Tigerstripe
Well-Known Fanatic
a few months ago i had a little gold to sell. it was $1770/oz. silver was around $39/oz.
now gold is $1575/oz and silver in the $20s/oz.
now gold is $1575/oz and silver in the $20s/oz.
why is gold falling?
- Thread starter Tigerstripe
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kg4kpg
Well-Known Fanatic
I'm sure you can blame George Bush. 
What?! I thought that was the excuse for everything these days. :mrgreen:
What?! I thought that was the excuse for everything these days. :mrgreen:
PCShogun
Well-Known Fanatic
Gold for April delivery fell $5.80 on Friday to settle at $1,572.80 an ounce. The price of gold dropped below $1,600 on Wednesday for the first time since August, after details from the Fed?s last meeting revealed that some Fed officials discussed ending its bond-buying program sooner than planned. Gold prices have fallen 11 percent this year, largely because investors? biggest fears have dissipated, said James Steel, chief commodities analyst at HSBC in New York.
My theory is that the gold hoarders cashed in their ingots and bought AR-15's and ammo as it was a better investment at the moment.
My theory is that the gold hoarders cashed in their ingots and bought AR-15's and ammo as it was a better investment at the moment.
V65Magnafan
Well-Known Fanatic
- Joined
- May 21, 2012
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Somewhere, a big holder either got into trouble, or needed some fast money for a better deal--in the billions. One particular person comes to mind. Initials GS. But I'm only guessing.
Avtomat-Acolyte
Well-Known Fanatic
urbancommandox
Well-Known Fanatic
Because its useless. You can shoot it or eat it. In an emergency or shtf situation a starving man with a starving family will give you a gold brick for a few cans of beans. A scared man will give you his gold for a hi point becausse he knows with no protection you'll just take his stuff. Buy guns, ammo, food. Spend the rest of your money paying off nonfixed interest debt then regular debt instead of shakey investments or useless metals.
FunkyMonkey
Well-Known Fanatic
urbancommandox said:
Wow. Disclaimer: Please don't take this personally. His is a common opinion..
Gold, and especially silver, throughout human history, have always been the most stable form of currency. After the dollar finally crashes, it will likely be the only thing you can use until the crisis resolves..
The Fed is printing money like there is no tomorrow. Financially that may actually be the case. Google Argentina's 2000 implosion. Don't let normalcy bias convince you it couldn't happen here. And there is no more portable, anonymous form of wealth.
PMs prices fluctuate wildly in price, and are probably manipulated at the highest level sometimes. But long term, they always revert to the norm. Look at their returns since about 1990 if you still don't believe.
Avtomat-Acolyte
Well-Known Fanatic
FunkyMonkey said:
If you have ever been in a hurricane's aftermath or any other actual disaster you would know just how totally useless "precious metals" or stones are in a barter-based economy. No one will trade you their can of Pork n Beans for a gold coin.
FunkyMonkey
Well-Known Fanatic
Avtomat-Acolyte said:
No. Read the OP and the response before highjacking with a(nother) troll response
PMs are long term currency, and investment, not for a short term focal disaster like a hurricane. A few days or weeks is not a "barter based economy"
Avtomat-Acolyte
Well-Known Fanatic
FunkyMonkey said:
It isn't trolling to recognize that gold (i.e. "currency" in any form, be it precious minerals or fiat) only has relative value IN A PRE-EXISTING ECONOMIC SYSTEM. In "the wild" you will likely be unable to trade anything of relative value for anything of substantive value. The intent on using gold, silver or other "valuables" to hedge against economic problems is "eventually things will self-correct but maybe the fiat currency will be diminished" or "eventually a new economy with new fiat currency will show up" and it isn't economically sound or even pragmatic against the reasonable man standard when used against the reality that the value of gold in 2013 is relatively similar to the value of gold in 1800. The only reason why it appears that gold has sky-rocketed in value is because the FIAT CURRENCY used to purchase this gold has become exponentially less valuable.
Here is some more "trolling" for you:
In 1800 you could buy a well-made, hand-tailored suit for $20 USD or a $20 gold coin.
In 2013 that $20 USD can't even buy a tank of gas but that exact same $20 gold coin still purchases a well-made, hand-tailored suit (when exchanged for fiat currency).
The logic behind using precious metals or stones for long-term investment unravells quickly when picked at with more than a casual observation.
FunkyMonkey
Well-Known Fanatic
Avtomat-Acolyte said:
I think you just made the case for holding PMs for the long haul.
Don't buy them if you don't want to.
Enjay
Well-Known Fanatic
i have to admit i too didn't see the reason behind "storing" precious metals. I'm still not all gung ho about it, can't eat it, can't plant it (well you can but it won't grow anything but weeds lol) etc, but after a while when things start to balance out precious metals will likely be a huge factor in whatever economic system develops. As far as that goes I still don't see precious metals as being a priority prep like water, but once the rest are set up then I'd probably consider diverting some funds into procuring them.
As for why the prices are down, from what I gather there was a sell-off. My guess is it was fueled by the gun runs and holidays.
As for why the prices are down, from what I gather there was a sell-off. My guess is it was fueled by the gun runs and holidays.
