Gold prices about to drop? Armageddon!

I wasn't sure where to put this one mods since global meltdown isn't, well isn't right.

Ok.. Here's my theory. Gold prices are about to take a massive dive. I know I know the world is ending. With QE temporarily over, oil prices dropping fracking, andforeign investments back on the rise I have a sense that the dollar is about to gain a lot of strength.

gold price


As you can see it's already trending down. What I'm saying is expect this trend to continue and expect a massive upswing in purchasing power of the dollar. If I were me I'd pull my money out of commodities and put into something more liquid.

It's always good to buy when the price drops.

Just my 2 cents

a reply to: Wildbob77

I agree. However the upswing is probably going to help the elite more then anyone that's the downside.

But what I'm saying is pull your your investments and put it into something that's more directly affected by it like consumer spending.

Now I'm no expert but I just had this idea so I figured what everyone thinks.

a reply to: onequestion

Larry Kudlow has been speaking to this trend for the last few months and tends to agree that the end of quantitative easing will be the main driver of lower gold prices. The Federal Reserve's 'easy money' policy has hindered the value of the dollar for nearly a decade and a half. His mantra is 'King Dollar'.

a reply to: AugustusMasonicus

Interesting I'll have to check into it.

I think there's more to it then the dollar but that's probably the biggest indicator, oil being the second.

But it's a momentum thing because once the world sees what's happening everyone will jump on the bandwagon for a few years until the next downturn.

The "strong" dollar? Its buried so deep in debt who wants to invest in it long term?

a reply to: intrptr

I agree. But the world is focused on making money right now and we are about to be the best economy to make it in.

Doesn't gold usually drop just before Christmas?

a reply to: onequestion

You could almost count on it Onequestion. F&S.
The LIBOR rates getting un-fixed may be a temporary
flat spot for these guys to make one last metal buy on
the cheap, for all the paper maturing too.
I don't even want to think what all that paper gold
is leveraged at now... and this may be a big factor in
pressing the 'cheap' button.

a reply to: onequestion

Gold is worth about $50 an ounce to me, so I guess it will be a long, long time before I ever buy any of it. I might buy gold if it was for scrap pricing and I could turn a small profit on it over a very short period of time, otherwise, it is too unpredictable for me and I think the gains it has made over the last decade have been mainly psychological and are unsupported by market demand on a consumer or industrial level.

If the dollar collapses, gold might spike as other foreign governments invest in it as an alternative to a reserve currency, but if we face a global depression or hyperinflation like Zimbabwe had, no one on a local level is going to be buying gold, which is why most libertarians claim they are investing so heavily in it.

When the markets collapsed in the former soviet union countries, they were using cigarettes and bullets for currency, not silver or gold. I really don't think you can predict what people are going to end up using as currency when their monetary system collapses, but i doubt it will be something they cannot use on a daily basis.

Actually, I can remember many stories from WWII era when people traded very expensive luxury items for basics like bread and water. In times like those, gold and jewels tend to revert to their more natural value.

a reply to: onequestion

Its an illusion. With all the debt the dollar is in at home, the world at large knows a crash is coming.

What keeps it propped up in part is the petro dollar. Oil prices world wide are quoted in Dollars. Oil is dropping. Thats not good for the dollar. Debt is not good for the dollar. Millitary budget is not good, wall street bailouts are not good. Banks are stopping quantatative easing because there is not future but hyperinflation if they don't. There are but few alternatives.

Start a new currency or drown in debt. Why do you think China is buying tons and tons of gold?

ETA:

The Federal Reserve is ending its quantitative easing program, but the ECB is printing money, the Japanese central bank is printing money and the Russians and the Chinese are buying physical gold. The world economy is NOT doing better, it’s actually doing worse than expected, and this is hidden behind the smoke screen of printing money.

Russians and Chinese buying gold

a reply to: onequestion

Gold goes up and gold goes down...just like oil and other goods...

originally posted by: Wildbob77
It's always good to buy when the price drops.

Just my 2 cents

Any money I have made in the markets or commodities have come from contrarian investments. You can't time the upswings, but you can invest into the downswings. Invest 50% of your money and then buy 25% more whenever it goes down.

Rats, I knew I should have sold all our gold when it was about 1600 an ounce. I might have got about five hundred bucks for it. Then the wife would constantly be hounding me to buy her new jewelry for valentines day. A person can never win.

originally posted by: onequestion
If I were me I'd pull my money out of commodities and put into something more liquid.

All liquids are pretty much commodities, for instance water, beer, etc...If I was going to put my money into something more liquid, I would probably go with oil. I know it is not really a true liquid in that its viscosity makes it thick, but it is liquid enough in my opinion. I am totally kidding of course. I realized that one would not be able to tell whether I was joking or whether I was just an idiot, lol. Anyway, I think you could be right, but I cannot imagine what would cause the price of gold to take such a massive dive at this point in time. I thought the dollar was weakening, or was set to weaken in the near future, and I assumed that this would increase the price of gold sometime in that near future. I am not that knowledgeable on the subject, but I offer my opinion for what it is worth. I suppose we shall have a definitive answer however, so you can see if you are correct. You said "If I were me I'd pull my money out of commodities...," and I wanted to ask if you were really you, and whether you pulled your money out of commodities?...If you had money in commodities that is. Essentially, is this something you are doing, or something you are strictly advising others to do? I mean because if you advocated such a move, yet you yourself were not doing the same thing, that would be a little strange imo. I think it would give less weight to your idea, considering you didn't have enough confidence in it to follow your own advice. So that is why I asked. So how convinced are you?

Oil is dropping because the Saudis are flooding the market to drive down prices and cripple Russia.

www.globalresearch.ca...

Interesting that gold is dropping, because Bitcoin is rallying.

What happens when all those traders sell, sell, sell, they don't just leave the cash in a bank account, they are investors.

Gold will go to under $1000 a ounce.

I have deal with gold for over 40 years in the mining industry and there is no secret in when to buy and when to sell.

I am a buyer at $700-800 a ounce.

When the economy crashes gold goes up and when the economy gets better gold goes down.

Anyone buying gold right now is a moron. and anyone that did not sell at the top is a idiot.

And anyone that buys the TV commercials that now is the time to buy gold or silver should be locked up as nuts.

Gold is being shoved down through the usual ETF manipulation, demand for physical is still very high esp in the East and there needs to be a distinction made between paper and physical demand (of course the size of the ETF market dwarfs physical and so determines price at the moment). It may fall a little more but medium term it will be rising.

The USD will probably rise some more as the Fed isn't destroying its value as fast as Europe, Japan etc are managing. Has nothing to do with any kind of economic recovery, which is a complete illusion.

Gold will never drop to bottom, its very stable because its useful, and when the gold price drops, people will buy more gold = gold price increases, and when the gold price is high, people will sell gold = gold price decreases. That's how it works.