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Why is Gold so low??

The stock market closed extremely low and so did gold. I dont get it.

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Why is gold so low?

The value of gold is a constant. It only appears to be a variable because we place a value on it determined by its comparison to the Yankee dollar. What we are really seeing is the changing value (or, more accurately, the perceived value) of our currency. The Yankee dollar (a fiat currency) promotes a confidence game based on future expectations. Although future expectation is that it will continue its slide into the toilet, other currencies are sliding into the toilet faster, thereby creating the illusion of a semi-solid dollar.

Also it is the season in which most are focusing on paying or calculating their income taxes of this year and bracing for the bail out taxes of future years that will descend on us like a shroud.

The only politically correct tax will be the silent tax of cranking up the money machine and borrowing the printed paper into existence. This reality has not been internalized by most Americans as yet.

Wily Elder

Wily Elder

True, PMs do have value, but

True, PMs do have value, but tell that to the Chinese who are currently buying up products around the world at depreciated values with FRNs. There is a time to spend gold at some point, isn't there. Don't want to be like the gambler in vegas who doesn't know when to cash in his chips. The game isn't who has the most gold, the game is who has control over production, and the Chinese are kicking our asses. Don't put your gold in a hole and waiting for it to save you, put it to work on the market.

Gold like any other product

Gold like any other product goes down in value during a depression. This is occuring because there is a shortage of dollars "on the market" and since there is no competing currency, as we can't pay our debt without first trading our gold for FRNs, then until FRNs flood the market the price of gold will fall as does everything else. Remember, if they are manipulating the price of gold, they are manipulating the price of the dollar. When central banks sell gold they remove dollars from the market. However, they don't want gold to go up too fast, because people would begin to trade it and pay off debt. We will see the price of gold rise when the price of other goods and services go up as well. That is when we will see true inflation. Right now we need to look around, if the price of gold goes up and other prices are falling, then trade and buy what you need. I believe now is a time to do so, since production is being cut back which will cause supplies to fall and a rise in prices of some goods.

Incorrect premise

People must stop thinking that gold is just a product. Gold is a currency. It has been for 5000 years and will continue to be. The reason gold is down is largely due to the banks (JP Morgan, Goldman Sachs) un-winding their short positions on gold over the last couple of weeks in Asia and here. If gold were just a "product" then why do so many central banks buy it and hoard it?

Sit tight with your gold and wait.


SteveMT's picture

If the dollar gets devalued, the price and value of gold will...

greatly increase. Do you think that the dollar will be devalued anytime soon?

So dummies will sell it believing it has no value....

...and the wealthy elite can pick it up cheaper.

Look who's buying...ignore the price.

I may not know the truth, but I know when I'm being lied to...

I may not know the truth, but I know when I'm being lied to...

SteveMT's picture

Manipulation, just like the market. Only gold has value, the ..

market and paper money do not. Do not sell your PM.

Who knows?

The gold market is incredibly complex. There are factors upon factors that come into play to determine the price.

But not all factors are of equal importance...So I guess a good question would be, what are the main or most important factors at the moment. Anyone know? I'm not sure myself.

I have no idea