Federal Reserve is preparing a trap, a golden trap to lower price of gold

Quote from Rationalize:

Gold has in intrinsic value? :confused:
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Sure. It's worth some as an industrial metal. Doesn't corode and it can be spread very thin. Industry needs very little of it tho.

If it wasn't for jewelry and for some reason currency proxy, you probably couldn't give it away. Too soft to be of much use...
 
Quote from Labor:

Hello peers

I smell a trap, after reading countless articles about naked short selling of JP morgan and other vestigial organs of the Fed throughout the years.

I came to conclusion that Fed wants price of gold and silver as low as it can be and rumors are they largely succeeded because gold would be 3000+ if it wasn't for Fed efforts

Now that none of the fiscal problems are fixed, on the contrary we have even more problems and bigger debt. How do you explain a drop in gold?

Consider this, regular people are not into buying gold. Gold is NOT a bubble. Fiscal problems are not fixed.

So why is Gold dropping?

I believe that through magic of naked short selling, Fed will manage to bring price of gold even lower. In order to try and force natural selling of gold holders. All of this will work until it completely blows up and gold shoots to 3000+

Market manipulation short and simple, and I personally believe this will blow up by end of 2012.

I am not going to sell my gold bullion which I bought at 1600, not for at least 2 years, until I see how this mess will end.
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Fiat currencies have never survived .

http://dailyreckoning.com/fiat-currency/
 
Quote from Rationalize:

Gold has in intrinsic value? :confused:
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Sure. It's a metal with meaningful industrial uses, so it has an actual value outside of "hedging against reality".

Since that value is very low relative to its trading value, it means Gold is by definition in a bubble state.
 
The reason that the Fed is depressing the gold price is because of a discovery by Larry Summars and Robert Rubin that as long as gold price is under control printing of usd will not cause inflation. I do not understand the connection between gold price and inflation honestly. I have been trying to locate the paper.
 
Quote from Random.Capital:

The basic premise is wrong: gold is, in fact, in a bubble.

Any asset where the intrinsic value is < 10% of the current selling value is, by definition, bubbling.
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Then what about real estates, houses?
 
I just like the way the sparkly gold looks when it is worn by my lovely wife. If it costs me less to buy it tomorrow than it did today I will just smile and buy more.
 
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