HighRoller
Recycles dryer sheets
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+1 (at least to protect your gold and "stuff")
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Price of gold dropped $84 /oz. today
- Thread starter haha
- Start date
+1 (at least to protect your gold and "stuff")
timo2
Thinks s/he gets paid by the post
Exactly!. But you know, there always will be someone with a bigger gun (or drone), so that may not be the best plan either. Besides, I'll already have traded my stuff for sengsational's bottle of whiskey, and finished the whiskey.
JoeWras
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Just an anecdote: one of those "gold shops, cash for gold" that popped up around town just closed 2 weeks ago. And, I don't see any new ones opening.
timo2
Thinks s/he gets paid by the post
This article caught my attention over the weekend
Paulson Loses More Than $300 Million as Gold Declines - Bloomberg
Paulson Loses More Than $300 Million as Gold Declines - Bloomberg
timeasterday
Recycles dryer sheets
Anyone ever watch those gold mining shows? I bet you see less people risking so much to mine up in the Alaska/Yukon area if gold continues to slide. Very few of those guys seem to make any profit at all.
timo2
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It's mostly a life style
timeasterday
Recycles dryer sheets
Yeah, some of those guys would not make it in a normal job/life. Especially the Bering Sea miners - quite a crazy lot!
JoeWras
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Lifestyle for some, adventure for others.
I had a co-worker in the late 80's who did Alaskan mining in the late 70s early 80s. He went right out of high school (adventure). Lasted a few years, fell to earth, made just enough to get a college education.
And there he was in the corporate world, 5 years behind the rest of us.
This bubble looks very familiar to that one... except, interest rates are completely different.
I had a co-worker in the late 80's who did Alaskan mining in the late 70s early 80s. He went right out of high school (adventure). Lasted a few years, fell to earth, made just enough to get a college education.
And there he was in the corporate world, 5 years behind the rest of us.
This bubble looks very familiar to that one... except, interest rates are completely different.
rbmrtn
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I tend to us this as another contrarian indicator. All the infomercials offering to sell you gold coins/bars etc then you should be selling not buying.
All of the late night infomercial to get rich in real estate back 06 was another sell signal for my reits.
Running_Man
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I find this drop in gold extremely interesting and a possible early warning signal for a major drop in stock prices. Unlike the common theory that stocks drop when gold goes up, gold has for the most part lead this unconventional rally since the saving of the banks by not allowing debt to be revalued was begun in 2008 when gold was at about $800 an ounce.
Therefore it seems to me that deflationary pressures, that is the value of those debts held are not sufficient to pay the debts owed or allow for sale of new debt to continue the cycle, are overwhelming the printing presses and forcing redemption of assets that central banks have that they can dispose of without negatively effecting the value of their existing debt.
Indeed most of the countries that are in serious trouble, Cyprus (13 million tons), Italy (2,451 million tons), Spain and Portugal (383 Million tons) have most of their holdings of reserves in gold. The Cyprus decisions as reported in the London Financial Times to sell 10 million of the 13 million tons they hold is most likely being viewed as a first step and getting out of the way of slow moving governments is easy for panicky rich guys.
Therefore it seems to me that deflationary pressures, that is the value of those debts held are not sufficient to pay the debts owed or allow for sale of new debt to continue the cycle, are overwhelming the printing presses and forcing redemption of assets that central banks have that they can dispose of without negatively effecting the value of their existing debt.
Indeed most of the countries that are in serious trouble, Cyprus (13 million tons), Italy (2,451 million tons), Spain and Portugal (383 Million tons) have most of their holdings of reserves in gold. The Cyprus decisions as reported in the London Financial Times to sell 10 million of the 13 million tons they hold is most likely being viewed as a first step and getting out of the way of slow moving governments is easy for panicky rich guys.
OP
OP
haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Could be true. At least for the miners, only a few more days like the last few would be needed to put their prices back to what they were in 2008 or 2009 before the lift-off.
National banks in the Euro zone are in a completely different position from the US or UK or Japan or China. There is a limit on what the member countries in the Euro zone can pull. So in a funny way, it is if they have a gold standard constraining them.
Ha
Onward
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I've wanted to buy GLD, as a hedge, for years, but I refused to buy it anywhere near its highs.
It crossed into bear-market territory on Friday, and I bought my first-ever shares today.
It crossed into bear-market territory on Friday, and I bought my first-ever shares today.
Texas Proud
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I wonder if, as others put it, you are trying to catch a falling knife....
I would wait until the knife hits something before buying...
NYEXPAT
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I bought equal amounts of gold miners and ETF's today. Nice juicy Div's on the miners and a quick trade on the ETF in tax advantaged accounts.
audreyh1
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When moves as big as Friday's and today's happen, it usually pays to wait and let things settle down.
ziggy29
Moderator Emeritus
+1
I have a rather small allocation to the miners (about 2%) but wouldn't mind going as high as 5% at a more attractive entry point... but not going to catch a falling knife at this point.
I think you are off by several orders of magnitude here. I don't think Cyprus holds $500 trillion in gold.
I think there is only about 350,000 tons mined in all of earth's history.
Maybe you meant ounces instead of tons?
Running_Man
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Yes I meant tons not millions of tons
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Texas Proud
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I am happy that I sold my miners fund a week or so ago... I had lost a lot of money on it and did not think it was going to be good going forward... pure luck on this drop...
Definitely to protect the food. Gold will be not be much use when you are hungry. I never understood why gold is worth much. It really doesn't have much industrial worth. Only good for trinklets.
powerplay
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I have some gold and silver so it's a bit disheartening to see the prices drop so fast. However I have had mine for quite a few years and the prices would really have to crash to get to the price I paid for my precious metals. It could certainly happen though. Hold on for the wild ride!
Texas Proud
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My boss just came by to tell me he told me so...
He has been predicting a drop in gold and silver for a few months... he thinks gold is going to drop below $1,000... he said the hard part is to predict when it will go back up when people start seeing that the current market / gvmt spending can not continue as is....
He has been predicting a drop in gold and silver for a few months... he thinks gold is going to drop below $1,000... he said the hard part is to predict when it will go back up when people start seeing that the current market / gvmt spending can not continue as is....
