Why is gold crashing to below production value?

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  • RandyRandy
    Clips still sell!
    • Jul 2012
    • 1708

    #1

    Why is gold crashing to below production value?

    Is the US economy really getting better? Is the EU back on track? Is it Bitcoins? I can't figure it out.
  • SGS
    Confirmed User
    • Dec 2002
    • 5176

    #2
    Just sick of all of those fucking "Gold Rush" programs continually on the History Channel I expect.
    See sig...

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    • Antonio
      Too lazy to set a custom title
      • Oct 2001
      • 14136

      #3
      Originally posted by RandyRandy
      Is the US economy really getting better? Is the EU back on track? Is it Bitcoins? I can't figure it out.
      The US economy is back on track, I would say this is the main reason; in times of total unzecurity, gold is very attractive, when it gets more stable, then people can invest in many other assets. Either that or India has banned all jewelry ;)

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      • Manfap
        Confirmed User
        • Jan 2013
        • 2626

        #4
        Gold price takes into account the futures market. As gold is priced in $ and with QE ending the dollar will stregthen, so the comodoty price will drop in dollar value. In the global scale of things the value will be the same.

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        • woj
          <&(©¿©)&>
          • Jul 2002
          • 47882

          #5
          mining cost is irrelevant, only demand matters, low demand = price sinking...
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          • Milfer
            Confirmed User
            • Dec 2008
            • 1149

            #6
            Its all about demand vs supply

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            • DWB
              Registered User
              • Jul 2003
              • 31779

              #7
              Depends on which "expert" you want to believe.

              I hope it it falls and falls and falls, cause I'll buy more and more and more.

              Comment

              • DWB
                Registered User
                • Jul 2003
                • 31779

                #8
                Originally posted by woj
                mining cost is irrelevant, only demand matters, low demand = price sinking...
                Originally posted by Milfer
                Its all about demand vs supply
                Not in this case. People who short gold are moving away from it, that's it. The east is buying as much gold as they can get their hands on, at any price. So are Central Banks. The demand is still huge. In fact, it's even more since it's down.

                In China right now they have roped lines outside of many gold shops with 100s if not 1000s of people in line. Keep in mind, China is 1/3 of the world's population. And we're not even talking about the rest of Asia or India who's also buying as much as they can carry.

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                • halfpint
                  GFY's Halfpint
                  • Jun 2007
                  • 15223

                  #9
                  EU is fucked as ever and getting worse

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                  • onwebcam
                    Fake Nick 1.0
                    • Oct 2005
                    • 27689

                    #10
                    Price manipulation plain and simple. The US Bond market is in bad shape so the Fed is likely using the Working Group to drive down the price of Gold likely to inflate the dollar. But if you're smart and invested in them you should get out of your bonds now before the implosion and pump it into gold while the price is being driven down.
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                    • CAHEK
                      C.C.C.P.
                      • Aug 2003
                      • 7414

                      #11
                      If the gold price was to drop to $800, over 80% of mines would shut and the supply would drop to a mere trickle.
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                      Make Europe Poor Again (MEPA)

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                      • Socks
                        Confirmed User
                        • May 2002
                        • 8475

                        #12
                        Below production value? It was around $290/oz in late 1997, compared to $1200 today (after crashing from ~$1700 in late 2012)

                        It can't be below production value. Not even close.

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                        • RandyRandy
                          Clips still sell!
                          • Jul 2012
                          • 1708

                          #13
                          Originally posted by Socks
                          Below production value? It was around $290/oz in late 1997, compared to $1200 today (after crashing from ~$1700 in late 2012)

                          It can't be below production value. Not even close.
                          I got that from here:

                          http://www.cnbc.com/id/100851209

                          Comment

                          • halfpint
                            GFY's Halfpint
                            • Jun 2007
                            • 15223

                            #14
                            "I believe that most of the headwinds that were present remain, so I believe ultimately we could go to $800 to $900 an ounce," he said on Thursday's "Futures Now."

                            if that happens a lot more gold mines will close

                            http://www.cnbc.com/id/100850226

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