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Buying frenzy. China bought a huge 10% of world gold output in 10 days.
- Thread starter brownpenny
- Start date
Not sure if you have analysis to show this, but I doubt gold will go back down to $300 an ounce. Inflation alone would likely make that very hard to achieve.
Quote from TraderSystem:
Not sure if you have analysis to show this, but I doubt gold will go back down to $300 an ounce. Inflation alone would likely make that very hard to achieve.
I would question your assumption that there is significant inflation.
Gold could crash hard very easily. It depends on psychology and loyalty from hard core gold investors who may tire of having essentially dead money ( or worse ) after 2-3 years. There is no backstop from industrial demand or growing corporate profits.
As with any highly speculative venture, anything could happen but if world markets settle into any normalcy the next few years, Gold is in trouble. And in hindsight, everyone will think why didn't I expect this, and the answer might be that gold bugs are some of the most vocal promoters in any asset class.
central bankers all over the western world are manipulating the price of gold downward to fool their constituents to believe that their fiat money is not wallpaper on the bathroom wall. the other possibility is that gold has been in a bull market for 12 years without a major correction. therefore a significant retracement is a buying opportunity.
the chinese and russian central bankers are also manipulating the price downward but for different reasons. they are secretly adding gold to their reserves but are seeking to add gold at lower prices.
the chinese and russian central bankers are also manipulating the price downward but for different reasons. they are secretly adding gold to their reserves but are seeking to add gold at lower prices.
Does anyone really think we're on a path to a gold reserve system currency again?
I find that highly unlikely. It would require a complete reset of modern monetary policy.
You know metals are doomed when a new ETF "Platinum" is introduced. When an ETF is rolled out it usually means sheep shearing.....
I could be wrong. Maybe we have a global currency fiasco and war with the remaining and newly formed republics demanding a gold based system but it's too hard to manage with the complexities of today's world. But then again who envisioned iPHONES in 1973 when the gold standard got sixed?
I find that highly unlikely. It would require a complete reset of modern monetary policy.
You know metals are doomed when a new ETF "Platinum" is introduced. When an ETF is rolled out it usually means sheep shearing.....
I could be wrong. Maybe we have a global currency fiasco and war with the remaining and newly formed republics demanding a gold based system but it's too hard to manage with the complexities of today's world. But then again who envisioned iPHONES in 1973 when the gold standard got sixed?
That's some of the dumbest shit I've read in a while.Quote from zdreg:
central bankers all over the western world are manipulating the price of gold downward to fool their constituents to believe that their fiat money is not wallpaper on the bathroom wall. the other possibility is that gold has been in a bull market for 12 years without a major correction. therefore a significant retracement is a buying opportunity.
the chinese and russian central bankers are also manipulating the price downward but for different reasons. they are secretly adding gold to their reserves but are seeking to add gold at lower prices.
A couple of thoughts.
The FED has been monetizing.
They do not have to "Pay for" buying DEBT. They just add zeros to their balance sheet. They can let the debt obligations expire "worthless" on their sheet and/or collect the premium from the party who owes the Debt.
As the world's de facto trading currency the US Dollar can absorb the printing for a very long time.
Now that doesn't mean that to the holders of dollars that it is a great deal other than it is a stable currency. Factually the people getting screwed the most are the smaller economies dependent on our dollars for trade. Fixed income and pensioners.
Hating the Dollar and buying Gold is great but you might just end up with fewer assets. I think gold will again rise at some point in the future (years and years) but the current FED plan is "working." This latest "Great Recession" likely would have been far worse had we been on the Gold Standard and although the world's economic picture is tepid at best it could have been much, much worse.
So love or hate, fat or thin, buy or sell. Make your choice, be happy because in spite of what gets talked about we still have FREE WILL. They might take that away too but that won't be as easy as ZIRP.
The FED has been monetizing.
They do not have to "Pay for" buying DEBT. They just add zeros to their balance sheet. They can let the debt obligations expire "worthless" on their sheet and/or collect the premium from the party who owes the Debt.
As the world's de facto trading currency the US Dollar can absorb the printing for a very long time.
Now that doesn't mean that to the holders of dollars that it is a great deal other than it is a stable currency. Factually the people getting screwed the most are the smaller economies dependent on our dollars for trade. Fixed income and pensioners.
Hating the Dollar and buying Gold is great but you might just end up with fewer assets. I think gold will again rise at some point in the future (years and years) but the current FED plan is "working." This latest "Great Recession" likely would have been far worse had we been on the Gold Standard and although the world's economic picture is tepid at best it could have been much, much worse.
So love or hate, fat or thin, buy or sell. Make your choice, be happy because in spite of what gets talked about we still have FREE WILL. They might take that away too but that won't be as easy as ZIRP.
Quote from zdreg:
explain
I think it wasn't fleshed out enough perhaps. Are you saying that in the event that one or more currencies revert to a gold based reserve that it would be in that sovereignty's best interest to accumulate gold at a reduced basis?
Are you saying that naked short selling occurred and that to cover the shorts that some of the PD engineered a collapse of the metal markets to cover their shorts at a profit and to protect themselves from what would be characterized as immoral, unethical, and perhaps illegal?
Are you saying that there is a "conspiracy?" Perhaps.
But if that is the case I'd look for substantially lower prices in metals because the US can just take the gold (remember the US has 41% of the global military budget) and what you are referring to would be professional level hardball with regard to currency and gov't, yes? I doubt the gov't would pay 1250/ounce if they knew they could accumulate at $500/ounce or just confiscate it.
Quote from Lojanica:
I think it wasn't fleshed out enough perhaps. Are you saying that in the event that one or more currencies revert to a gold based reserve that it would be in that sovereignty's best interest to accumulate gold at a reduced basis?
Are you saying that naked short selling occurred and that to cover the shorts that some of the PD engineered a collapse of the metal markets to cover their shorts at a profit and to protect themselves from what would be characterized as immoral, unethical, and perhaps illegal?
Are you saying that there is a "conspiracy?" Perhaps.
But if that is the case I'd look for substantially lower prices in metals because the US can just take the gold (remember the US has 41% of the global military budget) and what you are referring to would be professional level hardball with regard to currency and gov't, yes? I doubt the gov't would pay 1250/ounce if they knew they could accumulate at $500/ounce or just confiscate it.
thanks for making a cogent argument for substantially lower gold prices.