The price of gold is dropping like a rock, what are 'their' intentions?

reply to post by disgustedbyhumanity

Give me a break. There has been no time in the last few centuries(probably ever) where you actually needed gold to survive.

have you peered into the reality of "Zimbabwe" lately....very scary stuff...and yes..they are "panning" for gold on a daily basis...just to survive and be able to afford a few grains of rice in order not to starve to death...

I myself am truly "DisgustedByHumanity"...

Gold is still around $879 an ounce, where are people seeing it drop like a rock?

So what if they crash the price of Gold.

You can't eat Gold.

How much gold would someone give if they were starving?


Food, Water and Clean Air are the most valuable things we have on earth, most people just don't see it.

A thought that "I" am following, is teaching myself and learning about "Wild" Edible Plants...because we have been programmed from birth to not look at these things...I think this is a much more "Sustainable" option...that is if one truly wants to survive all of this "Chaotic Manipulation" by the "Reptillians and the Greys"...if not...death is not so bad either....either way...it is our Knowledge and Awareness that truly sets us free and "Protects" us...

just a thought from an unrealistic/unprovable funny little man...

This is in reply to all those that have claimed on this string that ‘There has been no time in the last few centuries (probably ever) where you actually needed gold to survive’, or that gold is only a piece of metal with no intrinsic value.

First, it always amazes me that otherwise intelligent people are so ignorant as to the true place of gold in human history, and some (including myself) believe, in its future as well. There is no other substance other than food/water clothing, and shelter (yes we do all still have these basic needs first) that have played a bigger role in human history as gold. Oil is maybe a close second. Why do I say this? Since time immemorial, gold has held a peculiar fascination for nearly every single human culture around the world. This was undeniably so all the way through the Gold Standard Age, ending in the Great Depression. But even then, national governments still backed their currencies in international transactions with gold. After WWII the US established the Bretton Woods Agreement that pegged international currencies to the dollar which was redeemable for gold! Still a gold standard for all practical purposes.

So what happened to gold the since Nixon demonetized gold and took us off the Gold Standard in 1971? Did it drop to its ‘mineral rock’ value? Did the entire technologically advanced and civilized world shun gold for the barbaric relic that it had become? Well surprise, surprise – instead of dropping in value, gold has gone from $35/oz to over $1,000 back to around $880 as of right now. Gee I wonder how that would stack up against the stock market/home appreciation/or bonds as an investment vehicle?

Here’s another question for all you smart guys. How many Darics, Dinars, Staters, Aureus, Solidus, Byzants, Ducats, Florins, Dubloons, Livres, Louis D’Ors, Escudos, Napoleons, Taels to the dollar? Can’t answer? It’s not really a fair question as these all represent the national currencies of Empires and Nations long past; each the leading power of its time – sometimes for centuries. However, if you happen to have one of these coins you will find that it is made of gold, because for some funny reason people didn’t trust their governments and bankers then – thought them up to all sorts of plots and conspiracies – but did trust gold. Therefore, because its made of gold, even though the nation/empire that minted it is dust in the wind, that gold coin has a absolute gold value based on its gold content, apart from any coin collector value based on rarity. I tell you this to stress the endurance of gold value despite anything that may happen in the geo-political realm. Maybe we have already beaten the longevity odds with the US dollar being the longest reigning unit of currency in the world. And perhaps it is no coincidence that the US has more GOLD Reserves than the next three highest countries combined.

So although you can’t drink it, eat it, or have you keep it warm by itself, but it has historically been the means to do so long after credit, IOUs, or paper money has failed when times get tough. For those who are ignorant of history, there are simply too many examples of people using gold coin to purchase their sustenance, freedom, or even lives. So what is all this gold price drop about? I’m not sure myself, but I do know that because food and water go bad, guns and ammo are only good to me if I am fighting for my life, and that promises to pay are only as good as the debtor on the other end of the instrument, that physical gold sounds just fine to me for now.

Gold just a rock with no real value? Might as well say that a car is nothing more than a heap of sheet metal (or whatever), steel, rubber, plastic and glass.

Originally posted by Sashromi
Gold just a rock with no real value? Might as well say that a car is nothing more than a heap of sheet metal (or whatever), steel, rubber, plastic and glass.

Or...that a dollar is just a piece of paper

Originally posted by qbik2008

A thought that "I" am following, is teaching myself and learning about "Wild" Edible Plants...because we have been programmed from birth to not look at these things...I think this is a much more "Sustainable" option...that is if one truly wants to survive all of this "Chaotic Manipulation" by the "Reptillians and the Greys"...if not...death is not so bad either....either way...it is our Knowledge and Awareness that truly sets us free and "Protects" us...

just a thought from an unrealistic/unprovable funny little man...

Good thoughts. The US Army Survival Manual is a great resource. Teaches you all kinds of useful 'survival in the wild' knowledge. Highly recommend it for reading.

You can get the manual free here, and more free army manuals here.

This is important to remember. That in times of economic 'depression' Gold is not your best friend, contrary to popular belief. The market is usually flooded with gold, other precious metals, and gems to devalue them. If the fiat money (paper currency) is worth nothing, they want to devalue goods and other 'standards' of trade.



*edit: 2009.04.08 - to add link for manual.
*edit: 2009.04.08 - adding links for free online versions.

[edit on 8-4-2009 by blackbirdish]

[edit on 8-4-2009 by blackbirdish]

It's interesting to hear what the largest precious metal suppliers like Monex have been saying recently. Their analysts have come to the conclusion that the currently depressed gold and silver prices are being artifically manipulated (gasp!) by government and large institutional sellers. The reason? Gold and silver prices act as 'canaries in the coal mine' for inflation, and the powers-that-be do not want the dollar to crash until they have completed their massive wealth transfer via the bailouts. The foremost groups in the gold dumping crowd seem to be the United States and Great Britain.

This theory highlights the fact that the single most important factor leading to inflation is the overcreation of money, something the Federal Reserve has been doing nonstop as of late. All the gibberish about our entering a "deflationary period" is nothing more than a misunderstanding of supply and demand.

So back to gold (and silver). While Obama and financial pop star pundits are recommending that we wade back into the gutted stock market, countries are quietly amassing tons of precious metals at very reasonable prices. Meanwhile, the rest of us are left scratching our heads at the bizarre contradiction of massive currency creation and dropping gold prices.

In light of this, is it any wonder that gold and silver brokers are spending millions on print, TV, radio and online ads to separate you from your precious metals?

When in doubt, do the opposite the government recommends.

This is just like in the great depression when the public was not allowed to have gold and they were ordered to turn in all gold to the GOV. While it is a good time to buy gold and other metals, when it all hits the fan are we really going to be able to keep that gold? I think not, it will just be taken from us along with everything else we buy.

My current interpretation of "their intentions" is that they become all cheerful and make it look like the economy is on the mend, thus stinging everyone that bought up Gold. Then when most investors start backing out of Gold, the second phase of the crash comes in and Gold prices go through the roof once it's already changed hands to the central banking institutions.

Originally posted by Vodo34861
This is just like in the great depression when the public was not allowed to have gold and they were ordered to turn in all gold to the GOV. While it is a good time to buy gold and other metals, when it all hits the fan are we really going to be able to keep that gold? I think not, it will just be taken from us along with everything else we buy.

This looks like a good time to clarify the confiscation issue again.

After the confiscation announcement, only 3.9 million ounces of gold coin - approximately 21.9% of the gold coin then in circulation - were turned in. Subsequently, the government no longer reported this statistic as it assumed, according to Friedman and Schwartz, that these gold coins were "lost, destroyed, exported without record, or…in numismatic collections". After analyzing in some detail each possibility noted in the government's contention that ostensibly explained why all these gold coins remained outstanding after the confiscation, Friedman and Schwartz go on to say: "We therefore concluded that in Jan. 1934 the bulk of the [13.9 million ounces] was retained illegally in private hands." - Milton Friedman and Anna Schwartz: A Monetary History of the United States, 1867-1960

Full Text

Those that did surrender their Gold were compensated @ the official 1933 POG - however - almost 80% of the Gold in circulation was never surrendered , and there was only one gubmn't prosecution (involved a large amount held in a bank safety deposit box post-confiscation date).

Does anyone really believe that today's citizenry will be anymore willing to belly-up their Gold than those in the GD?



GL

Haven't read the whole thread so sorry if this has been covered but . . .

From www.kitco.com at date of this post are the following gold lease rates.

April 09, 2009 Change
1 m -0.1658% -0.0187
2 m 0.1293% -0.0042
3 m 0.2870% +0.0239
6 m 0.7734% +0.0076
1 y 0.9899% -0.0069

Note that the 1 month lease rate is a negative value - something I have never seen before. I take this to mean that you will be paid to hold leased gold for 1 month rather than being charged a holding rate. I guess that means the market expects the price to drop over the next month and want someone else to hold the gold then sell it back to them at a lower price. . . . . .

Any gold bugs/GATA people out there have any information on this strange turn of events?

. (duplicate post)

[edit on 13-4-2009 by News Junkie]

Originally posted by News Junkie
Note that the 1 month lease rate is a negative value - something I have never seen before. I take this to mean that you will be paid to hold leased gold for 1 month rather than being charged a holding rate.

Hi News Junkie. Not the norm , but periods of backwardation in Gold/Silver forward rates do occur sporatically - e.g. 2006 , 2008 , and again last month March 09.

The basis for the Gold Carry Trade is the LIBOR:GOFO spread. The forward rates quoted by Kitco are derived lease rates - not to be confused with offered lease rates.

Derived lease rates = LIBOR - minus - GOFO (offered lease rate) , and represent the interest rate (arbitrage profit) the leasee would expect to receive from selling the leased Gold in the spot market and investing the proceeds at LIBOR. When GOFO is higher than LIBOR for a contract of a given duration , the differential will result in a negative derived lease rate:

April 09, 2009
1 m -0.1658%

Kitco....

Lease rates displayed are an indication only of bank to bank borrowing charges. The degree to which lease rates may be displayed as negative would suggest the degree to which there is a lack of demand to borrow the metal.

Page

What is GOFO?
GOFO stands for Gold Forward Offered Rate. These are rates at which contributors are prepared to lend gold on a swap against US dollars. Quotes are made for 1-, 2-, 3-, 6- and 12-month periods.

Page

Contrary to popular understanding , negative derived lease rates represent a non-profitable trade for the specialized group of bullion banks that engage Gold leasing as a means to acquire funding. Negative rates for April 1 mo indicate there is more supply available for leasing , than there is demand for shorting into the spot market.

In short form: The more negative the quoted lease rate > > the less profitable it is to carry the transaction.

GOFO and LIBOR

GL

OK - here is one area that I have a good knowledge of.

The gold price has been manipulated for at least the last 25 yrs. It has been manipulated DOWNWARDS - that is the reported value of gold is less than what it should be.

Who is doing it? The simple answer is the globalist elites. The main agency for this manipulation was originally the international Central banks - as they are largely controlled by BIS - therefore the Bilderberg group.

How was it done? The Central banks would lease the gold to bullion banks at low rates - making it attractive for those banks to take the asset. The Central banks did not want either their country of residence, nor the population to know what they were doing, so they used false accounting. They would enter leased gold assets in the same column as the cash they received in exchange - making it cancel out - "These are not the droids you are looking for, move along." The result was that it increased the market supply of gold - depressing the price. There are strong reasons to believe that the total gold available to the IMF and individual Central banks is vastly over-reported - they just don't have the gold they say they do.

Is it working? Well - it wasn't working well enough. So the elites began another approach - which was to 'create gold'. To do this they started COMEX and other paper gold trading facilities, and had their sympathetic banks begin to sell gold ETF's - which were in fact not backed by gold. These banks would then sell them short in the market - depressing the gold price in two ways. When the volume of shorts exceeds longs, then the price is forced down - so they sold shorts. Also, only around 1% of ETF's were generally held to maturity - that is only 1% of the paper was actually ever turned into gold. This meant that the banks would issue huge amounts of paper gold, and they could safely hold only 1% of those ETF's as actual gold. By law they are required to hold 90% as gold - but hey - the law doesn't apply to banks. So how much gold coverage do you think they held? Yup - around 1% or likely less. This means they were able to 'create gold out of thin air' - even BETTER than the Fed, which can only create money out of thin air.

Why was it done? The simple answer is to protect the $US hegemony, on which most of their influence, wealth and power were based. The dollar was tied to oil from 1972 when OPEC agreed to only sell oil for $US. This was done because in 1971 the gold standard was completely abandoned, and the dollar began overly rapid inflation. Pegging the dollar to oil gave it some strength - but the main currency against which the $US had to contend was not from another country - it was gold itself - and it was losing. Therefore the gold value had to be attacked to support the power of the dollar.

What is happening right now? Now - well, hell is breaking lose. The upwards force on gold is unimaginable, demand for physical gold is higher now than possibly any time in history - and the whole thing is going to unravel. Last quarter - fully 15% of gold ETF's were held to demand delivery - in a smooth and unlawful move, the ECB seems to have sold 35.5t of gold to Deutchse bank to cover its gold shorts - it managed to cover 850,000 oz. from a demand of 1.5 mil oz. If this trend continues - the Centrals are going to break, as all that paper is going to try to turn to gold - the truth is there's probably not enough gold in the world to cover it all. This may start a run on the gold ETF's - and would crash out the cheating banks - and send the gold price in the stratosphere.

Who is winning, us or them? Well - thats a hard question to answer. I hope that it will blow wide open, and that bank execs will go to jail for selling naked gold shorts- but history tells us they are above the law. Also - this process of running to physical gold will accelerate the economic world wide collapse - this means massive social unrest.

[edit on 14-4-2009 by Amagnon]

So - to answer the question in the thread topic - what is 'their' intention.

Here's my speculation on what will happen.

Originally depressing the gold price was to prop up the $US - they are going to continue this as long as they can - using whatever dirty tricks are available.

The average buyer who is demanding physical gold is getting more educated - they know that the global currencies are in crisis, and gold is the only one that has a limited supply and is inflation immune.

So - the gold price will go up, people will stop trusting the bull# ETF's and demand real gold.

The elitists will then be moving on to their stage II - which is use the resulting social unrest to concentrate power into the executive branches of the governments they control - and begin to increase policing to curb unrest. When they have things under control - they will 'help' out all the nations by implementing a global currency.

The global currency will NOT be based on gold - that's for sure.

They will then set a gold price of near 'zero' - and try to wipe gold out entirely.

There will be a time to convert gold into real estate - don't panic - there will be plenty of time I believe.

I also doubt that a global currency will be accepted without a fight - many countries I believe will reject it in favor of their own currency - which they may decide to back with commodities including gold and silver.

However - one thing that worries me - is that the global currency may actually be issued as "hours" - ie. unskilled labor hours. Many people and countries might like the idea - especially poorer countries.

This style currency would turn the entire worlds unskilled labor market into a commodity market - but people might not be sophisticated enough to understand the negative impact.

GOT GOLD?

Anyone else buying last week? Nice momo even before the influenza scare. In terms of capital flows..and..looming geopolitical events , hard not to like the set-up here....


TSG interprets the latest TIC report: The government will have to sell $2.4 trillion in new bills, notes and bonds in fiscal 2009...

Ambrose: Capital well is running dry

While a total of 1,054 tonnes still represents a small % of China's foreign reserve holdings , the important issue is that Beijing made the critical decision to transfer this 454 tonne addition..from sovereign wealth fund vault - to - central bank vault , i.e...from investment asset/status - to - reserve currency status: China reveals big rise in gold reserves

'300 Taliban suicide bombers on way to Islamabad,' claim Pakistan officials

North Korea says has started extracting plutonium


GL

[edit on 26-4-2009 by OBE1]

Originally posted by ANNED
The price of gold has NEVER gone up as the US was coming out of a recession. Gold has never gone down as the US was going into a recession

???

After the 1974 - 1975 recession ended , Gold bottomed in August 1976 , then rose to it's record $850 blow-off top in January 1980 , where it crashed hard "going into" the 22 month recession that began January 1980 - through November 1982.

GL

we are decreasingly unloading long gold currently until 844,829, 794 near term and looking towards the 670 to star accumulating more long positions. long gold over all.

The price is being driven down(profit taking) to allow us (traders or big money) to buy more at better prices) Simple market. Joe q public... starts selling because he see price dropping.. we start buying into it.

If you at all interested aside from Rothschild theoryies ( which are not exactly not true) to understand market mechanics. You need not speculate on the evil theory behind it. You can figure out what is going on and why from a technical standpoint. Often times news releases come out magically around turning points.

You can look towards Elliot Wave and Volume Spread analysis for a touchstone into why and how the markets move and whether or not you know "why" ( the overall plan) you will know what is coming next and can act accordingly.

As a trader it, is just simply big big money (market makers)selling driving price down to accumulate more longs at a better price.

Money is the reason for most everything and that is the money reason. Gold is long we all just want a better price and retail selling on the back of big money profit taking allows them to start a cycle where we get out and only retail and mom and pop are left selling(clearing out our longs).. into which we are taking the other side of the orders accumulating for the long push. It is Zero sum. Mom and Pop always lose. They have to. Hope that helps.

For the record we are no where in the billion dollar range but it is a generally accepted fact in the markets that this is how it works so you either trade with or get slaughtered. We do not care fi the markets are rigged or not, just if we can move with them. No market is random.

ST.

Please indulge me an oldie....

GOLD

Thank You

Quite a battle the past few weeks , again today - London & NY - same suspects - same TOD , but , much to the disappointment of our esteemed monetary authorities , the Bulls finally hammered-out a close above key $920. Today's move could re-open the door.

How wide ?

Pretty damn wide...but we need to see a weekly close above that $920 ceiling.


I can develop fairly accurate trading signals by applying a witches-brew of popular technical indicators to GLD as a Gold proxy - in conjunction with the HUI/XAU/$USD - and key individual mining stocks.....

but I'd like to focus a few brief comments on the basic GLD.

ATS traders will immediately recognize the bullish implications of the formation depicted below on the weekly....

[atsimg]http://files.abovetopsecret.com/images/member/96dcaa99b6df.jpg[/atsimg]

Chart shows Friday's breakout above the 3mo downtrend line ($87.55)...today's close: $91.09. A violation of the neckline near $99.00 translates to an approx move in Gold to the $1200/$1300 range.

Patience longs , this move may take a few months to materialize. Occasional pullbacks between now & then should be anticipated - some will be shallow , the result of healthy trading activity - others may be deeper , cartel inspired - but ultimately , they equate to nothing but short-term noise.


GL

**The simple musings of a dirt-under-the-nails-GB - not to be construed as trading advice**

If you believe the markets will be taking a dive, assets are dropping and gold is the way to go why do you think it will drop to 400?

Personally I buy gold at any price. If it drops I buy even more. I don't believe in trying to time the market. I buy more silver than I do gold because I believe the percentage increase in silver will far outweigh gold.