Gold price drops

[Captain PopTop]

save your finds to sell at another time I read on the internet today the price of Gold dropped 4% and may drop even more, time will tell H.H. capt.

 

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[Native Floridian]

Again, if the economy was bad Gold wouldn't be laying on the mat today. IMO, Gold has been over valued for years. But i'm one guy who has no control over the Gold market. What i do have is a huge dent in my wallet putting that belief on the line. I was only something like 18 months too early!!! That's not a win, it's a loss. I was wrong, not right. Still, there was no reason beyond specualtion for Gold to have done what it's done over the last few years. Speculation creates bubbles. Bubbles burst. When they do there is incredible opportunity for massive and quick profits. That's what we are seeing today and over the past week. Years of upside unwinding in days!

Regardless of how steep this sell off is, and it's the steepest since the 1980s at this point, Gold has established new, and higher trading levels.

And, BTW, there is a bubble in the bond market. Primarily centered around the 10 year Treasury. When that bursts it's going to hurt a lot of people. Unlike the Gold action today, where mostly it's specs, and stake holders getting hosed.

 

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[Acquisitor]

Again, if the economy was bad Gold wouldn't be laying on the mat today. IMO, Gold has been over valued for years. But i'm one guy who has no control over the Gold market. What i do have is a huge dent in my wallet putting that belief on the line. I was only something like 18 months too early!!! That's not a win, it's a loss. I was wrong, not right. Still, there was no reason beyond specualtion for Gold to have done what it's done over the last few years. Speculation creates bubbles. Bubbles burst. When they do there is incredible opportunity for massive and quick profits. That's what we are seeing today and over the past week. Years of upside unwinding in days! .

during the 2008-2009 worldwide bear market of nearly everything imaginable, gold also sold off, quite dramatically.

economy is doing bad, very bad even, even in China there is a slowdown, even in Russia manufacturing is slowing down. US recovery is not happening as hoped by some. Yet gold has enter the bear market territory. This is quite spectacular, as a hunter I hope that it's only a shakeout, but I fear the worst.

 

[bigscoop]

The economy is bad, it's just not as bad as the earlier "worst case" speculations, and so gold will come back down and settle into the real world again. If the economy continues to slip then gold will likely hit a low and then start to climb again at some point. I think intially there was a huge panic in the market and then a huge push to capitalize on that panic, i.e., things were suppose to be much worse then they are at this point. For sure the economy is bad, it's just not the total desaster "at this pont and time" that everyone feared would be the case when the panic started.

 

[Acquisitor]

The economy is bad, it's just not as bad as the earlier "worst case" speculations, and so gold will come back down and settle into the real world again. If the economy continues to slip then gold will likely hit a low and then start to climb again at some point. I think intially there was a huge panic in the market and then a huge push to capitalize on that panic, i.e., things were suppose to be much worse then they are at this point. For sure the economy is bad, it's just not the total desaster "at this pont and time" that everyone feared would be the case when the panic started.

I think we are in a worse shape now than back in 2008-2009. Back then we didn't know what was in store for us and how long it would last. Today, 4-5 years later, we do, and there is no light in the end of the tunnel.

 

[bigscoop]

I think we are in a worse shape now than back in 2008-2009. Back then we didn't know what was in store for us and how long it would last. Today, 4-5 years later, we do, and there is no light in the end of the tunnel.

Very uncertain times, for sure. Even those who have always felt like they had some measure of control no longer know what to expect. When the housing market collapsed people were quick to compare it to the same boom and bust that occurred in Japan, which took years to settle back down to real world levels again. But at the time of the crash in Japan there wasn't the same world wide economic concern as there is today. Just not enough wealthy countries to help prop up the decline of so many economic giants.

 

[Native Floridian]

during the 2008-2009 worldwide bear market of nearly everything imaginable, gold also sold off, quite dramatically.

economy is doing bad, very bad even, even in China there is a slowdown, even in Russia manufacturing is slowing down. US recovery is not happening as hoped by some. Yet gold has enter the bear market territory. This is quite spectacular, as a hunter I hope that it's only a shakeout, but I fear the worst.

Everything sold off in the fall of 2008 as the world financial system stood at the brink of total collapse. The bond markets froze. There was no safe haven. You can't trade Gold if you can't get your bank to wire the funds. The bank can't wire the funds if they can't borrow the money to do so. They can't borrow the money to do so because no one will lend it to them. No one will lend it to them because they don't know if that bank will still be solvent in 24 hours. Your bank may not have been solvent in 24 hours because it either bought toxic CMOs, CDOs, or lent money to a bank that did own them. And that is the reason, the only reason, Gold sold off.

I've been saying the entire bond market froze. The bond market is our finanacial credit system. In effect our credit system froze. Right down to Commercail Paper which large corporations use for day to day cash flow management. Without commercial paper corporations were left with cash on hand to pay for operations and payroll. Most of the largest corporations keep less than 60 days cash on hand. During the crisis in the fall of 2008 some of the largest companies in this country came within 30 days of running out of cash. Of course they had billions of dollars. But the system to access it was broken. And, if the entire thing rolled over on its side, there would be no cash anywhere.

TARP, with all its faults, saved our butts. It did so because it gave Fed backing to loans between banks. It restored order if not the trust our system is founded on.

The bad economic times followed this event. And during that time, once the financing engine started to work, we all saw what happened to the price of Gold.

That's what happened. That's fact that is out there for anyone who is interested enough to research it for themselves. Or, you can stick with your version of events.

 

[Native Floridian]

I think we are in a worse shape now than back in 2008-2009. Back then we didn't know what was in store for us and how long it would last. Today, 4-5 years later, we do, and there is no light in the end of the tunnel.

Where would we be without the bears? Question: Are you short the stock and commodity markets? I ask because with your conviction to the negative I would think you put your money where your beliefs are.

 

[dewcon4414]

Im not certain gold prices are going to change the hobby much any more. There are a few that get into it THINKING there is money..... then find... ok i have a hand full of rings what now? I believe its just popular to do on the beach and we can expect it to stay popular even at $300 an ounce. Jewelry is just a beautiful treasure worth the hunt and display if you dont sell it. People just like treasure hunting.... be it old coins, CW relics, clad, or the unknown. Oddly these fancy expensive machines lead people to believe they are going to do even better. We are very visible now in the water and out and people believe its a great exercise option..... when in fact it can create some issues.

Dew

 

[bigscoop]

It's funny that many want to separate the events of the past 15/20 years or so, truth is, it's still that same big badly abused and broken system that's still being played out. Nothing has been truly corrected, it's just been handed a few aspirin and bandaids.

 

[baywalker]

Good god I must be getting old I remember when gold was government controlled at $32.00 an ounce .

 

[mham2]

as far as I'm concerned let the gold prices drop.I go out for the fun of finding things, gold and silver is more fun for sure but for the people that are there for the money let leave it will be a better hobby without them: big smile

 

[bigscoop]

Good god I must be getting old I remember when gold was government controlled at $32.00 an ounce .

Dang, and you can still swing a coil?

 

[Acquisitor]

Where would we be without the bears? Question: Are you short the stock and commodity markets? I ask because with your conviction to the negative I would think you put your money where your beliefs are.

I'm long physical gold (I average around one pound a year of 18k) and I have some 2014 GLD puts as a hedge

 

[Native Floridian]

Acquisitor, are you long as a stake holder, investor, speculator, prospector, or from metal detecting?

 

[Acquisitor]

Acquisitor, are you long as a stake holder, investor, speculator, prospector, or from metal detecting?

lol... I only get gold by detecting "only".

to ensure myself I bought cheap jan 2014 $120 gld puts for $0.80 each, worse case for me: gold remains between $1200 and $1500, in that case my puts will expire worthless and my physical gold loses value since I could have sold it based on $1800/oz last year. If gold crashes however, for example to $1000, then my puts will be worth $20 each, while I paid $0.80. (each put represents 100 shares so the price needs to be multiplied by 100)

 

[Native Floridian]

lol... I only get gold by detecting "only".

to ensure myself I bought cheap jan 2014 $120 gld puts for $0.80 each, worse case for me: gold remains between $1200 and $1500, in that case my puts will expire worthless and my physical gold loses value since I could have sold it based on $1800/oz last year. If gold crashes however, for example to $1000, then my puts will be worth $20 each, while I paid $0.80. (each put represents 100 shares so the price needs to be multiplied by 100)

I trade a lot of Puts, but thanks for the refresher!!!! LOL!!!!!! PUTs are a primary trading tool in my personal acct as i'm usually on the short/sell side. i use them to control my downside because, as you know, your loses are limited to your investment. Which isn't the case if you are short the stock.

THx for answering i was just curious.

Finding that much gold - thumbs up!!!!!!

 

[Acquisitor]

I trade a lot of Puts, but thanks for the refresher!!!! LOL!!!!!! PUTs are a primary trading tool in my personal acct as i'm usually on the short/sell side. i use them to control my downside because, as you know, your loses are limited to your investment. Which isn't the case if you are short the stock.

THx for answering i was just curious.

Finding that much gold - thumbs up!!!!!!

I'm a fresh water lakes hunter from Europe