The Price Of Gold Is Crashing. Here's Why

[Billmont]

Okay I'm sorry I need to gloat........I posted on the Gold thread over a year ago that the price of Gold would be $1250 by January 1 2015. It was a lemmings market, and now it's adjusting to reality.

Personally I still think $1250 is too high, but we'll see.

http://www.thaivisa.com/forum/topic/218064-where-is-gold-going-in-this-market/?view=findpost&p=5045576

Well done. The law of large numbers would state that eventually one of your inane posts would turn out to be correct, I guess it was that one!!

Hang on gents. Wait until January 2015 before you say he is right. By then gold could be at a record high, unlikely but possible. What is fairly definate is that gold will come back, at worst it will only keep pace with inflation, but in this world of unknowns it will only take one financial or military crisis to see gold rising as fast as the recent drop.

here we go! the usual BS goes on "just wait... time will tell... if not tomorrow then next week, next month, next year, next rebirth" with "intelligent" reasons added "it only takes... if x equals y... those who bougt gold in 1973... it's the conspiracy dummy... if only my Granny had left me gold instead of old furniture."

the same sermon i heard for 20 long years after the 1980 gold crash whilst during these 20 years some of the poor buggers who held on to their gold and who believed in this BS starved to death.

oh well...

Oh Well! In 1973 gold was $106/oz. 20 years ago gold was $333/oz

[watcharacters]

Lots of good post here...

But one question, if someone can answer....

What happens to Thai gold shops that has millions of bahts worth of gold....

Now they have to sell at a very lower price...

Do they take a beating out of this??

.

They lose nothing until they decide to sell for less than they paid.

[midas]

Gold is oversold, it's price is too high.

It's time for a readjustment to reality for Gold prices.

The "Gold Freaks" who have been preaching the "Buy Gold now" religion never did answer my sarcastic question which always was this:

"If everything falls apart, and there is no one with any money to buy your Gold, can you eat it"?

"How many calories are there in a bar of Gold"?

But don't worry, it's a readjustment of overpricd Gold, not the end of the world.

I don't own gold, and would never buy it. But the answer to your question is that it would still have value. People might not have money in your scenario, but you could still trade your gold for food, and other things. If everything falls apart, gold will be one of the few things that people will really value.

Yes, back to the cave and start all over again !

.

Yeah, I was wondering how thin and many shavings it takes to buy a loaf of bread.

" European investors have been buying CombiBar credit card sized gold

wafers which can be broken into one gram pieces and used as emergency

currency. Now there are plans to market them in the U.S."

http://www.combibar.com/

[theblether]

Okay I'm sorry I need to gloat........I posted on the Gold thread over a year ago that the price of Gold would be $1250 by January 1 2015. It was a lemmings market, and now it's adjusting to reality.

Personally I still think $1250 is too high, but we'll see.

http://www.thaivisa.com/forum/topic/218064-where-is-gold-going-in-this-market/?view=findpost&p=5045576

Well done. The law of large numbers would state that eventually one of your inane posts would turn out to be correct, I guess it was that one!!

Hang on gents. Wait until January 2015 before you say he is right. By then gold could be at a record high, unlikely but possible. What is fairly definate is that gold will come back, at worst it will only keep pace with inflation, but in this world of unknowns it will only take one financial or military crisis to see gold rising as fast as the recent drop.

Did you notice North Korea threatened to nuke America?

[yoshiwara]

Midas: Having subscriptions to FT and WSJ doesn't necessarily mean you have the intellectual ability to understand them-and you prove that point

I doubt if you have any qualifications to make that judgment call considering the rubbish websites you spend your life copying and pasting from. Particularly if you believe that gold is always the canary in the gold mine. For those who do wish to intellectually engage with the FT, I always recommend John Authers Long View. Lex is also good but you need a premium sub to read Lex. For those who don't want to spend on a sub the free websites CNBC and Bloomberg always worth checking. CNBC TV excellent to following the daily stories as they unfold. Bloomberg TV on the other hand is free on the internet if on the move. Edited April 17, 2013 by yoshiwara

[yoshiwara]

Lots of good post here...

But one question, if someone can answer....

What happens to Thai gold shops that has millions of bahts worth of gold....

Now they have to sell at a very lower price...

Do they take a beating out of this??

.

They lose nothing until they decide to sell for less than they paid.

That should impress the accountant.

[harryviking]

Just waiting to gold drop a litle bit more THEN BUY!! Gold is gold....paper(money) is ....yes...only paper

[Nickiboy03]

So I now wonder where to invest. Even my gold has suddenly lost a lot of value. My USD and Euros are also worth nothing. Seems like the end of luxury life !

relax!

-let your wife take up a job,

-sell all the slave girls you have,

-tell your mia noi austerity measures apply,

-switch from lobster, caviar and champagne to fried rice (no eggs!), som tam and tap water,

-sell all iPhones (including the old models) your family members have acquired,

-convert your Bentley and Ferrari from gasoline to liquified natural gas,

-train your dogs to hunt for their food and steal from them.

if you need more advice, let me know.

Great advice. You should be on Doomsdaypreppers :-)

I really hope this was sarcasm

[Locationthailand]

I can't help but think the market is being sold to create a false floor so the banks can buy up as cheaply as possible. Soros did it a lot, gave a sell order to sell at a peak and crashed the market, with the majority of sheeple selling after he had already dumped stocks (yes - a pump and dump scam of the highest order) and then when others were divesting - he suddenly put a buy order in and pushed the price way back up making a killing. Market manipulation like this is common because people at large tend to look at stock prices from a news paper and that was about 12 hours plus ago and a lot can happen in that time - and does. If people wish to divest themselves of gold stocks now, there will be a lot of people who will buy in again within a month or so even before the market turns, as gold will continue to climb despite fluctuations. This is simply a correction.

[theblether]

Simply a correction? Tell me........what do you think the correct cost of gold should be? $1000? $1500? $2000?

This inflated and speculative market is ripe for the next financial scandal, just wait until the walking wounded start to emerge from the major houses.

There may be trouble ahead........let's face the music, and dance.

[davejones]

So I now wonder where to invest. Even my gold has suddenly lost a lot of value. My USD and Euros are also worth nothing. Seems like the end of luxury life !

If you live in Thailand, why do you have USD, Euros and Gold? Wouldn't you be better off with Thai Baht? That's assuming you live here.

Edited April 17, 2013 by davejones

[JoePai]

All these posts are pure conjecture - remember gold has no "value" as such

[Nickiboy03]

So I now wonder where to invest. Even my gold has suddenly lost a lot of value. My USD and Euros are also worth nothing. Seems like the end of luxury life !

If you live in Thailand, why do you have USD, Euros and Gold? Wouldn't you be better off with Thai Baht? That's assuming you live here.

Ah are you sure you are in Thailand most Thai Ladies that are holding your hand the 1st place they bring you to is the gold shop do you think that there may be some historical reason for this like 5000 yrs we have Thailand and 300 year we have USA Canada Australia, yup money backed by your energy=taxes is real gold mined is fictitious.

[Nickiboy03]

All these posts are pure conjecture - remember gold has no "value" as such

And tell me what determines value the lies that you have been eating up all of your life because if you were actually educated you would know real thing are produced and counterfeit /copies are what they are.

[Thai at Heart]

So I now wonder where to invest. Even my gold has suddenly lost a lot of value. My USD and Euros are also worth nothing. Seems like the end of luxury life !

Should have bought baht.

[Nickiboy03]

Gold crashing 100 tonnes of paper sold before the criminal city of london markets close,next up merril lynch 300 tonnes of paper gold sold 1st hour of the comex/crimex opens. Then the specs have all weekend to sweat it out because they know the margin calls are coming in on monday and bang 124 tonnes of more paper get sold of this is futures contracts paper.Note Hi Frequency Trading = computer to computer doing there businesse in the globex market when everyone is sleeping.

The funny thing about all of this is China bought 400 tonnes of gold in the last 3 months jan-feb do you think that maybe the gold price should of maybe went up with this type of purchase because if it can go down why not go up.

I would really like to hear your explanation of this gold doesn't have any value.

[yoshiwara]

I can't help but think the market is being sold to create a false floor so the banks can buy up as cheaply as possible. Soros did it a lot, gave a sell order to sell at a peak and crashed the market, with the majority of sheeple selling after he had already dumped stocks (yes - a pump and dump scam of the highest order) and then when others were divesting - he suddenly put a buy order in and pushed the price way back up making a killing. Market manipulation like this is common because people at large tend to look at stock prices from a news paper and that was about 12 hours plus ago and a lot can happen in that time - and does. If people wish to divest themselves of gold stocks now, there will be a lot of people who will buy in again within a month or so even before the market turns, as gold will continue to climb despite fluctuations. This is simply a correction.

This false floor story has been sold since 1930 so the advice was buy all the way dowm. Yes that was smart.

Second. Please tell us when Soros pumped and dumped. Selling high and then buying low does not equal pump and dump.

Clearly you are smarter and buy high and sell low.

[Asiantravel]

[yoshiwara]

So I now wonder where to invest. Even my gold has suddenly lost a lot of value. My USD and Euros are also worth nothing. Seems like the end of luxury life !

If you live in Thailand, why do you have USD, Euros and Gold? Wouldn't you be better off with Thai Baht? That's assuming you live here.

Ah are you sure you are in Thailand most Thai Ladies that are holding your hand the 1st place they bring you to is the gold shop do you think that there may be some historical reason for this like 5000 yrs we have Thailand and 300 year we have USA Canada Australia, yup money backed by your energy=taxes is real gold mined is fictitious.

Maybe you could ask a 5000 year old Egyptian mummy how his gold investments are doing. On the other hand your theory sphinx.

[Nickiboy03]

So I now wonder where to invest. Even my gold has suddenly lost a lot of value. My USD and Euros are also worth nothing. Seems like the end of luxury life !

If you live in Thailand, why do you have USD, Euros and Gold? Wouldn't you be better off with Thai Baht? That's assuming you live here.

Ah are you sure you are in Thailand most Thai Ladies that are holding your hand the 1st place they bring you to is the gold shop do you think that there may be some historical reason for this like 5000 yrs we have Thailand and 300 year we have USA Canada Australia, yup money backed by your energy=taxes is real gold mined is fictitious.

Maybe you could ask a 5000 year old Egyptian mummy how his gold investments are doing. On the other hand your theory sphinx.

Gold is the most secretive barbaric relic asset the central banks have,do you actually think that gold can actually be priced in paper that central banks can print to infinity and leverage 10 /20/ 30/ to who knows what, the actual leverage is. What is a ounce of gold worth to these central banks,you can bet your life on this it is not the paper spot price that we see daily,it is much higher.

[yoshiwara]

Gold is the most secretive barbaric relic asset the central banks have,do you actually think that gold can actually be priced in paper that central banks can print to infinity and leverage 10 /20/ 30/ to who knows what, the actual leverage is. What is a ounce of gold worth to these central banks,you can bet your life on this it is not the paper spot price that we see daily,it is much higher.

So now we have a secret algorithm.

[Foggy Bottom]

gold price hits lowest level in 30 years

= rubbish!

I agree Naam - when I bought gold as part of the (now) wife's show wealth for the wedding in 2006, gold was just over B 10k per Baht weight - at the gold shop, not wholesale. She got very excited when it went up to B 12k per Baht weight and I told her if she pawned/sold it, she'd get no more from me.

[Dr Wanchai]

Blame it on the Thais ?

[soi41]

It always amazes me, that on a forum were the normal "winner-topics" are: "How to keep up appearances for 100/baht/day" or "where to go, to get the noddles 3 baht cheaper", there are so many posters who, at least according to themselves, are experts on goldprices.

But please keep them coming!!

Good entertainmentvalue.

[thrilled]

The more gold goes down,the more I buy.If it goes down under $500an ounce I'll start to get worried.I'm th same as people in India.Buy it like it's going out of style.I'm into 24 karat gold coins.

[PCA]

funny thread, especially the post where somebody says there is 50 times more selling than buying. There is always as much of each otherwise the price would not move.

Bubble has started to burst but there is some tricky price action to follow which will cause much more pain to the unskilled. Guess after all this is over women won't like to wear a necklace anymore as it will appear so cheap compared to what it was before. Gold supposed to be a myth but unfortunately became a tulip, well well ...

[Naam]

Blame it on the Thais ?

[Naam]

Oh Well! In 1973 gold was $106/oz. 20 years ago gold was $333/oz

-jan 1980 gold was.......... $850/ounce

-jan 2000 gold was.......... $280/ounce

--------------------------------------------------

nominal loss.....................$570/ounce (-67%)

inflation loss @4% p.a.....$

--------------------------------------------------

total loss..........................$

=============================

[SunSeek01]

Most consumable and durable items new here in the US are up in price 10% or more over the last 18 months. Gas = $ 3.25 down from $ 3.90 but still nearly double 4 years ago. A decent sandwich = $ 9.00 ($ 8.99, ha ha). Many individual items I have seen myself up around 10%. And remember food and energy do not count in the US inflation rate! What a joke!

Central banks are piling in gold, accelerating purchases, not slowing. China is circumventing the USD every chance it gets with Russia, Iran, AU, and many others. Yep, gold is down a bit, about 15% over 12 months and probably will go down 1 or 2. Meanwhile Apple was off 5.5% today. Starting to get the picture? Gold can be manipulated in the short term but not in the long term.

It will be very difficult for the West to come back to where they were even 10 years ago. The numbers just add up.

[rsokolowski]

Thai investors advised against panic as gold price hits lowest level in 30 years

By Digital Media

BANGKOK, April 17 – Local gold prices may dip below Bt20,000 per baht weight, or possibly even Bt18,000 when the Thai bullion market opens tomorrow after the four-day Songkran holiday, an analyst predicted.

Tipa Nawawattanasub, chief executive officer of YLG Bullion and Futures, said the global gold price has nosedived from US$1,580 per ounce last Friday to US$1,320 per ounce today – the deepest slump in three decades.

She urged investors to take a wait-and-see precaution as analysts predicted the next resistance level at US$1,300 per ounce.

If the price is maintained at the resistance level, it will possibly inch up, otherwise it may slip further to US$1,250 per ounce, she said.

Gold prices declined rapidly at US$50-70 per ounce daily during the last several days, she said but urged investors not to panic.

She said an initiative by the Cyprus central bank to sell 13 tonnes of gold bullion in its reserves to garner 400 million euros to salvage the country’s finances has triggered concerns among European countries.

Italy and Portugal which have gold reserves at 2,000 tonnes and 300 tonnes respectively may follow Cyprus while many investment funds have stoked the situation by selling gold in their stocks, she said. (MCOT online news)

-- TNA 2013-04-17

"She urged investors to take a wait-and-see precaution as analysts predicted the next resistance level at US$1,300 per ounce.

If the price is maintained at the resistance level, it will possibly inch up, otherwise it may slip further to US$1,250 per ounce, she said."

So in other words the price of gold will either go up or down. What valuable advice!