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With the current market/economy, why isnt gold trading at $1000 or higher?

LibNickelBuffLibNickelBuff Posts: 54
in Precious Metals
Just curious. The stock market is in the Sh!tter, bordering on recession and Gold is under $800. makes no sense.

Comments

  • rgCoinGuyrgCoinGuy Posts: 7,478 ✭
    One big reason is even with our problems, the rest of the world is in worse shape, and our dollar keeps going up against other currencies recently. That keeps the price of gold down.
    imageQuid pro quo. Yes or no?
  • storm888storm888 Posts: 11,701 ✭✭✭
    Currently, EVERYBODY in the world - except for the big banks - needs CASH.

    Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
  • konsolekonsole Posts: 795 ✭✭✭
    ill eegel muh nipue lachiun?
  • waynemewayneme Posts: 852 ✭
    give it a few
  • jamakinjamakin Posts: 1,055
    Has alot to do with lend/leaasing of gold
    Follow this link to an old AIG report and be well informed
    hedging gold
  • ProofCollectionProofCollection Posts: 6,246 ✭✭✭✭✭
    The article in This thread explains things pretty well.
  • percybpercyb Posts: 3,328 ✭✭✭✭


    << <i>Just curious. The stock market is in the Sh!tter, bordering on recession and Gold is under $800. makes no sense. >>



    As others have noted, the stronger dollar weakens gold and oil. Fear not, the dollar in the long term, is doomed. Buy gold dips. Busted out hedge funds by the score are liquidating long positions and many or all of them have been long gold. Everything in the world is being sold.
    It's a very Blue Light special across the store of asset classes. I've started shopping for solid companies...hope to tip toe back into gold and oil as well.
    "Poets are the unacknowledged legislators of the world." PBShelley
  • derrybderryb Posts: 36,938 ✭✭✭✭✭
    "With the current market/economy, why isnt gold trading at $1000 or higher?"

    Real gold is!

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Zillions of world-wide contracts are being settled up in dollars. That's why. Everyone needs dollars to wind down their bets, hedges, losses, etc. Once the settling slows down, so will the dollar.

    There are already documented cases of multi-million dollar physical gold sales taking place at prices above USD$1000/oz. That's the reality of it, not the Crimex.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
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