Posted on 06/25/2013 8:01:01 PM PDT by blam
The Floor Dropped Out From Under Gold
Joe Weisenthal
June 25, 2013
Gold is still looking like one of the sickliest assets in the world.
The floor just dropped out of it tonight, sending it to a new low for this cycle.
(Excerpt) Read more at businessinsider.com ...
As I’ve been trying to explain to people, monetary manipulation leads to BOTH inflation and deflation. A Biflationary Depression. http://www.futurnamics.com/biflation.php
Everyone says that, but the silver eagle I paid $26 for would garner me a lot less today. Sure, it’s over spot...but it’s still dropping like a rock.
100%!!
I hope you’re right. I bought some low and some high but I’m still in the red. Luckily I can’t see myself being in a “must sell” position for a while.
When the value of paper currency drops to near worthless, those who have gold will still have something of value.
I wonder what Glenn Beck will have to say about this?
Gold is, however, particularly subject to short-term price fluctuations. Nation-states and their central banks hold about half of the globe's aboveground stores of gold, which which they can and do engineer extreme short-term price declines. And, as more than 95 percent of the gold mined in the past still exists, with most of it in bullion bar form, the globe's stores of gold are perhaps a hundred times larger than annual world production of gold - and nearly a hundred times more potentially influential, on the supply side, to short term price movements.-- Jerome F. Smith, Understanding Runaway Inflation, 1979 Edition, pp 48.
somebody’s buying the dollar, is all.
Well, that what buyers pay on ebay.+/- $3-5.
I think you’ve summed it up nicely.
Summer brings mowing and other activity around this place and it has knocked my blood sugar down significantly.
“I do feel sorry for the chumps that bought into this bubble.”
Obviously an amateur/juvenile person that isn’t a successful investor. If you knew what was going on you wouldn’t have been so rude, and stupid, in your comment.
“it’s the mother of all shakeouts.”
Exactly. This is about shaking loose other people’s money. Manipulation is easy when you’re playing with trillions like the fed is.
If this downward swing is caused by banks, either they have a liquidity problem and are selling assets to stay liquid or they are selling high. If banks are selling now, I would expect it to be the later
Gold didn’t go down, the dollar strengthened by 50%.
Yeah, just try to buy hard gold for that.
the point is this: if you own the physicals (any commodity), you can do anything you want to the spot market. Those myths about speculators “controlling the market” are propaganda for the masses. If banks are selling, it’s because they feel like it, not because they have to.
Utter nonsense. I’ll sell you gold or silver for 10 pct over spot, because I can buy it now for 2-3 pct over.
Indeed. It also has to do with people selling to have cash on hand for other uses (cover margin calls for losses in the equities or to invest in what they believe will be the next pump).
As they say, BTFD (buy the effing dip).
The price of PMs goes down, buy.
Fiat currency is dying.
Also, the powers that be that have been using the Fed’s monetization of the debt by investing the equities markets via the POMO purchases...who now see the equities markets not only here but in China and every other central-bank controlled economy BEGINNING TO COLLAPSE...have a vest interested in destroying the PMs as a safe haven against their manipulation.
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