Author Topic: Gold Investors Exit Amid Price Collapse  (Read 589 times)

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Offline mystery-ak

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Gold Investors Exit Amid Price Collapse
« on: April 15, 2013, 10:06:39 AM »

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Offline Relic

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Re: Gold Investors Exit Amid Price Collapse
« Reply #1 on: April 15, 2013, 10:20:29 AM »
The world is a confusing place, and there is no place in the world more confusing than Wall Street. I am at a loss as to how to reconcile the fall in gold prices. The steady improvement of the US economy? Really? Where?

Offline jmyrlefuller

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Re: Gold Investors Exit Amid Price Collapse
« Reply #2 on: April 15, 2013, 10:34:57 AM »
The world is a confusing place, and there is no place in the world more confusing than Wall Street. I am at a loss as to how to reconcile the fall in gold prices. The steady improvement of the US economy? Really? Where?
More likely is the fact that the goldbugs overextended their hands and fueled a speculative bubble. That, and the money supply is tightening, at least for now.

Offline GourmetDan

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Re: Gold Investors Exit Amid Price Collapse
« Reply #3 on: April 15, 2013, 11:36:13 AM »
More likely is the fact that the goldbugs overextended their hands and fueled a speculative bubble. That, and the money supply is tightening, at least for now.

This is really a pure paper plunge.  Sovereign buying of physical gold is way up YOY.  Course, sovereign buyers (Russia and China) will gladly stand aside and let the U.S. and G.B. crash the price.  Buy the real stuff a lot cheaper if they can.  Get a lot more gold for your USD fiat.  The financial crisis has proved once again that paper burns.

The money supply isn't really tightening.  Just the Fed talking about thinking about doing it.  Japan is committed to printing yen, U.S. is still printing 85B/mo (that's almost $1T/yr), Euro will need to print as well.  A contraction in the money supply would crash the U.S. and world economies.  Who knows, maybe that's in the plan.  Happened in the 30's till WW II was launched.

Gold could always go lower and could stay down for a long time.  OTOH, it may rebound from these levels.  Nobody knows except the banksters and their unlimited paper.  If you were thinking about buying though, this is a better time than in a long time.  "Blood in the streets" and all that. 

JMO, this is not investment advice, DYODD.



"The heart of the wise inclines to the right, but the heart of the fool to the left." - Ecclesiastes 10:2

"The sole purpose of the Republican Party is to serve as an ineffective alternative to the Democrat Party." - GourmetDan


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