Gold Price Drop While the Printing Pressses are being Revved Up...............

The price of gold drops on news they will be printing more money................are you kidding me?

Thats like me paying off my debts with a new loan and convincing people that I have solved my problems and that I am in great financial shape.

I didn't relize so many people fall for this BS...............glad I don't rely upon the U.S. dollar.

 

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It's going down because the debt issue was resolved( for now)

 

Debt Issue Resolved?

Sorry to say, but the debt issue has not been resolved. Politicians want you and the rest of the world to believe it's been resolved, to prevent a worse crisis.
Wall Street and bankers can now continue business as usual until the next debt crisis.
You can't resolve a 14 trillion debt problem in a few weeks of debate.
I really don't care if PM prices go up or down. I am not a big player and only have a small stash of bullion silver coins which I would never consider selling anyway. I consider $40.00 silver cheap and if I had the funds would go buy more.
I have heard predictions of $5000. per oz. gold and it was not from the late night infomercials.
When people lose faith in the U.S. dollar and sell-off, those dollars have to go somewhere and there are not many safe havens except PM's.

 

There is no law of nature that says gold must perform every day as you state. You may also want to consider that historically, high levels of debt are resolved by massive deflation [default] as often as they are by inflation. The money is the debt and the debt is the money. The economy is currently in a liquidity trap where low interest rates do not result in more borrowing because there is no demand for the new products that would be created by new production. So while the Fed is creating debt, the private sector is reducing it. The case for inflation or deflation will depend on policy actions in the future, so nobody can do more than guess.

That said, I expect gold and silver prices to continue to rise for awhile yet because there is no sign that the bull market in metals is ending. But the prices are controlled more by speculation than fundamentals now, and the true believers in gold and silver will probably eventually go over the cliff just as the tech stock believers did in 2000.

Good luck.

 

It looks like the initial shock drop is over and now things are ramping back up rather handily today (over 2% for gold, 4% for silver) on anticipation that the debt ceiling raise will provide funds to be used for QE3. There has also been more significant gold buying by central banks notably in South Korea and Thailand.

http://www.thebulliondesk.com/news/?id=32523&v=0&lang=en&cid=142617&type=1

 

You say "historically that high levels of debt are resolved by massive deflation as often as they are by inflation"

I would like to know how you can you come to this conclusion when no other country in history has had a 14 trillion dollar debt to deal with.This amount of debt has never been seen before in history.If it has been seen before, then please give an example.

 

We are either going to have inflation or deflation. The only outcome that is unlikely if not impossible is a painless return to prosperity. The fact that the debt is so high only serves to make a soft landing that much more unlikely.

 

People don't relize how much the U.S dollar has devalued.
I live in Canada and 10 - 15 years ago $100 Canadian dollars would buy me only $50-60 U.S. dollars.
Now my $100. Canadian dollars will buy me somewhere around $100-105 U.S. dollars.
Another sign of the times is the amount of U.S coinage that gets passed around in change here in Canada.Used to be when you found a U.S. coin in your change, you took it home and put it in a special container, something to be cherished.

Now when I get a U.S. coin, I still bring them home and stick them in can because I am to honest to pass them off on someone else. I am not trying to be funny or make light of your economic problems, rather just telling it as it is.

 

Hey buddy! I'm here in California and I see how the buying power of the dollar has diminished. I will tell you though that not many others around me see that or even care.

 

People don't care because they are to pre-occupied with The Kardasians and Paris Hilton.
These people will wake up when the runs on banks start and only then, they will relize they only have a handfull of useless paper.
As a rule, banks have only 5-10% cash on hand, so many will leave with nothing.
Many don't believe this could happen but I believe it's just around the corner.

 

Yep I agree, and they are so desperate to continue on with the status quo that they are willing to send this country and the whole world in to collapse.
The reasoning for this is so, they can continue the corporatism, consumerism, warmongering, entertainment(vanity).. those others that i speak of are friends and family and I don't think they are evil or anything but they themselves perpetuate the current state of affairs. You say they are too pre-occupied? what else do they have? they were raised to believe that the t.v was god and that helping themselves was the 1st and only commandment.
Not to say they are greedy, but what i mean is that there own pleasure and joy comes before that of others and even at the cost of others sufferings. They feel no guilt for purchasing products made in sweatshops or supporting media that profits off of suffering. What they in my opinion "feel" for is protecting their own self interests.

 

I said"for now"

 

Hi.........I know what you meant but they did not really solve the problem.
They did the same thing when they bailed out Wall Street and the banks.
They had to announce the problem had been fixed otherwise the markets may have collapsed and the current U.S credit rating would have downgraded.
They had no choice.We will know in a few days if the rest of the world believes it.

 

I would say they haven't, based on the price of gold spiking up 30$ today.

 

It amazes me that Ben Bernanke has over 100 advisors on the payroll and they still can't get it right.

Edited , read rules...pardon my language

 

I was not really saying that it was completely foxed, but we've kicked the can down the road is more what I meant

 

http://goldbasics.blogspot.com/2011/08/gold-hits-another-record-high-on-news.html

 

I'm not sure why people believe a downgrade would have resulted in a collapse of the market. The same thing was said of Japan, but when their debt was downgraded, nothing happened and Japanese bonds still yield less than US Treasuries. There is a lot more going on in the mix than the business media or politicians will tell you.

 

FAR more. I've no head for this "drama" going on around us, which we are smack-dab in the center of. It is worrisome, like hearing sounds in your wall, but not being able to see what's behind or in it... you just KNOW it's something not right going on..

As an aside, I find it interesting that the bullion threads have gone fairly silent...(relatively so..) We are in very "interesting times", and I would like to hear what others are thinking/ or reading into all "this". What the heck is coming? What ride are we in for? And yep, I know, no one knows the answers. But we all have our own ideas..

Thanks,
Lucy

 

anyone can predict doom and gloom and SHTF stuff. it's really not that difficult and the gullible swallow it hook line and sinker.