GOLD PLUNGES AGAIN - HEADED TOWARD $0.00!

[JEFF9K]

Of course it won't hit zero, but it's moving in that direction.

This is a blow to conservative “G”-forces, which include GOD, GUNS, GOLD, and GREED.

Will conservative talk shows be able to survive when all their gold sponsors go out of business?

What will happen to all the people who listened to Rush and Beck and converted to gold IRAs? Will they go on welfare?

Will conservatives start to question other parts of their philosophy?

http://finance.yahoo.com/blogs/daily-ticker/gold-prices-collapse-everyone-remembers-just-yellow-metal-150633740.html

[Jackpine Radical]

1. It's all Obama's fault.

By not letting the economy entirely crash, he pulled the rug out from gold prices.

[spin]

2. The time to buy gold is when the economy and the country are doing great...

as usually gold is priced reasonably during that time.

The economy before and after 9/11
By RPrichard Sep 7, 2011 2:47PM

***snip***

Gold

Then: $271.50 an ounce (Sept. 10, 2001). It’s no secret that some investors scurry to gold in times of uncertainty. Gold is considered a hedge against inflation and a weakening dollar, among other things. The week after 9/11 was no exception. Gold prices jumped a quick 8% on the heels of the terrorist attacks. The precious metal continued to rise steadily after 9/11, doubling in value by the end of 2005.

Now: $1821.00 an ounce (Sept. 1, 2011). Gold shot into the $600s per ounce in 2006, a range where it bounced around until the second half of 2007. That’s when signs of trouble at financial institutions, especially mortgage lenders, began to emerge. Gold first breached $1,000 in March 2008, but it wasn’t until the fall of 2009 that prices stayed in the quadruple digits. Gold has exploded recently amid recession fears and stock-market volatility, surging past $1,800 an ounce. Since 9/11, the price of gold has gone up more than 600%. In contrast, the U.S. dollar has lost about one-third of its value since 9/11.
http://money.msn.com/investment-advice/article.aspx?post=7be1200a-e79a-4b35-a974-031570ce1a28

I just wish that I would have been buying gold prior to 9/11. I have no interest in investing in gold today as I feel the price is still inflated.

[DinahMoeHum]

6. These days, I'm having fun seeing Glenn Beck's sheeple get fleeced.

I bought gold and silver coins back in the 90's. . .when nobody was talking about it.

And it was not for speculation, it was simply for "insurance" of my portfolio.

My own self's "gold standard" as it were.

[spin]

12. I feel you made a smart move. (n/t)

[davidpdx]

22. If you had you'd be rich now

Just a pound would have made almost $25,000.

[spin]

24. True. I regret not following my instinct at that time. (n/t)

[Warpy]

3. Everything is falling at once

Usually when equities and commodities fall in tandem, people flock to gold and t-bills.

The dollar itself is quite a bit higher, so they might be rushing for t-bills, now paying a princely 2.33% interest per year.

Conservatives will never question any part of their dogma. For them, it's not a matter of sifting through data and trying to figure out what will work. For them, it's a belief system, as carved in stone and passed down through the ages as their crackpot religious ideas are.

A conservative has to be starving in the midst of ashes and rubble before he wonders what exactly has gone wrong.

[demwing]

5. "crackpot religious ideas"? There goes Warpy...

Building bridges in to the hearts and minds of believers.

[Warpy]

7. Wow! All believers believe exactly the same thing?

I never new that all Christians were homophobic bigots who think the only place for women is pregnant, beaten and chained to the stove.

I'll have to change my thinking that non Republican Christians were rational people. Thank you for enlightening me on that score.

[demwing]

8. It was supposed to be a joke

not a literal critique of your post. Jeez...

[Warpy]

9. Yeah, right

and Limbaugh is "just an entertainer."

[demwing]

10. Whatever.

I give a damn, but not enough of a damn to try any harder to explain my post.

So...have a fun day!

[Chan790]

11. I'm reminded of this...

"This island is made mainly of coal and surrounded by fish. Only an organizing genius could produce a shortage of coal and fish at the same time." -Aneurin Bevan, speech at Blackpool, England. 24 May 1945

[demwing]

4. From the comments section:

JustinB -- "To answer the original question, if the dollar collapses, the only people laughing will be the ones with tillable land, fresh water, and a lot of guns."

I've seen a few threads that ask what is the value of having a gun to "protect you from the government."

I don't believe that people actually think you can take on a tank or a drone with a 357. I do think these nuts see other citizens as speed bumps and roadblocks sitting in the way of land and water that (according to the nuts) belongs to them, not society.

They're not just anti-government, they're anti-society.

[magical thyme]

18. so you think that my house, which I paid for with money I earned,

with a clear title and deed in my name, belongs to society, and not me? Uh...ok.

I think the nuts believe that their guns will protect their crops from hordes of starving nomads from the cities when civilization collapses. Which I don't expect, but in their apocalyptic fantasies, they do.

In the meantime, rural people think their guns will protect them from local burglars. I do know that just last year, somebody who lives not far from me did hold a burglar at gunpoint for half an hour or so, until the police arrived. Said burglar was trying to climb in a window at 2 am when the resident dogs alerted the homeown...er, the squatter living in "society's" home.

I know that within the next couple years, when I sell my current home and downsize to a more rural and remote location for retirement, I will be getting a gun and training. As a single woman living alone with a part time police force that is closed on weekends, I will be somewhat of a target and pretty much on my own. That is part of rural life. There are plenty of very leftwing democrats up here, including in some of the very rural parts of the state.

[sakabatou]

13. Many of us knew it was a bubble

[reformist2]

14. We laugh at the crazies, as our posts are surrounded by gold coin ads, LOL!

[DCBob]

15. The goldifuks have finally figured out that the economy and the dollar are not going to collapse..

due to Obama and the socialists. Idiots.

[jmowreader]

16. $1900/oz was a sucker play

I think the "Obama's coming for your guns, so buy lots of them!" bunch and the "Gold is going through the roof, so buy lots of it" bunch are the same people. They're affiliated with the "we buy gold - sell us your class ring, wedding ring and fillings!" bunch.

[a kennedy]

17. When my husband and I bought our wedding rings, gold was $800.00 an ounce....that 1980. eom

[Psephos]

19. Everything is being sold to cover margin calls. Not hard to figure that out.

Savvy observers will note the large and growing gap between paper gold and physical metal. Says all that's needed to know.

I notice that the supply of gold remains fixed, while the supply of printed fiat money increases by several million dollars per minute, each and every minute. I kinda like gold's chances vs. fake "money" being printed in vast torrents, with nothing backing it except a mortgage on future citizens' wealth and labor.

With any asset, fools buy when the price is high, because "everyone else is." Future millionaires buy when the price is low, when everyone else is selling.

[JEFF9K]

20. fixed supplies

Aren't supplies of ALL elements fixed? Does that make them all valuable?

[Psephos]

21. There seems to be an unlimited supply of paper money.

Not so with gold.

Just because the quantities of other elements are fixed does not make them scarce.

There are vast, but fixed, quantities of silicon. Scarcity barely enters the equation. Plus, demand for silicon is not very high compared to its availability.

There are not so vast, but fixed, quantities of copper. Scarcity is a huge part of copper's price. Ask any copper thief stripping wiring and pipes from vacant buildings.

Scarcity is part of what determines a good's price.

Desirability/utility of the good is the other part.

A desirable good in short supply will have a high price. You can knock that high price down rapidly by increasing the supply.

Same effect obtains with printed currency.

[quaker bill]

25. sounds good, but isn't true

The gold mythos is strong. People believe in it.

More of the metal comes out of the ground every single day.

There is some silly notion about to suggest that the value of fiat money is rationally related to its supply. It sounds great when you say it fast, but it simply is not true. Recent history should be proof enough, but it won't be for those who buy the myth.

In short, there are now many more fiat dollars, and each one is capable of purchasing more gold than 6 months ago.

[Berlum]

28. Margin calls? Yikes

[Sunlei]

23. no more 'we buy your scrap gold' they switch to the stones market *wink*

go ahead and google 'sell your diamonds online'

got to do something with all those gems thieves popped out of the settings when they sold their 'scrap gold' and melted 'placer gold' & coins on ebay

[elleng]

26. Dunno,

but a woman, senior, in Post Office yesterday was talking about wondering what to do about her portfolio, mentioned recent activity in precious metals. I said, 'No thanks, I just stay diversified.'

[Kablooie]

27. So will Fort Knox sink into the earth like Carrie's house?

[DCBob]

29. Down 3 1/2 % again overnight

Doomsday investors finally realizing the economy and the dollar are not going to collapse.