On 7/27/15 12:11 PM, wrote:
On Mon, 27 Jul 2015 10:19:32 -0400, Keyser Söze
wrote:

On 7/27/15 10:14 AM, wrote:
On Mon, 27 Jul 2015 07:49:26 -0400, Keyser Söze
wrote:

Snerk.

A chart of the crashing price of gold looks like a wedding ring rolling
off a table. Gold futures for June delivery closed at $1,361 an ounce on
the Comex in New York today, a drop of more than $200 in two sessions.
Gold’s fall of 13 percent since April 11 was the biggest two-session
decline since 1980.

Why is gold plunging? The most important factor is that global inflation
is falling, reducing gold’s value as a hedge against rising prices. Gold
bugs who were betting on an outburst of inflation are scrambling to
reverse their bets and exit their gold positions at any price.

http://tinyurl.com/p7p3sre

Gold or any metal is not about the daily spot price. It is for the
long term.

Oil is going down too, that doesn't mean people are going to stop
using it any time soon.



"Using" gold is not the same as speculating on its appreciation. It's
just another way "investors" churn the economy without really
contributing or creating. It's not the same thing as farmers "hedging"
on their crops.

The difference is that gold does not go bad. It will always be gold.

I agree a lot of the price is speculation but so is real estate. We
saw that a few years ago.
The thing both have in common is the fact that they have intrinsic
value. Paper investments, including cash, are only worth something
because people believe in the institution that prints it and there is
no limit on the supply.

I do question the lack of "inflation". Certainly energy prices are
down but most other things are getting more expensive every day. Have
you been to the grocery store lately? The real estate market is
soaring so the cost of housing is going up, particularly for renters
but real estate taxes go up too.
Add to all of that the rising cost of insurance, all types and that is
a hidden tax on everything.
Does anyone really think their cost of living is "falling" or even
remaining the same?'



I suspect the majority of gold investors are not holding their gold but
are holding pieces of paper from a service or depository.