Why won't Gold drop to $800?

Both metals always move along side each other. If one metal goes down, the other goes down too. Besides, there is less gold being mined compared to silver, I don't see gold dropping and silver rising at the same time. That is impossible.

Maybe you meant the "gap" between gold and silver can close? Sure, that happens every once in a while. Currently you get over 80 silver ounces in a gold ounce, which if I recall is not far from a record high. Sometimes we get 50-60x gaps, and lower.

Some investors swap from gold to silver when these gaps are high, then swap to gold when the gap closes to the 40-50 range so they actually get more gold than before.

 

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Two words: 'Debt crises' could in fact send gold higher. At the rate we are going someday there will be a debt crises.

 

But which day is that? Tomorrow or a hundred years from now. Also, even with a debt crisis, folks may not be willing to bid up Gold. The fact is, for many, it really didn't work out well at all and folks will remember that.

 

Hope the day is never (for the USA). Unfortunately, to your point, it could be soon or in 100 years. History tells us that even the best and most prosperous economies can collapse due to loose fiscal policy. We are no different. I just hope and pray we don't continue the path we are on (overspending, adding to debt, and printing fiat dollars) into the foreseeable future. Seems like we are stuck on this path with our current government leaders (in both parties).

Precious metals have always held some kind of value and have lasted longer than any fiat currency. If I had to guess what is worth more in 20 years from now 11 'Benjamin's' or an ounce of gold, I know what I would guess would be worth more.. Whatever you think would be worth more is where you should put your funds or have some of each.

 

Look for gold to move lower. I just picked up about 4 oz of pre-33 gold coins. A drop in price has always followed a purchase.

 

I just sold an Edward VII 1906 AU Sovereign for$425.00

 

Why is gold so low? Lack of demand? Why is Platinum so much lower than Gold?

 

One word... Comex

http://goldsilverworlds.com/physical-market/why-the-comex-is-corrupt/

 

Thanks. Very informative info. have a nice day, Cascade.

 

First of all, the article was written 18 months ago.

The author doesn't seem to understand the difference in paper ( options, contracts) speculation and physical contracts.

the author says "That’s why the CME is corrupt and how I can say that openly without rebuttal or retaliation. But I’m not a prosecutor or enforcement official; I am an analyst who can only point out how and why the price of silver (and gold and copper) is manipulated on the COMEX."

Of course it is manipulated, all financial operations are. The gold pushers he is writing under wants to manipulate it also, and seem irritated ( rather than a forbidden expression) that they are being outdone by speculators using Comex. They can control it as well, but most have lost money and 'readers' to their subscriptions over the past few years, so it is in the hands of the large funds.

Just another " Buy gold or the puppy dies" article to me.

 

I didn't read the article (it would be a waste of time) because it was written by Ted Butler. The author has made a career out of manipulating the minds of the financially uneducated to line his pockets with fiat.

Please don't drink the kool-aid folks......