Posted on 04/15/2013 6:41:57 AM PDT by Sub-Driver
Gold Rout Continues By CLEMENTINE WALLOP, BIMAN MUKHERJI and FRANCESCA FREEMAN
Gold continued to take a battering on the spot market Monday, shedding nearly another $100 per troy ounce after weaker than expected data on Chinese first quarter growth sparked a new wave of selling on concerns that China and India, the world's two biggest buyers, may slow purchases.
The price of gold slumped to $1,400 an ounce in what appears to be panic selling after China’s first-quarter growth came in lower than expected. Other markets were also hit, with silver and other commodity prices and currencies like the Australian dollar are falling too. Photo: Bloomberg
Around midday in Europe, spot gold was down 5.2% at $1,404 a troy ounce, having earlier tumbled around $95, or 6.4%, to a two-year low at $1,385.88/oz. This follows Friday's rout, when the metal fell 5%, pushing it into bear-market territory.
Gold prices have plunged some 11%, or $170 an ounce, over the past week.
Worries are spreading that Asian buying, which has helped prop up gold prices for years, may be fading. China reported its economy unexpectedly slowed last quarter, spurring fears that Chinese consumers, faced with less cash, may stop purchases. In India, the largest gold industry group warned that the country is losing confidence in the metal because of the recent slide. Investors in Europe cashed out of the metal en masse amid concerns that U.S. stimulus may be cut short, and following news that Cyprus may sell a chunk of its gold reserves to fund part of its bailout package.
"The market saw gold going lower and everyone panicked," said Pradeep Unni, head of research at Richcomm Global Services, a Dubai-based commodity broker. "The most important factor for gold now is Indian and China demand."
(Excerpt) Read more at online.wsj.com ...
‘Low’ is relative. Most of my relatives are ‘low’...............
Can’t Print Gold”- William Devane
LOL Can’t eat it either!
The reality is, gold shall never be worth zero. Perhaps is a huge solid-gold meteorite landed in Antarctica, essentially tripling or quadrupling the world’s available gold supply, there would be a severe depression of its trading value, but as always, the price of gold is in no wise related to the cost of its production or its intrinsic value as a component of other products. It is purely the demand matched up with those who are willing to sell at a given price.
People shed their ownership of gold because other demands and debts are more pressing than the potential mortgage value of the gold they hold. People buy gold because they simply have too much money on hand and no place to actively invest it.
It’s not about price, per se, it’s about possession.
People holding “paper” gold realize they don’t have the physical stuff and are panicking.
Paper gold has been re-hypothecated many times over.
Time to pay the piper.
Also, CNBC sauid again this morning, this *proves* gold is jsut a worthless, shiny metal...
If it’s so worthless, why are all the central banks buying it?
After forty years plying in the market there is generally one truth:
EVERYTHING eventually reverts to the mean.
Manipulation. The fed is putting $85 billion per month, $1 trillion per year, into the stock market which is only $15 trillion in the first place. In other words, the fed is buying the stock market, propping up prices illegally through their money laundering scheme, and people are selling gold to get back into the stock market.
To date the fed has put in at least $3.2 trillion into the market. How much stock they hold is unknown as they no doubt trade as well.
I believe this to be a tactic to own the stock market. Obama, et al., are Marxist/Communists and want to completely control our economy and what better way than to buy the stock market, or at least controlling interest of 51%.
All they need to do is also raise interest rates. That will tank the economy and they can finish buying off what is left.
I heard a rumor that they learned how to manufacture gold much cheaper now, and that is why the price is dropping...
(just kidding)
Low commodity prices are not exactly the harbinger of doom %100 of the time, the 90s glut of stuff did the USA ok for the most part, unless you were a hog farmer circa 97 Asian contagion, that sucked.
Now look at that hockey stick!
I think you are right. Real gold/silver is on back order but paper gold/silver is being dumped (and rightly so). The media lickspittles are purposely giving the impression that real gold/silver is in a bubble and headed to zero. Hold on to what you have and buy more when you can because when the dollar/yen/euro crash within a year or two, I’m convinced that real gold/silver, farmland etc will go up over 500% (the amount that those currencies have increased since Hussein was elected).
It would be nice if ammo prices crashed.
I have that one figured out already...
OK, everyone, on the count of three, STOP BUYING AMMO.
Fallen nearly 8% so far today. Someone’s buying but not me.
>> Buy low.......
Of course... but that’s different from “buy on the way down”. :-)
Lower-than-yesterday ain’t necessarily low.
>> OK, everyone, on the count of three, STOP BUYING AMMO.
At least, stop buying .22LR, would y’all? I’d really appreciate being able to buy just ONE brick so I can actually shoot my new 10/22. :-)
>> Humble yourself to the market and it will exhault you.
A rather pithy statement, even if you did misspell “exalt”.
It would be nice if ammo prices crashed.
You are from the school of “everyone gotta shoot”
I am from the school “everyone gotta sh#t”
So i have been stocking up on toilet paper!!!
:)
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