DOWNWARD TREND OF GOLD BEGINS

[DC33_2008]

Gold has dropped substantially over the last couple of months. Today, Gold is down to US$1221. More downside to come?;)

[princess_morbucks]

Gold has dropped substantially over the last couple of months. Today, Gold is down to US$1221. More downside to come?;)

Meaning interest rates increasing :eek: ?

[DC33_2008]

Why interest rate goes up? Bernake and the next Fed Chairperson, Yellen, already said that interest will not go up even with the tapering of QE.
Meaning interest rates increasing :eek: ?

[indomie]

Gold need to be kept down to maintain the illusion of USD strength. If this illusion is exposed and gold price shoot up, the game is over for US economy. At all cost they need to suppress the price of gold.

[princess_morbucks]

Why interest rate goes up? Bernake and the next Fed Chairperson, Yellen, already said that interest will not go up even with the tapering of QE.

Oh, I thought that people are selling gold to put money in the bank to earn higher interest.
I understand now, after indomie's explanation.


Gold need to be kept down to maintain the illusion of USD strength. If this illusion is exposed and gold price shoot up, the game is over for US economy. At all cost they need to suppress the price of gold.

Thanks for the explanation!

[indomie]

The problem is they over do the "trick" (suppressing the price of gold) that the gold is selling below the production cost. But their pocket against mine, I can't go bet against them in gold. They just have too much firepower.

[DC33_2008]

Have not invested any gold yet. It has no interest nor dividend but can just admire it. ;)
The problem is they over do the "trick" (suppressing the price of gold) that the gold is selling below the production cost. But their pocket against mine, I can't go bet against them in gold. They just have too much firepower.

[kellogs]

USD used to be backed by gold till 1971 when Nixon demolished it.

Since then we are in Fiat Money world ... everything is based on confidence level.

I agreed with Indomie post that Central Banks have been selling (dumping) gold at low prices ...

Assuming we lost confidence in this fiat money and start buying gold ... but what is backing the gold? we cant eat nor sleep ...

Buy properties?

[DC33_2008]

Gold is down further at US$1216 now.
USD used to be backed by gold till 1971 when Nixon demolished it.

Since then we are in Fiat Money world ... everything is based on confidence level.

I agreed with Indomie post that Central Banks have been selling (dumping) gold at low prices ...

Assuming we lost confidence in this fiat money and start buying gold ... but what is backing the gold? we cant eat nor sleep ...

Buy properties?

[minority]

Means USD will go up

[indomie]

Means USD will go up
Isn't it a brilliant move by the fed. They don't have to work hard to increase USD value, they just have to trash the value of others.

[radha08]

omg that means mustafa crowded again all the ahneh rushing to buy gold:banghead: