Gold Slumps to Two Year Low

305 · Apr 15, 2013

http://www.reuters.com/article/2013/04/15/us-markets-precious-idUSBRE93E0FI20130415

(Reuters) - Gold dropped as much as 6.3 percent on Monday to below $1,400 per ounce for the first time since March 2011 as the market's downward momentum gained speed after more than four months of investor selling.

Investors ditched gold along with other commodities from oil to copper after a less-than-forecast growth in China's gross domestic product in the first quarter stoked doubts about the health of the global economy.

This added to last week's fears of central bank sales from Europe, prompted by a proposed sale of Cyprus bullion holdings, and concerns about a reduction in monetary stimulus. Adding to selling pressure, exchange-traded funds hit their lowest in more than a year on Friday.

Spot gold dropped as low as $1,384.69 an ounce and was at $1,409.26 by 1048 GMT, still down 4.7 percent.
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So can someone explain in layman's terms why gold would fall further with the expectations of a falling global economy? I had always thought that gold was the "fall back"... the reason why it had risen so much in recent years?

Fin D · Apr 15, 2013

Because Glenn Beck and others in the gold market, preyed on everyone's fears about the economy and now its saturated the gold market.

Besides the wealthy hold all the money in this economy anyway.

unluckyluciano · Apr 15, 2013

chinas been buying the gold to fight off rapid inflation. If they aren't expanding then they won't buy as much gold. The US doesn't use gold as much for the dollar anymore either. So, this makes gold even less important. The people who were talking about investing in gold due to our own inflation, which hasn't kicked in, weren't giving very good advice.

MikeHoncho · Apr 15, 2013

Gold has to be the second biggest scam running, behind diamonds.

unluckyluciano · Apr 15, 2013

http://www.bloomberg.com/news/2013-04-15/paulson-gold-bet-loses-almost-1-billion-chart-of-day.html

The CHART OF THE DAY shows gold’s tumble since the start of the year has cut his riches by $1.52 billion on paper, including about $973 million in the rout that began on April 12 and continued with yesterday’s 9.3 percent drop. Paulson started the year with about $9.5 billion invested across his hedge funds, of which 85 percent was in gold share classes.

Paulson is sticking with his thesis that gold is the best hedge against inflation and currency debasement as countries pump money into their economies, according to the New York-based firm, which manages about $18 billion. The metal entered a bear market last week after falling more than 20 percent since August 2011, bringing more bad news for 57-year-old Paulson, who has struggled with poor returns for the past two years.
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Stringer Bell · Apr 15, 2013

Gold LOL

Eshlemon · Apr 18, 2013

Gold was due to drop as people started profit making as 10 years ago gold was at 300, 5 at 600, 3 at 900. Like the stock market, will really suck for those who jump in buy high and then panic sell low.

finyank13 · Apr 23, 2013

lmeister3 said:

Gold has to be the second biggest scam running, behind diamonds.
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oil/gas too

305 Brawndo Club Member

Fin D Sigh

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MikeHoncho -=| Censored |=-

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Eshlemon Well-Known Member

finyank13 Reality Check

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