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Message
Gold...why is it down?
Posted on 2/20/13 at 8:19 am
Posted on 2/20/13 at 8:19 am
With the Fed QE running at 85B/month...why is gold going south? Seems that it should be the opposite.
6
Posted on 2/20/13 at 8:26 am to RCDfan1950
quote:
85B/month
IMO, because that money is tied up in "big banks'" balance sheets and has not reached the people that would purchase gold. As soon as that money reaches the consumer (when velocity picks up) expect gold prices to increase.
Posted on 2/20/13 at 8:32 am to GumboPot
So, GP...the fact that all that extra money does exist - though not active in the economy - does not devalue the relative value of money, and create rise in the demand for real stores of value? Damn this stuff just don't make sense to me. 
Posted on 2/20/13 at 8:35 am to RCDfan1950
Gold has a well documented history of increasing in value as investors flee the market in periods of economic decline/uncertainty. The fact that gold is now decreasing in value is probably an indication that the leading macroeconomic indicators (CPI,Inflation,Housing Starts) combined the DJI topping 14,000 has investors moving back into the equity market.
Posted on 2/20/13 at 8:38 am to wiltznucs
Yep, W...just watched Stewart Varney and some dude say the same thing. Even while Countries are engaged in what is a printing frenzy/currency war.
Said that gold just 'sits there'...with no real return; and that a lot are jumping in the Market.
Way over my head.
Said that gold just 'sits there'...with no real return; and that a lot are jumping in the Market.
Way over my head.
Posted on 2/20/13 at 8:44 am to RCDfan1950
quote:
though not active in the economy - does not devalue the relative value of money, and create rise in the demand for real stores of value?
In the long run it certainly does. In the short term you'll obviously see fluctuations. Also, remember other central banks are devaluing their currency too. If their currency devalues at a higher rate than the Fed the net effect is a stronger dollar especially where we are direct trading partners with those countries under those central banks (bank of china, japan, ECB).
I'm sure you get a much more informed answer form the likes of Russian, Poodle, Fizzle, Flask, Fenton, or Benny, but there's my $0.02.
This post was edited on 2/20/13 at 9:12 am
Posted on 2/20/13 at 9:02 am to RCDfan1950
Because you touch yourself at night. 
Posted on 2/20/13 at 10:48 am to wiltznucs
quote:
increasing in value as investors flee the market in periods of economic decline/uncertainty.
Not exactly, gold fell almost 25% in 2008 and this coincided with the fall of the market. People were selling to cover their other losses. When the economy is looking soft gold tends to suffer as it is seen as an inflation hedge.
Posted on 2/20/13 at 11:03 am to RCDfan1950
I stopped asking myself that a while ago. Gold should be higher. Much higher.
I subscribed to Jim Sinclair's newsletter (other paid subscriptions being Casey Research, Stansberry Resource Report) and here's what he has to say about the recent gold smackdown.
Please do not be hoodwinked by these demonic sociopath bankster gold banks that, just like in 1979-1980 with the help of Trojan Horse gold writers, stole a huge amount of gold and gold shares from long term cash investors, leaving them without any insurance as the gold market made the highest price and covered the most dollars of appreciation over the shortest period of time.
In the 70s gold appreciated on the basis of what MIGHT happen. Gold is going to and through $3500 because of what has already happened already. Not one more problem by one more dollar is required for gold to attempt to move in price to balance the balance sheets here, there and everywhere.
My advice is to hold all gold positions and wait patiently for the correction to end. Just before the huge 1979-80 surge, we saw a big ‘clean out’ correction in gold. I believe history is about repeat. — Richard Russell
You have heard it from Richard Russell and myself. You can be active in the gold and gold investment market by simply doing nothing. The new evil demonic gold bank destroyers of good efforts are working hard to create a waterfall in gold and gold shares that can only happen if you are foolish enough to shift your decision making to your emotions. If you want to fight back, do not under any circumstances panic now. If you do not panic they will be beaten as this is the last significant reaction before gold roars higher. If you want to be in the fight and not simply a spectator, you simply have to do nothing whatsoever.
Richard Russell and I are not newcomers to the gold market. Neither Richard nor I have experienced embarrassment as leaders, directing our friends into a trap of price or time. We will not fail now. Our legacy will be extremely clean.
Gold is heading toward the system and not away from it. Gold is the necklace many currencies will be wearing from 2015 forward. The percentage of gold being held as reserves seems to have a 15% target on it. That should give you an easy way to compute what these central banks are thinking in regard to the ultimate value of gold in the free gold cash market.
Gold is the only tool available to balance the balance sheets of the worst monetary deficit, debt, sinners. Gold will balance the balance sheet of the transgressors. The transgressing central banks have to balance their balance sheets as the world cannot continue forever on this QE sponsored illusion of solvency.
Jim
I subscribed to Jim Sinclair's newsletter (other paid subscriptions being Casey Research, Stansberry Resource Report) and here's what he has to say about the recent gold smackdown.
Please do not be hoodwinked by these demonic sociopath bankster gold banks that, just like in 1979-1980 with the help of Trojan Horse gold writers, stole a huge amount of gold and gold shares from long term cash investors, leaving them without any insurance as the gold market made the highest price and covered the most dollars of appreciation over the shortest period of time.
In the 70s gold appreciated on the basis of what MIGHT happen. Gold is going to and through $3500 because of what has already happened already. Not one more problem by one more dollar is required for gold to attempt to move in price to balance the balance sheets here, there and everywhere.
My advice is to hold all gold positions and wait patiently for the correction to end. Just before the huge 1979-80 surge, we saw a big ‘clean out’ correction in gold. I believe history is about repeat. — Richard Russell
You have heard it from Richard Russell and myself. You can be active in the gold and gold investment market by simply doing nothing. The new evil demonic gold bank destroyers of good efforts are working hard to create a waterfall in gold and gold shares that can only happen if you are foolish enough to shift your decision making to your emotions. If you want to fight back, do not under any circumstances panic now. If you do not panic they will be beaten as this is the last significant reaction before gold roars higher. If you want to be in the fight and not simply a spectator, you simply have to do nothing whatsoever.
Richard Russell and I are not newcomers to the gold market. Neither Richard nor I have experienced embarrassment as leaders, directing our friends into a trap of price or time. We will not fail now. Our legacy will be extremely clean.
Gold is heading toward the system and not away from it. Gold is the necklace many currencies will be wearing from 2015 forward. The percentage of gold being held as reserves seems to have a 15% target on it. That should give you an easy way to compute what these central banks are thinking in regard to the ultimate value of gold in the free gold cash market.
Gold is the only tool available to balance the balance sheets of the worst monetary deficit, debt, sinners. Gold will balance the balance sheet of the transgressors. The transgressing central banks have to balance their balance sheets as the world cannot continue forever on this QE sponsored illusion of solvency.
Jim
Posted on 2/20/13 at 11:28 am to goodgrin
I'm copying my post from another thread...
The US dollar has been in a nice uptrend, which doesn't help PM prices.
1500-1550 is the first level of support for gold, with 1400 being the second (and last IMO) support for gold bulls.
In silver 26 should hold if we are still in a silver bull, though 28 should provide support.
As far as metals go, the one I like the most at the moment is platinum. Big time supply issues with south africa mining problens and Chinese auto sales (combined with government crackdown on the cars having effective catalytic converters) increasing demand could set up an explosive scenario.
Main reason is the US Dollar has been going up pretty well. The Japanese Yen and Euro are going down which is driving the dollar up.
The US dollar has been in a nice uptrend, which doesn't help PM prices.
1500-1550 is the first level of support for gold, with 1400 being the second (and last IMO) support for gold bulls.
In silver 26 should hold if we are still in a silver bull, though 28 should provide support.
As far as metals go, the one I like the most at the moment is platinum. Big time supply issues with south africa mining problens and Chinese auto sales (combined with government crackdown on the cars having effective catalytic converters) increasing demand could set up an explosive scenario.
Main reason is the US Dollar has been going up pretty well. The Japanese Yen and Euro are going down which is driving the dollar up.
Posted on 2/20/13 at 11:34 am to LSU0358
Is Silver a good buy at this price?
Currently at 28.66
I bought a bit at $30.10 a few weeks back, trying to decide whether to load up.
Currently at 28.66
I bought a bit at $30.10 a few weeks back, trying to decide whether to load up.
Posted on 2/20/13 at 11:42 am to Lsut81
quote:
Is Silver a good buy at this price? Currently at 28.66 I bought a bit at $30.10 a few weeks back, trying to decide whether to load up.
I just bought 80 more ounces at Liberty Coin and Precious Metals earlier this morning in between treating patients. Best bang for the dollar IMO, outside of junk silver coins, is the 10 oz. Morgan silver bars.
Silver could go lower, into the $25-26's. If the prices touche those levels, don't expect them to stay at those levels long since the demand would push the prices higher. Lower prices doesn't bother me since I would be buying much, much more at those prices. It helps to be a long term investor.
Posted on 2/20/13 at 11:44 am to goodgrin
quote:
10 oz. Morgan silver bars.
Que?
Posted on 2/20/13 at 11:47 am to Lsut81
quote:
Que?
Posted on 2/20/13 at 11:59 am to OnTheBrink
So its just a bar with a morgan dollar in the middle 
I buy just 1 and 5oz bars...
I buy just 1 and 5oz bars...
Posted on 2/20/13 at 12:00 pm to Lsut81
It peaked my interest too so I googled it....
Posted on 2/20/13 at 12:06 pm to OnTheBrink
I believe a 9/1 ratio on gold buying Dow has been a winning formula. 1580 x 9 is 14220, market at 14019, so it's seems to be a stalemate at the moment.
Posted on 2/20/13 at 12:42 pm to goodgrin
What percentage of one's investment portfolio should be in gold/metals for it to act as a true hedge?
Posted on 2/20/13 at 12:58 pm to Lsut81
quote:
So its just a bar with a morgan dollar in the middle I buy just 1 and 5oz bars...
No, it's just a bar with 10 oz. of silver bullion graded at .999 purity. It's easier to store than 1 and 5oz. bars. Less bars to stack.
Posted on 2/20/13 at 1:04 pm to Jake88
quote:
What percentage of one's investment portfolio should be in gold/metals for it to act as a true hedge?
Depends on what you consider to be a true hedge? 10% might be adequate for some folks, but not for me.
The big question is do you want your lifestyle to be maintained or even at a higher level when inflation goes higher? (hint: it will go higher. Much, much higher in the near future coming soon to a country near you) If so, then place a higher percentage of your investment portfolio in physical metals, mining stocks, maybe an ETF if you're uninformed, gold/silver mining index fund.
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