Gold has fallen from $1910 to $1763 in less than 48 hours

**LAGC** · 08-24-2011, 10:48 PM

... and it continues to drop.

Usually when a commodity drops like that, something big is happening.

Anybody have any idea why?

Is this simply the gold bubble starting to pop?

I don't see anything in the news the past two days that could point to this...

**Viking350** · 08-25-2011, 04:37 AM

Originally Posted by LAGC

... and it continues to drop.

Usually when a commodity drops like that, something big is happening.

Anybody have any idea why?

Is this simply the gold bubble starting to pop?

I don't see anything in the news the past two days that could point to this...

http://www.marketwatch.com/story/gol...5?siteid=yhoof

This article opines that it could be profit taking caused by uncertainty in where the economy is going and what the Fed will do.

**mriddick** · 08-25-2011, 05:09 AM

On a side note MSNBC has an entire week of shows planned around the right pushing gold to make the bubble that it became.

(to be aired whenever the bubble bursts)

**Viking350** · 08-25-2011, 05:22 AM

Originally Posted by mriddick

On a side note MSNBC has an entire week of shows planned around the right pushing gold to make the bubble that it became.

The political right? I would expect no less from the Moscow Soviet Nationalist Broadcasting Corporation.

**Ruskiegunlover** · 08-25-2011, 06:26 AM

well, I certianly think gold is a major bubble. Just because its never popped before does not mean its impossible. I bet people will loose a ton of money on it before long.

**Penguin** · 08-25-2011, 06:36 AM

I have been wondering myself what is up. I don't seen an obvious reason for it. I wonder though it the bubble is bursting. I am half considering selling what I have. I would make a killing. Asuming though that it doesn't burst and this is just a smaller sell off I would not be wanting to buy back what I sold at these crazy prices.

**CigarGuy** · 08-25-2011, 07:07 AM

George Bush or Glenn Beck. Not sure which one to hold responsible.....

**Focused Gunfire** · 08-25-2011, 07:51 AM

If you look at gold as an investment then you must assume all the risks just like any other investment. If however you look at gold as insurance, then that gold is always worth the same. The dollar may change, but gold is steady. If for example the economy fell apart because people stopped trading oil in the dollar and the thing they tried to pull us out is the Amero, then what would you prefer to get in trade? A fraction of your Monopoly money in the bank, or the value of the new currency in gold?

By the way, LAGC you started a topic awhile back on gold. It talked about the price beginning to go down. You forget, or do you think the reasons given in the article are not happening in this event?

**Richard Simmons** · 08-25-2011, 07:55 AM

Darn it anyway. Was just thinking about selling off a couple of pounds.

**stinker** · 08-25-2011, 08:03 AM

Originally Posted by mriddick

On a side note MSNBC has an entire week of shows planned around the right pushing gold to make the bubble that it became.

(to be aired whenever the bubble bursts)

Originally Posted by CigarGuy

George Bush or Glenn Beck. Not sure which one to hold responsible.....

Speaking of busting bubbles, i hate to pop y'alls, but.....
All the hosts on the america left sirius/xm channel, all of whom are as far off the communist deep end as it can get, are pushing the same advertising as "the right". The whole talking point about it being a right wing conspiracy is a steaming pile of doodoo and they know it. I think msnbc has metal dealers rotating in it's website adds too if i'm not mistaken. Hypocrits.

**Kadmos** · 08-25-2011, 11:21 AM

Originally Posted by Ruskiegunlover

well, I certianly think gold is a major bubble. Just because its never popped before does not mean its impossible. I bet people will loose a ton of money on it before long.

It popped before, the last big one was the late 70's...went from $750 or so down to $350ish, didn't go back up to $750 until I think 2002 maybe.

**Warthogg** · 08-25-2011, 11:25 AM

Originally Posted by Ruskiegunlover

well, I certianly think gold is a major bubble.

Don't think so. First of all gold moves in long cycles so there will be many expansions and contractions of price along the way. A pull back such as this is a buy opportunity.

Now anyone who believes the congress and the entire US .gov will balance the budget and begin to reduce debt would certainly be correct in viewing gold as a bubble as those moves would strengthen the dollar.

As for myself I do not harbor those delusions.

Wart

**Warthogg** · 08-25-2011, 11:31 AM

Originally Posted by CigarGuy

George Bush or Glenn Beck. Not sure which one to hold responsible.....

Not sure what you mean exactly.

Bush set the stage for gold to increase dramatically. (Barry has carried on the 'work' begun by Bush and markedly accelerated the demise of the dollar.)

Beck understands the dollar is toast. (Beck is over kissing Israel's ass and I cannot watch the dip schitt any more but I do agree with some of his ideas.)

Wart

**Sergi762** · 08-25-2011, 01:55 PM

heard a rumor that the drop is from either a proposed or enacted rule of increasing the margin amount required to buy it. why any sane individual would pay a percentage of somethings price and think they own the entirety of it I cannot fathom.

**Warthogg** · 08-25-2011, 02:12 PM

Originally Posted by Sergi762

heard a rumor that the drop is from either a proposed or enacted rule of increasing the margin amount required to buy it.
.

That would make sense.

why any sane individual would pay a percentage of somethings price and think they own the entirety of it I cannot fathom

Leverage. Control a large amount with a relatively small amount of capital. Not for the faint of heart nor the thinly capitalized.

Wart

**Warthogg** · 08-25-2011, 02:14 PM

Correct Sergi:

SAN FRANCISC0 (MarketWatch) -- The CME Group Inc., the parent company of the main metals and energy exchanges in the U.S., on Wednesday announced an increase in margin requirements to trade gold. The money needed to trade gold contracts increased 27%. Initial margin requirements rose to $9,450 from $7,425 per 100-ounce contract; maintenance margin requirements rose to $7,000 from $5,500, both effective as of the close of trading on Thursday. The CME had increased margins for gold two weeks ago.

http://www.marketwatch.com/story/cme...-27-2011-08-24

Cooling down the speculators. The investors won't much care.

Wart