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Gold price dives through support to new low. Gold Bubble continues to deflate.; Gold price to drop another 15% this year say strategists at Societe Generale
Topic Started: 3 Apr 2013, 10:29 AM (37,683 Views)
Andrew Judd
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newjez
16 Apr 2013, 08:29 AM
I'll bet you a pepper corn it'll see 1000 before it sees 2000.
Hey I thought i had committment phobia!

Surely it has to be worth 10 dollars just for the entertainment value?
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Gold price hits two-year low as China's economy slows down

Cyprus expected to sell off gold reserves as price falls further on news of poorer Chinese growth and US manufacturing data

Concerns that strong recoveries in the US and China have come to a dramatic halt sent gold to a two-year low in one of its sharpest falls in recent years.

Gold fell 8.5% and silver was down 14.5% as investors digested news from Beijing of a slowdown in growth and a downbeat report from US manufacturers.

Brent crude oil prices fell to their lowest since last summer, ending the day only a few cents above $100 a barrel, down 2.3% on the day.

Gold had already fallen to its lowest level in 18 months on Friday amid fears that cash-strapped countries would need to sell off their reserves, as Cyprus is expected to do so, to raise €400m (£340m) – although the amount it raises will drop if the price keeps falling. The economics consultancy Capital Economics, though, said it was sceptical that the situation in the Mediterranean island could be the cause for the sell off in gold

The slump continued which meant that the gold had now fallen nearly $200 in the last two days to below $1,400 an ounce for the first time since February 2011. The plunge came as finance ministers and central bank officials travelled to the International Monetary Fund's annual meeting in Washington.

Concern may turn to China after a rebound in its economic fortunes late last year appeared to reverse when GDP figures for the first quarter of the year revealed a drop in annualised growth to 7.7% from 7.9% in the previous quarter.

Some analysts blamed much of the weakening picture across the globe on the continuing recession in the eurozone, which triggered a 7% decline in imports last month. Most eurozone countries are in recession and growth is not expected to pick up until the end of the year or possibly 2014.

In response to the ongoing depression and the possibility that Spain will apply for a bailout, calls for a break-up or fundamental review of the single currency are gathering pace.

In Germany, the newly formed political party Alternative für Deutschland put pressure on the chancellor, Angela Merkel, to restrict eurozone bailout terms unless wealthy property owners in southern Europe make a larger contribution.

Peter Bofinger, an economic adviser to Merkel, criticised the bailout terms set for Cyprus, which involved a raid on individual and business savings. "The resourceful rich just move their money to banks in northern Europe and avoid paying," Prof Bofinger told Der Spiegel, a German magazine.

He said property owners in Spain, Greece, Portugal and Cyprus should pay a wealth tax to partly fund their government rescue packages.

Remarks by Mario Draghi, the head of the European Central Bank, that struggling banks should be allowed to fail added to the sense of unease.

He said: "The banking sector and the financial market of the euro area has become fragmented. This is harmful as the euro area is a bank-based economy.

"Around three quarters of firms' financing comes from banks. So if banks in some countries will not lend at reasonable interest rates, the consequences for the euro area economy are severe."

"In providing liquidity to our banking counterparties, we cannot and do not want to subsidise banks that are failing. Our liquidity support is not and should not be equity support. Likewise, in pricing out break-up risk in sovereign debt securities, we cannot and do not want to subsidise governments," he said.

Capital Economics said gold has traditionally grown in value during periods of uncertainty. "None of the fundamental explanations being discussed for the slump in gold prices really holds up. It is still not even certain that Cyprus, whose holdings are tiny, will be selling any gold. If anything, the incoming US data has made it less likely that the Fed will withdraw its monetary stimulus any time soon," Capital Economics said. "Any emphasis placed on the risks to gold posed by a stronger US recovery and rising interest rates certainly looks increasingly misplaced, or at least premature," it said.

Stockbroker Brewin Dolphin said the more widely held view is that increases in supply of all metals and weakening demand in China and the eurozone especially, accounted for at least some of the decline in gold prices.

Read more: http://www.guardian.co.uk/business/2013/apr/15/gold-price-china-economy-slow
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JIM ROGERS: Like I Said, I Expect Gold To Go As Low As $1,200

Mamta Badkar Today 4:08 AM

Gold has been taking a battering all day. Gold price is off 8.5% to $1,373.80 an ounce.

Commodities guru Jim Rogers isn’t buying gold yet.

He told Business Insider there were four key things driving the sell-off.

India – The country hiked its gold import tax rate by 50% to 6% at the start of the year. This has curbed gold demand.
Chartists – Technical analysts that have warned that gold prices will continue to fall.
Cyprus – “Ms. Merkel is seeking re-election so she has told Cyprus and others that they should sell some of their gold to pay their debts. The Germans are tired of bailing people out and she needs to be tough.”
Bitcoins – “The collapse of Bitcoin since most of them also own gold.”

Rogers said he hasn’t hedged his positions at the moment.

“I have repeatedly babbled about $1200-1300, but that is just because that would be a 30-35% correction which is normal in markets,” he told Business Insider. “But I am a hopeless market timer/trader.”

Rogers said he expects gold prices to fall further for the “foreseeable future” but expects “gold to eventually go higher over the decade.”

Read more: http://au.businessinsider.com/jim-rogers-normal-gold-price-correction-2013-4
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Thatguy
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frankrider
3 Apr 2013, 07:10 PM
Half the central banks on the planet and all the super wealthy have been pouring into if for years now and you have an opinion that you feel lines up with traders? The shit you feed on from the mass media has one aim, to empty your pockets. No one with half a brain cares what traders say or think, they are noisy little middlemen, or at the bottom of the scale, pathetic little backyard dreamers.
So central banks and super wealthy owning HEAPS of gold is good for the price, or bad?

Hhhmmmm.......me wonders in me lil' head but the noise it too much. Sshhh... did you hear that?

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Catweasel
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Catweasel say crikey.

FM the G down a 11% in a 2 the days.

Thankfully a media focused on a gold the price.

Fascinating behave.
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Thatguy
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Catweasel
3 Apr 2013, 03:41 PM
Catweasel say perhaps mouse blessed with special power to know a future.

Like a voodoo.

Or perhaps it connected to prophecy.

Did it see future of a ETF on a Nikkei?

And it not even a gold!
Maybe I'm not a mouse? Maybe I'm a jelly shoe ?


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Shadow
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Evil Mouzealot Specufestor

Don't panic... :D



...



Don't panic... :)



...



Don't panic... :(



...



Don't panic... :bl:



...



Posted Image


NOW PANIC!!! :o
Edited by Shadow, 16 Apr 2013, 11:20 AM.
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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Pig Iron
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Bogan scum

Enjoy The Ride
15 Apr 2013, 10:19 PM
Amusing, the amount of hysteria involved around the Gold price.

The only problem most of the pundits here don't realise what these falls are saying.

A slew of poor economic data, coupled with the new bail-in template for dealing with bank insolvency, has the markets back to pricing either one of two outcomes.

firstly Deflation takes hold or

real interest rates move strongly positive.

The fact that under either of these scenarios property bulls get slaughtered, is a point that seems to be missed.

The garden variety goldbug, with cash, gold, silver and low or no debt. Is still strongly positioned for this outcome.

As for me I will be buying a couple of mint sealed 600oz boxes of 2013 silver pandas if they hit 12k.
gold moves positively to negative data. everyone is waking up to the fact the world is not going to end and that gold provides no income. it's a store of value blah blah blah from the gold bugs for the last 5 years.
I am the love child of Tony Abbott and Pauline Hanson
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Thatguy
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Catweasel
16 Apr 2013, 11:16 AM
Catweasel say crikey.

FM the G down a 11% in a 2 the days.

Thankfully a media focused on a gold the price.

Fascinating behave.
You're smarter than that. FMG is not exactly a non-volatile stock, it's in the midst of sea of volatility in the mining sector at the moment. Gold is a huge store of wealth - the elastic bellow between markets that acts as a bellwether of change.
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Sherlock
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Shadow
16 Apr 2013, 11:18 AM
Posted Image
Where is Crazy Dave??

Posted Image
Edited by Sherlock, 16 Apr 2013, 11:23 AM.
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