Something's going down …

79Au197

… it's gold.

The most dire of the Elliott Wave interpretations appears to be coming true. Gold continues to drop. Other than being a buying opportunity, do any of you other board members have any ideas as to why? (I have been off the net today)

Intervention?
Black Swan?
Improving consumer sentiment?
Harry Dent is correct?

Rj838

I'd Like a recap on what's going on too...

Why is gold dropping down in price???

can't complain though as it's a great chance to stack up on some bling bling

GoldIsCurrency

@79Au197 @Rj838 Apparently concerns over a potential Fed Rate hike as early as September. Personally I don't believe that will happen.

"Tuesday's leg down was sparked by indications that the US Federal Reserve may be moving sooner on tighter monetary policy than the market had expected. Talk of a rate hike before December lifted government bond yields which have a strong inverse relationship to the gold price and also strengthened the US dollar which usually moves in the opposite direction of gold.

Gold has been drifting lower since the beginning of August as some of the biggest drivers of 2016's surge have begun to lose steam. Large scale gold futures and options speculators or "managed money" investors such as hedge funds have been scaling back bullish bets recently and the frenzied buying of physically-backed gold ETFs have also moderated.

Worries about a significant correction for the gold price saw investors pull money out of the sector on Tuesday with gold mining stocks coming in for particular punishment."

http://www.mining.com/gold-price-correction-brings-renewed-selling-mining-stocks/


Then on another note... "Gold bullion has had its biggest gains in September over the past 20 years. Seasonally gold is entering the sweet spot with the Autumn being gold’s best season and with September being gold’s best month in the last 20 years."

http://blogs.wsj.com/moneybeat/2016/08/30/the-case-for-gold-at-1700/

GoldIsCurrency

One more article that is bullish on gold for the longer term.

The Case for Gold at $1,700
When central bank balance sheets grow, gold has historically followed suit, researchers say.

http://blogs.wsj.com/moneybeat/2016/08/30/the-case-for-gold-at-1700/

Rj838

@GoldIsCurrency , very insightful

Thank you

Penny_Dropped

@79Au197 FWIW

GoldIsCurrency

@Rj838 Thank you.

nigelmarkdias

Thank you @Penny_Dropped @GoldIsCurrency for the information.

GrandpaBrian

Oh no! Did you see that the price of steak dropped from $13.75 a pound to $13.10 a pound? What's going on? This must be a crisis! What does this mean? Do the cows know this? What will Janet have to say about this at the next 4H Club meeting?

Stay calm and eat more rib eye steaks.

ShadowsRevealed

@GrandpaBrian Hahah, agreed. I wouldn't worry so much about golds short term price fluctuations. According to the BitGold (still haven't updated the name) App, gold is still up +15.94% this year, +110.81% in 10 years, and +376.01% in 15 years. So lets take 376% / 15 years = 25% increase average over the last 15 years. Be without fear!

Gold, especially the way many of us look at - should not be viewed as an investment exactly. However, if it were an investment - you could bet that it would be near impossible to find anything else with 0 counter party risk and still getting ridiculous increases in value, especially over a 15 year time frame

Goldmatters

@GrandpaBrian I'm glad you said it and not me was exactly what I was thinking

@ShadowsRevealed exactly

SpontaneousOrder

Math correction: 376.01% in 15 years is 9.23% per year (in Excel, =POWER(3.7601,1/15)-1), not 25% per year (=376.01%/15). Still excellent!

RocketDog

That is interesting. Because in a 2011 video of Ron Paul speaking to Ben Bernanke that was posted recently on this board, he mentioned that the actual rate of inflation has been aroung 9% per year (2006 - 2011) and probably beyond that. So if you do the math backwards to double check your work you can see that Gold rising 9% per year and inflation at 9% per year means that GOLD RETAINS VALUE OVER TIME. Which is all I want. That is all that I want--retaining its value over time. Isn't that all you want?

RocketDog

Watch society come crumbling to a halt if there is no way to store value. Why work hard today if you can't save for tomorrow? If we are at a point in our first-world countries where there is no point in saving for tomorrow, then there is no reason to work today any more than to get what you need today. In this case, shop lifting and welfare and fishing (look out catfish!) would work just fine. If we look at societal trends I think we can see that a lot of the former workers and future workers (youth) have already come to this conclusion.