Gold price movement and the Euro crisis

Road_Hog

sabretoothtigger wrote: »

Ive heard gold price fell 50% in the seventies then it tripled or something silly like that.

You heard wrong. However there were some other mitigating circumstances, but the outcome is the same.

Gold hit a low in 2002 at $260 an once. That gives you a comparison to the '70s and the price today and the volatility. In real terms it would have been worth more in the '70s than it is today.

sabretoothtigger

Yea inflation adjusted high is apparently 2250 now which makes me think we have room to go still as present circumstances seem more extreme to me though maybe someone older should comment on that comparison.
They cannot raise interest rates like they did in the 80's, they cannot afford near to zero cost base so raising is unlikely


About the -50%, well I see near 200 in '75 and near 100 in '76 Call it 180 to 120 if you like and say Im wrong but there was a significant fall which was later surpassed.


Price really doesnt matter, look at ratios and we are one step closer to what is occurring in value terms


Can you see what broke gold's back, it became nonviable

bendix

What I love about the gold bugs is that they profess to be very very happy when the price of gold falls, and very very happy when the price rises.

They remind me of that girl who became Meg's friend in an early episode of Family Guy - she, too, belonged to an unthinking cult.

purch

From a technical standpoint, Gold is now trading below it's 200 day MA, which is a very unusual event during the current bull market.

A slightly worrying sign if it continues below the MA for any extended period, for those interested in such arcane things.

bendix

purch wrote: »

From a technical standpoint, Gold is now trading below it's 200 day MA, which is a very unusual event during the current bull market.

A slightly worrying sign if it continues below the MA for any extended period, for those interested in such arcane things.

YAY (they will say). That just proves our point, they will crow. NOW is the time to buy more of the precious shiny stuff, they will orgasmically ejaculate (that's enough- Ed)

We can collect ounces and ounces of the stuff while the world collapses into ruin, chaos (HOORAY) and despair, and while all you others are suffering, we can sit around and look at our gold . .

oh . . . . wait a minute . . .

wotsthat

bendix wrote: »

YAY (they will say). That just proves our point, they will crow. NOW is the time to buy more of the precious shiny stuff, they will orgasmically ejaculate (that's enough- Ed)

It has gone a bit quiet on the PM sockie front. There was one chap this week religiously putting £20/ month into silver coin[STRIKE]s[/STRIKE] every month in the hope of buying a 5 bedroom house in the near future on the profits.

I wonder if he's cashing in his life savings down at gold4u and feeling a bit silly. More likely he's wandering around muttering about price suppression.

bendix

wotsthat wrote: »

It has gone a bit quiet on the PM sockie front. There was one chap this week religiously putting £20/ month into silver coin[STRIKE]s[/STRIKE] every month in the hope of buying a 5 bedroom house in the near future on the profits.

I wonder if he's cashing in his life savings down at gold4u and feeling a bit silly. More likely he's wandering around muttering about price suppression.

Indeed. He will be looking to blame a variety of malign influences - the lizard men beloved by smeagold, the Rothschilds and other jewish banking families, the new world order - they're all to blame for the fact these idiots don't have the lives they believe they deserve for knowing better than anyone else that only gold and silver can bring you true happiness.

It's a very interesting psychological study, when you come to think about it.

One day someone will write the definitive book on one-asset idiots and their internet ramblings, and what deep-seated mental issues drive them.

sabretoothtigger

purch wrote: »

From a technical standpoint, Gold is now trading below it's 200 day MA, which is a very unusual event during the current bull market.

A slightly worrying sign if it continues below the MA for any extended period, for those interested in such arcane things.

I wouldnt say its arcane exactly, some fund buyers take notice of such things though its more of a share thing then commodity.
I think commoditys arent often as regular as gold has been upto now. If you look a share AGM it will often refer to the 5 day average price, thats how these things start

http://highchartpatterns.net/metals-trying-to-hold-support/

But anyway on a simple maths basis this is a proper drawback now, the autumn wasnt


I dont like gold, I only bought in 2009 when they started QE. I dislike even more what they done to the concept of economics
My point above was if you own a miner, they are selling gold so thats not that buggy really. I generally agree with this old saying

When There's A Gold Rush, Start Selling Shovels!

collect ounces and ounces of the stuff while the world collapses into ruin

Its only slightly worse then people who save cash then instead of investing in honest business. (or Labour /BOE might argue you should spend it all )
The main difference is cash is usually sent to banks for interest which then turns into loans, so its useful capital.

The article at the top is suggesting gold is actually being lent out, so its being useful for once ? That really would be archaic

sabretoothtigger

Overall Chinese are not rich, their currency is suppressed and the wealth kept abroad at the dictate of government. The demand might be high but the amounts they can buy are still quite limited compared to their number the price should have increased greatly if they were able to buy

Its the Indians who buy and keep gold no matter what

DiggerUK

This piece off SA gives a useful, and also brief, explanation of one of the reasons why golds price dips.
It isn't mentioned in the article, but I would add, that as the gold is not sold, but leased, the demand led effect to push price up is not there.
Manipulation theory adherents wont be best pleased with the article, but as they are all 31 grammes short of an ounce, who's to care??

How low this current price dip will go, I am not going to be so bold in predicting this time. But down it is for now.

Smile if you hold readies, sulk if your don't. C'est la vie.
..._