!!!

Whoever he or she is!!!!!


21 posted on 12/12/2011 8:36:49 AM PST by Larry Lucido
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To: All
"They" are jumping the gun a little here for the monthly Comex Option Expiration scam-slam, which this month isn't until December 15 (3rd Friday of every month).

Doubters can check this recent annotated calender for 2011 with particular attention to the last four expiration dates in a row:

22 posted on 12/12/2011 8:36:59 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: All

“They” are jumping the gun a little here for the monthly Comex Option Expiration scam-slam, which this month isn’t until December 15 (3rd Friday of every month).

Doubters can check this recent annotated calender for 2011 with particular attention to the last four expiration dates in a row:

http://jessescrossroadscafe.blogspot.com/2011/12/gold-daily-and-silver-weekly-charts_06.html


23 posted on 12/12/2011 8:38:22 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: circlecity
"My bet is that vast sums of European money are being moved in to US dollars. This has slowed the rise of gold temporarily."

That is what I have concluded also, and I believe it will continue for 6 to 18 months. The total failure of the Greek credit system will end the fall and I think we will see gold jump.

24 posted on 12/12/2011 10:32:44 AM PST by 2001convSVT (Going Galt as fast as I can.)
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In today’s world of currency, money flows to the currency that sucks the least. This week, that’s us.

Folks are bailing out of the Euro, and they are coming here.

Since the value of the dollar is rising, relative to everyone else, the value of commodities will fall because they are priced in dollars.

Wait until the heavy stuff hits the fan over there.

I think this is a buying opportunity, but I am maxed out right now. The steep decline hurts for a little bit, but overall I feel pretty comfortable.


25 posted on 12/12/2011 10:50:46 AM PST by Vermont Lt (I just don't like anything about the President. And I don't think he's a nice guy.)
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To: bert

I did a similar calculation earlier this year, using a 10 year chart on a log scale. It’s a consistent slope of 15 percent annual gain, and puts the current price at about $1500. I should rerun it.


26 posted on 12/21/2011 10:06:10 AM PST by Atlas Sneezed (Author of BullionBible.com - Makes You a Precious Metal Expert, Guaranteed.)
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To: Beelzebubba

I’d be interested in seeing your results.

I did it again a few days later on the ten year chart and the results were similar. It was quick and dirty.

As a general rule I am not a chartist and have compared technical analysis to reading sheep entrails. Since the curve is long and the trend well established for years I don’t feel too bad extrapolating for a few months.

The view through other eyes would be interesting. Ping me if you post it


27 posted on 12/21/2011 12:58:07 PM PST by bert (K.E. N.P. +12 ..... Crucifixion is coming)
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To: SeekAndFind
Hey, what happened to gold? (Why has it FALLEN by 6% in the past 3 months?)

The Hoffman's, Dakota Fred, and Parker the wonder boy just dumped their enormous halls from this season on the market? ;-) hehehe

28 posted on 12/21/2011 1:08:14 PM PST by commish (Freedom tastes sweetest to those who have fought to preserve it.)
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To: commish

and by halls I mean hauls .....


29 posted on 12/21/2011 1:09:40 PM PST by commish (Freedom tastes sweetest to those who have fought to preserve it.)
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