Gold Just Tanked Big-Time, As Everyone's Scrambling For Cash

The Business Insider ^ | 5-4-2010 | Joe Weisenthal

[dennisw]

Good news for me. I have to buy some pure silver wire that is priced “according to market”

[broken_arrow1]

The Federal Reserve System has disclosed to GATA that it has gold swap arrangements with foreign banks that it does not want the public to know about.

The disclosure contradicts denials provided by the Fed to GATA in 2001 and suggests that the Fed is indeed very much involved in the surreptitious international central bank manipulation of the gold price particularly and the currency markets generally.

http://news.goldseek.com/GATA/1253754000.php

[GOPJ]

I wouldn’t want to be in long term bonds either...

[historyrepeatz]

Silver has dropped at a fraction of what Gold, Platinum and Palladium has dropped. Platinum is down almost 50 bucks!

[Mase]

Yeah, kind of like picking a time in 2007 and measuring it vs. today. Gold will always look like a great investment if you’re allowed to choose your time frame. Of course, for more than 20 years it sucked as an investment, but don’t let that fact keep you from calling those guys on the radio.

[historyrepeatz]

http://www.ajpm.com/

[Mase]

Good times vs. bad times? Depends on who you are, I suppose. However, if you bought an S&P 500 index fund in 1982 you were a lot happier, and richer, in 2004 than those who bought gold. Twenty two years is a long time to go without making much money.

[Lilpug15]

Can somebody explain to me when inflation sets in? It seemed as though many said that deflation was the big issue for now but if other currencies start to tank does that not mean inflation will set in against the dollar?

[dennisw]

The Greek bailout has not stabilized the Eurozone and stopped rising sovereign risk contagion from spreading to the other vulnerable national economies — Portugal, Italy, Ireland, and Spain. Instead, they show increases in interest rates and credit insurance costs. Europe is in for an extended period of economic and political stress, with the Euro itself potentially in doubt.

Only way out for Greece is partial debt repudiation where bond holders get screwed and get 30 pennies on the dollar. Greece departs the EU.
Debt repudiation is deflationary not inflationary. 

At this time (it can change) gold goes up on news of inflation and and a better economy. It goes down on news reminiscent of a 1930s style deflationary depression. At this time gold also goes up on news of currency chaos as in "Do you trust your gov't issued fiat money?"   (or central bank issued)  "Might your gov't issue a new currency?"

[wtc911]

Tanked? A drop of less than 1%?

[Nervous Tick]

>> I thought gold only went up.

Well, my gold SHORT went up, so maybe it does, in an oblique sort of way...

[Deo volente]

I didn’t just “choose” a time frame. I bought GLD (a gold etf) in January, 2007 and it’s up 81% since then.

[newfreep]

Pure silver wire? You sound like a fellow audiophile!

[jiggyboy]

mostly catalytic converters, then electronics (capacitors)

http://en.wikipedia.org/wiki/Palladium

[DeaconRed]

ZERO started printing GOLD. . . . . . . . .

[Yo-Yo]

Gold still UP 81% since January, 2007.

How did the stock market perform during that time?

GLD vs. S&P 500 in the last 6 months. Just sayin.

[alarm rider]

Well, it sounds like you have a clue into this deal, and since I am clueless, but interested, I have a question or two.

Why is Germany mentioned so much when it comes to bailing out Greece?

What would happen if a producing country, say Germany, said “screw this”, we are getting out of the EU? Could that happen?

Thanks,
AR

[paulcissa]

This will be a windfall for Obamalini...

[rickomatic]

Silver has dropped at a fraction of what Gold, Platinum and Palladium has dropped. Platinum is down almost 50 bucks!

Gold is down slightly more than 1%. Silver is down 4.8% as of 11:36 PST.

[dennisw]

Actually for colloidal silver