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Why Does Gold Keep Getting Smashed Down At A Time Like This?

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It is very puzzling to me why gold (and silver) is taking meteoric rises (as would be expected at a time like this), and then getting brutally smashed back down. Who in thier right mind is liquidating thier gold investments at a time of pending economic crisis, high inflation, and stock market meltdown?

Where is all the liquidity flowing into from the big stock market sell-off. Is a large proportion of the sell off necessary to cover loses or destroyed wealth in other areas or is it really a case of 'Cash being King' as reported on msm. If so, then what frigging sense does it make to have billions just sitting around as 'cash', when inflation is constantly eating into its value and thier is so many alarm bells ringing with regards to the US dollar, Euro, und so weiter.

Something else (I think) I have noticed is that gold tends to take its hits during US trading times and recover when markets in the rest of the world are active.

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There is a distinction to be made though, paper gold vs the real thing.

Paper games affect the price of gold, and sooner or later there will be a major disconnect between paper gold and physical gold. So sure via bullion vault you can buy non existent gold or gold which 100000 people have a claim to for £X, but no amount of money can buy the real thing.

Also London and COMEX (NY) dominate the world gold markets currently. A massive spanner is being thrown in the works as China is about to or has opened a massive gold exchange in Hunan

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I believe the reason Gold is taken down in the US session is that Wall Street are trying to keep the Dollar propped up. The Dollar is ultimately doomed but the timing of its final Death Dance must be controlled such that the elites can make maximum profits from it while suffering very few of the losses.

Also the other reason is probably the number of Wide Boys trading during the overlap of the UK & US sessions. The Asian traders are probably more interested in the longer term buying opportunity whereas the Spivs in the West are looking to make a quick buck while ignoring the fact Rome is actually burning down around them.

Buy physical and leave them to it is what I say...

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Also the other reason is probably the number of Wide Boys trading during the overlap of the UK & US sessions. The Asian traders are probably more interested in the longer term buying opportunity whereas the Spivs in the West are looking to make a quick buck while ignoring the fact Rome is actually burning down around them.

Buy physical and leave them to it is what I say...

This kind of makes sense. Get in at the point before the precious metals are generally bid upwards and sell off just as the traditional upwards bidding comes to an end, buying in again as the metal hits its trough before the asian markets reopen.

Still though, Yesterday gold took a hefty smash (after hitting new highs during Euro trading) with silver almost 10% hit! This would rank amongst the worst performing stocks yesterday. This movement just does not make sense.

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It is very puzzling to me why gold (and silver) is taking meteoric rises (as would be expected at a time like this), and then getting brutally smashed back down. Who in thier right mind is liquidating thier gold investments at a time of pending economic crisis, high inflation, and stock market meltdown?

Where is all the liquidity flowing into from the big stock market sell-off. Is a large proportion of the sell off necessary to cover loses or destroyed wealth in other areas or is it really a case of 'Cash being King' as reported on msm. If so, then what frigging sense does it make to have billions just sitting around as 'cash', when inflation is constantly eating into its value and thier is so many alarm bells ringing with regards to the US dollar, Euro, und so weiter.

Something else (I think) I have noticed is that gold tends to take its hits during US trading times and recover when markets in the rest of the world are active.

Brutally smashed? No dout youll know when a proper gold sell off happens it will lose 5 to 10% daily, and besides market prices arent really based on the present but the future, what inflation or real rates may be at the present is irrelevant to golds real movement/trend, it is the future perception of real rates that matters which is why its bull market started in 2000 years before real rates went negative, likewise its bear market when it begins will start well before rates turn positive or inflaion falls

Which is why its always dangerous buying into paper profits, they may be realised or they may not be, from conversation on here most people didnt start buying until the mid to late noughties, 5 to 10 years after the bull market started, yet the perception is that they will know when the top is, despite getting nowhere near the bottom. That reaffirms a paper profit is nothing but a paper profit until it is realised in one way or the other

Edited by Mary Cassatt

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Which is why its always dangerous buying into paper profits, they may be realised or they may not be, from conversation on here most people didnt start buying until the mid to late noughties, 5 to 10 years after the bull market started, yet the perception is that they will know when the top is, despite getting nowhere near the bottom.

I think many people are not trying to pick tops and bottoms, they just want to keep some of their wealth in a form that will survive a catastrophic default or hyperinflation scenario. Sure, none of us picked the bottom in 2000. I can't run 100m in under ten seconds either, doesn't mean I can't run for a bus when I need to. This is satisficing behaviour, not maximising.

Maybe gold will gain purchasing power, maybe it will lose purchasing power, maybe the economic system will change so much that it will be difficult to even make a meaningful comparison. It probably won't go to zero though, unlike paper which definitely can.

Edited by Dorkins

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I think many people are not trying to pick tops and bottoms, they just want to keep some of their wealth in a form that will survive a catastrophic default or hyperinflation scenario. Sure, none of us picked the bottom in 2000. I can't run 100m in under ten seconds either, doesn't mean I can't run for a bus when I need to. This is satisficing behaviour, not maximising.

Maybe gold will gain purchasing power, maybe it will lose purchasing power, maybe the economic system will change so much that it will be difficult to even make a meaningful comparison. It probably won't go to zero though, unlike paper which definitely can.

.

Edited by Mary Cassatt

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It is very puzzling to me why gold (and silver) is taking meteoric rises (as would be expected at a time like this), and then getting brutally smashed back down. Who in thier right mind is liquidating thier gold investments at a time of pending economic crisis, high inflation, and stock market meltdown?

Where is all the liquidity flowing into from the big stock market sell-off. Is a large proportion of the sell off necessary to cover loses or destroyed wealth in other areas or is it really a case of 'Cash being King' as reported on msm. If so, then what frigging sense does it make to have billions just sitting around as 'cash', when inflation is constantly eating into its value and thier is so many alarm bells ringing with regards to the US dollar, Euro, und so weiter.

Something else (I think) I have noticed is that gold tends to take its hits during US trading times and recover when markets in the rest of the world are active.

The price does not drop when somebody successfully liquidates. It drops when someone wants to liquidate but nobody is interested. Of course then more want to liquidate, etc, and it snowballs until someone bites.

Alternatively it drops when the exchange wants to encourage people to "dive" in. "Dive" and "Dove" seem to be the words to discuss reckless spending these days because of all the silly out-of-place moments it was used in the media, TV movies, and sky TV four months back to make people feel like throwing caution to the wind.

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The price does not drop when somebody successfully liquidates. It drops when someone wants to liquidate but nobody is interested. Of course then more want to liquidate, etc, and it snowballs until someone bites.

I understand the basic dynamics of supply and demand and find it hard to fathom why demand for gold should fall so rapidly at a time when so many stocks were being liquidated. Whilst a great deal of the billions that were wiped out across the various stock exchanges would have simply been wiped out notionally, in the sense that the perceived value of a stock is decreased, there was a great deal of stock liquidation both today and yesterday, and this liquidity has got to flow somewhere.......where is it gonna go?

According to reports on MSM, 'Cash is King'. In other words, investors aren't doing anything with thier liquid funds except keeping it as cash, but given the current inflationary trends, who in their right mind would opt to do this on a grand scale. I wouldn't even keep a few thousand quid of funds (that I didnt need to spend) in Pounds Sterling so why would an investor who is looking after millions of quids?

I know thier are a million ins and outs involved in the market for any stock or commodity, but the fundamentals of the current situation, is that there are no profits in real terms to be made in the stock market and their is probably about to be a big bunch of soveriegn debt defaults, and the US is about to enter into QE3. The only place this leaves for Capital to run to is into hard assets, of which the most liquid and money like are gold and silver. So it only made sense that whilst everything else was tanking that gold/silver were surging. The US markets however saw things differently and during US market trading time both gold and silver took a heavy hit, in stark contrast to market behavhiour all over the rest of the world which were all bidding up gold and silver rapidly, as would be expected. This isn't the only time I have noticed the precious metals taking hefty hits during the times of predominant US market activity.

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Gold takes a massive leap during Asian trading, but is being held in place during Western trading.

So in Asian, a lot of the liquidity that is running from stocks is going into gold, but here and in the US, 'Cash is King', as the msm like to point out.

Hmmm.

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  • 331 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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