Posted on 04/04/2012 7:21:42 PM PDT by RC one
NEW YORK — The price of gold, which has climbed for years like a blood pressure reading for anxious investors, plunged Wednesday to its lowest level in three months.
Gold fell almost $58 to $1,614 per ounce. It has declined 15 percent since September, when it hit a peak of $1,907. It had more than doubled from the financial crisis three years earlier.
The decline Wednesday came on an ugly day in the stock market. The Dow Jones industrial average lost 125 points — a day that last year probably would have caused fearful investors to buy gold as a protective investment.
"It's difficult to forecast, but I think the gold bull market is over," said Cetin Ciner, a professor of finance at the University of North Carolina-Wilmington. He likened the surge in gold to dot-com stocks before they collapsed.
(Excerpt) Read more at cbsnews.com ...
it's just algebra.
it's gold is selling off, I'd be inclined to buy it all the way down to where ever.
...and yet there were several posts here at FR in the last week predicting this price drop.
Except, perhaps, more people are beginning to realize that, except for some specialized industrial uses, gold isn’t good for much of anything.
‘is this the end of the gold rush?’
pretty simple question. are they making the dollar stronger... or weaker? let’s see...
the ‘budget’ is around $4 trillion on revenues of $2 trillion with a debt of $16 trillion.
to bring that down to terms everyone can understand.... if you made $50k/yr but spent $100k while holding $400k on your visa... you’d wouldn’t just be considered a very bad risk... you’d be considered a deadbeat and jailed
therefore... is the dollar getting stronger? not only no, but HELL no.
hence... gold will continue to go up, excepting for obvious price manipulation which can only last so long
Ping.
Could be time to BUY!!!
Obama is still there.. and might be THERE for 4 more years..
Romney will be so easy for Obama to kneecap.. eye poke.. and provide vicious SLAPPS..
Zerodamus has Not even STARTED to really campaign YET...
He can AND will BBQ Willard..
it tickles me pink to know that people think like this.
Wrong question (in the article).
The right question: Will the USA continue to spend and borrow and print dollars on a massive scale?
If the answer is yes, then the right question becomes: Will the dollar’s value continue to drop in value vs. the value of real assets?
Many other countries understand the the US is abusing the reserve currency status of the dollar, and understand that they can start engaging in international trade without going through the dollar as the exchange currency. Although the dollar may look better than the Euro and the Yen for a while longer, it is only a matter of time before there is a dollar exodus, interest rate hikes and a time when other countries refufse to buy US Treasury debt.
In 2011, the US Federal Reserve bought 61% of debt issued by the US Government. This is monetizing our debt. This will continue massively. It is false to assert that this is not QE... plus we’re ignoring the fact that Operation Twist - currently going on - is also QE in the form of the Fed buying more US debt...
Gold will hold its real value over time, but with these facts, the dollar will not.
It has been good for at least one thing for over 3,000 years though and plenty of people realize that too. If it weren’t good for that, it would cost $1,600 for an ounce of it. We require currency to engage in commerce. paper works for most people despite its overall weakness but gold remains viable.
They don’t call them SeeBS for nothing.
Sometimes gold needs to become food. Yield realized on sale, to a greater fool. Make sure you have one when hunger hits.
Future inflation has been setup - some trillions of $ generated without any production or value supporting them. When the flood is released by the FRB, when and if economic activity picks up, inflation in more than food, fuel, and services will rear up.
Leave it to CBS to ignore the obvious facts.
March was the largest Investment redemptions month since 2009. Must be because the economy under Obama is going gang-busters, right?
The sheeple are bailing from the markets, and need the money to BUY GAS to get to their new minimum wage Obamajobs.
Volume in the markets has been at, or near historic lows as retail investors have largely pulled out. the Trading Houses are selling gold to cover redemptions and market shorts.
As soon as Helicopter Ben mentions the phrase “QE3”, gold will SKYROCKET.
I’m a “fan” of gold without being religious about it. I sold 1/3rd of my gold at $1750. and don’t plan to ever be all the way out of it. It has come a long way. Although I will buy a few hundred bucks of silver almost any time if I can get a good price relative to spot, I believe gold may have some resting to do. I could see $1350 as an interim low point for gold, but more likely about $1530. I believe that those who are looking to buy should wait to see how gold behaves should it lose $1600.
If you buy the inflation argument, which I do, to some extent but only after some further interim deflation of major assets, I believe stocks are going to be better for pure capital gains. Meaning, they rise, then you sell them. Many investors are not into gold for that activity. Capital gains are not easy to capture in gold, physical gold. Gold is not easy to time selling and buying, and of course the spreads are punitive. Right now, the metals charts look like pure crap. I’d be in no hurry to buy at this exact point. We enter a traditionally weaker time of the year soon and IMO you just wait up to 60-90 days and watch. I have a very low basis in my silver with an average price of about $13 but not so for gold.
I also think that if interest rates rise, gold could be punished. I’m kind of sitting on my hands at this juncture.
Evidence that we are not far from a bottom in the gold price.
I think silver is still a better buy than gold for the time being. But if gold comes down some more... It’ll get back into “buy” territory.
Buy from the dips (people who watch CBS news).
I dunno. My gut is that the bottom (for now) is around $900.
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