US$ dropping back sharply seems to be only a small part of the reason for this change of $44 in the US$ gold price in the last hour or two. Gold doing better than holding its basket currency value. $37 due to buyers, rest due to US$ drop.
The Moneychanger:
Bernancubus and the FOMC announced today that they would keep interest rates low until "at least late 2014" and that the committee "expects to maintain a highly accommodative [read: inflationary] stance for monetary policy." But that's okay because they expect "inflation" to be subdued. To prove beyond all quibble that they have all lost their minds, the FOMC specified a two percent (2%) goal for long term inflation, measured by some price index that makes about as much sense as averaging the price of tire-irons with kumquats and SUVs and calling that an index.
Go look at the five-day charts you will notice that suddenly today the silver and gold charts rise straight into the sky. THAT was when the Federal Open Market Committee made its announcement, and THAT shows you how markets interpreted the Fed's announcement: "more and more inflation."
US$ dropping back sharply seems to be only a small part of the reason for this change of $44 in the US$ gold price in the last hour or two. Gold doing better than holding its basket currency value. $37 due to buyers, rest due to US$ drop.
Interest rates low, gold goes up.
Interest rates up, gold goes up.
USD down, gold goes up.
USD up, gold goes up.
QE2, gold goes up.
No QE3, gold goes up.
Doesn't add up.
David Tuckett, a professor at University College, London and a former president of the European Psychoanalytic Federation said recently about gold:
"It is all about what stories are believed today, and today, while it belies any sort of commonsense that gold is worth twice as much as it was two years ago, this is what people are believing in."
David Tuckett, a professor at University College, London and a former president of the European Psychoanalytic Federation said recently about gold:
"It is all about what stories are believed today, and today, while it belies any sort of commonsense that gold is worth twice as much as it was two years ago, this is what people are believing in."
In other words, suckers.
Yeah it's like investors/countries see it as sound money accepted everywhere that has always had value since man discovered it...
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
Well if that's true take a couple of krugers to your local New World and see what happens.
well they would most likely state that they only accept NZD.. take a USD into your local New world same thing like Gold you have to exchange you USD,YEN etc for the local currency of use nothing to amazing ....
talking about New world how's me $100 voucher coming along (we only have New world,fresh choice here)
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
well they would most likely state that they only accept NZD.. take a USD into your local New world same thing like Gold you have to exchange you USD,YEN etc for the local currency of use nothing to amazing ....
talking about New world how's me $100 voucher coming along (we only have New world,fresh choice here)
Hahaha, you'd be laughed out of your local New World and the word would spread that you're a 'bit different'.
I'm taking care of the other business for next time you're out of town. You'll receive it soon.
Gold will not fall back far against the oil price, it will retain value against a basket of currencies, because too many have a vested interest in their savings deposits held in gold. Gold always rises to exceed previous highs, eventually. Therefore it must increase in US$ /oz if the US uses the easiest way to lower their paper debt: to pay it off with inflation.I like the content of the recent Barack Obama speech though, the rich must pay their share. One senator has admitted he pays tax on millions of annual income, but at the net rate of 15%. Those on much lower wages pay about 30-35%. Maybe this has given some of the rich-listers a bit of a push towards gold too.
yeah Obama's speech sounded very promising a real election vote grabber tax the rich help the middle classes ,stop the wars
--Change we need change!! too bad Obama's years in office hasn't seen much change at all debt has increased even faster bail out's wars
Obama is a puppet his job is to talk the talk to keep the masses happy but walk the walk of the wall street bankers/defence contractors/big phama/super rich masters that fund him remember you need big money to run for office 60mill USD+ etc so you look after the funders don't you..we fund you,, you give us want we want
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
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Originally Posted by elZorro
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