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Why Is the Price of Gold Falling?
The Atlantic ^
| 08/18/2012
| Jordan Weissmann
Posted on 08/19/2012 5:41:20 PM PDT by SeekAndFind
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To: SeekAndFind
I've been a gold bug for 40 years. Gold is/has been in a bubble and will crash. There is no where on the planet where the cost of production is greater than about $800.000/oz and is much lower than that in most places.
If folks want an inflation hedge and believe in the long term the economy and western civilization will survive the WOT then acquiring a bit of gold or other precious metals is not a bad idea.
If you are like me and you have little faith we will win the WOT then gold and the precious metals is a foolish investment.
If this country sustains an attack with WMD in multiple locations its over for the USA and precious metals will be denominated in the price of food at the third world subsistence level not what anybody paid for it. In my opinion land, in carefully chosen locations, food, and investments in self reliance are far better investments for the future as I see it.
21
posted on
08/19/2012 6:20:04 PM PDT
by
montanajoe
(Blame Flame Shame or Beg I won't vote for R/R)
To: SeekAndFind
All bubbles come to an end.
22
posted on
08/19/2012 6:30:07 PM PDT
by
E. Pluribus Unum
(Government is the religion of the sociopath.)
To: Track9
I concur. Since gold goes up when oil goes up, me thinks that everyone knows that when Romney wins in Nov the oil prices are going to plummet. The gig is up in the foreign oil market.
23
posted on
08/19/2012 6:47:17 PM PDT
by
notpoliticallycorewrecked
(According to the MSM, I'm a fringe sitting, pajama wearing, Freeper)
To: SeekAndFind
That is a consolidation chart, after an insane run to the peaks. Nothing is “falling”. This idiot acts like $2,000 is its natural level or something.
To: SeekAndFind; jiggyboy; PA Engineer; blam; TigerLikesRooster; Cheap_Hessian; CJinVA; Jet Jaguar; ...
To: SeekAndFind
Gold is money, everything else is credit J.P. Morgan
Several things to consider about gold prices:
- The price of gold isn't exactly falling when measured over a term of, say, the past decade. The worst one can say is that it has been consolidating for the past several months ... as it approaches its long term trend.
- Of course, the above chart shows the price of gold in US dollars. This currency has been extremely strong lately, largely because the fundamentals driving all other currencies are so terribly weak. Priced in euros, gold is close to its all time high.
- The central banks have been known to rig LIBOR, interest rates, currency exchange rates, and (gasp) precious metals prices. Gold reflects the results of their ruinous economic policies of borrowing excessively and repaying debt with printed money. It is therefore essential for them to suppress gold prices.
- The prices shown are for "paper" gold traded on the Comex (among other places). Physical gold trades at a premium and is difficult to find in reasonable quantities.
- The fundamentals driving the world economy are horrible. Most of the people whose economic opinions I respect believe we are heading for a hyperinflationary depression. In this case, the price of precious metals will soar. In his best selling book, Currency Wars, James Rickards predicts that gold as an M2 substitute with only 20 percent of the currency values based on the metal would sell for over $44,000 per ounce. Many believe that his estimate is extremely conservative.
- Gold and silver are the only currency equivalents with no counter-party risk. Compared to dollars, euros, yen, pesos, and any other monetary unit, there is ... no comparison.
In Conclusion: Always remember this old Chinese proverb Man with silver coins will always eat; man with gold coins will always have friends; man with paper money can always wipe butt!
26
posted on
08/19/2012 6:59:44 PM PDT
by
Zakeet
(A good politician is quite as unthinkable as an honest burglar - H. L. Mencken)
To: SeekAndFind
It was too high, that’s why!
27
posted on
08/19/2012 7:08:01 PM PDT
by
Revolting cat!
(Bad things are wrong!)
To: MadelineZapeezda
Darn it! I wanted to buy it in the $1900s, now it’s too cheap.
28
posted on
08/19/2012 7:13:29 PM PDT
by
BipolarBob
(Biden: "HOPE and CHAINS for all 57 states".)
To: MadelineZapeezda
It’s falling because George Soros wants it to... so he can buy it at the bottom right before everyone’s dollars turn to crap.
The only man i’m aware of that can manipulate the market on a daily basis and get away with it.
29
posted on
08/19/2012 7:23:17 PM PDT
by
Safrguns
To: Safrguns
Now there is a useful target for Seal Team 6.
30
posted on
08/19/2012 7:30:32 PM PDT
by
Chickensoup
(STOP The Great O-ppression)
To: Zakeet
“”The prices shown are for “paper” gold traded on the Comex (among other places). Physical gold trades at a premium and is difficult to find in reasonable quantities.””
—
Apparently you are not aware that you can buy a gold futures contract on Comex and take delivery of physical gold.
You can buy an August 2012 futures contract on Comex today for about $1619 and take delivery of the 100 ounce bar at the end of the month. All you need is $161,900 to do the deal. It is the cheapest way to buy gold.
To: Track9
RE: Theres a lot of people betting on the Kenyon getting the boot.
So, you seem to be saying that if Obama gets re-elected, Gold will skyrocket and if Romney gets elected, Gold will fall...
To: SeekAndFind
Soros bought in pretty big a couple of days ago. FWIW
33
posted on
08/19/2012 7:56:33 PM PDT
by
rawcatslyentist
(I'd rather have a bottle in front of me, than a Barack 0b0tt0my!)
To: SeekAndFind
of course the price of a commodity will drop...
if you flood the market
it’d be nice to get a count of what we have left
34
posted on
08/19/2012 7:59:10 PM PDT
by
sten
(fighting tyranny never goes out of style)
To: montanajoe
Its nice to see such a common sense post on gold here on FR. Way too many goldbugs with too much shine in their eyes to see reality.
35
posted on
08/19/2012 8:03:51 PM PDT
by
packrat35
(Admit it! We are almost ready to be called a police state!)
To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...
36
posted on
08/19/2012 8:17:20 PM PDT
by
SunkenCiv
(https://secure.freerepublic.com/donate/)
To: Graybeard58
Are you kidding? I’ve read dozens of posts of people whose fathers bought gold at $850/ounce during the 3 minutes it was sold at that rate.
37
posted on
08/19/2012 8:32:17 PM PDT
by
DeaconBenjamin
(A trillion here, a trillion there, soon you're NOT talking real money)
To: montanajoe
If the dollar becomes like the Icelandic Krona was in 2008, then if you need to import something, like certain medicines or tools, you better have something a foreigner would want.
38
posted on
08/19/2012 8:34:43 PM PDT
by
DeaconBenjamin
(A trillion here, a trillion there, soon you're NOT talking real money)
To: SunkenCiv
The Rothschilds just shorted the EURO for 130 Million Euro's.
Goldman warns of a financial Cliff disaster
Soros, Rothschilds and Goldman have close ties to every Major Government in the free world and more
39
posted on
08/19/2012 8:35:28 PM PDT
by
scooby321
(AMS)
To: Presbyterian Reporter
Apparently you are not aware that you can buy a gold futures contract on Comex and take delivery of physical gold. Of course, you can buy some physical ... a little bit at a time. But, as noted in my original reply, not in reasonable quantities.
Apparently you are not aware that approximately 98-99 percent of all Comex futures paper settle. There simply is not enough physical to meet delivery requirements.
There's nothing like getting fiat (provided your account balance hasn't been stolen by a broker-dealer shades of MF Global and PFG), or even worse GLD shares, when the dollar crashes.
40
posted on
08/19/2012 8:39:49 PM PDT
by
Zakeet
(A good politician is quite as unthinkable as an honest burglar - H. L. Mencken)
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