Why is gold tanking?

[NewTraderAdventure]

its tanking because its a con game like botcoin

 

[NewTraderAdventure]

You need to quit with your "public/retail" argument...get over it. This is the world of institution dominance. The public doesn't participate the same way they used to probably because they're in too much debt. Your arguments about comparing "yields" to determine if stocks are cheap is ridiculous as well. Anything "yield" is so skewed right now because of central bank manipulation...how could you even trust yield comparisons?

Was gold a dumb comfort pick when it went from $700 during the crises all the way up to $1900 after the crises? Was it a dumb comfort pick when it went from $300 to $1000 in 2007? Dude, your argument is weak. So, if you do the math, gold lost 30% during the stock crash of 2008...what's it going to do after the crash this time? Especially considering all the damn debt public and private/QE/underfunded pensions/possible negative rates for the U.S./deeper negative rates for the rest of the world all being ramped up to further extremes. The fact that the FED had to manipulate the market up during a weak expansion and now it has to take it to a level so absurd to pull us out of this crisis is gold worthy. What about investors who've made bank this whole stock run and are NOW going to gold for the next government crack reflation trade? That doesn't sound like "dumb money"...they'll outperform and make bank on both sides of the cycle.

You've been the loudest cheerleader on this site for being a permanent stock bull. All I hear from you is "buy the dip". What do you say to the people you can't buy the dip because their already fully invested...you've admitted in the past that you've been basically fully invested as well. Are you ever going to stop being a broken record?

gold has spent more time going down or sideways than up

 

[gtor514]

Gold responds to inflation/deflation. During the economic crisis and now with the Coronavirus Pandemic, growth is falling precipitously. No demand with excessive supply is deflationary and gold prices are going to fall along with all other assets.

 

[KCalhoun]

It's tanking because one certain talking head said to booyah buy it 2 weeks ago, lol

#fadecreamer

Having said that, now might be a good time to buy, I bought a little NUGT Friday into the close, following NEM and sm caps like AUY, plus inverses like JDST epic eod breakout fri

 

[BONECRUSHER]

gold has spent more time going down or sideways than up

Would you rather have an investment that spends more time up than down, but is down in value? I get what you're saying, but I don't need my investments to make me feel secure. As long as the investment has a good probability of putting me way ahead at some point...I'm good!

 

[BONECRUSHER]

Gold responds to inflation/deflation. During the economic crisis and now with the Coronavirus Pandemic, growth is falling precipitously. No demand with excessive supply is deflationary and gold prices are going to fall along with all other assets.

Agree to a point. The fundamentals for gold are actually improving, so expect a big reflate rebound at some point.

 

[BONECRUSHER]

its tanking because its a con game like botcoin

Please bring up a chart of gold vs. US Dollar since the early 1970's (removal of gold standard). Gold blows the dollar out of the water...the dollar is a con game especially last 50 years. I agree "botcoin" is also scam.

 

[Specterx]

Hello All,

Can anyone shed some light?

I would think that in a market like this, laden with unusually high risk levels, peeps would flock to gold.

But no! Gold fell today from yesterday's close at 1640 and has plunged to a price of 1565 at this moment!

Why why why is the sky blue??? I don't understand.

--Keith

@admin: I put this here instead of commodities b/c it's more of a trading question.

Check gold during the Lehman bust, it fell something like 30% in the crash phase and subsequently recovered in 2-3 months.

The pattern in this cycle has been more or less the same, so far, except we had a very truncated "fearful but not crashing" period. Smart money is either DCAing or monitoring for defined buy signals, as weak hands are puking out their positions to cover margin calls on unrelated holdings - against the backdrop of a clear medium-term uptrend and abject panic printing by monetary authorities.

 

[lorax2013]

Gold tends to rise during inflationary periods and fall during deflation. These short term deleveraging events like now or 2008 are deflationary so gold tends to fall short term. People need cash and sell everything to cover their obligations.

The banking industry response however, is vastly inflationary so you should see gold and everything else rising in dollar terms fairly soon. Gold will tend to respond faster since industry and the industrial commodities take slightly longer to recover along with economic activity as a whole.

 

[easymon1]

gs gc call