Posted on 09/22/2014 7:50:29 PM PDT by MeneMeneTekelUpharsin
Gold shined brightly at the beginning of 2014, with bullion prices jumping by about 13% from New Year’s Day until mid-March. But since spring, and particularly since July, gold prices have been on the decline. Last week, the precious metal settled near lows not seen since Christmas 2013. So should investors consider this sell-off as an opportunity to buy precious metals on the cheap? Or is gold really tarnished for some time to come? Sadly for gold bugs, it’s the latter.
There’s always a big argument for gold as the only alternative amid overpriced stocks, a weak U.S. recovery and a fragile dollar that will collapse at any time. If you want to make those arguments in the face of the facts, feel free to scroll down to the comments section and make fun of my receding hairline. But for those interested in reality, it’s important to note how much those arguments have missed the mark over the past few years and how they ignore recent data to the contrary. The stock market, U.S. economy and the dollar are all doing quite well. Judging by recent data, all three look like they will improve.
Here’s why I wouldn’t expect gold to rebound anytime soon, and why the outlook for this precious metal is quite tarnished:
(Excerpt) Read more at marketwatch.com ...
Markets are complex beasts. This story sounds like someone is searching its entrails for omens.
Did governments get their fiscal houses in order and stop printing money???
I would just ask the guy two questions:
Do you have insurance on your house?
Do you complain about it and trash it because it does not show a profit; that you could make more money in the stock market?
Gold has never once in all of recorded history been “tarnished for good.”. Ever.
How does a guy who lives in 1985 transmit messages to us in 2014?
If there is a military offense taking place right now, that would explain why gold went down for the last week, and in particular the last day.
Depending on how thing go, it will either go back up or it will go down further.
The gold market has to get slammed before there is a base to support a very large rise. I’d just as soon get this done now than wait a couple years.
Getting slammed doesn’t mean over. It means creating a base to build from.
He’s right.
A rising dollar pushes down the price of gold. (and also oil.) plus any other commodity priced in dollars.
Videotape. He never set the date and time on his VCR.
“for good”?? he can predict the future out to infinity?
How odd.
The world is on a war footing, plagues are rampant, China rules the financials, the US is at last broken, in retreat financialy, apparently militarily also and collapse is a familiar word.
And gold is DOWN?
It must mean I’m really stupid to be laughing out loud.
Precious metals leading stocks down.
I agree.
The only thing I could think of was Ebola, but now with conflict it appears something could become big.
Gold is a hedge against declines in equity markets. That’s the only reason I have any in my portfolio, and I’m not disappointed it’s down, since equities are up.
Goldbug ping.
Most who buy gold do not buy it for profit as much as for protection.
Gold is down right now because the hogs are chasing the rise in the market, which is based on the crazy policies of the FED.
I suspect that everyone reading this thread is well aware of the old adage that the market slaughters hogs. The author tips his hand when he brags that the economy is on the rise, unemployment is down to 6.1%, etc.
The unemployment numbers are totally misleading and unless you look at how many new hires are temps, at what level are their wages, how long are their hours per week, you are looking at obumbler smoke and mirrors.
In addition, look at new jobs created each month versus the number who lose their job. plus the number of kids entering the market, plus the number of illegals sneaking over the border and soon to be looking for work and you see that the 6.1% thing is total BS.
Now given that the author is totally ignorant of the real world or is a shill for the criminals in DC, who would even consider his advice?
Yes
Gold is still quite elevated by historical standards, even with the recent declines and the precipitous drop on Friday. The world is still in a very uncertain state verging upon perilous. In light of this, saying it’s tarnished for good is foolish. Saying any store of value is anything “for good” is foolish. Who knows what the future holds, that might send people screaming into precious metals once again? Flight to safety is a well-known effect of severe economic dislocation. That can have numerous causes. I tend to believe that the dollar strength we’re currently experiencing is flight to safety. Dollar strength can and does drive down the price of gold in dollars.
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