Jump to content
House Price Crash Forum
Sign in to follow this  
Marcos Scriven

What The Heck Just Happened In The News? Gold Just Went From 987 To 967!

Recommended Posts

US IR to remain where they are? Ben's speech topday suggested its up to the banks to help out not the Fed.

Or it may have something to do with a rumour that the gold bubble is a massive fraud and made up of fiat paper saying it represents physical gold but doesn't.

Share this post


Link to post
Share on other sites
Guest Steve Cook
Is there something I don't know about?

Steve

Edited by Steve Cook

Share this post


Link to post
Share on other sites

Everybody is selling everything they can lay their hands on

freefall.jpg

Ok, slight hyperbolic exaggeration in the spirit of the subject matter

post-9973-1204653418_thumb.jpg

Edited by Red Kharma

Share this post


Link to post
Share on other sites
Guest The_Oldie

http://www.bloomberg.com/apps/news?pid=206...&refer=home

Commodity Prices Plunge a Day After Records for Oil, Gold, Corn

By Steve Stroth

March 4 (Bloomberg) -- Commodities plunged the most in almost six weeks as oil, gold and corn fell from record highs.

The UBS Bloomberg Constant Maturity Commodity Index of 26 futures contracts fell 23.3452, or 1.5 percent, to 1,513.966 at 11:33 a.m. in New York. A close at that price would be the biggest decline since Jan. 23.

Oil, gasoline and heating oil fell from a record on signs that the Organization of Petroleum Exporting Countries will leave production targets unchanged when ministers meet tomorrow. Gold fell as lower energy prices eroded the metals appeal as an inflation hedge.

Share this post


Link to post
Share on other sites
freefall.jpg

MWAHAHAHAHA AHAHAHAWMMMM?

I have to admit, I can see both the arguments: that gold is a store of value and that it's in a classic bubble.

In fact, I think they are both right. Just because houses got themselves in a bubble, does not mean they don't have their uses, or that the underlying value won't increase over time. Same goes for the soft stuff.

People who bought gold and houses in the mid nineties, and don't have debt attached, are both laughing. I wouldn't buy a home now, and neither would I buy gold.

I suspect however, that I sold both a bit early.

Share this post


Link to post
Share on other sites
Guest DissipatedYouthIsValuable

I wonder if banks expecting to have bigger writeoffs and a deflationary economy have begun dumping it?

Edited by DissipatedYouthIsValuable

Share this post


Link to post
Share on other sites

I'd venture two ideas:

- Some big operators are shaking the market to trigger all the small punters' stop losses, to buy the stuff on the cheap.

- The Dow looks like a sick dog, the depression scenario might be coming back to the fore vs. the inflation scenario hence the fall in commodities.

Maybe a combination of the two? Too much 'hot' money in the commodities markets anyway, I guess we can expect serious volatiliy and nervourness?

Edit: just looked at the other markets, Dow down, $ down big time, bonds down, commodities down, it sounds like Mr Market is entering a depressive phase. Until the next bit of news...

Edited by williamdb

Share this post


Link to post
Share on other sites

Its about time for all assets to dive bomb together IMO, its gone on too long, looks like commodities have posted a blowoff top in the last few months.

Share this post


Link to post
Share on other sites
US IR to remain where they are? Ben's speech topday suggested its up to the banks to help out not the Fed.

Or it may have something to do with a rumour that the gold bubble is a massive fraud and made up of fiat paper saying it represents physical gold but doesn't.

Is that what he said RB - no more rate cuts for the foreseeable future? Couldn't quite make out from the other thread what he had actually said or not said? If so, sounds like an admission that reducing IRs is not going to solve this turkey problem.

Share this post


Link to post
Share on other sites
Is that what he said RB - no more rate cuts for the foreseeable future? Couldn't quite make out from the other thread what he had actually said or not said? If so, sounds like an admission that reducing IRs is not going to solve this turkey problem.

Hedge fund unwinding to make margin calls. Across all commodities apparently. DOn't worry, you will all be able to buy even more for cheap hurrah. Oh yeah, and what RB said.

Share this post


Link to post
Share on other sites
Is that what he said RB - no more rate cuts for the foreseeable future? Couldn't quite make out from the other thread what he had actually said or not said? If so, sounds like an admission that reducing IRs is not going to solve this turkey problem.

The ECB are starting to get heat on the strength of the Euro from german manufacturers and have been publicly urging the US to support the dollar this week. Some of this is simply rhetoric but if that fails I don't doubt they will start to take action to stop the Euro rising farther. We have BOE and ECB meetings this Thursday and FED meeting on the 18th.

Share this post


Link to post
Share on other sites

http://www.bbc.co.uk/blogs/thereporters/ro...rdon_brown.html

Gold and Gordon Brown

Gold closed yesterday at just over $981 per ounce and seems set to continue its remarkable upward path towards the magic $1,000 number.

In nominal terms, it reaches new highs on a daily basis – though adjusting for inflation it remains significantly below where it was in the inflationary world of almost 40 years ago (its nominal high back then was $850, which was briefly touched in January 1980).

What’s going on is that investors are again seeking out gold as a putatively inflation-proof store of value in uncertain times.

It looks oh-so solid and reliable compared with all those poisonous securities manufactured by brainy bankers out of defaulting US sub-prime loans.

But it is the Federal Reserve’s current mission to slash interest rates that is giving the big push to the gold price right now.

Many investors fear that the Fed has – at least for now – abandoned any notion of keeping a lid on inflation, in its apparently desperate attempt to revive the ailing US economy (which was described yesterday by the great Buffett as in recession “by any common sense definition”).

So there has been a flight out of the dollar, which has been tumbling in value, and into the shiny yellow stuff.

Which brings me to one of the least well-timed investment decisions of this or any age, Gordon Brown’s sale of 395 tonnes of our gold in 17 auctions between July 1999 and March 2002.

The average price achieved in those disposals was $275.6. Gold has since risen in value by 256% – a rate of return which would bring pride to even the cockiest of hedge-fund superstars.

Or to put it another way, 395 tonnes of gold from our official reserves that was sold for $3.5bn would now be worth $12.5bn.

So we appear to have lost out on $9bn of gains – or about $300 per taxpayer.

However, that’s a slightly simplistic view of the scale or our loss.

The $3.5bn of revenue raised in the sales was invested in interest-bearing assets denominated in dollars, euros and yen to the extent of 40%, 40% and 20% respectively.

So to calculate the true net loss to the taxpayer, I would have to adjust for the yield on these assets and movements in the value of those currencies. And I don’t have enough information on precisely what was bought and when to make that calculation.

It is probable, however, that the effective net loss on Gordon Brown’s great gold sale would be a bit less than $9bn – but it would still be a very significant loss.

So why did Gordon Brown as chancellor dispose of all that gold? Well, my recollection of conversations with him and his advisers at the time is that they hated what they perceived as the intrinsic laziness of gold. It simply sat in the vaults gleaming but earning no interest.

They wanted assets that appeared to earn their keep, by generating interest payments.

They also hoped and believed that rampant global inflation was a thing of the past, and that the days of gold’s soaraway success would never recur.

To be fair to them, they weren’t alone in reducing their gold holdings. The Swiss, the Belgians and the Dutch also sold very significant amounts.

Also, the gold loss is spilt milk – and, as any great investor will tell you, it’s fatuous to weep over it.

But the stewards of our wealth would surely try to learn from their mistakes. And, in this case, Gordon Brown’s error was probably to place too low a premium on gold’s bothersome habit of retaining its intrinsic value over the very long term.

scary

Share this post


Link to post
Share on other sites

For those missing your favorite goldbugs, I'm going to fill in for them:

<cygno>Gold doesn't fall in price, the cartel suppresses it</cygno>

<narco>Great buying opportunity</narco>

<goldfinger>I'm using this as an opportunity to fill up with [fill in implausible figure as appropriate]</goldfinger>

Given the number of times goldfinger claims to have "filled up" on gold he's either the real Goldfinger or an internet fantasist.

Share this post


Link to post
Share on other sites
and etfs silver down 17% ???

It does this from time to time it is an error and will correct itself when trade opens first thing tomorrow. Almost gave me a heart attack the first time it happened to me. This has happened to me a few times with different ETFs but you dont need to worry about it, it is just a blip.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 294 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.