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Gold Tumbles For 14th Of Last 15 Days To Lowest Since Feb 2010
The precious metal pummeling continues...
The 14th down day in the last 15...
To its lowest since Feb 2010...
Which is odd given the near-record physical demand...
and The US Mint selling out...
Charts: bloomberg
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Gasp!!! Treasuries are DEBT!!!!
Unfortunately, Treasuries are an asset, albeit in a very different form - that of jack booted thugs able to steal your property any time (aka taxation). As long as the jbts are in control of large numbers of slaves, treasuries are one of the most secure and liquid of all asset classes.
This reminds me of the price and wage freeze under Nixon. Does anyone remember what happened well how about long long gas lines. When you artificially prevent a price up something gives and when you cant get gold then and only then will a change occur. When that happens there will be no COMEX no LBMA and mopre than likely you will never afford PM. If you got it hold it but then the ones holding it probably are already. This is a time to buy!
When the Caliphate takes over the world, do you want to be an infidel with a pocketful of gold, or an infidel with a pocket full of federal reserve notes?
History has shown that Gold is always transferable into the currency of whatever empire that takes over after a defeat or collapse of a country. Copper or bronze coins become worthless in a regime change, as does the paper fiat formerly issued.
We cannot predict when the USA empire will collapse, but there are plenty of warning signs out there. And as Capitol One says - after the barbarian horde takes over, "what do you want in your wallet?"
What do I want in my wallet?
Guns and bullets, and production capacity of things that people NEED. (hint, people don't NEED gold).
When SHTF, you will be selling your gold (to me to buy necessities) for pennies on the dollar.
Why would you sell your gold for dollars, when dollars will be worthless?
Get ready for a COMEX default in december:
Only 4.7 metric tons available for delivery (registered).
http://www.24hgold.com/english/interactive_chart.aspx?title=COMEX+WAREHO...
so you expect the criminals to turn themselves in and give up their empire ?
there's plenty more to loot from GLD
"Which is odd given the near-record physical demand..."
Gold is a commodity and commmodity prices are dropping.
Half the country doesn't have $1,000 in savings and can't afford one gold coin, let alone a basket full.
That's exactly right. I've always said that gold is a luxury commodity bought during "good" times. When bad times hit worldwide, gold, along with all other luxuries, will be going for pennies on the dollar. It will take a decade, or more, of prosperity for gold prices (value) to recover.
Anopheles - much like bitcoin, gold can bought in very small quantities. Granted, the mark up is higher going that route.
gold is flowing west to east, now at an even greater discount - when the west is drained, east will be in control of "price" - its that simple and is coming within 5 years, probably within 2 years - the lower the "price" goes, the faster the drainage happens - hence, I truely wish for "price" to go to $500/oz to hasten the transfer
Just wait until the interest rate rises by an insignificant 0.25% Gold and silver will get hammered again. It'll get pushed pretty close to $1,000
Longer term? $800 to $900. Just wait until interest rates really rise.
If history is any gude, gold should rise strongly once (if) rates rise.
It's actually the opposite. Because gold returns zero, it costs people to hold on to gold. If someone has $10k worth of gold, at 5% interest, that means it's costing them $500 a year to hold gold.
The only reason gold became a popular "investment" the past decade is because it's value was constantly rising, and interest rates were low. If the value of gold doesn't rise, as happened in the 20 years between 1984 and 2004, it traded in the same range around $250 to $350/oz. At the same time, interest rates on cash were up to 15%!!!! Nobody was interested "investing" in gold, because if gold didn't rise 10%, year over year, then it was a losing proposition.
During that time, you could put $1,000 into gold, and 5 years later, still have $1,000 in gold. Or, you could put $1,000 in the bank, and 5 years later at 10%, have $1,610
There is no sacrosanct correlation either way.
Between 1977 and 1981 the price of gold climbed more than 350% while the fed funds rate rose from 5% to almost 20%. And between 2004 - 2006 the price of gold rose from $400 to $700 -- while the fed funds rate was steadily increasing the whole time.
Supply and demand folks..
Shrinking supply and increased demand = much lower prices.. That's the way the Markets always work..
Captain Obvious eh?
Yea, up = down, good news = bad news, everything = bullish
Captain Kirk out
PMs are an amazing "asset". I am in awe at how the believers keep their faith & hope that eventually their relentless commitment to PMs will "pay off" in spite of collapsing price, AND how many even consider the falling price to be "good" because it is an opportunity to accumulate more at a lower price. WOW!
I was tempted by PMs, but I researched them and decided on treasuries instead, and I am so so so grateful that I chose treasuries, which have no transaction latency, no-transaction cost, no storage cost, have been paying interest that I use to pay my living expenses instead of PM storage and transaction expenses, AND I will get my par value on maturity.
Sometime you are the bug, sometimes you are the windscreen.
Which one do you think you are?
By asking this question after what I wrote, you reveal that my answer is irrelevant to you.
So what's the current interest you get on this?
How do you not get utterly wrecked by real inflation?
How do you NOT get maximally wrecked by instead buying an inert substance that has high transaction cost, high storage cost, pays NO interest AND loses value ???
The interest that I am getting on my bond portfolio (treasuries, agencies, corporates, CDs, and munis) averages out to about 4% - that is real money that pays real expenses every month. How much income are you getting from your shiny pet rock ?
I am not luxuriously wealthy like the rest of you hoarders, I need income to pay my living expenses and provide for my wife, children, and grandchildren.
The interest paid out on your bond portfolio is "real money"?
You obviously have no idea what real money is.
It passes the test of paying my real expenses.
Retarded idiot.
The problem I see with gold is that it is still inflating. Every year 2800 new tonnes are extracted. That is nearly 90 billion US dollars every year, non-stop. It gives huge pressure downwards on price. (12 US dollars per person in the world every year).
Bitcoin is capped at 21 million, no further inflation. I recommend owning both gold and Bitcoin. Bitcoin for really hard crises. Gold for apocalypse.
I agree with your comment about gold (btw, it's only 2,400 tonnes a year)
However bitcoin isn't an "investment". It's purpose is a transactional medium, and people are holding on to it HOPING that it will go up and they can make a gazillion dollars "profit"
But since there's no liquidty in the bitcoin system, it's future is very limited. The ONLY liquidity injection is people BUYING bitcoin and injecting hard currency. People won't buy at a high price, which cuts liquidity, so exchanges won't pay out, UNTIL someone else has bought (at a lower price). That's why bitcoin crashed a couple weeks ago from $500 to $300. The liquidity dried up VERY quickly. And that lack of liquidity is what dooms it in the long run.
I was thinking the same as you some time back.
Everything in this world only exists if there is a "force" that makes it to exist. A country exists because there are soldiers that defend it. Your house is yours because there is a law that protects it, enforced by police and judges, which are also paid.
Miners are the defenders of the Bitcoin network. Miners are paid in Bitcoin. If stocks, bonds, notaries and so on are traded in the network, you can bet that Bitcoins will be a very real investment.
Actually miners are not the "defenders" of bitcoin. They are taking advantage of it.
For every coin they redeem for cash (in order to pay for the hardware and electricty to mine the coins), there has to be $300ish of NEW equity injected into the bitcoin system.
You seem genuinely intelligent but I don't think this is right with regard to Bitcoin. For a lot of use cases Bitcoin price doesn't really matter. For example if I want to send $500 to someone in another country, I can simply buy $500 worth of Bitcoin at the current rate, be that 0.1 BTC or a full coin. The recipient will be able to get $500 out of whatever I sent him, be that 0.1 or 1.0 coins.
Yes, that's correct. What I was referring to was not the people who use bitcoin for transactions, as you point out, the price doesn't matter, it's simply a medium of exchange.
It's the majority of people holding bitcoin in hopes of a windfall, and "cashing out". Those are the people who will be disappointed.
Gold is inflating in terms of production continuing to add so many new tons each year. But consider the demand side of that equation. If the experts are corrrect, China/Russia/India alone are gobbling up more on the demand side now than production is adding. Also note that alot of this gold demand will likely be in strong hands and will not be resold for a long time.
I also note that the ultimate inflating asset is debt. It dwarfs new gold production. There was a time that gold tracked the US total debt fairly close. For whatever reason, that tandem got derailed.
Just dumped DUST at $22.65 (long at $12.40). Been using DUST very successfully past year or so. The fact that DUST has NOT absolutely rocketed higher here to a new ATH on big volume is causing me to think enough about that proposition to dump this.
Still expect Gold needs to be "flushed and crushed" and is in the final bear phase but snapbacks can be violent. Would expect bounces from 1042 or 1050 if not close to current level. DUST and SCO ususally hint at future action of the underlying.
Still in strongly confirmed downtrend so new net shorts might make more sense after another countertrend move.
After observing Obama, I have realized he is the kind of guy that would sell every ounce of gold in the Treasury, or allow the bankers to do it. There is no reason his stupidity should be doubted. Always assume he is screwing up.
All this drama and worry is really over-blown. The bullion banks are short a bunch of gold in Deember, but take a look at the silver contracts coming due in the same month.
Last I read was more than 72,000 contracts. They drop a bit each day, but not fast enough to calm the bankers. So these attacks are to be expected. This is nothing new, it's just painful because there is no let up at all.
Shaking some leaves off the long trees, that's all it is.
It isn't odd at all. Someone is using CB-created dollars to keep the price of gold down to hide the real rate of inflation and allow the kleptocracy to continue a while longer. That costs considerable $, depending on who is buying the shorts on paper gold they use. They don't care if they lose $ or if gold becomes hard to buy, so long as any premiums aren't public.
You see, a rising interest rate isn't just a cost to the CB and Treasury, it is a measure of how reluctant people are to loan $ to the national government, to buy Treasuries, sovereign bonds. When people stop doing that, the CB's life expectancy is short. Perhaps also the entire political establishment, as that will be the start of hyperinflation.
https://thinkpatriot.wordpress.com/2015/11/11/dynamics-of-national-colla...
https://thinkpatriot.wordpress.com/2015/11/10/a-measure-of-propagandas-p...
60% of soverigns will default in a hard crash. Our TBTF banks and other institutions are leveraged 37-to-1.
https://thinkpatriot.wordpress.com/2015/10/24/lebowski-enlightenment-9/
No comments about our dear pundits?
Once again, their predictions will ALL BE WRONG come Dec 31. Sinclair, Holter, Turk, Malhoney, Jackass, ....
2011 - fool me once, 2012 - fool me twice...2015 - go to HELL!
Wasn't someone here once calling for sub $100 gold?
Not a big fan of TA, but the next line of resistance is clear down at $987. I'm pretty sure we'll see it as well.
It is crazy though, record demand, CBs are adding to their inventory, and the price falls. We're watching games on COMEX and more importantly, we're watching deflation in action. We're also watching the early market panic as everyone is piling into USDs to avoid what's coming.
Falling asset prices with increasing demand? Yeah, that's what happens in a real market, demand increases with low prices, but in a real market, there's resistance due to supply constraint that provides pressure in the upwards direction. So implicit in this is that the gold market isn't supply constrained... which is true for paper gold.
When this thing reverses -- and it will -- it will be face ripping beyond belief.
uh-huh. Any year now...
14 year lows today in HUI and XAU, 6 year low in Au future - my screens point to $13 Ag soon, $10 later, $999 Au and $39 and less WTI, or is there an emerging world trade resurgence or war I haven't heard about?
http://www.investing.com/commodities/gold-advanced-chart
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=xau&insttype=&freq=2&show=&time=20
http://finviz.com/futures_charts.ashx?t=GC&p=m1
Yep. Its all downhill for the commodity complex for the next few months at the very least. Far too many gold bulls still around. Once they capitulate, the bottom will reveal itself.
Soooo.... an 85% decline in the HUI and you still consider the situation as too bullish. Please define for us what you would deem as capitualation by the gold bulls. Would a complete collapse of the gold mining industry signal capitulation to you? Or would you still see too many gold bulls at that point? Perhaps when tire shops begin using gold tire weights for balancing tires, because it is cheaper than lead - maybe that would mark the bottom in gold prices? I'm really curious, because other than the looney article contributors over at SD, I can't seem to find a single person who is bullish on gold at the moment. I see everyone calling for $1000/oz. gold, and many calling for $850/oz. or lower gold in the not-too-distant future. I can't find anyone calling for even $1300/oz. gold in the short to intermediate term. If absolutely no one sees higher prices, how can the situation be too bullish?
Or do you work for .gov, where everything is upside down and backwards?
I have a crystal ball, it tells me the future. I see no rate hike this December by Yellen. I see a massive cyber attack by ISIS, takes down the banks, right before Christmas. I see ISIS machine gunning Christmas parades, bombs going off too. The chaos crashes the stock market, the cyber attack steals hundreds of billions from the banks. Yellen is forced to raise rates to recapitalize the banks, then the derivatives implode. Chaos, Christmas is ruined by the terrorists. A nuke goes off in a US city.
Muslims will be openly attacked in western nations. Everyone under 45 is begging to enlist in the army to go fight the terrorists. A new currency system is rolled out, the debt is wiped clean. The chosen ones now have a new clean credit card to launch WW3, and a mass of willing goyim to go fight. Israel makes major land grabs, the world cheers.
Read this post on new years, it will seem prophetic.
TPTB want your investments to stay in paper where they can get to it, which is exactly why they naked-short precious metal markets. If one ounce is taken from the market, 299 go empty. They can't use your funds to "own the world in fee-simple." More control into fewer hands. Today's example:
http://www.bloomberg.com/news/articles/2015-11-17/air-liquide-to-buy-air...
But Comex doesn't need to have any gold. The contracts can be settled with fiat money. It's just gambling and sometimes you get paid with an IOU.
The predators-that-be can keep the manipulation of gold and silver lower... until someone with lots of fiat decides to convert to physical, causing "failure to deliver".
At that point, game over, rocket to the moon.
When this happens, you can be CERTAIN the predators that be will unleash some huge, destructive "terrorist" event... then point at that event as explanation for the gold and silver launch into outer space.
At this point in history, predators-that-be behavior is so transparent. However, since most people only consume mainstream media, most people are clueless, and buy every bit of absurd nonsense hook, line and sinker.
Harry Dent is probably right. Long march downward.
Ive thrown in the towel.
Warren Buffet seems to be right about it.
Sure hold a little in case SHTF.,but an investment ,no. Just insurance with no counterparty riskl
The problem with bitcoin is that if I can't understand a simple explanation of how it is money, then I can assume that most people will not waste their time trying to figure it out as well. The more I read about bitcoin, the more I realize how convoluted it is like obamacare or the TPP. It wiill never receive widespread acceptance or usage.