Gold tumbles ... what does it mean?

[Robert A Whit]

Gold was over 1800 and now in the high 1400s. What does it mean?

http://online.wsj.com/article/SB10001424127887324695104578418551548370608.htmlBy CHRISTIAN BERTHELSEN (http://online.wsj.com/search/term.html?KEYWORDS=CHRISTIAN+BERTHELSEN&bylinesearch=true), TATYANA SHUMSKY (http://online.wsj.com/search/term.html?KEYWORDS=TATYANA+SHUMSKY&bylinesearch=true) and GREGORY ZUCKERMAN (http://online.wsj.com/search/term.html?KEYWORDS=GREGORY+ZUCKERMAN&bylinesearch=true)Gold tumbled into bear-market territory on Friday, underscoring how money managers' search for yield has trampled one of the most resilient post-financial crisis wagers.

<cite>Bloomberg News</cite>
Shine fades for the yellow metal.




Over the past decade, the precious metal had attracted legions of investors, first as it became easier to bet on gold with the introduction of exchange-traded funds backed with physical gold, and then as gold notched double-digit gains in 2009 and 2010.
Many gold investors have headed for the exits in pursuit of better returns in the U.S. stock market, where benchmark indexes have hit record highs. Meanwhile, the traditional catalysts for gold prices—inflation worries and financial-market turmoil—have ebbed somewhat, further dimming gold's appeal.
Friday's selloff bolstered expectations that 2013 might mark the end of gold's 12-year bull run. Gold fell $63.30, or 4%, to $1,501 a troy ounce on the Comex division of the New York Mercantile Exchange, after falling as low as $1,480.20 during the day. It was the lowest close since July 2011 and the biggest one-day decline in dollar and percentage terms since February of last year. Gold fell 4.7% for the week.
A bear market is defined roughly as a 20% drop from a recent peak. Gold hit a record of $1,888.70 an ounce in August 2011, a month when jitters about the euro-zone's debt load were ramping up and Standard & Poor's Ratings Services yanked the U.S.'s triple-A rating.
Some traders viewed the drop below $1,520 an ounce as an important move because that level provided some support in the past. Friday's fall turned some traders, such as Stephen Klein, a portfolio manager at New York hedge fund AT Global Capital, into bears. Mr. Klein had spent the past two years on the sidelines. "At this point, it looks like gold has gone over a cliff," Mr. Klein said. "Gold has always been sentiment-driven, and now the price action shows you that sentiment has changed."

[cadet]

Gold is a terrible material.
Yay it's shiny... (Not really)

The only reason it's even wearable is because the consumer version is half carbon.

[Robert A Whit]

Gold is a terrible material.
Yay it's shiny... (Not really)

The only reason it's even wearable is because the consumer version is half carbon.


Sorry if you think i was discussing it as jewelry.

It has fallen over 300 dollars per oz.

I have long fretted about inflation. I experienced it. It is dreadful.

I worry the Feds use it as a way to pay off the debts of the feds. It is proven to be a terrible cure for government debt.

[logroller]

Gold is a terrible material.
Yay it's shiny... (Not really)

The only reason it's even wearable is because the consumer version is half carbon.
If its so terrible a material, why is it used in high grade conductors? Alloying metals maximizes the beneficial properties and minimizes the weakness of the componant materials. I wouldn't say iron is a terrible material; without it, we wouldn't have steel. Nor would I say that rust is good, but it does form a natural barrier to oxidation. Sand isn't a particularly useful material, but silicon is, especially if impregnated with other materials. There's no one element that, alone, is so awesome that it can't be incorporated with another element to make something better. Despite their use as shield gases, inert gases can be fused to create another element that can be put to an improved use. Imo-- Iron is probably the best though. Galactic-ally speaking I think that's the final element.

[aboutime]

Gold is a terrible material.
Yay it's shiny... (Not really)

The only reason it's even wearable is because the consumer version is half carbon.


cadet. As the science kind of guy I suspect you are. How easily you have forgotten how that TERRIBLE material, GOLD is so
valuable, and frequently used in today's high-tech world.
Nearly Every Electronic device used today by millions of people around the world has some...a small quantity of GOLD contained
within the Circuit boards.
If it is so terrible. Try living, or using any device you depend on today...without Gold.
It won't work.

Here is a link: http://answers.yahoo.com/question/index?qid=20080204232243AA6GfA2

[jafar00]

http://charts.mql5.com/1/325/gold-w1-fxopen-investments-inc.png

I'd be looking for buy signals off the 38.2% fibo retracement at 1446 if it consolidates there for a bit.

[tailfins]

Gold is a terrible material.
Yay it's shiny... (Not really)

The only reason it's even wearable is because the consumer version is half carbon.

Our emergency fund: My wife loves to wear one like this:
http://i.ebayimg.com/t/20-GOLD-COIN-DOUBLE-EAGLE-1904-LIBERTY-HEAD-18-CARAT-BEZEL-/00/s/MTAyNFg5MDI=/$(KGrHqEOKkME5UYVTN!yBOfBVwDkyw~~60_35.JPG

[fj1200]

Gold was over 1800 and now in the high 1400s. What does it mean?

Hopefully it means that people are moving out of gold, and other base commodities, into better economic investments.


I'd be looking for buy signals off the 38.2% fibo retracement at 1446 if it consolidates there for a bit.

Do you treat gold as an investment or a hedge?

[Robert A Whit]

Hopefully it means that people are moving out of gold, and other base commodities, into better economic investments.


Maybe some of them will show up and want me to sell them a home. We wiil see.

[aboutime]

Here is what the Obama administration, and the Democrats would like to replace
Gold with... 4853(and, if you think about it. They have), which equates to this...4854.

[Robert A Whit]

The USA long ago got off the Gold standard. The standard has long been the USA Dollar.

For Gold to have fallen over $300 per oz, it could mean some have faith in the economy improving.

Some may have other ideas.

[taft2012]

The market is moving again. Inexplicably, IMO.

Regardless, people see a place to make money in the market again, so gold is not as attractive as it had been.

[fj1200]

Hopefully it means that people are moving out of gold, and other base commodities, into better economic investments.

Hmm.

Gold Investors Exit Amid Price Collapse


Crude oil futures have tumbled on global markets, down to less than $89 for West Texas crude, the lowest price since December, 2012.
http://gma.yahoo.com/blogs/abc-blogs/gold-investors-exit-amid-price-collapse-120231046--abc-news-deals.html


Three-month copper on the London Metal Exchange fell to $7,085 a tonne, its lowest since October 2011. It was trading at $7,166 a tonne at 1028 GMT, down 3.25 percent on the day and some 10 percent for the year.Aluminium fell to its lowest in three and a half years at $1,818 a tonne, while tin fell nearly 7 percent to $20,500, its lowest since late November 2012.
LME nickel fell to its lowest in more than seven months, while lead and zinc slumped to their lowest in five months.
http://news.yahoo.com/copper-lowest-1-1-2-years-chinese-data-113524559--finance.html

[Robert A Whit]

I am telling you guys

Something looks to be going on and it is not good

Gold went up to 1800 and is now in the 1300 range
Oil is falling

Stocks fell today

Is this past the peak? Are we going back down?

My hope is they flee the rest to real estate

if this happens, a great year for me

And those of you who suffered in real estate; you too can see a great year

[fj1200]

A hypothesis: The Fed is trying to back out of it's money supply growth and limit QE.

[Robert A Whit]

A hypothesis: The Fed is trying to back out of it's money supply growth and limit QE.

These people pull so much stuff behind closed doors that is possible.

Did you check money supply today?

[fj1200]

These people pull so much stuff behind closed doors that is possible.

Did you check money supply today?

No. Apparently they publish weekly.

http://www.federalreserve.gov/releases/h6/current/

Balance Sheet data:

http://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

[Robert A Whit]

No. Apparently they publish weekly.

http://www.federalreserve.gov/releases/h6/current/

Balance Sheet data:

http://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

Money supply is alarmingly high. (we are well positioned for massive inflation)

But since scared money wants something like Gold, why is gold falling?

This is sort of like a tsunami I fear.

[fj1200]

Money supply is alarmingly high. (we are well positioned for massive inflation)

But since scared money wants something like Gold, why is gold falling?

This is sort of like a tsunami I fear.

I don't think money is scared then.

[aboutime]

Nothing but typical scare tactics. That's how the powers that be...control the price of everything.

Gold is still higher, almost at record rates, compared to 10 or more years ago.

Guess who is buying Up all the gold during an intentional scare like this????

No biggy. The price will go back up. Probably even higher than before.

On the other hand. To all of you experts out there. If you have any gold.

Either get rid of it, or just hold on to it.

Either way. If you believe everything you hear, based on the SCARE.

You deserve to Lose everything, and blame it on somebody else for your Haste that makes Waste.

[fj1200]

This is sort of like a tsunami I fear.

My neighborhood acquaintance who happens to be an energy company analyst mentioned that the weakness was based on the EIA report which suggested that China and Europe were slowing down... or something along those lines. She didn't have a theory on why gold was weak and why commodities have been on a general downturn though.

[red states rule]

Gold was over 1800 and now in the high 1400s. What does it mean?

http://online.wsj.com/article/SB10001424127887324695104578418551548370608.html

By CHRISTIAN BERTHELSEN (http://online.wsj.com/search/term.html?KEYWORDS=CHRISTIAN+BERTHELSEN&bylinesearch=true), TATYANA SHUMSKY (http://online.wsj.com/search/term.html?KEYWORDS=TATYANA+SHUMSKY&bylinesearch=true) and GREGORY ZUCKERMAN (http://online.wsj.com/search/term.html?KEYWORDS=GREGORY+ZUCKERMAN&bylinesearch=true)

Gold tumbled into bear-market territory on Friday, underscoring how money managers' search for yield has trampled one of the most resilient post-financial crisis wagers.

<cite>Bloomberg News</cite>
Shine fades for the yellow metal.




Over the past decade, the precious metal had attracted legions of investors, first as it became easier to bet on gold with the introduction of exchange-traded funds backed with physical gold, and then as gold notched double-digit gains in 2009 and 2010.
Many gold investors have headed for the exits in pursuit of better returns in the U.S. stock market, where benchmark indexes have hit record highs. Meanwhile, the traditional catalysts for gold prices—inflation worries and financial-market turmoil—have ebbed somewhat, further dimming gold's appeal.
Friday's selloff bolstered expectations that 2013 might mark the end of gold's 12-year bull run. Gold fell $63.30, or 4%, to $1,501 a troy ounce on the Comex division of the New York Mercantile Exchange, after falling as low as $1,480.20 during the day. It was the lowest close since July 2011 and the biggest one-day decline in dollar and percentage terms since February of last year. Gold fell 4.7% for the week.
A bear market is defined roughly as a 20% drop from a recent peak. Gold hit a record of $1,888.70 an ounce in August 2011, a month when jitters about the euro-zone's debt load were ramping up and Standard & Poor's Ratings Services yanked the U.S.'s triple-A rating.
Some traders viewed the drop below $1,520 an ounce as an important move because that level provided some support in the past. Friday's fall turned some traders, such as Stephen Klein, a portfolio manager at New York hedge fund AT Global Capital, into bears. Mr. Klein had spent the past two years on the sidelines. "At this point, it looks like gold has gone over a cliff," Mr. Klein said. "Gold has always been sentiment-driven, and now the price action shows you that sentiment has changed."

Tells me the Obama economic recovery is rolling right along.

[fj1200]

Gold Drops! What 'They' Don't Want You to Know (http://beta.fool.com/mrrightside/2013/04/19/gold-crash/31890/?source=eogyholnk0000001)



There is no real reason that gold should be declining when we factor in all the reasons it rallied, such as:

1. Quantitative easing leading to artificial market growth and inflation
2. Global money printing and record government debt levels
3. Political uncertainty

Has anything fundamentally changed, aside from the price in gold?

Here's the frightening truth. If gold doesn't make sense now, then it never made sense to begin with. Every single catalyst that gold rallied on is still in tact, only on steroids.

[Robert A Whit]

Gold Drops! What 'They' Don't Want You to Know (http://beta.fool.com/mrrightside/2013/04/19/gold-crash/31890/?source=eogyholnk0000001)



There is no real reason that gold should be declining when we factor in all the reasons it rallied, such as:

1. Quantitative easing leading to artificial market growth and inflation
2. Global money printing and record government debt levels
3. Political uncertainty

Has anything fundamentally changed, aside from the price in gold?

Here's the frightening truth. If gold doesn't make sense now, then it never made sense to begin with. Every single catalyst that gold rallied on is still in tact, only on steroids.

QE thus far has not led to market growth nor inflation. IMO Key indicators would be different had they done that.

IMO people value dollars over gold.

I plan to check what gold experts are talking about.