The “paper” gold market is much bigger than the physical gold market. You can make as much “paper” gold as you want, as long as no one comes to the window to cash in the “paper” gold for physical gold.
This is the only explanation. The laws of supply and demand dictate that gold should be going much, much higher. I suspect that it will, eventually, but not until those who are manipulating the market buy in at a purposely depressed level.
This is really strange stuff. Makes me glad my tangibles are in silver bought back before 1995 for resale.
I think Gold is being replaced by political power as the arbiter or wealth...gold has just become a placeholder and a means to that end..
Something happen to gold prices Friday? I didn’t read anything...
Can 0bama order gold from the reserves to sell? I’m serious, can he? What is there to stop him?
It goes up, it goes down. Elevators, the stock market, and gold. I have no sympathy for anyone who is crying over the latest plunge. You can’t eat gold. You have to convert it to money to buy bread.
In a crisis everyone will be looking to convert gold to money, and so the ratio gold/dollars will drop.
The reason why it dropped is that rampant inflation didn’t happen (because the economy is in the dumps) and all the hype ads predicting 20,000 were lies.
Bubbles pop.
The big risk with gold is that it is only a clear solution to yesterday’s problems — namely, inflationary devaluation and military invalidation of fiat currencies.
Regarding inflationary devaluation, for all that they have been spending their spare time on stimulus and stabilization of too-big-to-fail financial institutions, central banks very much retain their day job of minimizing inflation. The minute, the very second, the Fed, BOE, BOJ or ECB see core inflation start to creep up even to low-mid single digits, you would see all easing programs halted, and if that didn’t work, start to see short term rates start steadily crank up in 25 and soon 50 basis point increments. We’d be at 5% LIBOR and 8% 30 year conforming conventional mortgages well inside of two years.
It’s been nearly 70 years since a substantial reserve currency was militarily invalidated — the Japanese Yen and German Reischsmark — and even then military defeat and forced currency redenomination was a more of a rescue of holders of the prior currency, who had been primarily hurt by hyperinflationary fiscal parties of the prior regimes during World War II.
Gold has very clear value to people who can’t own significant amounts of reserve currency, and to people in the European periphery who are risk of forced redenomination or balance seizures. For an American? Very unclear what the value proposition is.
BUMP
Soros trying to manipulate.