Gold and silver are down because bonds are now paying higher than Inflation rates, making them a better safe haven for the rich.
When ever 10 Year bond rates are higher than Inflation and are rising, assets like commodities do bad!
The opposite is true as well, if bond rates are getting to low and trending down ward, assets take off, this can be seen by comparing a chart of real realized rates to gold or silver.
You could say that..... moving these rates is Manipulating the Price of PMs, and it is, but the biggest crime is, when 10 year Bond rates get lower than Inflation.
It causes a crisis.
Physical buying is the only support for the gold market @ present!
Whilst bond rates keep heading up, PM's will keep heading down, it really is that simple!
As a holder of a small but still substantial quantity of PMs, I must say, I really do not care about daily, monthly or even yoy price movements. It would not bother me one bit if gold dropped below $1000 next week. With the volatility in all markets it is possible it could also break $2000 next year.
I view PMs as insurance. I would hate to have everything I invest subject to fiat exchange. I hope I never need to cash the PMs out, but it is nice to know they are there if I do need it.
This is the demand measured in dollars per quarter for gold on the world spot market minus the EFT. A very weak result for the 3rd quarter. I wonder what the 4th quarter will look like? But we won't see this until the end of February next year.
It's just better to be a bad bad bear on golds performance. It's amazing how so much changes , its volatility is demonstrated.
These gold nutters are must be feeling the grief stages of anger & denial, I'm picturing that Gollum character in the Lord of the Rings where he dribbles "my precious".
No good seafood stuff for Xmas hey...
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
Are we there yet? We got that sub $1,000 gold yet? Somewhere in the 70's. We need $3,000+ gold to reach 1980. The present year is most comparable to 1976. That's if the 37 year cycle is correct.
In the 1970's people could believe that we would fairly quickly return to a gold standard. Today it is very hard to believe we could return to a gold standard.
Everybody can see that a fiat standard can work at least in theory, and everybody knows that a gold standard works at least in theory.
Therefore to get a return to 1970's equivalent prices in Gold, you would need to see a widespread belief that operating a gold standard was the solution to the current sovereign debt crisis. Thats the argument that would need to be won to see Gold going to the moon.
Why cherry pick the mid-1980's? Take it from 1970, when it was $35/oz and tell me how it has ...
Why cherry pick 70s?
Is today more comparable to 70s or 80s position?
Well take gold at 1950 then, or 1940, or 1900. You will find that gold's purchasing power has kept up with inflation for nearly 5000 years. That is the point you debt junkies just don't get. You think everything needs a yield so you can keep ahead of inflation but gold does it automatically.
All the desperate cases here keep going back to the 20 year bear market in gold from 1980~2000 and use it in an attempt to discredit gold, but that period doesn't even matter in the scheme of things. That was an anomily and the runup from $35 to $250 odd in the prior decade more than covered for it. Here in Australia the price of gold was fixed over the 1925~1955 period and never rose. But it didn't fall either although everything else (including houses) fell and fell for that whole 30 years. If you owned gold you were streets ahead of the pack.
You young property speculators have failed to look back far enough in history and do your research. If you had you might not have been so eager to buy property when it was 150% above normal inflation rates. You think property can't fall in price for 30 years? Go look at the charts, it has and it can and no amount of wishfull thinking will stop it if Australia falls into a long depression. Your properties are leveraged, tied to debt, and even if they are not they will face the same fate as all those that are in a credit deflation.
According to Jordan Eliseo, Chief Economist at ABC Bullion, gold and precious metals are a solid way to build wealth and are a sure fire win for investors.
"On average, gold prices have risen by about nine per cent per annum for the past decade," he told news.com.au
"With the price falling this year, there's a good chance next year's return could be even higher. Globally, we're in a similar situation to the late 1970s. If gold prices react over the next few years like they did back then, expect the gold price to head towards USD $5000.
"That's a huge win for any investor"
According to Mr Elisio precious metals were a more sound investment than other assets, such as property, where prices at an highest high and rental yields are near all time lows.
"So in effect, with property you're taking the maximum possible risk (of prices falling) for the minimum possible return," he said.
"Property prices don't go up forever, and considering the amount most Australians will need to borrow in order to invest in a property, plus the costs of buying and selling, I think it's a highly risky investment right now."
LJ Financial Group Private Wealth Adviser Duncan Brown agreed investors were keeping a sharp and interested eye on precious metals and this was one to follow in 2014.
"Gold has seen a correction in the last six months in particular and more volatile period than most previous years," he said.
But Mr Brown added a strong performance the previous year and the lack of counter party risk meant precious metals still played an important part to any diversified portfolio.
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