That won't last forever.
Because they are gold bugs. They see every scenario as a reason to buy gold. And they make crap up to entice others to buy gold.
Eventually our national debt and the end of the dollar as the international reserve currency will drive it back up.
“How Could Gold Bugs Have Been So Wrong In 2014?”
Simple, they fail to understand that gold is no different than stocks and it’s price is controlled in the same way.
Brokers and traders skim the cream off the top and buyers are stuck with what’s left in the bucket, except the buyers gets to pay for it all.
Gold is valued in dollars, and the value of those dollars is manipulated just like the rest of the stock market.
Nonsense. That’s around the time people were buying up ad space to unload their gold holdings. That isn’t the act of people who “have your best interests in mind” and who live to make other people wealthy.
Just think.
Out there somewhere there’s a guy.....
.....who converted everything into Gold Bullion, Bitcoin and “call” options on crude oil.
(He should have bought P-Marlowe Coins instead!)
Predictions are hard. Especially about the future.
Look at what oil has done as well, no one saw that coming either.
(What do you call oil speculators anyway, Lubers?)
It is almost certain that the price of gold will do one of two things next year. It will either go up or it will go down. There is a slight possibility that it will stay exactly the same.
Anyone who tells you that they know what the price of gold will be at the end of next year (or next month or next week) is lying. If I knew which way it would go I would be a billionaire by the end of the year.
$1,000 worth of gold bought in 2000 is worth about $3,600 today. Silver about $3,000.
India used to be the world’s number one importer of gold. India began restricting the importation of gold in 2013 and I believe they have a total ban in effect right now. That has certainly reduced the demand side.
Some gold bugs spin plausible stories in order to sell gold. There’s little necessity for owning gold so demand is going to be elastic to say the least. People buying gold in January 1980 were convinced that it could only continue to go up. They had to wait a very long time just to break even.
Who thought this, in the middle of a raging equity bull market? GoldLine salesmen and Glenn Beck perhaps. Ridiculous. I've been telling FReepers since Feb 2009 to buy, buy, buy, on the way to Dow 20k. Dollar also will rally more, and get to parity w Euro. The fun has just begun.
We are instead in an era of "financial repression" in which the Fed and the US Treasury and the G-8's other central banks are deliberately keeping interest rates low in order to manage the carrying costs of the massive public debts racked up by the their governments.
In addition, the tightening of financial regulations increasingly directs large pools of investment cash into the purchase of government debt and away from equities and commodities and corporate debt. Finally, the lack of tax cuts has diminished economic growth and implies greater austerity in the years to come.
In such an environment, money velocity is down due to an increased preference for the holding of cash and cash equivalents. Thus much of the new money created by the Fed does not go into the purchase of new goods and services so as to spur inflation.
Most notably, oil -- the central commodity of the modern world -- has declined in price due to the development of oil shale fracking in the US, a relatively weak world economy, and tensions between Saudi Arabia and Iran. Yet such factors are facilitated by the US financial regime that is suppressing inflation despite the Fed's massive dollar creation in recent years.
The recent declines in the gold price further signal that the world is recognizing that catastrophic inflation is not in the offing. That is too bad for gold bugs -- but good for the rest of us.
Because gold is money... currency never has been, is not now, or ever will be MONEY...
Petro Dollar is going up as oil price crashes, Euro’s and Rubles and all other currencies are going down and everyone in the world market are putting their money in dollars raising its value, with the dollar rising gold is dropping. Gold had to lower in value as oil prices cut in half with the dollar and oil pegged together. As soon as gold goes below $900/ounce I start buying and expect when the market finally corrects and the economy implodes gold will start to increase again. This will continue as long as the dollar remains the reserve currency and there is nothing else out there until America defaults totally on its debt and that time is coming soon.
Maybe they thought he was John F. Kennedy.
Gold would have been a great investment in Russia, though.
Goldbug ping.
“Gold miners, after a year of operating at an aggregate loss, have seen their market values crater. “
Maybe so, but gold was at $250 not long ago. I think gold has done very well for itself and will continue to do so. I did just fine even when Uncle Sugar was printing dollars as fast as the printing presses could go. They tossed in $1 trillion a year and gold still held firm against such manipulations.