The Phaserl


Gold Down, What Now?

by Frank Suess, The Daily Bell:

The history of fiat money is little more than a register of monetary follies and inflations. Our present age merely affords another entry in this dismal register.” ~ Hans F. Sennholz, author and lecturer of Austrian Economics

As I started writing this Update, the USD spot price of gold stood at USD 1,373.40, up a little over 1 percent from Monday’s low of 1,350.80. Within a few days, gold has lost almost 14%. Year-to-date it is down 18.83%. The following graph sums up the radical and rapid move over the past few days. What is not shown here is that the fate of silver was even worse, and most commodities have seen sharp corrections.

The Gold Sell-Off – radical and rapid

It is critical to not lose sight of forest for the trees. This price move needs to be seen in a much larger context. As you know from my earlier comments, I do not believe in the economic recovery myth. The weaknesses of overall commodity markets are an expression of the slowing world economy. The common optimism may be sharply disappointed very soon… in equity markets, too.

Read More @

Help us spread the ANTIDOTE to corporate propaganda.

Please follow SGT Report on Twitter & help share the message.

1 comment to Gold Down, What Now?

  • Frank Zak

    Gold Bullion refiner, MKS said that “physical demand is extraordinary.”

    In terms of transactions, gold buyers outnumbered sellers by a ratio of nearly five to one yesterday. In terms of volume, gold buyers outnumbered sellers by a ratio of nearly nine to one yesterday. Meaning that there were more buyers than sellers and buyers were placing larger orders than those selling and this trend has continued today.

    U.S. gold coins sales have been at record levels this week. Lower prices and the tragic events in Boston may have contributed to increased buying due to concerns about the risk of terrorist attacks.

    Premiums are rising in Europe and the U.S. and there are delays of a few weeks on some smaller coins and bars showing the growing tightness in the market.

    Hong Kong’s century old Chinese Precious Metals Exchange has reportedly almost run out of gold bullion at these price levels and is waiting for imports to come in next week from Switzerland and London.

    Apparently they are not able to source from within their region. Gold seems to be moving from West to East.

    The Hong Kong Gold and Silver market seems to be more of what is called a ‘bullion market’ rather than a paper speculative market dealing in highly leveraged position trading with only small amounts of actual metal changing hands. the exchange made news when it changed its policy and began trading and selling bullion in yuan.

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>