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The Floor Dropped Out From Under Gold
Business Insider ^ | 6-25-2013 | Joe Weisenthal

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 ...


TOPICS: News/Current Events
KEYWORDS: bho44; bhoeconomy; commodities; economy; gold; recession
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To: Cool Guy
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.

Banks have over $1.8 trillion in excess reserves.

I don't think they need to sell anything to stay liquid.

61 posted on 06/25/2013 9:21:18 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: peyton randolph

You are giving bad advice. Go to tulving.com or any physical seller to be cured of your ignorance.


62 posted on 06/25/2013 9:21:21 PM PDT by Atlas Sneezed (Universal Background Check -> Registration -> Confiscation -> Oppression -> Extermination)
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To: blam

If I remember correctly, the current ‘horrible’ price/value of gold is still about $450 above where it was when Obammie the Commie began his economic destruction of this nation.


63 posted on 06/25/2013 9:22:56 PM PDT by Ghost of Philip Marlowe (Prepare for survival.)
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To: peyton randolph
It’s the manipulated paper price for gold. Bears no relation to reality when it comes to physical gold...or silver for that matter.

Paper gold is backed by physical gold. The thing about paper gold is that it moderates both upward and downward movements. When the spot gold price exceeds the ETF share price, ETF managers buy shares (and sell physical gold) until the spot gold price and the ETF share price are identical. When the spot gold price is less than the ETF share price, ETF managers issue new ETF shares (and buy gold with the cash raised), until the spot gold price and the ETF share price are identical.

Storage capacity isn't much of an issue, because the $43b worth of gold owned by GLD would fit into a small living room measuring 12'x12'x12'. Even security isn't a problem, because the fund charges 0.40% of total assets, which comes to $172m a year, to manage the fund. And that management relates mainly to (1) issuing and buying back ETF shares, (2) buying and selling gold in relation to ETF share issues and buybacks, (3) making sure that the gold's kept safe, and (4) keeping up with the requirements of a New York Stock Exchange listing.

64 posted on 06/25/2013 9:23:47 PM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: bimboeruption

He’s already addressed this. He has for years.

Don’t look at PM’s as an investment to make profits. You purchase PM’s to protect your purchasing power for when the monetary unit in your country is destroyed by central management.

If you bought high and the price drops, so what? Hold on to it and pass it on to your children.


65 posted on 06/25/2013 9:25:12 PM PDT by Ghost of Philip Marlowe (Prepare for survival.)
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To: Toddsterpatriot
I don't think they need to sell anything to stay liquid.

I agree, if this drop is driven by banks, then they are just selling high.

I think this is driven by just other non-government sellers (funds, individuals) and drop in retail demand (down markets in emerging economies).

66 posted on 06/25/2013 9:39:19 PM PDT by Cool Guy
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To: Jet Jaguar

m4l


67 posted on 06/25/2013 9:49:43 PM PDT by Scrambler Bob ( Concerning bo -- that refers to the president. If I capitalize it, I mean the dog.)
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To: blam

The Chinese demand evaporated with the rise in rates.


68 posted on 06/25/2013 9:56:50 PM PDT by glorgau
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To: peyton randolph

I would agree.


69 posted on 06/25/2013 10:04:28 PM PDT by Jet Jaguar
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To: CivilWarBrewing

You can’t EAT gold. You can’t BUY food with gold if there is no food.

I’m not suggesting you buy FOOD instead, buy BULLETS. You can’t eat them, but with them you can get anything you want and keep what you’ve got.


70 posted on 06/25/2013 10:17:49 PM PDT by faucetman ( Just the facts, ma'am, Just the facts)
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To: schm0e

In a sense it’s even worse than 2008. Silver got cut in half then; so far $50 down to $19 is a little over 60% off, just over a longer period of time.


71 posted on 06/25/2013 10:20:56 PM PDT by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: Atlas Sneezed

I would not recommend buying metal from Tulving . Yes they have low prices but if you read the reviews people are having to wait months for delivery, the owner will not answer calls, and yells at customers. Mr. Tulving was in trouble with the FTC and went bankrupt.Buyer Beware.


72 posted on 06/25/2013 10:27:00 PM PDT by pterional
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To: Ghost of Philip Marlowe
You've nailed it.

Handful of silver coins will be worth far, far more than a fistful of dollars when the SHTF, which, BTW, is looking more likely every day.

73 posted on 06/25/2013 10:28:08 PM PDT by Eagles6 (Valley Forge Redux)
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To: Ghost of Philip Marlowe

Im far from being in a losing position but Im not worried about it either way. Im not selling cause longterm, our currency is in trouble. Im not selling ANY of my precious metals. Im buying more and im passing it on to my daughter.


74 posted on 06/25/2013 11:10:57 PM PDT by hillarys cankles
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To: Theo

Exactly.

Lest anyone forget, a huge percentage of the folks giggling about a 30 dollar gold decline at any given day here are the ones that spent the last 5 years on here saying it was a “bubble” from about $450 on up.

The only reason their crowing is to reassure themselves they made a good decision in not buying it in the sub thousand range...

Wake me up when 2 silver dimes DON’T buy a gallon+ of gas for about 6-8 months running...


75 posted on 06/25/2013 11:14:23 PM PDT by Axenolith (Government blows, and that which governs least, blows least...)
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To: Toddsterpatriot

Or perhaps another way to see it - the Dollar sucks less than any other currency at the moment.


76 posted on 06/26/2013 2:22:52 AM PDT by taxcontrol
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To: CodeToad

Thanks, chump


77 posted on 06/26/2013 5:11:04 AM PDT by plain talk
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To: CivilWarBrewing

I doubt it. Good luck with that. best strategy is asset diversification.


78 posted on 06/26/2013 5:14:32 AM PDT by plain talk
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To: schm0e
...myths about speculators “controlling the market” are propaganda for the masses...

Propaganda from the masses too.  A lot of people find it so much harder to work for a living than simply sitting back and slandering those that do.

79 posted on 06/26/2013 6:20:05 AM PDT by expat_panama
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To: pterional

Tulving is cranky (his employees are fine), but always delivers. They also disclose wait times (but are slow when your trading in some metal and taking other metal in exchange).

Please post links to tell me more about your claims.

I’m unaware of anyone ever being cheated by Tulving.


80 posted on 06/26/2013 7:43:12 AM PDT by Atlas Sneezed (Universal Background Check -> Registration -> Confiscation -> Oppression -> Extermination)
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