Why is gold in a free fall?

Strong USD: I think its the market making mistake in the short run …and giving an opportunity to brave one to make some money on it …

Dsylexic Wrote: ------------------------------------------------------- > > To digress a bit > Zimbabwe did not owe the world trillions in its > own currency and so did not hold its trade > partners hostage to cooperate in “unconventional > coordinated interventions” and no wonder it is in > a hole it cant get out of. > > Here is what Zimbabwean Central banker Dr Gono > says about his counterparts in the West > > " As Monetary Authorities, we commend those of our > peers, the world over, who have now seen the light > on the need for the adoption of flexible and > practical interventions and support to key sectors > of the economy when faced with unusual > circumstances. > " Peers, huh? Well they did always give support to key sectors of the economy. Too bad Zimbabwe wasn’t one of them. Cool hippos though.

rohufish Wrote: ------------------------------------------------------- > i’d like to hear from those of you who believe in > a strong dollar argument > > i don’t get this nebulous ‘safe haven’ theory > (maybe only in the very short run) > > trade deficit (US is negative, will get worse if > dollar is strong) > interest rate trend (US will need to ease more > from 1.5%) > economic growth (shot worse in US than anywhere > else in world) > > what gives? It’s not the “safe haven” per se. People are selling all assets (oil, gold, stocks, etc.) to get cash and pay off debt/buy more treasurys. You’re question is wrong. You’re making us focus specifically on gold when it’s all commodities and all stocks. It’s like asking why Microsoft is falling? It’s not that MSFT did something specifically wrong to be falling. It’s just that all stocks are falling.

I think it’s legit. It’s like asking why defensive stocks, like PG, JNJ, etc, are down.

well, there may be a collapse in asset values so severe that we can’t print money fast enough to replace it. On the day of the 777 point crash, they said 1T of market cap evaporated, whereas the package that didn’t pass was 0.7T. Even if that much had been liberated in one day, there would be less money available to circulate and the net effect is deflationary. There are a bunch of assumptions that can be challenged here, but it gives you a sense of the overall dynamic at work. Zimbabwe did not AFAIK have a crash in the price of assets, rather, the government just started printing money to pay it’s staff and buy off opposition. This is obviously inflationary, but if you are first in line for the new handouts, you are better off than the rest.

homie Wrote: ------------------------------------------------------- > rohufish Wrote: > -------------------------------------------------- > ----- > > i’d like to hear from those of you who believe > in > > a strong dollar argument > > > > i don’t get this nebulous ‘safe haven’ theory > > (maybe only in the very short run) > > > > trade deficit (US is negative, will get worse > if > > dollar is strong) > > interest rate trend (US will need to ease more > > from 1.5%) > > economic growth (shot worse in US than anywhere > > else in world) > > > > what gives? > > > It’s not the “safe haven” per se. > > People are selling all assets (oil, gold, stocks, > etc.) to get cash and pay off debt/buy more > treasurys. > > You’re question is wrong. You’re making us focus > specifically on gold when it’s all commodities and > all stocks. > > It’s like asking why Microsoft is falling? It’s > not that MSFT did something specifically wrong to > be falling. It’s just that all stocks are falling. umm…huh?? gold? MSFT? [scratches his bald spot]