Posted on 07/20/2015 4:18:06 PM PDT by NRx
Powerful speculators have launched an unprecedented attack on the world gold market, driving prices to a five-year low as commodities wilt and the US Federal Reserve prepares to tighten monetary policy.
Spot prices slumped by more than 4pc to $1,086 an ounce in overnight trading after anonymous funds sold 57 tonnes of gold in Shanghai and New York, choosing the moment of minimum market liquidity in what appears to have been a synchronized strike intended to smash confidence.
The move came after China’s central bank dismayed "gold bugs" by revealing that the country’s bullion reserves stand at just 1,658 tonnes, far lower than widely assumed. While holdings have risen 60pc since the last update in 2009, they are still a fraction of China’s total $3.7 trillion foreign exchange reserves.
(Excerpt) Read more at telegraph.co.uk ...
China is desperate for dollars.
Good.
LOL!!!
Yeah... such as "Governments".
And in other news; assault weapons cause crime and all domestic terrorists are Tea Party members.
OK. So what do you think it means...the drop in gold?
Probably the same thing it meant in the early 80's, when the Aden Sisters and Howard Ruff were predicting $10,000 an ounce.
Deflation.
Actual Deflation.
The only price inflation (food, housing, etc.) isn't due to free-market economics.
It's due to artificial shortages, caused by government policies.
Plus, the economies of most countries in the world, are much worse off than the US. Which can seem hard to believe; but it's true.
And it's going to get worse. The pendulum, unfortunately, is swinging toward Socialism.
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I don’t understand economic in enough detail to sound intelligent...but deflation seems very counter intuitive. But assuming for the moment that that’s what happens, how does it affect gold prices?
Deflation tends to put downward pressure on commodity prices. Gold included.
It means... more sellers than buyers.
China has had a huge real estate and stock market bubble going. It’s just now beginning to collapse.
Assuming their market operates anything like ours, investors on margin will be forced to sell assets.
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