Sadly, gold is down today (see pic below) but gold might be $2,500 an ounce at the end of this year. Read the article here: http://english.eastday.com/e/110813/u1a6051173.html
Yes, I'm sad it's dropping closer to prices I wouldn't feel like a dolt paying to expand my coin collection. What will I ever do? :rollling: Guy
Because more people wanted to sell than to buy at that price. Why that happened is the question. I think that long term ( 6mo. to several years is bullish, but that doesn't mean it won't correct several times along the way. Us stocks are starting to look much safer than world stocks, and a prolonged rally could suck the money out of gold into stocks. The problem I would fear is that Paulson's hedge fund which has billions in GLD is doing horribly ( except in GLD) so some are thinking that if gold starts to drop, he will unload, because if his GLD goes down, he is in a solvency problem. If he unloads several billion in GLD, it will be a very quick drop. Also, the USD is holding fairly well, the foreign banks and Euro countries will be touch and go for several years. But then again gold may go to $2500 if world and domestic events turn badly. I think it is a cautionary time. One could sell gold now and either hold cash for a few weeks/month to see where it is going, or buy some oversold large multinational stocks for some percentages, and then get back into gold if it holds resistances well. Or buy more now and hold hoping it does go to 2500 by December 31, which is to me a riskier proposal at this time.
Since this post is not chat about coins, I'd say it belongs down in the *bullion* forum. This question gets hashed and rehashed several times a week there.
It went down because the CME changed the margin requirements for futures contracts. The same thing they did to silver a few months ago
Gold is pretty volitile. Bull markets never go straight up or bear markets straight down. 10% pullbacks are normal. People spend a lot of time trying to find reasons for every minor move up or down, but the real answer is that this is what markets do.
I hope the dollar gets stronger people get out of gold and it starts to drop I would love to buy some more but not at these prices
It will be interesting this week for gold due to unstable relationship of euro nations financials. Germany seems to be standing firm in its demand for frugality and no euro-bonds. The Swiss are considering pegging the franc to the Euro. If you are in forex, this should worry , as the Swiss franc will most likely drop if it is pegged, and USD deposits into the Franc as an alternative safe haven , should decrease and move to gold or certain stocks. IMO. Jim
If I was a Swiss citizen, I'd be livid. A strong currency gives them a higher standard of living. A weak currency does nothing to help them. The big multinationals already manufacture around the world, and all this does is change the value of their reporting currency so it appears that they are earning more when in reality they earn exactly the same amount in the various currencies they operate in. This is just a total fraud to hurt the people of Switzerland so that a few executives can get a higher bonus.
Gold demand seems to have been moving disproportionately to silver, recently, but to all the precious metals, really. Look at how close the price is to the price of platinum, right now. I think that mostly has to do with the heavy marketing of it as a hedge against the currencies, Cloud, don't you? Compared to gold, silver and platinum have been virtually standing still. It's like the public doesn't even know about them.
I think it is partly marketing, partly central bank demand for gold, and partly the bad economy. Over any one year period, I expect both to move in the same direction, but not by the same percentage.
But let's focus in on a narrower window in an effort to try to explain the recent disproportionality. Just in the past several weeks to a month gold and silver haven't been moving in tandem as they otherwise had been moving. But, not just that, gold drew away and is continuing to draw away. Everywhere I look on TV they're pitching gold. I actually like that because my little brat (affectionately-speaking) and I still search for silver halves and the less public attention the media and the advertisers draw to silver the lower our tellers IQs seem to be, which, of course, is good for us. That's not to say that the demand for silver isn't responsive to the state of the currencies. I just don't think the public thinks of silver in these hard times as quickly as it thinks of gold, and, I'll credit the marketers of gold for exploiting that public bias. I do think silver will get into the game the longer these recessionary trends continue. I think, really, it just always gets a slower start than gold as an investment hedge when times like these hit. I expect, eventually, should these downward pressures continue, the curves will correlate more like we're accustomed to seeing.
I don't think there is any value to that sort of thinking. If you look at a price chart of gold and silver over a one year period, silver has outpeformed. Over a 10 year period, they are about the same. Gold has outperformed over the past 6 months, but silver outperformed in 2010. I don't think anybody can determine with certainty why prices did what they did over the short run, and even if you manage to do it, it won't tell you what they will do over the next year.
You're missing my point. I don't have a crystal ball. I'm not suggesting I can handicap the precious metals market in the short run. I'm rather just offering what I believe to be the most plausible explanation for the recent disproportionality. I'm saying it doesn't mean a thing outside of gold is the initial go-to precious metal in the public mind and the marketers are naturally quicker to pitch that than investments in silver or platinum or rhodium or palladium, for that matter, ad nauseum. Don't worry. This "recession" deepens, silver will get its stride back. In fact, it's already starting to.
I understand your point. You asked if I think marketing is the factor behind gold's move, and I told you it is probably A factor but not THE factor. I think you are looking for a cause and effect relationship in the somewhat random short term movements of markets.
