The Price Of Gold Is Crashing. Here's Why

[rsokolowski]

You might also be interested in the fact the the US Federal Reserve recently manipulated gold with by taking massive paper short positions: http://www.informationclearinghouse.info/article34606.htm

it goes without saying that the US Federal Reserve is one of the biggest conspirative players on the global field. unfortunately the FED is never involved in any positive conspiracy, such as teaching Papua New Guinea headhunters the basics of Quantum Physics, subsidising go-go bar owners in Thailand in order to keep bar fines low or providing free Som Tam and Chang to expats suffering because of unfavourable exchange rates.

all what the FED did and still does has a negative impact, e.g. breeding the swine flu virus, causing earth quakes in South America and/or tsunamis as well as typhoons in Asia.

<deleted>? I do not like the US Federal Reserve, but would you like to expound on how they caused the examples you provide.

What a minute before replying, I need to grab a beer and some popcorn.

[ExpatOilWorker]

You might also be interested in the fact the the US Federal Reserve recently manipulated gold with by taking massive paper short positions: http://www.informationclearinghouse.info/article34606.htm

it goes without saying that the US Federal Reserve is one of the biggest conspirative players on the global field. unfortunately the FED is never involved in any positive conspiracy, such as teaching Papua New Guinea headhunters the basics of Quantum Physics, subsidising go-go bar owners in Thailand in order to keep bar fines low or providing free Som Tam and Chang to expats suffering because of unfavourable exchange rates.

all what the FED did and still does has a negative impact, e.g. breeding the swine flu virus, causing earth quakes in South America and/or tsunamis as well as typhoons in Asia.

Easy on the schnapps Naam, the day is still young.

[rsokolowski]

The US Dollar has depreciated about 30% since 2002. Buy $1000 dollars of gold and a stack of $1000 US dollar bills, and in ten years see which one has more value. I am American and I would not bet on the dollar.

may i presume that you are a prophet who knows what the result will be in ten years?

by the way, the US-Dollar, properly invested and achieving yield, shows a very satisfactory result since 2002. no sign of any depreciation. ignorants who kept the US-Dollar under the mattress lost.

Rsokolowski also fails to point out presumably due to selective dates myopia that $US invested in simple relatively risk-free investments in 1980 will have trumped gold purchased in 1980 and redeemed in 2005 for the same amount of dollars. Did I say trumped? I should have said a slam-dunk with go-go dancers on the top.

For that time frame you are correct.

[aussiebebe]

My theory is that China is already bankrupt, I think this happened last year (2012) when a glut of major infrastructure projects ran out of funding. As Chinese individuals and small businesses can't lend from banks easily, the bonds that fund infrastructure developments are the first places to look to see what's happening to the economy. 'More bonds' was the Chinese government's answer to help buoy the economy and ease in the new party leadership.
Gold slumped when the Chinese revealed less growth than forecast; yes, Western countries could only dream of such growth, but with China 75% of GDP is just infrastructure spending ie. bonds, so just a small % of lost growth represents a larger problem with the economy. You can see the truth of this if you look at the recent bankruptcy of Suntech Power, the world's largest solar panel maker. Yes, there were many factors (too many factories pushed the prices of panels down, US import tariffs, US natural gas production), but the underlying factor was the Chinese government is no longer willing to subsidize. The money has run out.

[55Jay]

Intervention?

http://www.thaivisa.com/forum/topic/633431-t-f-e-x-temporarily-halts-commodity-futures-trading/

[Naam]

You might also be interested in the fact the the US Federal Reserve recently manipulated gold with by taking massive paper short positions: http://www.informationclearinghouse.info/article34606.htm

it goes without saying that the US Federal Reserve is one of the biggest conspirative players on the global field. unfortunately the FED is never involved in any positive conspiracy, such as teaching Papua New Guinea headhunters the basics of Quantum Physics, subsidising go-go bar owners in Thailand in order to keep bar fines low or providing free Som Tam and Chang to expats suffering because of unfavourable exchange rates.

all what the FED did and still does has a negative impact, e.g. breeding the swine flu virus, causing earth quakes in South America and/or tsunamis as well as typhoons in Asia.

<deleted>? I do not like the US Federal Reserve, but would you like to expound on how they caused the examples you provide.

What a minute before replying, I need to grab a beer and some popcorn.

tell me when you are ready

[yoshiwara]

The US Dollar has depreciated about 30% since 2002. Buy $1000 dollars of gold and a stack of $1000 US dollar bills, and in ten years see which one has more value. I am American and I would not bet on the dollar.

may i presume that you are a prophet who knows what the result will be in ten years?

by the way, the US-Dollar, properly invested and achieving yield, shows a very satisfactory result since 2002. no sign of any depreciation. ignorants who kept the US-Dollar under the mattress lost.

You may not presume! Properly invested in what? If it was in the market you would have had gains from 2002 to 2007, today the US market just scratched its way back to where it was in 2007. If you invested more safely you might be just keeping your head above the depreciation water level. In January of 2002 gold was selling for $278 USD an ounce, today's close was $1392 USD an ounce. That is a 400% increase in value (370% if you deduct the dollars depreciation). The DOW went from 10000 in Jan 2002 to 14618 at the close today, that is about 46% which minus the depreciation of the USD (~30%) leaves you a tidy profit of 16%. Which investment has been better? The answer is very clear.

The trouble is that individuals were being sold that time frame as a guarantee of success during the last 2 years.

Unlike other financial assets where it is generally accepted that past performance is no guarantee of future performance, gold bugs dishonestly flog their asset as on a permanent take-off path even when the plane is crashing on the tarmac.

[Somnambulist]

This is the best I've read on how da boyz did it this time. I'm still long
and strong. Yuh gotta know why yer holdin' da stuff or events like this
will make you panic sell.

http://goldtrends.net/FreeDailyBlog?mode=PostView&bmi=1267250

[Naam]

rsokolowski, on 18 Apr 2013 - 09:32, said:

You may not presume! Properly invested in what? If it was in the market

you would have had gains from 2002 to 2007, today the US market just

scratched its way back to where it was in 2007. If you invested more

safely you might be just keeping your head above the depreciation water

level. In January of 2002 gold was selling for $278 USD an ounce,

today's close was $1392 USD an ounce. That is a 400% increase in value

(370% if you deduct the dollars depreciation). The DOW went from 10000

in Jan 2002 to 14618 at the close today, that is about 46% which minus

the depreciation of the USD (~30%) leaves you a tidy profit of 16%.

Which investment has been better? The answer is very clear.

sorry, i forgot completely you are one of those Americans who think that

"the market" consists of DOW, S&P, Nasdaq and mutual funds. fact is

that the afore-mentioned represent a miniscule 0.0000000x% of the actual

global market.

and as you seem to know all the "clear" answers and have no idea what depreciation actually means i consider it a "clear" waste of time to discuss "market(s)" and their possibilities with you.

peace!

Edited April 18, 2013 by Naam

[midas]

My theory is that China is already bankrupt, I think this happened last year (2012) when a glut of major infrastructure projects ran out of funding. As Chinese individuals and small businesses can't lend from banks easily, the bonds that fund infrastructure developments are the first places to look to see what's happening to the economy. 'More bonds' was the Chinese government's answer to help buoy the economy and ease in the new party leadership.

Gold slumped when the Chinese revealed less growth than forecast; yes, Western countries could only dream of such growth, but with China 75% of GDP is just infrastructure spending ie. bonds, so just a small % of lost growth represents a larger problem with the economy. You can see the truth of this if you look at the recent bankruptcy of Suntech Power, the world's largest solar panel maker. Yes, there were many factors (too many factories pushed the prices of panels down, US import tariffs, US natural gas production), but the underlying factor was the Chinese government is no longer willing to subsidize. The money has run out.

Yes indeed! Sounds pretty serious doesn't it aussiebebe ?

And our resident apologist for the “ banksters “ and master of disinformation Yoshiwara claims to read to the Financial Times............. and yet funny we haven't heard a peep from him about this?

Chinese Auditor Warns "Out Of Control" Chinese Debt Could Spark Bigger Crisis Than US Housing Crash

http://www.ft.com/intl/cms/s/adb07bbe-a655-11e2-8bd2-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fadb07bbe-a655-11e2-8bd2-00144feabdc0.html&_i_referer=http%3A%2F%2Fwww.zerohedge.com%2Fnews%2F2013-04-17%2Fchinese-auditor-warns-out-control-chinese-debt-could-spark-bigger-crisis-us-housing-#axzz2QjIh3m1z

Edited April 18, 2013 by midas

[yoshiwara]

My theory is that China is already bankrupt, I think this happened last year (2012) when a glut of major infrastructure projects ran out of funding. As Chinese individuals and small businesses can't lend from banks easily, the bonds that fund infrastructure developments are the first places to look to see what's happening to the economy. 'More bonds' was the Chinese government's answer to help buoy the economy and ease in the new party leadership.

Gold slumped when the Chinese revealed less growth than forecast; yes, Western countries could only dream of such growth, but with China 75% of GDP is just infrastructure spending ie. bonds, so just a small % of lost growth represents a larger problem with the economy. You can see the truth of this if you look at the recent bankruptcy of Suntech Power, the world's largest solar panel maker. Yes, there were many factors (too many factories pushed the prices of panels down, US import tariffs, US natural gas production), but the underlying factor was the Chinese government is no longer willing to subsidize. The money has run out.

Yes indeed! Sounds pretty serious doesn't it aussiebebe ?

And our resident apologist for the “ banksters “ and master of disinformation Yoshiwara claims to read to the Financial Times............. and yet funny we haven't heard a peep from him about this?

Chinese Auditor Warns "Out Of Control" Chinese Debt Could Spark Bigger Crisis Than US Housing Crash

http://www.ft.com/intl/cms/s/adb07bbe-a655-11e2-8bd2-00144feabdc0,Authorised=false.html?_i_location=http://www.ft.com/cms/s/0/adb07bbe-a655-11e2-8bd2-00144feabdc0.html&_i_referer=http://www.zerohedge.com/news/2013-04-17/chinese-auditor-warns-out-control-chinese-debt-could-spark-bigger-crisis-us-housing-#axzz2QjIh3m1z

Jim Chanos has a distinct bearish call on the Chinese economy but others are more sanguine. No doubt that the materials shares such as Rio Tinto have taken a kicking as a result of perception of the Chinese economy slowing down. Few at the moment buy the story that China is 'finished'. Australia is a proxy for the China market, so one can follow that story or alternatively the Hang Seng H shares as a more direct way to get exposure to the Shanghai SE. It wasan't that long ago that there was talk of the US local authority debt being catastrophic but so far a bit here and there. Edited April 18, 2013 by yoshiwara

[yoshiwara]

"On April 12, the Fed dumped 500 tons of naked shorts on the market, pulling dollars out of thin air and sending gold prices deep into the red, Dr. Paul Craig Roberts writes citing Andrew Maguire, an independent bullion trader and a whistleblower."

http://rt.com/business/central-banks-gold-reserves-slump-000/

Dr. Paul Craig Roberts fruitcake.

[annabel]

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.

Even if there is nobody left to sell it to >>>??

[midas]

Gold Drop Spurs Demand From Indian Bazaar to Chinese Mall

" Owning gold “is built into the DNA” in Asia, said Grant Williams, portfolio manager at Vulpes Investment Management Ltd. in Singapore,which manages $280 million. “Whenever we get these meaningful sell-offs, there’s always a pick-up in demand for physical gold. It’s avery different attitude you get in places like China, Hong Kong and India than you do in the U.S.”

http://www.bloomberg.com/news/2013-04-17/gold-drop-spurs-demand-from-indian-bazaar-to-chinese-mall.html

[rose orchid]

Sell in May and go away

[yoshiwara]

Gold Drop Spurs Demand From Indian Bazaar to Chinese Mall

" Owning gold “is built into the DNA” in Asia, said Grant Williams, portfolio manager at Vulpes Investment Management Ltd. in Singapore,which manages $280 million. “Whenever we get these meaningful sell-offs, there’s always a pick-up in demand for physical gold. It’s avery different attitude you get in places like China, Hong Kong and India than you do in the U.S.”

http://www.bloomberg.com/news/2013-04-17/gold-drop-spurs-demand-from-indian-bazaar-to-chinese-mall.html

Two years of significant sell-offs. Those shoppers really having a great effect.

[midas]

At 9pm EST tonight, Thursday 4/18, the Canadian Broadcasting Corporation
is set to broadcast The Secret World of Gold, a detailed documentary exploring the co-ordinated manipulation of precious metals:

The U.S. Commodity Futures Trading Commission has evidence that incriminates JPM as having malicious short positions designed to influence the price action of Silver and Gold towards JPM’s favor; akin to the LIBOR scandal in which rates were manipulated down towards the banks favor. -JPM Whistle-blower

" In recent years, economic uncertainty is giving gold a new lustre in the world of high finance. Whether it’s a few gold coins or gold bars stored in one of the many vaults around the world, many investors are taking a shine to gold.
But there’s not a lot of it. It is said that, even melted down, there would not be enough to fill an Olympic swimming pool.

Some claim that much of the gold held by the Bank of Canada, the Bank of England, the Federal Reserve and Fort Knox is gone — that for every 100 ounces of gold traded, there exists only one ounce of real, physical gold. So, where
is the gold — and who really owns it? "

Brian McKenna didn’t predict the recent nosedive in gold prices, but he knows someone who did.

“Andy” is Andrew Maguire, a key source in McKenna’s fascinating new film The Secret World of
Gold, which premières Thursday at 9 p.m. on CBC-TV. The hour-long documentary plunges into the dramatically rich narrative of gold, unveiling some shocking facts along the way.

“I was just going to do a history piece, until I stumbled over a whistle-blower,”
McKenna said.

http://www.cbc.ca/doczone/episode/the-secret-world-of-gold.html

Edited April 19, 2013 by midas

[Naam]

The U.S. Commodity Futures Trading Commission has evidence that incriminates
JPM as having malicious short positions designed to influence the price
action of Silver and Gold towards JPM’s favor; akin to the LIBOR scandal in which rates were manipulated down towards the banks favor. -JPM Whistle-blower

a great consolation indeed for the poor souls who now lick their wounds because they believed in the mantras of the goldpushing charlatanes.

[midas]

oh god if Tony Blair has involvement then say no more .............................................

thank goodness the Canadian broadcasting Corporation have more backbone!

Documentarian reveals the drama and danger behind one of the world’s oldest currencies

“He was tremendous,” McKenna said. “It took me eight months to persuade him to come on camera, but I was willing to wait. I knew he was critical to the film. It turns out he was burned by the BBC. He spent seven months showing them everything, going online and showing them the way things worked. Then after all that, they said " ‘The show’s been killed.’

“Word on the street is that Tony Blair, who is on a retainer to JPMorgan for $2 million a year, made a call to the BBC (and the story was dropped). Did that happen? I don’t know. It’s an opinion that people hold; it doesn’t make it so. But something made the BBC stop an important investigation into which they had probably invested three-quarters of a million dollars.”

http://www.montrealgazette.com/entertainment/Brian+McKenna+explores+Secret+World+Gold/8255149/story.html

[midas]

The U.S. Commodity Futures Trading Commission has evidence that incriminates

JPM as having malicious short positions designed to influence the price

action of Silver and Gold towards JPM’s favor; akin to the LIBOR scandal in which rates were manipulated down towards the banks favor. -JPM Whistle-blower

a great consolation indeed for the poor souls who now lick their wounds because they believed in the mantras of the goldpushing charlatanes.

Maybe, but meanwhile, don't you think we should be pursuing and prosecuting the criminals?

[55Jay]

The U.S. Commodity Futures Trading Commission has evidence that incriminates

JPM as having malicious short positions designed to influence the price

action of Silver and Gold towards JPM’s favor; akin to the LIBOR scandal in which rates were manipulated down towards the banks favor. -JPM Whistle-blower

a great consolation indeed for the poor souls who now lick their wounds because they believed in the mantras of the goldpushing charlatanes.

Maybe, but meanwhile, don't you think we should be pursuing and prosecuting the criminals?

Martha Stewart.

[Naam]

Maybe, but meanwhile, don't you think we should be pursuing and prosecuting the criminals?

yes Midas, i agree and also think that not "we" but "they" should catch the criminals. what we think and we can do has no more effect than dogs howling at a full moon.

criminals are caught redhanded, they are fined a billion and grinning they shell out that billion because in the meantime they made a couple of billions more with shady or not-so-kosher/halal deals. or worse... they go unpunished like Jon Corzine

[midas]

Gold Drop Spurs Demand From Indian Bazaar to Chinese Mall

" Owning gold “is built into the DNA” in Asia, said Grant Williams, portfolio manager at Vulpes Investment Management Ltd. in Singapore,which manages $280 million. “Whenever we get these meaningful sell-offs, there’s always a pick-up in demand for physical gold. It’s avery different attitude you get in places like China, Hong Kong and India than you do in the U.S.”

http://www.bloomberg.com/news/2013-04-17/gold-drop-spurs-demand-from-indian-bazaar-to-chinese-mall.html

Two years of significant sell-offs. Those shoppers really having a great effect.

But the point is in China and India, with one third of the world's population they slowly and patiently accumulate the “ real thing “ while the West is so preoccupied and farts around with pieces of paper that it then exchages for more pieces of paper from the Federal reserve which bears the words “ In God We Trust “................... ( while at Stallbrook Elementary School they decided to ban the word " God " because it is offensive. )

Edited April 19, 2013 by midas

[midas]

Maybe, but meanwhile, don't you think we should be pursuing and prosecuting the criminals?

yes Midas, i agree and also think that not "we" but "they" should catch the criminals. what we think and we can do has no more effect than dogs howling at a full moon.

criminals are caught redhanded, they are fined a billion and grinning they shell out that billion because in the meantime they made a couple of billions more with shady or not-so-kosher/halal deals. or worse... they go unpunished like Jon Corzine

but how can “ they “ possibly catch the criminals when " they " are overridden by other criminals?

In our long debate weekend over in the other fred about derivatives that “ Frontline “ documentary clearly shows the likes of Alan Greenspan et al even has the power even today to override The U.S. CommodityFutures Trading Commission ? In fact, he even overrides Obama shown by the fact that Obama cannot act upon what he promised to.

A retired central banker has more power in the field of finance than the president of the United States.

Edited April 19, 2013 by midas

[Naam]

A retired central banker has more power in the field of finance than the president of the United States.

i am not able to verify or judge that claim. surely not based on facts supplied by a video clip..

[4NDR345]

RT @RichardBarrow: 9:40am Long queues outside gold shops in Bangkok's Chinatown as gold prices drop by ฿2,350 (Pic @Wootthinan) http://twitter.com/Wootthinan/status/324351973656764417/photo/1

So did they go there because they wanted to sell, or invest? =)

Edited April 19, 2013 by 4NDR345

[midas]

A retired central banker has more power in the field of finance than the president of the United States.

i am not able to verify or judge that claim. surely not based on facts supplied by a video clip..

What reason would PBS have to lie? I consider them to be just as reliable as BBC in UK , CBC in Canada and ABC in Australia regarding their ability to undertake investigative assignments honestly and accurately.

PBS' Frontline program on Tuesdaynight broadcast a new one-hour report on one of the greatest and most shameful failings of the Obama administration: the lack of even a single arrest or prosecution of any senior Wall Street banker for the systemic fraud that precipitated the 2008 financial crisis: a crisis from which millions of people around the world are still suffering. What

this program particularly demonstrated was that the Obama justice department, in particular the Chief of its Criminal Division, Lanny Breuer, never even tried to hold the high-level criminals accountable.

http://www.guardian.co.uk/commentisfree/2013/jan/23/untouchables-wall-street-prosecutions-obama

Edited April 19, 2013 by midas

[midas]

RT @RichardBarrow: 9:40am Long queues outside gold shops in Bangkok's Chinatown as gold prices drop by ฿2,350 (Pic @Wootthinan) http://twitter.com/Wootthinan/status/324351973656764417/photo/1

So did they go there because they wanted to sell, or invest? =)

i can't imagine they would be doing anything differently

to my fellow countrymen back in Sydney.....

Bullion Baron @bullionbaron

ON TWITTER ABC News reports on 70 strong crowd outside of Dealer ABC (Sydney) to buy #Gold & #Silver (2 hour wait): http://www.abc.net.au/pm/content/2013/s3740253.htm …

Bargain hunters catch gold fever

http://www.abc.net.au/pm/content/2013/s3740253.htm

Edited April 19, 2013 by midas

[gjwgjw]

With the drop, people will start selling causing the prices to drop even more. It is a time to buy.

Buys of gold this week have been 50 to 1 against sells

clear evidence for this claim is the economic fundamental "buying depresses prices, selling increases prices!"

I'm sorry if I didn't clarify my post, But you need to understand the difference between the paper gold market and naked short sales and the physical gold market,to be able to understand the post.

[BlackJack]

Ahh the sheeple following the plan.

gold ETF's and derivatives

then crash

what did you expect when theres not enough gold on the planet to support these invented trading schemes

now people panic

sell their real gold

and this is bought by the above that never had physical gold in the first place

ANOTHER first class scam!!!

real banks are buying gold

NOT selling