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Gold Is Taking Another Dump


Micro Nugget

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Commodity exchanges opened up a half hour ago overseas. The initial trading looks like another drop in metals prices can be anticipated. How low will it go?

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I don't know how low it will go, but I have always noticed that when oil prices drop dramatically so does gold, as is the case now, some say they are not related but it's what I have always seen in the past!

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I wouldn't sweat it. What goes up eventually comes down and vica versa. When those that take physical delivery have to wait 2 or 3 months, the panic will hit once again, and the prices will start climbing. Same 'ole same 'ole...

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I’ve been notoriously bad at predicting the markets, but here are my thoughts. I love to mine gold, but I think it’s way overvalued. I would think that it’s probable actual value is more towards $400 per ounce than where it is at now. Only 1/10th of all gold mined goes towards industrial use the rest is speculation. I think way too much is being spent on jewelry and speculation to continue on.

I remember DeBeers used to advertise one month’s salary for a wedding ring, but now I’ve seen them advertise three months’ salary. I think a quarter of a year’s income is way too much. Just as trends in society can change, I would expect us to spend less on gold in other than industrial applications in the future.

I think metals that will truly go up are the ones that have industrial uses. Platinum is used in so many things, and so does silver. I don’t know much about silver mining, but if it’ prived less than $20 per ounce, I would think it’s easier to mine than gold, but not nearly as fun.

Here’s what I found on google about percentages of precious metal usage.

Gold about 50% in jewelry, 40% in investments, and 10% in industry

Silver 57% Industrial

Platinum: 113 tonnes were used for vehicle emissions control devices (46%), 76 tonnes for jewelry (31%). The remaining 35.5 tonnes went to various other minor applications, such as investment, electrodes, anticancer drugs, oxygen sensors, spark plugs and turbine engines.[43]

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Here is a theory for you:

When the price of oil is high everyone selling oil will buy gold with the excess money they collect over expenses and loan payments. When the price they get for oil is low they must sell some of their gold to have the same 'income' to pay for their big projects and repay debt. The market becomes flooded with sellers of gold rather than buyers of gold.

All 'markets' are based upon buyers and sellers. 'Producers' are brought into the equation when there is an arbitrage between the cost of production and the market price. When the price drops inventory will be sold to cover fixed expenses until such time as there is no more inventory and then the producer (mine) will be shut down because it is not economical. Supplies then become tighter and the producer waits to reopen the mine.

Look at the rare earth metals mining. They involve market forces and strategic (military/security) forces at the same time.

Then there are 'political forces' which make it unpopular to mine coal no matter what the cost or the price.

Now, try to paper trade the mining stocks or commodities based upon what you know. The best only trade it for a short, short time unless you are collecting or paying an option. Hold on to your seat while in the market.

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Hate the drop but all my gold is found at a cost of between $20-$100 an oz so still way ahead of the game. I still have jars full of gold back to 1958 when it was around $50 an oz . Price manipulation is the scurge of the economy as the rich keep making trillions and we eat cake ....more like beans and rice. John

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Hey we just got involved in a new war and that always helps., and with Ebola
flying around. but I have noticed the stock in the company making experimental ebola vaccines has risen a lot!. gold always holds its own when things get dicey.
AzNuggetBob

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Hey we just got involved in a new war and that always helps., and with Ebola

flying around. but I have noticed the stock in the company making experimental ebola vaccines has risen a lot!. gold always holds its own when things get dicey.

AzNuggetBob

When Ebola gets to India ( lots of them working in west Africa) it will get interesting. More gold is held by Indian's ( as jewelry )than any all other countries.

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MacGump you got that right about India,but I think they would rather die with it than sell it.
also the consumption of gold in china is at an all time high and with all
their manufacturing and personal consumption, it seems to be never ending.
and china is not exactly stating what there gold reserves are. but what amazes me the most is there is a lot
of gold production in china and there still buying it as fast as they can? AzNuggetBob

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To the devil with India that :2mo5pow: is spreading here for gods sake.....lets see a dozen wars,drought,pestulance,disease and famine now where is them 4 horsemen a comn'-?-John :old:

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Here's an interesting article/excerpt from a speech that Warren Buffet gave on gold as an investment.



Warren Buffett Quote:


"(It) gets dug out of the ground in Africa or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."


Here is a link to the whole article....


http://www.usatoday.com/story/money/2014/09/21/why-warren-buffett-hates-gold/15909821/


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I totally agree with Buffet's feelings about gold. Should the personal consumption take a delcine, gold would very easily drop in price. Also, I often here something like, gold would could be used as exchange if things ever went really bad, as in a government collapse. I think gold would be the last thing I'd want in that. I'd want food and shelter for my family and I.

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I totally agree with Buffet's feelings about gold. Should the personal consumption take a delcine, gold would very easily drop in price. Also, I often here something like, gold would could be used as exchange if things ever went really bad, as in a government collapse. I think gold would be the last thing I'd want in that. I'd want food and shelter for my family and I.

I agree and also a good stock of medical supplies, I would also stock up in things for barter, some of the things I do have or would like to keep a good stock of to use for barter, C-rations, first aid supplies, cigarettes, ammo and some small arms/pistols, liquor of several types (people tend to drink when things are bad and it has it's uses for medical purposes), items to make a shelter, e.g. tarps, tent poles and various small lumber items, survival knifes and axes/hatchets, flashlights, fire starters, the list goes on, etc., anything you can think of you might need would be good items to stock up on for using in a barter situation!

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MacGump you got that right about India,but I think they would rather die with it than sell it.

also the consumption of gold in china is at an all time high and with all

their manufacturing and personal consumption, it seems to be never ending.

and china is not exactly stating what there gold reserves are. but what amazes me the most is there is a lot

of gold production in china and there still buying it as fast as they can? AzNuggetBob

I agree and also a good stock of medical supplies, I would also stock up in things for barter, some of the things I do have or would like to keep a good stock of to use for barter, C-rations, first aid supplies, cigarettes, ammo and some small arms/pistols, liquor of several types (people tend to drink when things are bad and it has it's uses for medical purposes), items to make a shelter, e.g. tarps, tent poles and various small lumber items, survival knifes and axes/hatchets, flashlights, fire starters, the list goes on, etc., anything you can think of you might need would be good items to stock up on for using in a barter situation!

The Idians would rather die with the gold--- which is why the effects on the market would be interesting.

I love gold -- I am here on this forum--- but in a SHTF deal I would rather have a large supply of heirloom seeds, booze and lots of brass.LOTS of brass.

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How funny as all you have to do is look at past proven recorded history to ascertain what would happen when governments collapse. GOLD is the absolute only thing that has ever kept value as a base of economics.The rise and fall of every empire and civilization left the rich running off to the hills with their piles of gold to survive or is the past 5,000 years or so of recorded history all wrong??? You'll use them greenbacks for tp and be trading that gold for your essentials. I'm stocked up with what is needed to start a fresh so whatever is coming is covered multiple ways-John

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good vodka, rice and beans :old: would be on my prepper list. That and commonly used ammo.

don't forget the O2 absorbers in the mason jars or mylar bags with the seeds(all in used bakery buckets.)

AS for nutrient density/volume, SPAM can't be beat :arrowheadsmiley:

Of course, the dehydrated/condensed version of SPAM would be a cartridge large enough to take down a wild boar or other game.

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How funny as all you have to do is look at past proven recorded history to ascertain what would happen when governments collapse. GOLD is the absolute only thing that has ever kept value as a base of economics.The rise and fall of every empire and civilization left the rich running off to the hills with their piles of gold to survive or is the past 5,000 years or so of recorded history all wrong??? You'll use them greenbacks for tp and be trading that gold for your essentials. I'm stocked up with what is needed to start a fresh so whatever is coming is covered multiple ways-John

Ditto… if gold is so worthless, then why are so many of the world's central banks accumulating it hand over fist? Poor 'ole Germany has 600+ tons of it in storage in NY. They want it back. Fed says yeah, we'll give it back, but its going to take us 8 years to give it back to you. :laught16:

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