It’s Probably Nothing

21 Replies to “It’s Probably Nothing”

1. I guess I am one of those gold bugs who is getting hammered. I haven’t seen any change to think otherwise and will add to positions. Debt continues to escalate out of control. Governments overstate GDP growth rates to make their budgets work. Central banks continue to buy gold.

2. Hmmm… Maybe a “golden” opportunity to pick some up at bargain prices and make some decent coin. Buy low, sell high eh?

3. I do not pretend to understand any of this high finance stuff. But as a bystander, if there was ever anything that told me the whole precious metal commodity market is rigged like a three masted schooner, this would be it. European countries on the knife-edge of default and the gold price -tanks-?
   Sure, I believe that.

4. Talk about the “Yellow Peril” in more ways than one.

5. Keep in mind paper gold here is getting dumped, I don’t think anyone is dumping physical gold. The other big one this am is Japanese Bonds are getting hammered. The central bank of Japan decided to double down on money printing and doubled their balance sheet, they have out Benned Ben Bernanke. And it is scaring the pants off folks who are sick of low quality toilet paper. Maybe soon they will do like 1920’s Germany and make the paper money smaller or just print one side as the face value did not cover the cost of the paper or ink. http://www.zerohedge.com/news/2013-04-14/ex-soros-advisor-sells-almost-all-japan-holdings-shorts-bonds-sees-market-crash-defa

6. China’s GDP increases 7.7% instead of 7.9% and there’s this much of a difference?
   The math does not add up and, as the first two commenters imply, this sets up a golden buying opportunity some time later this year.
   First, though, watch the US economy dip for a couple of months as a minute amount of unnecessary bureaucracy is cut due to sequestration.
   Pay no heed to the usual howling about how this proving cutting government spending does not work. Cutting government spending is the only way it will work in the long run.

7. You’re right – it really is nothing – unless you believe gold is valueless against the baseless paper fiat they are printing 24/7, or that someone like say, COMEX, would never ever manipulate metal prices so a big client can buy it up cheap.
   It really is nothing this time – just market insiders doing what they do best – create false demands and supplies.

8. If demand for all these things is so low, it sounds like everyone is just going to sit on their hands, that seems to be the biggest worry here economically.

9. Deflation is still in the driver’s seat. The market wants to have a blow off and every tin-pot government in the world is into Keynes on steroids. So instead of a quick plunge and a real recovery we will experience a staggered plunge with stagflation to look forward to, again!

10. Goldman Sachs is leading the call to dump gold, but remember that Goldman Sachs is basically an arm of the Federal Reserve, and they have every incentive to hammer gold in order to deflect attention from their money-printing and debt-buying binge. As long as they can suppress the price of gold, the U.S. government’s worthless treasury bills will continue to look good in comparison.
    One thing to note is that commodities in general are getting hammered along with gold. The one bright spot in the U.S. economy has been the ag and energy sectors. If the Fed and their pals at Goldman are not careful, they could snuff out that one bright spot as well.

11. Not condoning, not complaining, not being opinionated – just saying …
    A deflating world population on the horizon is the driver here. It will ultimately lead to economic deflation and will lead to falling demand especially for commodities. Not the end of the world, but there could certainly be major adjustments ahead. However, the productive, essential components of society will survive in the long term – Ag, energy,ect. Rent seekers, fearmongers not so much.
    Am I wrong ??

12. Oh yes, of course. Goldman says sell. To whom? Goldman? For central bank-confetti? For promises to repay central bank-confetti? Really now? Are they reduced to insulting our intelligence?
    Dennis: Torpedoing agriculture and energy is the idea. (Gold is gravy. Impoversishing goldbugs helps make life more difficult for the opposition.)
    A British North America self-sufficient in food and energy and in a position to pay its way can entertain governments who take the side of the people against the banksters. Such governments can finally start paying out the dividends from the cultural heritage to the plain people of British North America, so long denied them by the banksters. They can finally get serious about ending for all time the ability of Islam to make war on Christendom and restoring Israel to her birthright, from the Nile to the Tigris. They can tell the decadent continent of Europe to get their bailouts from the Pope of Rome. They can finally—and that’s the greatest fear of of all at Goldman, just for example—start bringing treacherous banksters to justice and paying them the customary fees for treason.

13. Ron, overall the world population is still growing, but the rate of growth is declining. However, population is declining outright in all OECD nations, which also happen to be the world’s industrial nations (the BRICK nations are the sole exceptions).
    The problem is that those nations in which population is growing most strongly, Africa, some parts of Asia, produce nothing of value
    In the long term, you are right, overall population growth is the driver. But what’s happening right now I suspect is that a series of asset bubbles are being burst. In 2008 the US real estate market was an asset bubble that collapsed. Starting about 2010, European sovereign debt was an asset bubble that is in the throes of collapsing. Right now, it looks like the biggest asset bubbles are US and Japanese currency, fueled by “quantitative easing” i.e. printing money.

14. Here’s a good article by Paul Craig Roberts that explains what is probably taking place in the gold market:
    http://www.paulcraigroberts.org/2013/04/04/the-assault-on-gold-paul-craig-roberts/
    The whole idea of this exercise is to continue to drive investors into loaning their money to the bankrupt U.S. government by making all the alternatives look ugly in comparison. Mr. Roberts suspects that a state of panic might have set in at the Fed when gold hit $1800 an ounce and since then they have been doing everything in their power to push the price back down.
    He published the article on Saturday the 13th, and predicted that we would see further steep declines in the gold price in the coming week. He was absolutely correct. The drop may not be over yet.

15. one of the great inflationary periods of all time was caused by the plague. a one third drop in population caused a net wealth gain of a third or so for everyone. the Catholic church used this to great end. first everyone from prince to pauper had extra cash and of course everyone experienced just a little taste of hell on earth. So the next century armed with cash and fear Europe went on a cathedral building blitz.
    read ” A Distant Mirror. The Calamitous 13th century”
    ps , the MSM would like us to think of bird flue in the same light, but 16 deaths in 1.1 billion folks is hardly a statistic.

16. Seems even the Asian markets are having a negative reaction to the coronation of King Justin the Turdious. Not that I blame them and all…

17. cgh – I agree with all your responses.

18. one has to wonder how much the Soreass (soros) will make on this one!!!! this socialist joo is one big bloody hipocrit

19. Gold with the biggest 2 day drop in 30 years…and a couple of weeks ago the grain markets had the biggest single day drop in 24 years…the algos are running(ruining?)the markets.

20. The real reason that they are driving down the price of gold is because the central banks no longer have enough physical gold to cover the demand for physical gold. They have been involved in a scam of leasing each other physical gold. They got a bad scare when Germany demanded 300 plus tonnes of physical gold from the US Vault where it supposedly has been stored for years. They found out that the gold doesn’t exist on demand and had to arrange a quiet deal to receive the gold they own over a period of 7 years, as their gold is not there. Same with Canada. Mulroney the old Red Tory started dumping Canada’s 700 Metric Tonnes of National Gold Reserves at the end of his second term, Chretien the small town crook came to Ottawa and continues selling off the National Gold Reserves of Canada until he left office. When Harper took over only 30 T was left. Yet Canadians are all horny for the Liberals again and the Shiny Pony. Just what Canada needs another Leftwing socialist French Prime Minister. He will not even bother with Vaseline. God help us all.

21. This is the kind of periodic market adjustment that takes out the speculators, at least for a while. And that is not necessarily a bad thing. I have never owned paper gold or silver, always the metal itself, and still hold, for me at least, a fair quantity. Difference being, I didn’t buy it over the years as an investment….that’s a mug’s game…I bought in order to hold real tangible assets in the event really bad things happened to the economy. At these prices I may just pick up some more…