has gold gone bust?

yes has the gold bubble burst? gold is down way down, will it continue to fall? or will it go back up what are your views and thoughts my thought and view is; gold has hit its peak, now for the down fall, how far, low$950 high $1125 by years end. live link to gold and other money matters money.cnn.com...

I doubt it. The economic system is as unsustainable as it was yesterday. The sovereigns are as insolvent as they were yesterday. Growth is still dead as a dodo.

Small correction and back up again as more people realise the day cannot be saved by PR and printing.

Of course I could be wrong.

Bernanke has been wrong on the economy issue so i dont see how gold has gone busted yet?
remember the markets are manipulated.

I thought JP Morgan predicted gold to be priced at $5000 by next year? Either they are a bunch of lying scumbags or they secretly influence governments to impose large tariffs on Gold to worry/put off investors so that they quickly sell it, while JP Morgan quietly buys all the gold at a cheaper price. A nice illegal trick to making large profits, I say.

I'm guessing JP Morgan is going to act like any other greedy Bank and drive the gold prices up to reap the profits.

reply to post by bekod


I would avoid reading CNN and read this instead:

Where Are We?

Yesterday, the Dow was up more than 300 points, and gold hit another all-time high before dropping nearly $100 an ounce. You would think the stock market was back and the gold trade was over. Wall Street is excited about recent bad economic news that just may force Fed Chief Ben Bernanke to start a third round of quantitative easing (QE3). I hate to break it to Wall Street, but QE3 is already underway in the form of 2 years of guaranteed near 0% interest rates.

That said, they raised the margin on gold by 26% a couple of days ago and I wouldn't be surprised if the 120+ tons of gold in Libya has something to do with it.

The fact is, nothing is changed - the economies of the world have not suddenly improved - the Federal Reserve has not given up their devaluation of currency attitude so there will be no other safe haven than precious metals for the foreseeable future.

This is nothing more than profiteering and reduction of investment in the Chinese market.

I don't think it will burst just yet.

But it will soon, eventually. What goes up must come down.

It can't just increase in value consistently based entirely on fear.

Someone was making some big sales and raking in the profit today though. Look at those charts.

I know I'd be selling all my gold right now had I any in my possession.

I'd invest in pork because the Chinese are suffering a shortage and are tapping their national reserves currently, and it will take a few years for efforts to increase production really take hold. So at least for awhile pork is a safe bet imho. People always gotta eat, and demand keeps skyrocketing while supply dwindles.

Buying gold is a bit like taking pain killers for capitalists. After a while the fear of being poorer will wear off and the price will start to come down.

Originally posted by ararisq
reply to post by bekod

 

I would avoid reading CNN and read this instead:

Where Are We?

Yesterday, the Dow was up more than 300 points, and gold hit another all-time high before dropping nearly $100 an ounce. You would think the stock market was back and the gold trade was over. Wall Street is excited about recent bad economic news that just may force Fed Chief Ben Bernanke to start a third round of quantitative easing (QE3). I hate to break it to Wall Street, but QE3 is already underway in the form of 2 years of guaranteed near 0% interest rates.

That said, they raised the margin on gold by 26% a couple of days ago and I wouldn't be surprised if the 120+ tons of gold in Libya has something to do with it.

The fact is, nothing is changed - the economies of the world have not suddenly improved - the Federal Reserve has not given up their devaluation of currency attitude so there will be no other safe haven than precious metals for the foreseeable future.

This is nothing more than profiteering and reduction of investment in the Chinese market.

this explanation is spot on. It is a gold dump into the global market. Prices are just adjusting to another reserve being released for purchase.

Major governments are buying and soaking it up. Gold will always hold real value, fiat currency will not.

Gold and silver is a finite resource and with all finite sources they have a set minimum value, once we reach the pinnacle of extraction or no longer able to posess more easily, it sky rockets just like oil will, natural gas, coal,any finite resource.

Dollars are infinite, worthless, seless, and DEBT. gold cannot be DEBT.

Gold is still over 1700 dollars an ounce so that is far from bust. Get back to me if gold ever drops to 245 dollars an ounce which it was JUST 10 years ago!!!

It hasn't gone bust, but I expect to see in get down into the $1600's before it stabilizes and starts climbing again. No panic induced spike such as what we saw last week is sustainable growth. To qualify as a conrete pattern of growth, you really should look for something in the sub 1% per day range. When you see a commodity spike 3, 4, 5% in a day, then you can almost guarantee that it will shed those gains in the near future when investor panic has either subsided or at the very least investors have had a chance to catch their breath and determine what to do with their money in the long term.

I still think $2000 an ounce is probable by the end of the year... especially since we have some potentially shattering events coming up like the 'super congress' budget cut deadline, determination on Germany's commitment to the EU, and the Fed's decision regarding further tinkering with the money supply. There are no rainbows and farts in the global economy... that means gold's progression upward will ultimately continue.

Originally posted by Agent_USA_Supporter
Bernanke has been wrong on the economy issue so i dont see how gold has gone busted yet?
remember the markets are manipulated.

I don't think gold will ever become worthless, because it can be used for many things, and is especially useful in industrial applications. Computer chips, space ships, jewelry, what have you.

That is where the real value of gold is. It is based on the real demand vs the rate of supply (recycled and mined).

Currently the gold market is experiencing a type of false demand, a fluke.
There is a huge volume of demand coming from people seeking to secure the value of their wealth due to economic instability caused by TPTB, globally. This is a result of mismanagement and can easily be construed as criminal activity.

It is actually a tactic for those at the top to rip off all of the other investors without looking like criminals, even though rigging a gambling racket is pretty criminal.

This is a result of the markets being controlled and managed, ineffectively. (Except the fact that the guys running the show are winning all of the big gambles and guilty of insider trading).

If the markets were free to balance themselves naturally, than gold would never skyrocket like this in the first place because the actual real demands have not increased significantly vs the amount recycled or mined.

I say we get rid of the managers, we have nothing to lose with moving towards a free market. It crashes all the time nowadays with governments and corporations loading their deck and cheating everyone.

Originally posted by Eavel
Gold and silver is a finite resource and with all finite sources they have a set minimum value, once we reach the pinnacle of extraction or no longer able to posess more easily, it sky rockets just like oil will, natural gas, coal,any finite resource.

Oh man, I heard that EXACT same argument made so many times in the 80's & 90's about real estate! It's finite, people will always need it, as the population increases the value will skyrocket, it's the perfect investment, it can't ever go wrong, history shows that it never loses value but only gains, etc. etc. etc. But they were wrong, that giant bubble popped and many people were crushed in the fallout. The truth is that gold is a COMMODITY. It is not some uber-rare, ultra coveted resource that the world cannot live without, it's just a plentiful commodity that's bought & sold. More of it is discovered all the time and unlike many other commodities gold is constantly being recycled, so it doesn't disappear over time. People are afraid of real estate and the stock market, so they've shifted everything to gold and artifically driven the price up. But people are sheep when it comes to investing, and once a few sheep start moving the rest will follow in greater and greater numbers. Gold is due for a serious correction, it's hard to say when it will happen but it's going to be a brutal fall.

Forget the highly manipulated spot prices... try to actually buy some physical gold. The reality is that what people can, and will, pay for physical is entirely removed from what those Wall Street spot prices say. REAL gold is still selling at more than $100/oz over the spot prices of worthless, traded paper gold.

reply to post by bekod


This is just profit-taking. Gold will go up again in no time. Smart money shafting dumb money. Always have. Always will.

Originally posted by SavedOne

Originally posted by Eavel
Gold and silver is a finite resource and with all finite sources they have a set minimum value, once we reach the pinnacle of extraction or no longer able to posess more easily, it sky rockets just like oil will, natural gas, coal,any finite resource.

Oh man, I heard that EXACT same argument made so many times in the 80's & 90's about real estate! It's finite, people will always need it, as the population increases the value will skyrocket, it's the perfect investment, it can't ever go wrong, history shows that it never loses value but only gains, etc. etc. etc. But they were wrong, that giant bubble popped and many people were crushed in the fallout. The truth is that gold is a COMMODITY. It is not some uber-rare, ultra coveted resource that the world cannot live without, it's just a plentiful commodity that's bought & sold. More of it is discovered all the time and unlike many other commodities gold is constantly being recycled, so it doesn't disappear over time. People are afraid of real estate and the stock market, so they've shifted everything to gold and artifically driven the price up. But people are sheep when it comes to investing, and once a few sheep start moving the rest will follow in greater and greater numbers. Gold is due for a serious correction, it's hard to say when it will happen but it's going to be a brutal fall.

Look at this situation on a macro level... the fundamentals of real estate have not changed in the least. What HAS changed is who owns it and who doesn't. If you are very wealthy... super wealthy... you do not want to pay retail or market prices for ANYTHING. That's how you stay wealthy. For power on that level, your fortunes are immune from the day-to-day, or even decade-to-decade fluctuations in the markets.

So how do you aquire vast amounts of a commodity at bargain basement prices, all while screwing over the common man in the process? Easy... if you have the power and the patience, which the super rich have (and that's how they got that way and stay that way), you simply manipulate the markets. You create a situation where, in an instant (in economic terms) the supply/demand imbalance explodes prices.

Before the real estate explosion, your buyers of land were generally those who could afford the land and were good for their debts. Now, start mixing into the pot MASSIVE numbers of people who CAN'T afford that land by throwing cheap loans their way and looking the other way at their ability to pay. These suckers run in and start gobbling up every piece of real estate that they see. Soon, you have a mania... and even people of decent means and who are generally good credit risks start over extending themselves. Real estate prices set new records every day, and the uninformed, naive, and greedy expect to get rich themselves.

Now, just when things are at a place where everyone is convinced that these things will ALWAYS go up and NEVER go down, start flipping the switches on those bad mortgages and start calling in your debts. Now, what was once a very stable market in the past feels the full effect of a bubble. Now the supply/demand situation does a massive and devistating 180. People who are broke start to panic as values implode and try to sell in order to not take even further losses. The whole thing snowballs in such a way that all of this land is now even cheaper than when the whole bubble began. The super wealthy gobble this land up for pennies on the dollar, and the folks who lost out now have credit so wrecked that they'll probably never be able to get into the game again. Even those who sat on the sidelines and managed their money well are left out of the bargains to be had by the now, ultra-strict lending policies of the banks and mortgage brokers.

In a matter of three or four years, the ultra rich have now just robbed the middle class of the one real asset many will ever have... real estate. And that finite resource, of which they aren't making any more of, and around which the population continues to grow, are in the hands of the few and not the many.

As you can see by the current economic situation, they are making that same play for ALL resources, commodities, and treasures. You want to see how people get squeezed out of their family heirlooms made of gold and silver? It's happening right now.

reply to post by bekod


reply to post by KILL_DOGG

Gold Margins have been increased at the CME by 27%, as if this wasn’t expected. The hike explains yesterday’s drop in gold prices and the accelerated move lower today. This comes on the heels of a 22% margin increase just two weeks ago. Two days ago, the Shanghai Gold Exchange raised margins 26%.

LINK

www.abovetopsecret.com...

This happened before QE1, and gold recovered and gained 40%. This happened before QE2 and gold regained and added 40% more. This is the third time, and Im honestly not even worried anymore.

[atsimg]http://files.abovetopsecret.com/images/member/843d6e2eef70.gif[/atsimg]

$1740 as it is now, this tomorrow 1630$ an oz just an off the cuff , not had my coffee yet call, precognition? or??? we shall see what the day and tomorrow.

It has been incredibly under-reported and the media is billing this as a "correction", but CME raised margins again, triggering a sell-off

Forexpros - Gold futures were sharply lower for the third consecutive day on Thursday, hitting an eight-day low after the CME Group raised margins on gold contracts by the most in over two years, prompting investors to sell their positions to lock in gains.

The CME increased the so-called initial margin by 27% to USD9,450 per 100-ounce contract from USD7,425, pushing small investors out of the gold market as it raises the cost to trade a futures contract.

The margin for hedging will increase 22% to USD7,000 from USD5,500 per contract, effective as of the close of trading on Thursday.

Gold futures sank as much as 5% in the two days following the last CME margin hike on August 11.

community.nasdaq.com...

and Forbes agrees

Gold Tumbles 10% Due To Over-Extension: Bullish Fundamentals Still In Place
ForbesBy Agustino Fontevecchia | Forbes – 36 mins ago

Gold’s violent drop has called into question both its status as a safe-haven and what has been seen as a secular bull rally. With bullion prices falling more than $200 in two days, pundits have come out to call the “bursting of the gold bubble.”

not that any one will listen nor believe that the gold is boom has gone bust, they will say it will rebound , where have we heard that... oh yea the housing, and see where that is,Forbes goes on to say

Debates have lit up like forest fire, from TV reporters to a twitter fight involving renowned economist Nouriel Roubini and gold experts at GoldCorp, with profit taking, over extension, and anticipation to Bernanke’s Jackson Hole speech on Friday all used as arguments. While “gold couldn’t indefinitely make new highs,” the fundamentals that took it to record highs appear to remain in place, according to UBS. (Read Bernanke's Jackson Hole Hamlet Moment: To QE Or Not To QE?).

not one word on the Libya gold, so far

Comex gold dropped more than $200 from nominal all-time high of $1,909.30 on August 23 to a mini-trough of $1,707.50, marked at about 5:30 AM New York-time on Thursday. The 10.6% correction, one of the most violent two day moves since January 1980 when the U.S.S.R. invaded Afghanistan, had tempered slightly, with gold bouncing, trading at $1,740 at 11:49 Am in New York.

so a 200$ price drop is nothing???

Economist state it is a lose/lose sitation. Bernanke can QE3 or not, it does not matter we lose. Gold is and will always be a real value. Numbers on a computer or pieces of paper have no real value.

Gold will climb. $2k by year end if not more. $5k by end 2012, $40k per ounce if the economy tanks and we are all in poverty (well non gold wielding people, I will be fat and happy)

The market is propped up, gold is undervalued based on the printing press, IT IS CORRECTING to the QE's, large financial backers are shying away from it because it brings even more volatility instead of you investing money into nothing like stocks, bonds, paper.