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Ron Paul: Gold Could Go to 'Infinity'
Today’s AM fix was USD 1,283.25, EUR 978.98 and GBP 836.21 per ounce.
Friday’s AM fix was USD 1,290.25, EUR 976.28 and GBP 833.33 per ounce.
Gold climbed $15.50 or 1.21% on Friday and closed at $1,294.00/oz. Silver reached a high of $20.121 and finished up 2.19%. Gold and silver were both down on the week -6.93% and -9.07% respectively.
Gold has fallen another 1% this morning and remains at its lowest level since September 2010.
While gold rose over 1% on Friday, it recorded its worst weekly performance - down nearly 7% - since September 2011.
Support & Resistance Chart – (GoldCore)
Traders are the most bearish in 3 1/2 years, with 15 analysts surveyed by Bloomberg expecting prices to fall this week. Six were bullish and five neutral, the largest proportion of bears since January 2010. Gold rose in February 2010 and was 27% higher by year end 2010.
Sentiment is as bad as we have seen it in many years which is bullish from a contrarian perspective.
Weak hands have been washed out of the market and strong hands are accumulating again on this dip and will continue to do so in the coming weeks.
Gold, May-June 2013 – (GoldCore)
Gold’s 14-day relative strength index remains near the level of 30 that indicates to many technical analysts that a rebound may be imminent.
Falling gold prices are beginning to impact the gold mining sector in a big way. Newcrest Mining Ltd.’s decision to write down the value of its mines by as much as A$6 billion ($5.5 billion) will lead to the biggest one-time charge in gold mining history. It also heralds pain for competitors.
Barrick Gold Corp., the world’s biggest producer, Newmont Mining Corp. and Gold Fields Ltd. may be next, according to Jefferies International Ltd.
Canadian miner Barrick Gold will announce more job cuts and potentially the closure of mines in Western Australia. Barrick, the world's largest gold miner, has already trimmed its WA staff by 60 people this month. Around 100 jobs are set to be cut from the group's regional head office in Perth, with more losses - or potentially partial closures – likely at Barrick's five mining operations in WA.
This will lead to a decline in mining supply which will support prices.
Cross Currency Table – (Bloomberg)
Gold jewellers and bullion dealers in India, soon to be the world’s second largest buyer after China, will be asked to suspend sales of gold bullion bars and coins to retail investors to support government efforts to narrow a record current-account deficit that’s pushed the currency to an all-time low.
The All India Gems & Jewellery Trade Federation, a group that represents about 300,000 gold jewelers, manufacturers, wholesalers, retailers and distributors, will send notices to members asking them to halt sales.
Ron Paul still likes gold. In fact, he thinks it could go to "infinity." Below is his interview with CNBC's Jackie DeAngelis and the Futures Now Traders from June 18th.
CNBC's Jackie DeAngelis:
"Looking sort of at our economy and at the global economy, and were watching the situation in Japan closely as well, Why isn't gold responding more?"
Ron Paul:
"Well you know if you look at the last 13 years it was up 12 out of 13 and this year isn't even over yet, so I would say its responded pretty well. But you might say well yeah what about in the last year why hasn’t it? Well, markets do these things they go up sharply and sometimes they take a rest. But the long term is something you can get a handle on, but I was never very good on short term, whether it’s the stock market or whatever, or what government will do, they are just all over the place.
I think If you look at the record of the value of the dollar since the Fed's been in existence we have about a 2 cent dollar where gold was worth $20/oz.
I would say the record is rather clear on the side of commodity money.
And history is on our side, 6,000 years of history shows it maintains value while paper money self destructs.
I would say that long term as long as we have excessive spending and excessive computerized money you're going to see gold go up and eventually if we're not careful it could go to infinity while dollar could collapse totally.”
NEWS
Gold inches up after biggest weekly fall in two years - Reuters
Gold Extends Rebound on Demand After Drop to Lowest Since 2010 - Bloomberg
Gold Wagers Slump as $54 Billion Erased From Funds - Bloomberg
Barrick To Cut WA Jobs: Report – Business Spectator
COMMENTARY
Video: Ron Paul: Gold Could Go to 'Infinity' - CNBC
"Fundamental Case For Gold Is Growing, Not Diminishing" – Zero Hedge
Video: Marc Faber: "I Buy Gold Regularly" – Casey Research
Credit Ratings Agencies: 'You F--ked Up, You Trusted Us' - RollingStone
For breaking news and commentary on financial markets and gold, follow us on Twitter.
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gold's almost getting cheap enough for me to stack again!
Wrong.
Gold will find its price. The dollar will be debased into infinity.
The problem with the gold to the moon theory is that debt driven liquidity crises are deflationary by nature. Everyone needs to sell everything they have to meet interest payments or cover bills when no new debt is offerred. Gold gets caught up in this same as stocks and bonds. People sell what ever they can quickly sell and settle payment on. And if you own physical gold, you certainly have a hard asset that can be settled in either cash or with physical delivery very quickly. So, at least in the short term, during the start of the crisis, gold will suffer with everything else. People are not repositioning assets, they are selling assets to meet obligations to avoid folding up.
There are many issues with your points below sir, respectfully. The fact that physical for sale in exchange for paper at market prices determined by paper derivatives is unavailable is part of this. Gold's price has nothing to do with people selling to settle debts - or nation states for that matter. Most people do not even own physical - most that own gold own GLD, and that is not physical.
This price leg-down is nothing more than manipulation that is done to facilitate the accumulation by central banks and TBTF institutions that want to get their houses in order before the dollar collapses.
BraveSirRobin, right you are. and yet no mention in the article about a certain counterparty willing to throw a couple of hundred tons on the market like a sledgehammer? the same counterparty that probably gets it's ammo lent out as long as it shakes the market to the point that holding is only for the strongest of the strongest hands?
Yes, and that's why Goldcore sucks.
Many of us have pointed out their biased and shallow views around here.
Food has a better chance of going to infinity, especially if trucks stop stocking the supermarkets. The population is gonna find out that food doesn't originate at Wal-Mart. The end of cheap food will be devastating.
To infinity.... and beyond!
Real gold minus promised gold = -gold
Kings clothes are comming off at the moment
What is currently known as "Government" will fall apart before that(price freezing) ever happens...
I'm a bit disappointed by Ron. Nothing about market manipulation. At least not at this time. Without pointing out the most important aspect of what is going on in markets why even make a comment at all? I suppose once a polititian, always a polititian. Too bad.
What Ron Paul said was logical and accurate without giving any verbal ammo to those that would accuse him of being a "gold bug" or some other type of tin foil hat wearing kook. While manipulation appears to be obvious, it is quite difficult to prove as fact. I find it refreashing to see a public persona that is actually aware that what he says may be scrutinized and then used against him by factions that disagree with his beliefs.
Nice avatar. From the middle to late seventies if I recall correctly. I believe I still have that calendar, somewhere.
The 70's... tanned skin and no need for tats or punctures anywhere.
OK, back to killin' snakes
buy and hold for stocks is good , but buy and hold for gold and silver is bad?
i think not
you need at least as much gold as it takes to bribe____________.
you fill in that blank
Pb bitchez
Gold is priced by a paper market. that market has a natural tendency to go down as demand for 'gold' can be filled with a paper promise.
Gold will continue to fall in price while paradoxically the demand for physical rises. When no physical gold can be delivered, only then will we see the true value of gold.
For now I'm short GLD and long the metal...have been since February...and doing well....thanks fofoa
you know, its funny, i post 98% winners on twitter, and no one cares. seriously. its amazing.
gold just another aapl with a diff color
Yo, God forsaken boot - what kind of drugs are they feeding you at the institution you are locked up in ?
Equating gold with a paper stock - is like comparing organic grass raised beef to a can of Spam.
One has nutritional value, and tastes great, the other is an empty promise made out of hooves and squeals, and kills you slowly.
Give your head a fucking shake, man.
Gold is a tangible with a 6,000 year history of value.
AAPL is a transient corporate construct whose founder has passed and is being cored by Samsung and Android.
jawn... it's paper gold...
zzz
I want to believe that gold sustaining above $1,275/oz today is a message, while miners go Baumgartner....
I don't see the technicals supporting a sub $1,000/oz price and the only thing that could be behind it is liquidation/margin calls on the collapse of the shadow banking system. But if the collapse of the shadow banking system is behind the liquidation, there is no fucking way I can see gold sub $1,000, particularly when the market has already told us that the demand is precisely for physical, in repudiation of said shadow banking system.
I can see, due to manipulation, which by the way WAS THE ONLY REASON GOLD IS AT SUB 1,300s, going to $1,100/oz.
DISCLAIMER: IF ANYONE LAUGHS AT MY MANIPULATION CLAIM, PLS. EXPLAIN WHY THE FUCK GOLD ONLY FALLS AT 8:17-8:20AM OR BETWEEN 10-10:30AM, TO RECOVER AFTER 11:30AM. ANYONE! ANY STOCK BEHAVING LIKE THAT WOULD HAVE ALREADY ATTRACTED THE MASTURBATORS AT THE SEC.
This article has the funniest headline I have ever seen!!!! It made my day. Thank you ron paul. You are amazing.
Gold is headed to Sub 1000 when you have a calculating politician talking his (and Goldcore's book)with infinity. Good for a laugh, which IS priceless.
Thanks
"I think If you look at the record of the value of the dollar since the Fed's been in existence we have about a 2 cent dollar where gold was worth $20/oz."
How does gold go from $20 to $1,000?
History has shown us time and again what happens to fiat currencies and when they fail.
"Paper money eventually returns to its intrinsic value - zero"
- Voltaire
Zero, you are right today and have been for the last 3 months. Part of that has been due to the recent strength of the dollar, a relative strength, because despite the printing, everybody else is doing worse. Can we note current prices and resume this discussion in 3 years?
Gold is better than fiat money, but as has been pointed out even here, there is speculation in gold just as there is in everything else. As those leveraged gambles unwind, gold drops. Also, margin calls during market drops means gold will be sold to cover them.
most gold bulls are drooling hysterics. this is a problem.
the only thing unbounded is the idiocy of the masses. -karl groucho marx
Finally a comment a sensible person ( most Zhers) can agree with
GoldCrap strikes again with yet another bullish story as the metals tank in value
GoldCarnage has come home (at last) after scouring the globe desperately for a shred of positive news in the far reaches of outter Mongolia along with Jim Sinclair, Turd Ferguson and Silver Doctors and found the lunatic (idealist) fringe in the US, Ron Paul (who is sitting/stewing on big losses right now with his Gold investments)
if GoldCrap is putting a positive spin on everyone better go short as there's more carnage coming shortly (my triple short Silver ETN is wracking up a lovely profit;)
whatever GoldCrap and the other garbage around here says, do the opposite
-1 Noise. Sub-intellectual analysis; cherry-picking facts convenient for the temporary massaging of your ego. How obtuse to assume that those who have foreseen the inevitable failure of criminal paper weren't buying when gold was $100/oz, $250/oz, etc.. Central banking policy was written across the sky for decades, for those paying attention.
You are far too kind to this numbskull. He's a buffoon on gold.
the only thing that goes to infinity is leverage so i'm glad Congressman Paul has fessed up. obviously gold miners aren't the only ones being foreclosed upon. http://seekingalpha.com/symbol/wlt?source=search_general&s=wlt this is a met coal producer...in coal parlance "top of the line." SEE YA. and of course "it's not like it won't be cold this winter either" so no...you won't hear me celebrating this fact. wanna see a TRULY scare chart though? http://seekingalpha.com/symbol/exc?source=search_general&s=exc i'll grant this company this: it's up today. unlike a coal company however if this company fails it can wipe out civilization as we all know it. i sure hope all that "due diligence" and "proper oversight" thingy stuff is "all the rage." you know..."like how Wall Street is dealt with" from the same quarter right? "it's all fun and games until your food supply ceases to exist."
If you don't hold it...pufff...it's gone....ask Corzine about that.
" A.M. Fix"
multiple levels of meaning
6,000 years.
And we are so smart we think we can replace 6,000 of stable currency with Mickey Mouse piece of paper that we are told to accept has value.
Prmise to pay the bearer, promise to pay the bearer in what? not gold, promise to pay the bear with nothing, thin air.
Gold is king
Disney Dollars are worth MORE now than when issued - you can't say that about FRB notes
http://www.ebay.com/sch/i.html?_sop=1&_fln=1&_from=R40&_sacat=0&_catref=...
Zimbabwe 100 trillion dollar bill goes for USD $4 . Whats 4 bucks divided by worthless ???
have you noticed during your Golden dreams the value of Gold going down in value against those worthless pieces of paper/cotton?!
just a contrary thought there to inject into your dreamy thinking
Gold value goes down versus a Hypothecated man made construct of nonsense which has only existed for minutes in comparison to gold which will weather the coming storm.
FIAT is an experiment which has been designed to fail, it has been created to fail just like the EURO
100 years ago, 1 oz gold = $20.
Today, 1 oz gold =$1280.
What was that you said about gold going down in value?
Magical paperbug fantasy. There is a bank run for physical gold going on right now and there is no gold in system. Gold futures are just bank credit and bank promises.
"Well you know if you look at the last 13 years it was up 12 out of 13 and this year isn't even over yet".
Correction. Gold has been up 12 years in a row. Bull market started in 2001.
Zero, you are right today and have been for the last 3 months. Part of that has been due to the recent strength of the dollar, a relative strength, because despite the printing, everybody else is doing worse. Can we note current prices and resume this discussion in 3 years?
Governement manipulation can only go so far. I don't know how far, othewise I'd be rich playing that side. But at some point governments won't be able to tell people the value of certain things such as fiat money, gold, silver, lead, food, and clean water. At some point people will determine this for themselves. Until then keep arguing about charts and trends.
And then presto! They declare gold illegal for citizens to hold. The price will freeze at the level designated by the government. You can bury it and hide it in your walls. No problem. You just won't be able use it to purchase land, goods or services legally. The fantasy of $100,000 an ounce gold will never happen.
Yes, because prices set by decree work so well.
Let's say the Government of Freedonia decides the price of "X" (whatever X is) is now set at the "fair price" of 100 Fredonian dollars. Anyone caught selling X for more than 100 Fredonian dollars will be fined, maybe even prosecuted for treason.
You can bet that, 6 months later, the price is still officially X = 100 Freedonian dollars. But "X" simply cannot be bought on the open market at that price. Nope, X simply cannot be found at all, no matter where you go.
On the other hand, on the black market, "X" can be found in any quantity you like... But for a much, much higher price than 100 Freedonian dollars. Say F$ 10,000 or even F$ 100,000.
Sure, it's illegal, but you can bet dozens of Freedonian politicians and policemen are in on the scam, and are benefiting (being paid) for looking the other way.
Always happened. Simply replace Freedonia, "X" and dollars by your country, product and currency of choice.
anton levey?
Fuck you, you devilish sack of shit