Saturday, September 24, 2011

Gold Prices go South as dollar strengthens

“Investors selling gold to buy dollars, betting on strengthening US currency – as it happened when Lehman Bros collapsed in 2008″ Gold prices fell on Wednesday as investors decided to take advantage of fear after a record rise in the price of the precious metal.

Analysts said investors sold gold to buy dollar on strengthening of the dollar. They noted a concern that a similar trend took place after the collapse of Lehman Brothers in 2008, a collapse that marked the beginning of the worst recession in living memory.Gold is a traditional safe haven in the dark economic conditions. It has become such a popular investment recently that gold investment companies have hired top American stars such as Beck to shill for their businesses.

Gold miners have again taken on the hills of California to seek their fortune that few find it. And in Utah, the Tea Party activists successfully pushed to get the gold to make the official currency of another in the fear of the dollar was worth the paper it is written.

“Gold was a pseudo-currency trader,” said Stuart Rosenthal Factor advisers. “It was a vote of no confidence in the U.S. dollar,” he said. Now retailers have changed their minds and are selling gold to buy dollars.

In the midst of an economic malaise, the gold bugs have enjoyed the ride. Old money for the first $ 1,000 an ounce in March 2008 and analysts have predicted that reach $ 2,000 next year. But gold has fallen to $ 80 and $ 1,742 an ounce in early trading Wednesday, down 4%. Price of silver too, which was similar to the boom, also collapsed.

With stock markets around the world decline, investors seem to be betting that the worst is yet to come. The price of oil – the product most closely linked to economic activity – has fallen recently, led to lower on concerns over slowing growth in developed economies like the U.S. and Western Europe. The price of copper, coffee and sugar all fell on Wednesday.

But falling gold prices attracted more people by surprise. “We saw a similar trend at the end of 2008, there were a lot of developments that you would have thought were pro-gold,”" said Neil Meader, research director of GFMS, a metals consulting firm. Instead, gold prices weakened. They were “overwhelmed by an avalanche to pay the debt,” he said, means that investors are so frightened that they decided to take your money and run. If that means selling their gold, which is what they did.

Meader said the main reason for gold going down, this time, was that the dollar was rising. “The dollar and gold tend to be negatively correlated. Although we are far from out of the woods in the euro zone or the U.S., gold has suffered because the U.S. dollar strengthened. ”

But gold can still come back, Meader said. He predicted that gold could be worth $ 2,000 an ounce within a year. Why the dollar has to weaken. It reached a maximum of eight months against the euro and strengthened against the pound

Gold has not fallen as hard as the stock market, said Rosenthal. “One day, the formula does not do,” he said. “But it’s hard to ignore.”


  1. The reason gold sold off was that margin calls came in with the falling stock market and traders(speculators) had to cover. The idea that ANYONE would rush to the fiat dollar is absurd. The paper dollar is actually worthless, only supported by blind faith and a corrupt FED/US Treasury, period.

  2. Rosenthsl is a spin master. His primary job is to take the blame off of his tribe for controlled demolition of the economy and put it on the " evil market forces". He is Jim Cramer 2.0 but more intelligent and sophisticated. Gold will cost as much as the amount of currency they are going to print. The idea is to print to oblivion, but slowly until the fools realize that they have a huge debt and not enough income to pay it on a monthly basis, thereby reducing your disposable income, that is standard of living. The goal is to reduce consumption in the Western countries to the level of Third World countries. You are going to make roughly $5000 a year in today's money. Hallooooooo! Anybody listening?

  3. This is what they did in Weimar Germany. Henry Ford tried to warn us.

    And the sheeple just keep sucking down the lies and crapping on the truth tellers.

    The international jew has opened our borders and foisted the New World Order upon our backs. Resistance is racism.

  4. margin calls. when new world cashless system comes then pm's fall.
    what's up with the foreign language translated articles...funny to read, tea party pushed to get the gold to make the official currency of another in the fear of the doller was worth the paper it is written. having read that news from utah months ago I know what their meaning to say but..

  5. Paper ETFs are CRAP...That's what's dropped in price...Lets take silver as an example:

    1. The ratio of silver paper contracts versus actual physical silver available is something like 44:1

    Lets imagine 3-4 actually said "I'm cashing out these ETFs let me have my silver."

    The sytem crashes or they do what they've done since 1964...Manipulate the metal market so price drops and contracts are dropped...

    OR offer the big contract owners cash to drop it

    OR get it but with loooonnng waits usually after government fills it to keep the charade up.

    Guess what China, Russia and all Central Banks around the world are doing?...Trading in paper dollars for silver and gold.

    I'm a betting man and I'm telling you the dollar is dead...We are the Romans and the collapse will happen when they are ready to let it crash and that time is soon...Don't want to buy PMs?

    Buy weapons and ammo...Trust me you'll make a profit.

  6. i knew it was coming, just like i was saying silver is so propped up in the 40's the sad thing is alot of people who call wall street cats greedy, yet they are the same with greed buying silver and gold at WAY over priced levels. Me getting bashed by people saying im crazy for buying dollars, now they are getting demolished on Silver, Gold, Oil and Stocks. Stock Market is a joke and this is just the start. ill see you at S&P500 600 levels or lower. Some serious Unemployment is going spring high.

  7. What a load of Orwellian double-speak. Gold and Silver are the only REAL money on the planet and to imply that they are pseudo-money is the ultimate irony for TPTB toilet paper!

  8. No kidding. "Stronger US dollar" is a fucking joke. Down 94% since 1913. It upticks on crap and the morons start screaming that it is over for PMs. No, sheeple it is not.

    It is over for the dollar. Even a dying pig may have a few squeals left though.

    Go to and buy up whatever freeze dried food you can afford RIGHT NOW.

  9. On a different note: Regarding the new larger blog font sizes. To those who requested this, you know that you can hit CTRL + on your keyboard to make your fonts larger, right? Not everyone is blind as a bat.

  10. E.O.Y AG-$2500,AU-100 YOU GOT IT? NOW, GO GET IT!

  11. @8:06 slow down on the coffee...Ag $2000 Au $50

    As long as they can shake it out of weak hands they'll always be able to lower it and kick the can down the road.

    One day they won't be able to but until then we need to eat our crow with our veggies.

  12. The dip didn't last very long.

    Gold Bid: 1,658.80 Ask: 1,660.80 Change: +65.00

  13. I know I've been filling my food-stocks. I don't know how soon in the future things will go awry but I'd like to thinks I'm half arsed prepared. If history is any indication, it is destined to repeat itself. With governments and people alike allowing their reach to exceed their grasp. You can't rely on a country to great cash from thin air, pump it back into an economy over and over again to 'create' work. I just don't see the logic in that and how it can be sustainable. But... what do I know.. I'm no scholar or economist. But the saying goes - fail to prepare, prepare to fail.

  14. Gold will be a very good investment against a bad economy. Cash for gold being so popular, really got a very good reason.

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