Gold Prices Dropping

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26 Sep 2011, 11:34 pm

Gold is down 10% over the past 30 days
it was down more but it rallied a bit today.
is this a sign that crazy people are gaining confidence in the economy?

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blauSamstag
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26 Sep 2011, 11:47 pm

Maybe it's a sign that people who are bad at math have run out of money to spend on shiny rocks?

The way i hear it, the 12% drop was precipitated by a major investment bank announcing that they wanted a wider margin on gold futures.

Which is investment banker for "we think this market is going to be less profitable for us in the future, so we are raising the cost of the investment.".

Maybe it turns out that 80% of the value proposition in the current price of gold is the proposal that someone wants to buy gold?

Obres
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26 Sep 2011, 11:48 pm

Or that they've spent all their money and nobody else cares to pay the inflated prices. Good for them, finally economics at work, separating speculating idiots from their cash. Well, except for the fact that some professional speculating idiots in suits probably ended up with all that lost money... ugh.

Jacoby
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27 Sep 2011, 1:18 am

i read a few people saying that it's people selling off precious metals for liquidity to cover loses in other assets

i doubt this is a good sign

Hikikamori
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27 Sep 2011, 1:48 am

Does this have anything to do with how bad the economy is for the lower class and those dang cash for gold commercials?

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27 Sep 2011, 3:59 am

Obres wrote:

When I look at gold coins I think of tulip bulbs.

I hope those gold bubblers get burned thoroughly.

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27 Sep 2011, 6:50 am

JakobVirgil wrote:

Gold is down 10% over the past 30 days
it was down more but it rallied a bit today.

I don't know why, but I bet Obama is to blame for this.

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zer0netgain
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27 Sep 2011, 7:26 am

Gold is down because supply went up.

Libya was all about gold and oil. The EU is moving in to take both. Whole reason for Libya was because Libya was going to stop selling to the EU and start dealing with Russia and China.

Gold will start going up again. The implosion of Europe is coming soon. France is banning the sale of gold valued higher than $600 without a record to the government being made. Steps like this only happen before the economy starts to implode. The state doesn't want people accumulating real value items or they want to know where to go to round up the precious metals for itself.

blauSamstag
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27 Sep 2011, 9:23 am

from the 24th:

http://online.wsj.com/article/SB1000142 ... 78498.html

Quote:

Exchange operator CME Group Inc. will raise the collateral requirements for trading in gold, copper and silver futures after a volatile week.

Gold margins will be raised by 21%, silver margins by 16%, and copper margins by 18%, effective at the close of trading Monday, CME said in an email after trading closed Friday.

Following the change, speculative investors in the benchmark 100-troy ounce gold contract must put up $11,475 to open a position and maintain $8,500 of that to keep it overnight. Producers and consumers of the precious metal must put up $8,500 to open a position, and the same figure to hold it overnight.

In silver, speculative traders must put up $24,875 to trade a 5,000-ounce contract. The cost to hold a contract overnight was lifted to $18,500.

Copper speculators must post $6,750 to open a contract and $5,000 to hold it overnight.

Exchanges require market participants to post margins to cover potential losses in trading sessions. CME executives have said margin increases typically take place when markets become more volatile.

cash4gold and other operations of that ilk are just thievery. They make money by buying gold at well below market prices from people who for whatever reason can't walk into a jeweler's and have it appraised and then walk into a goldsmith's and sell it at the true scrap value.

The guys who were advertising during glenn beck's show OTOH were operating a pump-n-dump scam.

We are now in the dump cycle.

Vexcalibur
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27 Sep 2011, 10:03 am

zer0netgain wrote:

This post makes me conclude gold will likely continue falling.

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ruveyn
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27 Sep 2011, 10:26 am

Vexcalibur wrote:

zer0netgain wrote:

This post makes me conclude gold will likely continue falling.

Sooner or later, all bubbles burst.

ruveyn

mcg
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27 Sep 2011, 10:30 am

Yawn. Anyone who bought gold before mid-august is still in the black. When gold crosses below its 200 day moving average, then i'll be interested.

I bet we see a couple more 20% corrections as gold goes to $2000 by May of next year.

blauSamstag
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27 Sep 2011, 10:55 am

ruveyn wrote:

Vexcalibur wrote:

zer0netgain wrote:

This post makes me conclude gold will likely continue falling.

Sooner or later, all bubbles burst.

ruveyn

Just ask anyone who went long on gold in the 80's.

As the oracle says, Gold is something that you take out of the ground in Africa and put back into the ground in Kentucky.

ruveyn
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27 Sep 2011, 11:01 am

zer0netgain wrote:

Gold will start going up again. The implosion of Europe is coming soon. France is banning the sale of gold valued higher than $600 without a record to the government being made. Steps like this only happen before the economy starts to implode. The state doesn't want people accumulating real value items or they want to know where to go to round up the precious metals for itself.

The "real" value of gold lies in its use as crowns for teeth, non-oxidizing portions of electric circuits, its use as foil since gold does not rust or oxidize, and such like. Gold as a trading commodity has a value set by supply and demand. It has little or no inherent value other than the uses specified above.

The notion that gold has an inherent "real" value is pure poppycock. Its value in the market is the result of the "tinker bell" effect.

Back in the 17-th century tulip bulbs had a "real" value too. It didn't last very long.

ruveyn

blauSamstag
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27 Sep 2011, 11:29 am

Yeah, if you want to invest in a special kind of valuable dirt, look into rare earths. Europium oxide is on the rise lately.

Inuyasha
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27 Sep 2011, 12:34 pm

ruveyn wrote:

zer0netgain wrote:

Gold can also be used in radiation shielding.

Right now people are selling off their gold to cover losses as Jakoby pointed out, additionally you all have left out the fact that stocks across the board have lost significant value.

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