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Post Reply Gold Crash 2013
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Posted 4/15/13 , edited 4/15/13


This isn't a topic that will interest many people, but what happened today on the gold market was historic and I thought it should be noted. Above is a Daily chart of "spot" gold. How you read the chart is the current data, or current day, is on the far right. See that big red bar on the right? That's today. It ended up dropping at one point today by 150-151 points or about 10%.

In one day.

Considering that gold usually trades about 10-25 points a day, 150 points is HUGE. It's a crash actually. If you look at the chart, you can see how outsized today's move is in comparison with other days (follow the bars to the left).

Personally, I don't trade gold or other commodities, but they all plunged today. At one point, Silver was down 12-13% which is huge also. Theories abound as to why such a huge sell off happened ... everything from Cyprus liquidating gold reserves to help pay for their bailout to a massive 20 billion dollar short position (short selling is betting that a stocks or market or commodity will drop).

The other though is that the gold bulls, known as "Gold Bugs", are nervous that the world isn't engulfed in hyper-inflation yet due to all the world's central banks printing tons of money. And therefore, they are selling ... and quickly.

I'll post a few more charts later on. If only for posterity.
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Posted 4/16/13
I appreciate this post. My father owns several gold stock, though I too do not particularly invest in commodities (I rather much prefer supplementary income defensive stocks and T-bills). I assume the numbers on the right are the price per ounce?
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Posted 4/16/13 , edited 4/16/13

Realtaliation wrote:

I assume the numbers on the right are the price per ounce?


Yes, price per ounce. As I type, gold is trading at 1,383.00 per ounce on the futures market at the moment. Looks like things have calmed down a bit this morning. We'll see once the spot market opens up.

I suppose if there is any good news from the commodity route yesterday, it's that oil dropped significantly as well, but that could be viewed as a deflationary sign... which would not be good.
Wihl 
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Posted 4/29/13
the gold crash was a shakeout.
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Posted 4/29/13 , edited 4/29/13

Wihl wrote:

the gold crash was a shakeout.


Yeah, looks like that now doesn't it. Great recovery. Great action by the gold bulls. That fat bear bar looks like an overshoot at this point. We'll see if there's any echo.



Put back almost all of the drop. Woof. Gold miners aren't fairing as well, but they also got a pop.

Silver is still lagging, but at least it isn't going down.
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30 / M / "Spaaaaace!"
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Posted 4/29/13

Hairbelly wrote:


Wihl wrote:

the gold crash was a shakeout.


Yeah, looks like that now doesn't it. Great recovery. Great action by the gold bulls. That fat bear bar looks like an overshoot at this point. We'll see if there's any echo.



Put back almost all of the drop. Woof. Gold miners aren't fairing as well, but they also got a pop.

Silver is still lagging, but at least it isn't going down.


Gold and Diamond have benefited from hyper-inflation for the better part of several decades. Not to mention floating values propped up by speculators. Keep clinging to gold. I'm sure it'll still be a viable commodity even if we're mining asteroids in the next 20 years...
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25 / M / Honolulu, HI
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Posted 5/2/13
I dont purchase gold and silver to make money, I have a stash in case shit hits the fan, in which it is pretty much guaranteed to happen within out lifetimes. If the value goes down because the government uses real solid ways to improve the economy, i dont mind. Unfortunately, the gov just prints out more money at artificially low interest rates to keep things from collapsing, but that just devalues the dollar. it is a big ponzi scheme and a slow yet obvious form of theft. People need to realize the gov doesn't give a shit about the people. Sorry for being a realist/pessimist, but my political sceince, economy, and history classes have given great insight into the corruption and mismanagement of money our govenmenrt and most others contain. I am not sur ehow much longer we cna kick the can downt he road before we get BUFU'd but it will be within our lifetimes. Good lukc peeps and enjoy the good life while you have it,cuz int eh future, you willw ish you could go back to these "tough" times. Sadly, because we are so globalized, a meltdown will be global, not national as yous ee how europe, China, and the US all have such close economic ties.
Wihl 
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Posted 5/2/13
What I would like to know is who sold to make the gold prices drop or if they use news media to induce the fear and who purchased after it fell. Anyone know? I don't have time to research it, or even know if one can get this level of detail.
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Posted 7/10/13
Yes, and it will probably keep dropping now @ $1200 probably looking @ $900 w/i the next 3 months.
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44 / M / Rochester, NY
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Posted 7/23/13
Gold was run up by the 1%ers who had all their scared RWNJs (Right Wing Nut Jobs) panicked over the end is coming. So they suckered these people who they politically control through FEAR to buy gold, then the 1%ers cashed out leaving their scared RWNJs to take the losses. Of course they will blame The Kenyan-Communist-Muslim-Scary-Black-Guy Obama for the fall in prices and the RWNJs will eat it up.

Sigh
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21 / M / Fullerton, Califo...
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Posted 12/3/13
I hope it goes to 900 or less. Right now I think it is still too expensive.
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Posted 12/4/13
Gold is no more a hedge than any other precious metal, except it's not terribly rare and we don't need a ton of it for industrial uses. (Gold can be stretched really REALLY thin)

People buy it because of the perceived value in escaping from riskier assets to something with value described by its own intrinsic "worth" or "value". Gold being one of those traditional things. I just tend to argue it's not as great a hedge as people believe.... and those who invest in nothing but gold are kinda fools.
Posted 12/4/13 , edited 12/4/13
Well Gold doesn't have to be a safe haven any more for investers since things are looking up in the US economy with interest rates set to rise.
Posted 12/19/13
Better start investing in plutonium, then. Much more stable.
Wihl 
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Posted 12/19/13
Plutonium does not store well plus being radioactive. Wikipedia has a good summary as why you don't want it around. Gold is safer.

Maybe you were thinking of platinum.
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