Theories continue on rapid gold price plunge

Perhaps I hold a minority opinion on this subject, but I believe gold (and other "valuable" metals) holds no real value.

People in this country have been buying these metals for several years now out of fear of a collapse of the U.S. Dollar. But I can't seem to find the logic in that. These metals are no different than the paper currency we all have figured out is utterly worthless.

Lets say every currency on the planet collapses today. The common belief is that those with these metals will be okay for at least a little while, depending on how much of it they own. Why is that? What if "they" manipulate the market by drastically dropping the value of these metals? Or what if they stop accepting it as payment altogether? All you're left with is a shiny brick.

There's nothing naturally valuable about these metals that can't be manipulated or denied, nor do "they" even need these metals to preserve their wealth and power. They already hold all of the land, all of the food supply, all of the energy supply, and all of the laws in their hands. Money - of ANY form - is simply a means of control.

If you want to possess a truly natural value system that can't be denied, learn some survival skills and some "hands-on" skills that will be needed in the event of a global financial collapse. These currencies are artificial constructs. Turning yourself into a valuable survival resource is your only true option.

A plunge?

Gold per ounce is around 1300 USD, a decade ago it was around 400 USD

1995 - 2013 gold price chart

1995 gold was 400 an ounce

2012 gold was 1800 an ounce

If anything, the market was flooded with gold and has been settling ever since.

reply to post by Tranceopticalinclined


1995: $400 per ounce
2012: $1,800 per ounce

Average of $82.35 climb per year.

2012: $1,800 per ounce
2013: $1,300 per ounce

$500 decline in one year.

Yes, that is a plunge.

reply to post by mbkennel

Comex is $1314 and physical is at $1335.84 so a little over $20 an ounce. Nor much granted. Haven't seen any specifics for eastern countries.

Looking at some Bid/Ask prices looks like folks are willing to pay up to between $1350 - $1500 per ounce.

I prefer food & water over gold.

Meh...

Banks manipulate the current standard for currency, what makes gold any different? I guess at some point in time when there is balance things will fall back to an honest days work for an honest days pay and the barter system will come back. After all, when the dollar or even gold loses it's value, there will always be skills and possibly that apple tree in the back yard that hold some real worth.

Isn't this "paper gold" really just the equivalent of what our gold-backed U.S. currency used to be? Fort Knox was what gave our U.S. currency value, but then they turned it into a fiat currency meaning it was not gold backed.

So, if this "paper gold" is not actually backed by physical gold, then it's really just a fiat currency: worth nothing.

Wanna know something cool?

I have been telling people to sell their gold for quite awhile now. At least the last few years, and have posted my ideas on this multiple times on ATS before the crash even started.

Interesting how I was right, all I had to do was apply common sense and look at the numbers.
Buy low sell high.
What goes up must come down.
This is very important to keep in mind while gambling commodities.

I feel great because everyone I gave advice too who listened, profited big time and avoided a significant loss.

I think the problem is that there really isn't anything ""safe"" to invest in anymore. Some people are scared of the stock market, some don't want to make .002% interest on cash...some don't like real estate... Gold/Silver ..gold especially puts a lot of money into something very small... you could put $1 million in a back pack? Something like that...

Originally posted by ownbestenemy
reply to post by Cinrad

 

What "rapid" plunge? I am curious as what constitutes as a "plunge". Unless outside forces interject, the price of gold will be directly tied to ts supply and its demand.

To the facts, it had a 4% drop; how is that a plunge?

edit on 9-8-2013 by ownbestenemy because: (no reason given)

Correct, and who evaluates an investment on a month-to-month basis?? Lol. Look at the last 10-15 years!



Besides all that, let it keep dropping, that's the BEST time to buy!!!!

Originally posted by muzzleflash
Wanna know something cool?

I have been telling people to sell their gold for quite awhile now. At least the last few years, and have posted my ideas on this multiple times on ATS before the crash even started.

Interesting how I was right, all I had to do was apply common sense and look at the numbers.
Buy low sell high.
What goes up must come down.
This is very important to keep in mind while gambling commodities.

I feel great because everyone I gave advice too who listened, profited big time and avoided a significant loss.

edit on 9-8-2013 by muzzleflash because: (no reason given)

I don't agree. With the Federal Reserve devaluing the dollar at a pace that would make Zimbabwe shed a tear and their addiction to fiat currency the house of cards will fall. It's not if but when. I'm holding and buyingy gold for that eventuality, then the price will skyrocket. And in the event of the inevitable collapse of the dollar things like physical precious metals, medicine, and alcohol will hold considerable value as currency.

Plus gold retains it's buying power where fiat currency doesn't. An ounce of gold today could "buy" the same amount of goods an ounce of gold could have bought 100 years ago. There is no way whatsoever a paper dollar today could buy what a paper dollar could have 100 years ago.

Originally posted by Cinrad


There was a thread about why the gold price was dropping a few months ago but I cant seem to find it. Basically what this CEO says corroborates what the author of that thread said. As the snippet above notes, "paper gold" may be the culprit. Paper gold?!?! You can't trust anything anymore. I believe gold is being used to dupe the more savvy investor.

www.abc.net.au
(visit the link for the full news article)

what people never ask,, I mean what gold-tards forget to consider..

How much did "paper" gold influence the price upwards beyond the $400 mark about 10yrs ago?

what if it is actually all the "paper" gold that is behind the price rise?

who forgets $400/oz gold? why was it so low?

how come people forget about the gold discoveries in west OZ?

reply to post by HanzHenry


Honestly, I thought Gold was went up from 400 an ounce in 1995 to what it is now due to the precious metals being used in PC an electronics now. You could an can still find some IBMs with 6k gold plated parts, and of course elsewhere in electronic component land, with the rise of the internet in 1996 anyone understanding of gold's uses should of invested, too bad I wasn't " part of that group " until I got out of Military an was broke, or I would of myself.

An the reason for the Drop? not plunge would be most likely a means of manufacturing, use less gold, less gold is needed, or it's a means of all the people selling gold and buying paper that says you own gold.

Either or, you want gold? Don't throw your electronics away.

reply to post by HanzHenry


Gold-tard?

My investment has grown exponentially in the last decade and will survive any collapse of the economy.

How is that in any way retarded?

I predicted this when Ron Paul said he was going to retire. I said it would take a few months and then you would see the mines first act but it would take longer for the markets to fall apart. Ron Paul owns gold mines all over the world and he cashed out when you was not looking. He is a rich man with a retirement setup by TPTB in our governments. And I made this prediction the day he said he would not run for his seat again.

Originally posted by QuietSpeech
Meh...

Banks manipulate the current standard for currency, what makes gold any different?

Nobody is paid in gold any more, and nobody has loans denominated in gold, and almost nobody other than gold producers issue bonds which pay out in gold.

There is less incentive for central banks to manipulate gold as a result because it's less relevant.

Just came across this...

Originally posted by NOTurTypical

Originally posted by muzzleflash
Wanna know something cool?

I have been telling people to sell their gold for quite awhile now. At least the last few years, and have posted my ideas on this multiple times on ATS before the crash even started.

Interesting how I was right, all I had to do was apply common sense and look at the numbers.
Buy low sell high.
What goes up must come down.
This is very important to keep in mind while gambling commodities.

I feel great because everyone I gave advice too who listened, profited big time and avoided a significant loss.

edit on 9-8-2013 by muzzleflash because: (no reason given)

I don't agree. With the Federal Reserve devaluing the dollar at a pace that would make Zimbabwe shed a tear and their addiction to fiat currency the house of cards will fall. It's not if but when. I'm holding and buyingy gold for that eventuality, then the price will skyrocket. And in the event of the inevitable collapse of the dollar things like physical precious metals, medicine, and alcohol will hold considerable value as currency.

Did you notice that the dollar just went back up? Other commodities are not skyrocketing either. The dollar isn't being devalued yet.

inevitable collapse? No, just longer term inflation. Gold isn't as good as producing asset (equity) or rent-paying real-estate.

Plus gold retains it's buying power where fiat currency doesn't. An ounce of gold today could "buy" the same amount of goods an ounce of gold could have bought 100 years ago. There is no way whatsoever a paper dollar today could buy what a paper dollar could have 100 years ago.

And the total return on prime farmland or equities or real estate would have been what? Significantly more.

reply to post by mbkennel


Too bad you cannot "own" land today. You may only purchase the right to lease it from the government.

Terrible argument.

This is an interesting story, but if the CEO in the story doesn't know what is going on, I'm doubtful that one of us non-insiders is going to contribute anything meaningful.
Fiat currency, money and the role of precious metals is not really known.