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Gold is down well over $200 since Friday morning.  It is down $120 in volatile trading just this morning.

Why is this important?  Another right-wing lie is falling apart.  Hyperinflation has no chance of happening here.  "Helicopter Ben" is not printing worthless fiat money and recklessly throwing it away.  The US Dollar will not become as worthless as toilet paper.  In fact, it has gained in value since QE began in 2008.

So for all you Ron Paul ZeroHedge goldbugs out there - you were wrong again.  And when you listen to whackjobs talking about returning to the gold standard just remember this past weekend when real fiat metal fails you.

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Comment Preferences

  •  I wouldn't be so quick to jump... (0+ / 0-)

    on that bandwagon...not quick at all....the numbers are not adding up...

  •  I remember when gold was about the same per ounce (1+ / 0-)
    Recommended by:
    carver

    as weed. Weed stayed the same; gold is like a grand more, now.

    I don't know about Ron Paul and all the other related stuff, but gold is pretty effing high regardless of whatever drop just happened.

    collards, meat, butter, sourdough, eggs, cheese, raw milk

    by Tirge Caps on Mon Apr 15, 2013 at 08:09:48 AM PDT

  •  Once the rubes figure they have been screwed, (7+ / 0-)

    they will sell and gold will go down further.  

    Join us on the Black Kos front porch to review news and views written from a black pov—everyone is welcome.

    by TomP on Mon Apr 15, 2013 at 08:09:50 AM PDT

  •  He who is Krugthulu bloggeth (9+ / 0-)

    Economics is a social *science*. Can we base future economic decisions on math?

    by blue aardvark on Mon Apr 15, 2013 at 08:11:23 AM PDT

  •  Too early to call the game (2+ / 0-)
    Recommended by:
    shrike, bruddaone

    in the fifth inning ;)

  •  Hey right wingers , now is the time to buy (3+ / 0-)

    the price is down , don't let Obama ruin the price of gold , be a good American and buy buy buy gold .
    What could go wrong !
    God , Guts , Gold !!!

    Drop the name-calling MB 2/4/11 + Please try to use ratings properly! Kos 9/9/11

    by indycam on Mon Apr 15, 2013 at 08:21:55 AM PDT

  •  The price for 20 franc gold coins (0+ / 0-)

    has hardly budged at all on Ebay France. The American Cafe blog says this price fall is all manipulation by the big boys and that you can't buy real gold at the new fallen level.

    •  Um, if you were melting them down and THEN (0+ / 0-)

      selling them and their prices were stable over this time, that would tell you something. As is, the fact that 20-franc gold coins aren't changing in price as gold plummets tells me that those coins are worth more as collectors' items than for their raw material.

      Code Monkey like freedom / Code Monkey like peace and justice too
      Code Monkey very nerdy man / With big warm fuzzy bleeding heart
      Code Monkey like you!

      Formerly known as Jyrinx.

      by Code Monkey on Mon Apr 15, 2013 at 08:27:43 AM PDT

      [ Parent ]

      •  I'm not speaking of collectors pieces. (1+ / 0-)
        Recommended by:
        kalmoth

        Just pieces in ordinary condition and issuance. Collectors pieces get a much higher premium depending on condition and rarity.

        •  Wait, are these Swiss francs or something? (0+ / 0-)

          Well, that makes more sense. (I was thinking of French francs, which I suppose figures since I'm sitting here typing this in Paris …)

          But then if they're actually legal tender, then of course there's a floor on their value, since the bank will always buy them. It's still a fiat currency, even if its coinage is gold. (It's not like the value of the penny fluctuates with copper, after all — just the cost of minting it.)

          Code Monkey like freedom / Code Monkey like peace and justice too
          Code Monkey very nerdy man / With big warm fuzzy bleeding heart
          Code Monkey like you!

          Formerly known as Jyrinx.

          by Code Monkey on Mon Apr 15, 2013 at 08:35:30 AM PDT

          [ Parent ]

          •  I'm speaking of old French francs, (1+ / 0-)
            Recommended by:
            Chinton

            normally called Napoleans. The contain 5.8 grams of pure gold. The last ones were made around 1910.

            •  *facepalm* So they ARE collector's pieces. (0+ / 0-)

              Exactly how much do those coins go for? And how much does 5.8 grams of gold go for?

              Code Monkey like freedom / Code Monkey like peace and justice too
              Code Monkey very nerdy man / With big warm fuzzy bleeding heart
              Code Monkey like you!

              Formerly known as Jyrinx.

              by Code Monkey on Mon Apr 15, 2013 at 08:41:49 AM PDT

              [ Parent ]

              •  At this moment the piece of gold in euros (0+ / 0-)

                is around 34 per gram; ie, 197.20 per 20 franc piece. They are cyrrently selling for about 235 euros the piece, almost a 40 euro premium. Normally the premium is around 20 euros which leads me to beleve that Jesse's Café Americain is correct.

                •  Or eBay is essentially acting as a futures market, (0+ / 0-)

                  and people expect the price of gold to recover by the time their purchase arrives at their doorstep.

                  Or (and, for the sake of my faith in humanity, this is my preferred explanation) people don't actually buy century-old gold coins on eBay as a ludicrous form of currency speculation, so the price is based more on the historical/collector's value than on the raw materials.

                  Also, just how big is the eBay gold franc market? Just how many goldbugs with money and denial would it take to inflate that price simply by being willing to buy it at the higher price? After all, suppose the eBay gold franc market really is a proxy for the gold market (*shudder*). I imagine the eBay market would be dominated by goldbugs, no? Who, as a group, are committed to the notion that gold is inherently valuable, and as such the current plunge must be a conspiracy. So if the price would be 250€ if it weren't for The Man, and the (rigged) price of gold would put the coins at 217.20€ (gold plus 20€ premium), then 235€ is still a good deal, despite the higher premium.

                  IOW, all you need for the coins to have a high eBay value is enough eBayers who think they are — or soon will be — worth that much. That's a much simpler explanation than an anti-gold conspiracy.

                  Code Monkey like freedom / Code Monkey like peace and justice too
                  Code Monkey very nerdy man / With big warm fuzzy bleeding heart
                  Code Monkey like you!

                  Formerly known as Jyrinx.

                  by Code Monkey on Mon Apr 15, 2013 at 09:07:33 AM PDT

                  [ Parent ]

                  •  Here's the link to the Café Americain article. (0+ / 0-)

                    This guy is not an off the wall type.

                    http://jessescrossroadscafe.blogspot.fr/...

                    •  Eh, sounds pretty wacky to me. (0+ / 0-)

                      At any rate, buried in the quotation he pulls is this:

                      I know where the gold is coming from in the market, it’s just paper. It’s naked shorts, there is no gold there. If somebody wanted to take delivery on those contracts nobody would be able to provide it. I don’t know what the source of the (physical) gold is. Some people are saying that the actual stocks available for possession are rapidly declining
                      I think that's your answer right there. It sounds like there's a speculation-fueled gold bubble that just burst, same as the housing market did. Welcome to the world of shadow banking.

                      Also, given that the bottom is falling out of the gold market for apparently no good reason, if you dealt in actual physical gold, would you sell it right now? It makes perfect sense to me that commodities trading, with evil bullshit like naked short selling, could push the paper value of something lower than anyone would sell the real thing for. (Just be glad there's no such thing as a CDO for gold … right? Right?)

                      I see no reason to believe this is a deliberate action by anyone. The product of a fucked-up system, perhaps, if there's something truly hinky going on like the Enron loophole inflating oil values by speculation. But that's different from Ben Bernanke sitting at the levers of power, moving “gold” down a few notches while laughing maniacally.

                      Code Monkey like freedom / Code Monkey like peace and justice too
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                      Formerly known as Jyrinx.

                      by Code Monkey on Mon Apr 15, 2013 at 09:27:07 AM PDT

                      [ Parent ]

                      •  Goldman Sachs said "sell" last week. (1+ / 0-)
                        Recommended by:
                        Code Monkey

                        Think they might be buying today?

                        •  Well now I'm listening :-) (0+ / 0-)

                          Goldman Sachs manipulating the gold market to its advantage is a much better explanation to me than governments somehow falsifying the price. (Which isn't to say governments are off the hook; no-one should be able to defraud with quite the volume that GS manages, and financial deregulation is what allows them to do it. In particular, if naked shorting and other shenanigans aren't being well policed, that is governments' fault. It's just not a conspiracy except in the sense that the police have been paid off.)

                          Code Monkey like freedom / Code Monkey like peace and justice too
                          Code Monkey very nerdy man / With big warm fuzzy bleeding heart
                          Code Monkey like you!

                          Formerly known as Jyrinx.

                          by Code Monkey on Mon Apr 15, 2013 at 09:55:38 AM PDT

                          [ Parent ]

        •  (And wait, people actually use eBay (0+ / 0-)

          to invest in money? Like, plain old currency? Jesus Christ, that's wasteful. Money markets aren't free, but all the overhead … on top of eBay's taste, you have the cost of physically shipping your investment around.

          Cripes. Must be expensive being nuts.)

          Code Monkey like freedom / Code Monkey like peace and justice too
          Code Monkey very nerdy man / With big warm fuzzy bleeding heart
          Code Monkey like you!

          Formerly known as Jyrinx.

          by Code Monkey on Mon Apr 15, 2013 at 08:40:23 AM PDT

          [ Parent ]

  •  Its all cyclical (2+ / 0-)
    Recommended by:
    LEP, VClib

    In a market like ours, you buy low, sell high. The fact that most people do the exact opposite is one of the reasons why there are a lot of very wealthy fucks in this country that make their money off the stupidity of others.

    That being said, gold is a good investment at specific points in an economic cycle or for particular investment strategies. Suggesting that gold is never a good investment holds the same weight as suggesting it is always a good investment.

    •  I don't see where it was claimed (2+ / 0-)
      Recommended by:
      shrike, Lying eyes

      that gold is never a sound investment.

      What's aimed at is the Glenn Beck school of thought, that gold is the übercurrency, the one safe store of value. Which is, and always was, and all ways will be bullshit.

      (And what do you mean, a “market like ours”? ALL markets work that way.)

      Code Monkey like freedom / Code Monkey like peace and justice too
      Code Monkey very nerdy man / With big warm fuzzy bleeding heart
      Code Monkey like you!

      Formerly known as Jyrinx.

      by Code Monkey on Mon Apr 15, 2013 at 08:31:12 AM PDT

      [ Parent ]

  •  Glen will be back, selling Dittocoins (5+ / 0-)

    The currency for 'in the know' Dittoheads and who're too smart to buy Bitcoins.
    Exchange rates set daily personally by Glenn in consultation with Jesus.

    •  Dude!! That gives me an idea: (5+ / 0-)

      So, as I understand it, Bitcoins work on the premise that to use them you have to expend some amount of computational resources, such that counterfeiting them is prohibitively expensive. IOW, they're kept secure by the power of computational intractability.

      So! What if rather than computer power, we had coins that ran on the power of prayer!? That's right, you just have to pray every time you want to use a Beckcoin, and the amount of prayer needed to forge the coin would be prohibitive, and anyway someone praying that much more than you probably deserves it more anyway!!

      Code Monkey like freedom / Code Monkey like peace and justice too
      Code Monkey very nerdy man / With big warm fuzzy bleeding heart
      Code Monkey like you!

      Formerly known as Jyrinx.

      by Code Monkey on Mon Apr 15, 2013 at 08:51:33 AM PDT

      [ Parent ]

    •  Best investment in America? (0+ / 0-)

      Become a huckster like Glenn Beck.

      SOLID gold!

      I traded it in for a whole 'nother world...a pirate flag and an island girl.

      by glb3 on Mon Apr 15, 2013 at 09:23:35 AM PDT

      [ Parent ]

      •  Glenn is in the process... (0+ / 0-)

        ...of changing his name to Elijah Beck.

        Speak to us dear prophet. What wisdom has God bestowed upon you? Be it gold and silver? Be it guns and ammo? Be it fertile land and seed? May I enter the gates of your great city of Independence, USA?

        I traded it in for a whole 'nother world...a pirate flag and an island girl.

        by glb3 on Mon Apr 15, 2013 at 09:39:39 AM PDT

        [ Parent ]

  •  Can one buy a Fiat with fiat currency? n/t (1+ / 0-)
    Recommended by:
    Code Monkey
  •  I don't think Beck ever had in interest (3+ / 0-)
    Recommended by:
    bruddaone, Mr Robert, shrike

    in gold. He was simply a shill for Goldline, who specialized in selling cold coins for up to twice as much of their metal value.

    I'm living in America, and in America you're on your own. America's not a country. It's just a business.

    by CFAmick on Mon Apr 15, 2013 at 09:01:35 AM PDT

  •  (Sniff) I put some of my Roth IRA in Vanguard's (1+ / 0-)
    Recommended by:
    Catte Nappe

    Precious Metals Fund.  It's taken a beating, although a few years ago it did really well.  I was moaning about this to my son, who pointed out that holding some gold stock is a hedge.  That made me feel a bit better, because my tiny portfolio is quite well diversified.

    "Religion is what keeps the poor from murdering the rich."--Napoleon

    by Diana in NoVa on Mon Apr 15, 2013 at 09:38:41 AM PDT

  •  The recent price drops (0+ / 0-)

    I found the recent reports of droppping prices particularly interesting in view of a late January column by one of our local paper's business pundits. His timing for recommending jumping on this bandwagon was unfortunate, to say the least. He has not walked it back, however. In fact, he reiterated it just a few weeks ago.

    It pains me to say this because I’m a stock guy through and through, but it just may be time for average investors to consider adding a sizable slug of gold to their portfolios.

    My position on gold has evolved in recent years. In previous columns, I mockingly referred to gold bugs as nut jobs who liked to blame much of the world’s sorrows on such things as the liberal cabal at the Trilateral Commission or the Queen of England, for heaven’s sakes.

    My condescension was unfair and unwarranted, and several gold bugs justifiably pitched a hissy fit over it. I’m sorry, OK? I was wrong. My miscalculation involved our representatives in Washington who I thought might actually do something about our humongous national debt.

    Blasi said many short-term gold traders are making money by using a channeling strategy of buying gold when its price hits $1,600 an ounce and selling at $1,800.
    http://www.dallasnews.com/...
    Throughout history, gold has been the perfect hedge against worthless currencies. I believe that, most economists believe that, and the Wall Street cognoscenti certainly believe that.

    I was reminded again of the importance of owning gold as I listened to Federal Reserve Chairman Ben Bernanke speak following a recent rate-setting meeting of the Fed’s Open Market Committee. He again reiterated the central bank’s intentions to continue buying government bonds — also known as quantitative easing — to the tune of $85 billion a month.

    http://www.dallasnews.com/...

    "No one life is more important than another. No one voice is more valid than another. Each life is a treasure. Each voice deserves to be heard." Patriot Daily News Clearinghouse & Onomastic

    by Catte Nappe on Mon Apr 15, 2013 at 09:49:25 AM PDT

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