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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (101646)	6/27/2013 2:57:06 AM
From: Riskmgmt	Read Replies (1) \| Respond to of 219500

Hi Hawk, It's an interesting theory. There are many theories as to why gold has been weak but I hadn't heard this one until now. I don't believe CB's have been "propping up gold" if anything there is evidence to the contrary. I also do not believe deflation is a real threat save for in the extreme situation of a total non-availabilty of credit world wide, hardly the case at present. But should this occur, indeed cash would be king but then gold would be the king of kings because fear would be rampant and governments would be forced to provide liquidity, i.e. QE in some form or other. It should also be noted that when liquidity was drying up with banks afraid to extend credit even to each other the one thing they would accept as collateral was gold. Of course there are multiple theories of why gold should be $2,000. or more an ounce too, none of which is helping gold bulls with their margin calls. In this global economy there are so many diverse factors that can have an impact on price, which in the case of gold is mostly a combination of fear, greed and future price predictions based on speculative theories about the current and past history projected into an unknown but speculated future event. So, people who like to keep things simple (I raise my hand) just watch what the market is doing and act accordingly in what they deem is their best interest. Market is saying more gold being sold than bought since high of $1,900's in 2011. At some point this is likely to change. R.