Gold loses a lot of its glisten in just one day

We are in phase 3 of the Gold bull market.

It has become much more volatile now. If you have the stomach for it, hold onto your bullion to reap the massive rewards that lay ahead.

The bull always bucks off those without enough fortitude early on and then later carries those with too much greed over the peak and down the other side.

Gold will go to at least $3,000 an ounce before it is done. This too conservative though, a more reasonable estimate would be at least $5,000 an ounce.

This correction could easily become a major one. After two down days the MACD indicator has barely moved and it is still very high, too high to get in.
Have a look at 3 years chart.

Originally posted by Deebo
I do not know much about the subject, but how can it go down with our dollar continuing to be worth less and less?


Deebo

Easy thing, the price is reviewed down, we can call it a correction or manipulation by TPTB. The gold was going up way too much to avoid making more fear (the dollar as a world currency is ending we all know it) to the investor. What I can say though is that these little tricks will not work for so long because the economy is being more and more reflected in raising price of gold and lowering price of the dollar.



Thruthseek3r

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]

You're Welcome

reply to post by Patrol


To paste an image you have to save it to your computer, and then upload it through ATS media and then you get a code to post when you want put a pic up. im sure a mod you def help u out

It looks like the correction has ended.

Its funny how gold drops for a day or two and the MSM trys to blow it up. but if gold rises for 10 years like it has nothing is said about it

reply to post by Majic


This is a good post. It is truly ridiculous.

It took 8 days for it to get up that high, and it corrected itself in a little over a day. It lost what it had JUST gained.. Nothing of value was lost. Sensationalist BS.

They should be talking about how gold has gone from $1,000 to ~$1,700 in the past 2 years, and how they were saying 2 years ago that you shouldn't buy gold.

Pure downward manipulation using a margin increase. This is a not so distant early warning indicator that we are not in Kansas anymore. It worked to collapse the Hunt bubble, but a drop of only about $120 relative to the seriousness of the increase indicates we are at endgame and traditional methods of manipulation are not working. I would exit paper gold now sometime before next week and go into platinum, silver, food, and energy, as the next gun will be a doosey a collapse or default of a major gold backed hedge fund.

reply to post by eywadevotee


When do you think Silver might play catch up to Gold? While Gold has risen $300, Silver has been relatively flat, between $38-$42.

reply to post by TriForce


I noticed the same thing. But they only have 144 tons (not millions). But regardless, all the precious metals all dropped in one session. I found that suspicious. That and the fact that we are unfreezing some $37Billion in Libyan assets. Go figure..

reply to post by GogoVicMorrow


There's only about 170,000 tons of gold. But there is only just a pinch over 6,300 tons of platinum, yet they are priced the same.

Fig. 1: The end of the world as we know it has come.

reply to post by KILL_DOGG


I give you Peter Schiff -The man who predicted the 2007 - 2008 crash when every mainstream economist, media mogul and politician dismissed him as a looney "crackpot"! Enough Said!



Don't let this big drop fool you. Gold almost certainly WILL reach record levels later this year.

Margin prices go up and gold drops $104. That should tell you that what is driving the price up is "Specultation". This isn't fear of a Global recession that is sending prices higher, its traders. Even a blind person should be able to see the bubble forming. Remember oil prices a few years ago?

reply to post by Majic

“Is gold money?” he (Ron Paul) asked. Clearly bothered, Bernanke told the representative, “No. It’s a precious metal.”

After Paul interrupted him to note the long history of gold being used as money, Bernanke continued,”It’s an asset. Would you say Treasury bills are money? I don’t think they’re money either but they’re a financial asset.”

Straight from the Forbes website

There you have it. Tbills and gold are not money, but they invest non-monetary transactions and bill us for non-money debts

I've never had more fun reading this forum than I've enjoyed the past few of days...a classic example of the ignorant preaching to the uninformed

Allow me to paraphrase a few of my favorites.

Careful, Gold is a bubble...gonna pop any minute now if it hasn't already !

[atsimg]http://files.abovetopsecret.com/images/member/06cddf9a4ac9.png[/atsimg]

*2011 estimates tell us that approx 3% of global investment capital is currently allocated to Gold and Gold related derivatives. And most of those assets are held by non-US entities primarily in Europe & Asia. With every major economy burning it's currency to the ground in a specter of intensifying [competitive] currency devaluations, does this market have room to run ?

*

Watch out, the gubmn't is gonna liquidate it's Gold reserve to pay down the national debt !

[atsimg]http://files.abovetopsecret.com/images/member/1d66e4926fbe.jpg[/atsimg]

*Now over 14 trillion.

Relative to our debt load, the market value of US Gold reserves equates to a pimple on an elephants butt. Central banks hold Gold as an implied [emergency] backing for domestic currencies, and as insurance against a potential implosion of the fiat currency regime. You can imagine the swift, punitive reaction from the Fx/bond markets should the US ever resort to the desperate measure of liquidating it's national treasure to shave a few digits off the light bill. Any remaining, tenuous threads of global confidence in US financial governance would be severed...USD to the dungeon > inflation with a capital H.

Sorry, ain't gonna happen.

*

In a Weimar (hyperinflation 1919 - 1923) SHTF scenario your Gold will be useless [valueless] !

Price in Deutsche Marks Jan. 1919
Silver 12
Gold 170

Nov. 30, 1923
Silver 543,750,000,000
Gold 87,000,000,000,000

After a brief hiatus, the quintessential history of the Weimar currency collapse is once again available online.

Anyone that has taken the time to read Fergusson's historical account When Money Dies: The Nightmare of the Weimar Collapse, is well acquainted with the performance of precious metals throughout the worst currency crises in modern history. Farmers/ranchers refused to bring their goods to market in exchange for a rapidly declining currency. Can you blame them ? As a result, their fields and livestock were repeatedly raided by starving towns folk, but they eagerly accepted [appreciating] precious metals. In other words, in Weimar Germany, if you were wise enough to own Gold/Silver, you had access to food and other life essentials.

But by all means people, don't let common sense and historical record stand in the way of your tortured investment advice.

*

Long-term investors were cautioned years ago to expect the type of volatility we're seeing in today's price action...$50 - $100 intra will become the norm as Gold climbs the wall of worry and global currency debasement. As recently as 2006 a $10 move was considered extreme.

After gaining over $400 in two months, last weeks put/call ratio was screaming that a correction was imminent as we headed into OpEx today. It remains to be seen if today's $1702 marks the bottom of this correction, or whether [with the aid of another round of margin hikes] Gold completes the Right Shoulder of a potential H&S formation with a PO in the $1550 range. If the H&S formation is confirmed, and Gold breaks below the $1750 neckline.....

[atsimg]http://files.abovetopsecret.com/images/member/e512a0f06a1c.jpg[/atsimg]

Please wake me up...I might want to add a few more ounces

GL Longs!

reply to post by OBE1


Gold and gold 'derivatives'? That tells me that digital gold and exotic formulas are at work on that one. We're not basing our debt on the amount of gold we have. Nonetheless, gold is neither precious nor intrinsic. It's a flashy trinket to show the illusion of wealth. The Mayans made statues and wardrobe accessories from it. It was not money to them until the Spaniards came along and stole it. Monetization of gold is controlled by the folks who own the mines, just like diamonds. Create scarcity and the demand will follow. There is about 170,000 tons of gold above ground ATM and is valued at just over $1700/oz (5X its spot from several years ago), but at the same time Platinum is the same price yet I could fit all the platinum mined in history, in my living room. Price? About $1700/oz. Seems to me that frequent and grossly unproportional monetization is inflicted upon this 'precious metal' for the sake of using it as a financial tool to ease debts created by a multitude of erroneous financial atrocities.
Just like the 2nd chart of yours shows, that is probably how much gold the US actually owns (that far right bar).
But just like Bernanke said, gold is not money and neither are T Bills. The IMF collects its debt in gold, yes, but it is repayment from their SDRs, which are just reverse IOUs, and they require solid assets in repayment of their so called loans. The IMF is a mafia anyhow. So of course gold is being used as currency... because it's 'precious' according to bankers, brokers, and billionnaires. They use it often to destabilize global currencies and play their puts, calls, shorts, and bell margins to satisfy their greed. Gold is only as volatile as the moneygrabbers deem it to be.
Will a gold bubble pop? I doubt it since society covets an otherwise ordinary metal due to it's inherent property. Africa is full of billionnaires, and they cannot afford a loaf of bread. It's happened many times before, and will happen again. Gold as a safety net? Doubt it, especially if there is financial collapse. Can't eat it, can't hunt with it, can't drink it. But in the event of a post collapse scenario. I've heard it said before, "If I have a gun and you have an ounce of gold, then I have a gun and an ounce of gold".
When the economy pops, I just don't see 'cake and balloons' on every corner. Perpetuating a corrupt financial model for the sake of sour college economics and banker mentality is a bad idea. Why repeat a process that has failed time and time again?
Maybe to keep the social stratum widely divided? The haves and have not's again? And we wonder why we never manage to climb out of the hole we're in.....

You may find this article to be of interest.

Originally posted by OuttaTime
Gold and gold 'derivatives'? That tells me that digital gold and exotic formulas are at work on that one.

The first chart shows the percentage of global capital which is allocated to Gold & Gold mining shares. Gold mining shares represent a 'derivative' form of ownership in producer assets, This can be interpreted as a share ownership in a company's 'above ground' and 'in the ground' reserve base, as well as profitability. No more 'exotic' than owning shares of APPL or any other equity.

Originally posted by OuttaTime
Will a gold bubble pop? I doubt it since society covets an otherwise ordinary metal due to it's inherent property. Africa is full of billionnaires, and they cannot afford a loaf of bread. It's happened many times before, and will happen again. Gold as a safety net? Doubt it, especially if there is financial collapse. Can't eat it, can't hunt with it, can't drink it.

I really think you need to study the historical performance of precious metals in financial crises. If you find the link I posted to the Weimar collapse unsatisfactory, try contemporary Argentina.

Originally posted by OuttaTime
But in the event of a post collapse scenario. I've heard it said before, "If I have a gun and you have an ounce of gold, then I have a gun and an ounce of gold".

Yes, very macho and all...popular adage with the apocaholic-survivalist crowd.

Here's another one for you.

"If I have a gun and you have an ounce of Gold and two guns, then....."

Wake me as we approach $2800 and we'll have a look see

reply to post by OBE1


So how much of this 'in ground gold' is recorded? Many times larger than the 'above ground' amount? I don't know how much is still in the ground but I'm guessing if it was all dug up, gold would be worth as much as silver.

I really think you need to study the historical performance of precious metals in financial crises. If you find the link I posted to the Weimar collapse unsatisfactory, try contemporary Argentina

I'll check into them in a bit. Right now I'm thinking about the Gold Confiscation act that happened after the last great depression. Now THAT is some historical precious metals performance.

Personally I have no bank account, assets, credit cards, investments, gold, silver, mortgage, no Benz or bling. I'm basically utilitarian, but that's just me. I have no real need for trinkets or boxes of fiat currency.