Luster Gone: Gold Posts Worst Quarter on Record

Well, who would have seen this coming? Actually, a matter of time I suppose. If people weren't aware of this though, or watching it very closely, it's real important. I didn't have too much in Gold but if I had, this would have represented quite a little hit since April.

After Friday's rally, gold is still 23 percent lower for the second quarter, its biggest decline since at least 1968, Reuters data shows.

The article is trying so hard, so much to put a smily face on the whole thing, but the number is what I personally hadn't been watching that close and came as a surprise.

Thursday's slide to below $1,200 an ounce for the first time in three years has prompted nervous investors to buy put options to hedge against further losses.

U.S. gold futures for August settled up $12.10 at $1,223.70 an ounce, with trading volume at around 310,000 lots, nearly 50 percent its 30-day average, preliminary Reuters data showed.

under $1,200? I guess I really hadn't been paying attention for a bit. All the news of great stock markets hadn't covered this near as much. Then Silver...

Among other precious metals, silver rose 5.9 percent to $19.53, rebounding sharply from a near three-year low at $18.19 an ounce. Platinum rose 1.7 percent to $1,335.49, while palladium also gained 1.7 percent to $655.85.

Source

It wasn't that long ago that I sold the last of my Kennedy Dollars at $31 each, for a bit over the 1oz market value at the time. Now it's under $20. I guess the metals market isn't the place to be after all. I hope everyone got clear of the drop before it came down from the levels just a few months ago.

Precious metals are a commodity.
Commodities vary in value.
Life goes on. So do the markets.
I do have a hundred ounces of silver I bought at $10.
I wonder how many Boxes of ammo I can trade that for.

reply to post by Wrabbit2000


They're shaking the trees. Those big drops are all the stop losses being taken out. If the Fed ends their monthly money printing and interests rates start to creep up, gold goes over $2k and fast.

reply to post by Wrabbit2000

10-15 years ago was the time to buy gold. those who did invest in gold at that time are all selling.

you buy low and sell high, not the other way around.

Originally posted by Bob Sholtz
reply to post by Wrabbit2000

 

10-15 years ago was the time to buy gold. those who did invest in gold at that time are all selling.

you buy low and sell high, not the other way around.

Unofficially, gold is still the standard. It's why the Feds want to know who is buying what and how much. All transactions are reported to the Fed. In a financial meltdown, do you want a wheelbarrow full of greenbacks or gold? I know which I'd pick.

Oh your observation about buying low and selling high is astute.

reply to post by Bob Sholtz


You're absolutely right of course. Buy low and sell high. Many have gotten wealthy from this run up. It's been the ads I was seeing right on into Spring, still pushing people to buy gold for all they could that are interesting to consider now. A lot of people who figured the rise could go forever have learned differently in a pretty hard way, again.

Not quite as painful as the run on silver from the Hunt Brothers. That went so fast, people lost their whole savings and homes over that. This doesn't add helpful elements to an economy already shaky from the past and Bernanke's uncertainty about future Fed action. The only thing sometimes worse than Fed actions are the suspense they seem to enjoy keeping the markets in for taking it.

Gold is 80% Commodity and 20% Currency (and that ratio will work towards 50/50 over time). Commodity markets ebb and flow (price action responding to supply and demand). Currencies will also fluctuate in terms of relative value between the monetary units of different countries (or economic zones in the case of the euro currency). When a significant amount of money gets invested in an investment asset class (equities, bonds, commodities or currencies) it gets overbought as the amount of money that comes into the market to drive up the prices dries up. When the markets no longer respond favorably to bullish news (conversely for bearish news) then the markets encounter profittaking and the trend reverses with money leaving that asset class until the market gets oversold and fails to respond negatively to bearish news and then the cycle reverses. Gold failed to respond to the QEnfinity in 2011 and trapped those who were long and waiting to sell between $2000 and 2250 (the assumed 1980 high adjusted for inflation). Traders and investors were convinced that we had to get back to the inflation adjusted high but forgot that that price level was an ephemeral price - a spike high caused by both double digit inflation and geopolitical concerns (ie the soviet invasion of afghanistan)...the better price target was probably the daily closing high without counting the week long spike into the historic high (around $725 which we did reach on an inflation adjusted basis).

reply to post by Bilk22

Unofficially, gold is still the standard. It's why the Feds want to know who is buying what and how much. All transactions are reported to the Fed. In a financial meltdown, do you want a wheelbarrow full of greenbacks or gold? I know which I'd pick.

my wheelbarrow won't be filled with either. it'll be filled with guns, ammo, and supplies.

the whole point of stocking gold for a financial collapse is the idea that people will still want to trade basic supplies for gold. why not just buy supplies now?

This is a remarkably incomplete view, it is a view based on reading the NY times from page and not actually understanding what is going on.

One: Asking price from the comex is NOT the price of gold, but a price set by the IMF in order to manipulate currency and control countries.

Two: Gold is an item, a Federal Reserve Note is a debt note - it is worthless unless we all agree it isn't. The value of gold to debt notes is relative to inflation, so there was once a 1-1 ratio, the fact that it is over 1200 - 1 tells you how much the worthless pieces of paper have fallen. In fact, the only thing that keeps them from falling further is the war-imposed petro dollar, which you will find matches with gold in value. When the Bourse stops requiring dollars to trade oil, the dollar's value is zero. (oh, and the requirement by the iMF that countries hold dollars in order to borrow dollars is kept in place by the threat of violence).

Three: The price is now being Smashed down, artificially lowered, to get silly kids to panic and sell their gold for DEBT notes, in order to complete the enslavement process.

Silver is an example of how not knowing the facts leads to an erroneous conclusion. The exact thing can be said for silver prices, "oh, idiots bought when it was 30 and now look, see... dollars rule!" But.............. the person saying such silliness didn't notice that Chase worked to keep prices lower by PRINTING DEBT NOTES and buying off people who demanded real silver with very, very exaggerated payments. So, Chase, just one bank, said, "if you don't collect your real silver which we don't have anyway, we'll buy you out at 60 dollars per ounce, oh, and you can't say anything about it" which then kept the price low and kept Chase from tanking.

Gold is a leveraged item, in which there is FAR, FAR more gold "sold" then there is actual gold. If everyone went to collect their gold, the majority would be left with nothing. This is key, there are more ounces owed then there are ounces. Think about that: 1 billion ounces are owed but there are only 1 million ounces to be had ( just an example). Fraud is the rule of the day here.


To get the real price of gold or silver, in relation to DEBT notes, one has to actually stop manipulating. What is happening now is the great manipulation, and event that actually uses data collected by the NSA to make it happen - economic manipulation is the main reason for collection.

We will see bond prices crash, interest rates skyrocket and whoa, no physical gold to be had, by the end of this sequence. When the Fed took over the US in the 20's, the government confiscated the gold, it was ILLEGAL to own gold, it was all sent off to the Fed so we could get debt notes. Japan ransacked asia during ww2 to collect the gold, the raping and pillaging was for fun, the real effort was to collect the gold - they didn't collect a single regional debt note.

In fact, consider this: Has any country raided another for debt notes? If the dollars is worth so much, why are we not taking all the debt notes back from countries that keep them? Has any country raided another for gold, or other assets?

Investing is long term, control through manipulation is short term. The fact that prices have gone down works well to get young people who panic at the most recent local news story to sell when they see a drop. Consider this investing fact: With gold tanking according to the OP, HOW COME PEOPLE ARE BUYING? There is no problem selling, how to I know this: gold is being bought. The Rothchilds got rich by buying, not selling, they bought when folks were panicked selling which, in our world today, is so easy to do.

For me the Luster is coming back. i worked in the gold mining industry for 40 years and i learned that you buy low/mine low and sell high.right now i only have a couple high grade specimens that i still have from my last mining project.

When gold hits bottoms i will buy or mine more for the next cycle.

And there will be another cycle and another after that.

the only people that are complaining are those that got stuck holding gold as its dropping or the suckers that fell for the buy gold now scam at the peak.

reply to post by crankyoldman

You hit the nail on the head and the reason why gold is falling right now. There's a ton of short sales and the major players needed to cover their butts for when the stock and bond markets take a dump, which I expect to happen within a few months, as the end of Fed money printing is nearing. People will be looking for a safe haven in metals again and at that point we'll see gold at $2500+. Since they hold it at far below current values, they can afford to sell off enough to move the price in order to take out stop losses at certain levels. In the not to distant future, they'll reap their profits.

Originally posted by ANNED
the only people that are complaining are those that got stuck holding gold as its dropping or the suckers that fell for the buy gold now scam at the peak.

Gold fell to its lowest level since 2010 on Friday to under $1,200, which is what it costs many miners to produce an ounce of gold, and analysts tell CNBC that miners will be "severely" impacted if prices stay here.

Andrew Su, CEO at brokerage Compass Global Markets said the average cost of producing gold in Australia, home to some of the world's biggest gold miners, has jumped from $500 an ounce in 2007 to over $1,000 an ounce this year.

Source

It sounds like some are actually getting hit pretty hard. The price stayed high for long enough to see expensive mining started with faith in a sustained higher selling price. That's gonna hurt profits as well as jobs by the sound of it.

Oh yea. I've been watching the price of gold closely for awhile. From what's been said, it's that all the major players are selling their gold ETF's and the big boys are asking for their gold back as well.

Not banks but people. Around the globe, for whatever reason no one seems to be able to keep any inventory of gold. Mind you this gold rush is happening in Asia and the Middle Eastern countries as well. Behind the scenes in West, you can deduce that someone(s) wants their gold as Comex is at it's lowest inventory ever. Not to mention others.

Good eye, it's something to watch.