Gold might go below $800......

Cachefinder

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Dec 22, 2008
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http://www.commodityonline.com/news/IMF-gold-sale-may-push-down-prices-below-$800-16691-3-1.html



In the last few months, gold prices have been on a winning spree, rising to a record $1,000 per ounce on the back of the bloodbath in stock markets and people’s fascination for gold as the best investment asset.

But the surge in gold prices may be a thing of the past soon. Gold prices are set to fall to $800 or below $800 levels thanks to the decision of the G-20 countries allowing the International Monetary Fund (IMF) to sell 400 tons of gold reserves in the open market to raise funds for its global projects.

”Gold prices are set for a big fall in the next two to six months mainly because of the IMF gold sale. There will be abundant supply of gold in the market in the coming months thanks to the release of 403 tons of IMF gold. Moreover, with stock markets looking up after the big falls, gold prices are likely to fall to $800 or below $800 levels,” bullion analyst Mark Robinson told Commodity Online.

He said the bullion markets across the world have not taken kindly to the G20 decision to pump in $1.1 trillion into the world economy to tide over the recession by selling the IMF gold. “Many bullion dealers feel the decision to sell IMF gold was not the right one,” Robinson said.

Kiran Mehta, a gold dealer in India’s Mumbai bullion market said that gold prices will come down in the market thanks to the IMF gold sale. “Gold prices have gone above $900 per ounce in the past few months because of the the increased investor demand seeking gold as the safest haven in the time of recession,” he said.

Mehta told Commodity Online that IMF gold sale will result in at least five per cent slump in gold prices before the end of this month. “I feel gold prices will come down to $850 per ounce by the end of this month.”

He said gold prices may dip further by June to below $800 per ounce once the supply of the precious metal rises due to the IMF sale. As per the G-20 decision, IMF can sell up to 403.3 tons of gold, which is the equivalent of one-eighth of its holdings.

On Monday, as bullion markets opened, spot and futures prices of gold at the London Metal Exchange, Asian markets and India bullion market fell. Gold dropped to $879.50 in morning trade in London from $905 at the afternoon fixing on April 3. The yellow metal was trading 15 percent below the record $1,032.70 set in March 2008. Gold prices eased in early Asian trade Monday as equity markets surged across the region but is likely to recover on speculation rising prices will revive demand for the precious metal as a hedge against inflation. Bullion was at $877.90 an ounce 10.00 a.m, down 1.6 percent from New York's notional close of $892.50. It fell to as low as $876.55, the lowest since Jan. 29.

On India’s MCX , benchmark gold August contract was at Rs 14,176 per ten grams at 2.58 p.m, off a high of Rs 14,235 per ten grams. June contract also fell to Rs 14,190 per ten grams at the same time, off a high of Rs 14,425 per ten grams.

Mehta said gold prices in India, the largest bullion market in the world, will suffer as there is no consumer demand but only investment-side demand. Demand for gold in India, the largest importer of the precious metal, has taken a knock and the country turned an exporter in March following the rise in old gold sales.

Leading bullion analyst James Moore said in the London Bullion Report that rising appetite for risk is flowing through markets, causing gains in equities and oil and a retreat in the gold price. “Demand for exchange-traded gold funds was also flat last week, with holdings unchanged for four days in a row,” he said.

Echoing his view, Fairfax Investment Solutions analyst John Meyer said gold price fall reflects fears of a banking collapse.

Latest statistics on sales by central banks that are signatories to the Central Bank Selling Agreement, a five-year agreement that limits total sales by signatories each year to 500 tons, shows that only 85 tons of reported selling has been carried out in the year which expires on September 26. Last year 358 tons were sold out of the permitted 500 tons.

According to the latest Fortis Bank Metals Monthly, central bank gold sales in the year to September 26 this year were likely to be only 145 tons, well short of the maximum possible.

Fortis said gold’s drop back to $900/oz from about $1000/oz in mid-February, despite huge investment flows, was due partly to sales of scrap gold and a collapse in jewellery demand. Consumers in India and the Middle East have been hit hard by global economic meltdown. While India reported zero gold imports in February and March, gold sales in several Middle East cities including Dubai have fallen as high as 60 percent.
 

Yes, the price of gold will fall under $800. The price of precious metals have been fairly stable the last few months, but it looks like the price has (finally) broken into a fall this month. (April '09) Current gold price: $867.10 and falling. The price of precious metals always drops in a deflationary (recession/depression) period. The price of precious metals drop, and (thus) the dollar strengthens. A stronger dollar sounds good, but it ensures more layoffs, less foriegn tourists, and a longer economic recovery.
 

And it might go above $2000 an ounce.

Opinions are like noses. Everyone has one.

Gold has always been worth something throughout history.

I would rather find a 20 dollar gold piece than a 20 dollar bill.

I would rather find a silver quarter than a clad.

The IMF can try to keep the price of gold down to keep the dollar afloat. If gold goes higher, their lie about the strength of the system is exposed. The IMF also has been using paper gold to try to keep the price of gold and silver down. WHY?

Look at it this way. Have you ever noticed all the ads for companies that want to buy your gold? It isn't because they think gold is going to go lower.

Gold and silver is the only real money. Eventually the dollar will collapse and paper fiat money will have to be replaced with gold and silver. The US governments creation of trillions of dollars will have to result in hyper inflation. The Germans in the 1920 and early 30's know about that. The only Germans who ate at that time were the ones with gold and silver.

And even if it does drop below 800 an ounce, that is a great time to BUY!!!!!!!
 

Good thing I sold mine when I did. $980.00 oz.
Although it's funny how attached to those nuggets you can get. I even had names for some of them and now I miss having them to look at and hold. :tongue3:

Oh well gives me a good reason to go out and get some more....as if I need a reason.
Maybe by the time I get an ounce or two the price will be back up.

GG~
 

Steve

I could not agree more-

I was just posting this to inform everyone that when it does go down---BUY

and i also think it will be above $2000 an ounce within 2 years--that is if we still are a country :o :o

alabamadan---thats the spirt! :thumbsup:

GoodGuy --hope u collect some more :wink:

Cachefinder-
 

"If we are still a country"? This defeatist doom and gloom stuff is getting very tiresome.

Gold is volatile, but historically it generally rises. It does not really matter. Buy it when you can, and hang on to it. It will go back above a thousand easy.
 

Go ahead and sell your gold and put your money in the stock market. I'll be buying your gold while the stocks drop again and gold well be over athousand when the snot market crashes.

Speculate on that one. The golden rule: Those with the gold rule.

Chicken Little: The gold is falling, the gold is falling.....I mean.... The sky is falling, the sky is falling.

I love to speculate about all you speculators. It gives me something to do when I'm hoarding all the gold that your selling off because your panicing.
 

I'm Still Hoping it Trades Places with Silver for awhile.

Gold at $12 an OZ

& Silver at $885.
 

Cachefinder said:
http://www.commodityonline.com/news/IMF-gold-sale-may-push-down-prices-below-$800-16691-3-1.html



In the last few months, gold prices have been on a winning spree, rising to a record $1,000 per ounce on the back of the bloodbath in stock markets and people’s fascination for gold as the best investment asset.

But the surge in gold prices may be a thing of the past soon. Gold prices are set to fall to $800 or below $800 levels thanks to the decision of the G-20 countries allowing the International Monetary Fund (IMF) to sell 400 tons of gold reserves in the open market to raise funds for its global projects.

”Gold prices are set for a big fall in the next two to six months mainly because of the IMF gold sale. There will be abundant supply of gold in the market in the coming months thanks to the release of 403 tons of IMF gold. Moreover, with stock markets looking up after the big falls, gold prices are likely to fall to $800 or below $800 levels,” bullion analyst Mark Robinson told Commodity Online.

He said the bullion markets across the world have not taken kindly to the G20 decision to pump in $1.1 trillion into the world economy to tide over the recession by selling the IMF gold. “Many bullion dealers feel the decision to sell IMF gold was not the right one,” Robinson said.

Kiran Mehta, a gold dealer in India’s Mumbai bullion market said that gold prices will come down in the market thanks to the IMF gold sale. “Gold prices have gone above $900 per ounce in the past few months because of the the increased investor demand seeking gold as the safest haven in the time of recession,” he said.

Mehta told Commodity Online that IMF gold sale will result in at least five per cent slump in gold prices before the end of this month. “I feel gold prices will come down to $850 per ounce by the end of this month.”

He said gold prices may dip further by June to below $800 per ounce once the supply of the precious metal rises due to the IMF sale. As per the G-20 decision, IMF can sell up to 403.3 tons of gold, which is the equivalent of one-eighth of its holdings.

On Monday, as bullion markets opened, spot and futures prices of gold at the London Metal Exchange, Asian markets and India bullion market fell. Gold dropped to $879.50 in morning trade in London from $905 at the afternoon fixing on April 3. The yellow metal was trading 15 percent below the record $1,032.70 set in March 2008. Gold prices eased in early Asian trade Monday as equity markets surged across the region but is likely to recover on speculation rising prices will revive demand for the precious metal as a hedge against inflation. Bullion was at $877.90 an ounce 10.00 a.m, down 1.6 percent from New York's notional close of $892.50. It fell to as low as $876.55, the lowest since Jan. 29.

On India’s MCX , benchmark gold August contract was at Rs 14,176 per ten grams at 2.58 p.m, off a high of Rs 14,235 per ten grams. June contract also fell to Rs 14,190 per ten grams at the same time, off a high of Rs 14,425 per ten grams.

Mehta said gold prices in India, the largest bullion market in the world, will suffer as there is no consumer demand but only investment-side demand. Demand for gold in India, the largest importer of the precious metal, has taken a knock and the country turned an exporter in March following the rise in old gold sales.

Leading bullion analyst James Moore said in the London Bullion Report that rising appetite for risk is flowing through markets, causing gains in equities and oil and a retreat in the gold price. “Demand for exchange-traded gold funds was also flat last week, with holdings unchanged for four days in a row,” he said.

Echoing his view, Fairfax Investment Solutions analyst John Meyer said gold price fall reflects fears of a banking collapse.

Latest statistics on sales by central banks that are signatories to the Central Bank Selling Agreement, a five-year agreement that limits total sales by signatories each year to 500 tons, shows that only 85 tons of reported selling has been carried out in the year which expires on September 26. Last year 358 tons were sold out of the permitted 500 tons.

According to the latest Fortis Bank Metals Monthly, central bank gold sales in the year to September 26 this year were likely to be only 145 tons, well short of the maximum possible.

Fortis said gold’s drop back to $900/oz from about $1000/oz in mid-February, despite huge investment flows, was due partly to sales of scrap gold and a collapse in jewellery demand. Consumers in India and the Middle East have been hit hard by global economic meltdown. While India reported zero gold imports in February and March, gold sales in several Middle East cities including Dubai have fallen as high as 60 percent.
GEE! WHAT HAPPEND TO THIS PREDITION?????? I wish gold went down to $800.00 I would buy another $20,000 worth! Then I would have $40,000 worth in the BDV!
 

alabamadan said:
I hope it falls to $500 - So I can start hoarding!!! :icon_king:

I hope the price of Cabernet Sauvignon specifically Californian starts dropping so I can start hoarding..
:wink:
 

The price for gold is in the plus or minus of the demand for gold. It is used in technology and computers and satellites and is traded almost like a commodity. The hoarders have no virtual effect on price. Once the world demand for 'using' the gold increased dramatically then it will skyrocket. Not until.
 

This guy will make sure the price of gold rises!
 

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This is how I explain it. Say a person buys 10oz in gold in coins now at @ $950.00 in Fed Reserve Notes…10 x 950 = $9500.00 and this person stores them in a home safe. And another person deposits $9500.00 in FRN’s into a savings account at his local bank. Both are expecting to hold these long term. Let’s say for the sake of argument that both persons are homeowners who bought their homes at the same time at about the same price with the same money down with a fixed mortgage rate at 6% and both hold relatively safe jobs with about the same pay…let’s say $50,000.00 per year. Both have about the same bills to pay each month. Let’s say that after 10 years gold is at $3000.00 per ounce value in FRN’s and the savings account holder receives 1% per year interest in his savings account. The person who bought gold would have an investment worth $30,000.00 while the savings account holder would have an investment worth $10493.76. Now let’s say that at this time both persons lost their jobs an needed their investments to live on until they found employment again. Which persons investment situation would you rather be in? Both are valued in FRN’s but the gold investors situation is far preferable to the savings account holder. You could even recalculate this scenario using gold price statistics from the last ten years and stock market averages for the last ten years and the older of gold comes out ahead. Gold is a storage of VALUE! While FRN’s will reflect a diminishment of value through inflation the value of gold will rise to reflect it’s value against inflation. This is why you receive interest or dividends when holding investments in paper long term…you have to have some reason or reward (or bribe some would say) to park your investment without it losing it’s value. Gold pays no interest or dividends because it owes nothing. It is a safe store of VALUE against fiat currencies!!
 

This post is a few months old and I dident see gold fall to much with the gold being dumped in the market and now it is teasing 1000 agien. hmmmmm
 

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