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I sold when it was over $1900. Gold and oil seem to follow the same path. Gas goes up gold follows. Plus if the stock market takes off gold loses its shine.

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The Economy is Shitting out. People Need Cash. End Game Soon.

8 Years ago I told my dad to buy into gold.

2 Years later he was Snivilling how he lost a few hundred thousonds of dollars in the Market.

Hell I can't but just pay my Land Fee's but he had the money.

Last I talked to him he liquidated all his Stocks and Cash to Gold.

I'm trying to Convence him not to leave the Gold at the Bank.

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Most of us find our gold, some of us buy. But be careful not to panic. Countries sell to pay for their defaults to central banks, but someone buys the gold. So the value will always be their. Most of the drops were do to ETF exchange trade funds that were set up first in Australia, basically paper trading in gold, not physical. So as you see the gold price has gone up since the dramatic drop. The ET Funds traders had stops, meaning when the gold price dropped to a certain level they sold , so as they don't lose their ass. So "Panic" started and all were dumping. But physical gold & silver demand is increasing and continues to be the only way to own gold. Hell, for us miners its all good, we find it and enjoy what we are doing...it's pure profit when you do sell :yesss: .. Hold on to your gold, unless you really need the cash.

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Gold is the Only thing that has held Value over a few thousand years. No Paper has lasted as long. No Promissory Notes, No Script, No Indebted Notes like the Dollar.

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From what I'm reading people all over the globe are snatching up physical gold as fast as they can after the fall in prices last week, if they continue buying at such a frenzy the price of gold will climb back up steadily over the next 3 years, and according to this article gold could reach $2000 an oz by 2016

http://www.livetradingnews.com/the-start-of-something-big-in-gold-and-silver-111426.htm#.UXWsa6K85sc.

April 22, 2013 -- Updated April 22, 2013 14:53 HKT

The Start of Something Big in Gold and Silver

paul_avatar.jpg
Paul A Ebeling Jr
paul@livetradingnews.com

"The Start of Something Big in Gold and Silver

BLK, BAC, GS, ABX, NEM, RIO

When the US economy is booming, Gold suffers, when the US economy looks dismal and shows little signs of growth, this strong because it signals that the US Fed will continue to keep the liquidity faucet wide open.

In the last 10 of 12 yrs, the US has not had more than 3% GDP growth, a poor track record for the nation. In order to achieve the anticipated growth rate, the Fed will have to print even more than they already have, and that means gold should be strong.

Funds like HeffCap’s Metals Funds that have built a unique portfolio of Metals and Metal related derivatives and equities are set to see strong growth for the next few years.

Gold and Silver Frenzy

Last week, I noted how hard it was to buy physical Silver due to the shortage of physical Silver in the market. With the recent drop in Gold prices, it is now becoming just as hard to buy Gold.

Running Out of Gold

The Hong Kong’s Chinese Gold & Silver Exchange Society, which has been in operations for over 100 yrs, has sold out of Gold bullion, and is now waiting until Wednesday for shipments to arrive from Switzerland and London.

Chinese citizens were rushing out to buy physical Gold. And it was not just the wealthy buying Gold.

According to a Yangcheng Evening News reporter it was everyone from pork traffickers to fishmongers who dropped everything, including their jobs, to buy Gold at the local malls.

It is not different in India.

According to a news report: “Gold buyers in India, the world’s biggest consumer, are flocking to stores to buy jewellery and coins, betting a selloff that plunged bullion to a 2 year low may be overdone.”

From the WS-J: “Gold demand in India, the world’s largest consumer, surged Thursday as a collapse in its price coincided with one of the most auspicious days for the country’s majority Hindus to buy the yellow metal. People crowded jewellery shops since morning in Mumbai’s Zaveri Bazar area, a major bullion-trading hub, as gold became more affordable after a 12% price fall since Friday….

Sales in Mumbai, the main Gold market in India, totaled 4 tons in the past 2 days alone, compared with average daily sales of about 1 ton during the January-March Quarter, Bombay Bullion Association President Mohit Khamboj said.

“We expect to sell around 3 tons today (last Thursday” on the occasion of Guru Pushya Nakshatra, he said.

Retailers in Zaveri Bazar said they have decided to extend their shopping hours until close to midnight Thursday.
“We have not seen such strong demand in many years. Our order books are already 30%-40% more than last year’s festival day,” said Sohanlal Soni, owner of Ranuja Jewelers in Zaveri Bazar. “We don’t have enough staff to keep up with this kind of mad demand, so the only choice is to work longer today.”"

In just 2 days, Gold sales in Mumbai alone totaled more than 4 tons…That’s nearly 30% of Cyrpus’ Gold reserve.

People in Japan and Australia are loading up on physical Gold too:

According to the Age: “Gold sales from Perth Mint, which refines nearly all of the nation’s bullion, have surged after prices plunged, adding to signs that the metal’s slump to a 2 yr low is spurring increased demand.

“The volume of business that we’re putting through is way in excess of double what we did last week,” Treasurer Nigel Moffatt said, without giving precise figures. “There have been people running through the gate.”

The Perth Mint’s sales of gold coins climbed 49% to 97,541 ozs in the 3 months ended 31 March from a year earlier.

Meanwhile, reports of strong demand for physical gold are coming in from across the region. Physical dealers have noted a shortage in gold bars because of the demand, pushing up premiums for Gold bars in Singapore and Hong Kong, Reuters said Sunday.

Japanese individual investors doubled Gold purchases yesterday at Tokuriki Honten, the country’s 2nd-largest retailer of the precious metal.”

It is happening in the US too.

According to data from the US Mint, a record 63,500 ozs, or 2 tons, of Gold were sold on 17 April alone. That means sales for this month is now over 147,000 oz; that’s more than the prior 2 months combined with the month just two thirds over.

The Manipulation

It seems that the blatant attempt to slam Gold worked, but just temporarily.

There still is not a fundamental reason why Gold had one of its biggest drops in history last week.

It is clear now that Cyprus was a non-event for Gold, especially since even Blackrock’s NYSE:BLK fund manager said that there was “no visible central bank activity” as the Gold price plunged.

However, what we do know is that whoever decided to cumulatively attack Gold, created the opposite effect.

The efforts to hammer Gold have now boosted a huge influx of physical purchases, leading to a purchase hysteria not seen since the last Gold rush in the 1970′s.

It was only a few weeks ago that the big bankers such as Goldman Sachs NYSE:GS, and the Bank of America were issuing strong sell orders on gold.

But shortly after issuing sell orders, the Bank of America NYSE:BAC seems to have made a mistake:
“With prices now below 1,500/oz., we expect a pick-up in jewellery demand in the medium term and see considerable pain for the gold miners should prices dip below 1,200/oz. As such, we believe the downside to gold prices may be limited to an additional 150/oz. In fact, we estimate

that jewellery demand may become so pronounced by Y 2016 that prices could trade above 1,500/oz. even if investors remain net sellers.

Looking at sensitivities from a different POV, investors would need to buy merely 600 ton of Gold to sustain prices at $2,000/oz. by Y 2016, compared to non-commercial purchases of 1,798 t in Y 2012.”

In short, they are saying that the disconnect between the paper sell-off and physical buying spree can only last so long before gold shoots right back up to $2000 as the surge in buying overwhelms the paper selling.

Furthermore, it seems that they have finally agreed with me on the fact that the Cyprus Gold sale was meaningless:

“Cyprus’ announcement to sell nearly 14 tons of Gold reserves was a Key trigger behind the recent collapse in Gold prices, as it raised concerns that other peripheral nations may follow suit. Given our estimate that every 45 oz. represents a net sale of 100 tons, the move over the last 2 days would suggest net sales of 480 tons, or about 20% of yearly mine supply. In short, the market seems to have discounted the combined future gold sales of Portugal and Greece. As we believe additional gold selling in the European periphery is highly unlikely, we find it hard to fully justify the sell-off.”

The manipulators have made such a big deal about Gold’s fall that the retail audience is starting to take notice…

Gold 101, less supply, more demand

If Gold continues at these lower price levels, we will see a major shortage of Gold, as many producers cannot make enough money to continue production.

During Gold’s recent decline, no one has talked about the decline in Gold production.

The recent drop in price is forcing many players, big and small, to suspend or shut down Gold mining operations.

Two of the world’s biggest gold producers, Barrick Gold NYSE: and Newmont Mining NYSE: , have calculated their all-in cash costs at roughly 1000-1100 oz and 1192 oz. respectively.

Analysts project all-in cash costs for the 2 big miners at 1650 oz. meaning that Gold production by 2 of the world’s biggest Gold producers cannot be sustained with these low Gold prices.

Barrick’s Pascua-Lama mine expected to be one of the world’s largest, lowest cost mines with nearly 18-M ounces of proven and probable Gold reserves and 676,000,000 oz of Silver contained, was just put on Halt by the Chilean government. This Halt, due to environmental and social concerns, may take years to resolve, thus limiting the world’s anticipated Gold production .

Meanwhile, Rio Tinto’s NYSE:RIO Bingham Canyon, a mine that produces around 400,000 oz of Gold and nearly 3-M ounces of Silver a year as by-products of Copper mining, had a massive landslide that may put the mine out of commission for up to 12 months, and several years before the mine is back up to full operating capacity. That means another decline in Gold output this year.

The Big Q: can Gold fall further?

The Big A: let us see if paper can overrun the demand of the physical. My take is that is will be hard to force the Gold price further down. Stay tuned…"

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