Skip to comments.Hey, what happened to gold? (Why has it FALLEN by 6% in the past 3 months?)
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 ...
I think the only people making money on the gold purchases are the brokers
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.
My bet is that vast sums of European money are being moved in to US dollars. This has slowed the rise of gold temporarily.
Ther has been a number of margin calls and rising minimums pushing the quick highly leveraged investors to the sidelines
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.
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.
- 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
Central banks are selling huge amounts of gold to build capital for the coming Euro-crash.
Man from Mars speaks with three tongues.
I can buy high and sell low, buy low and sell lower, or buy really low and get mailed a company bankruptcy notice.
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,
Have you brought groceries recently?
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
Just wait when GLD gets caught with their pants down. The temptation for paper gold ETFs to leverage is enormous.
“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.
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!!!!!!!!!!!!!!