Why gold lost $55 in one hour Thursday 12-8-11

[Partsproduction]

Can anyone tell me what happened to cause gold and silver to fall so precipitously? About 9AM gold lost approximately $55. If we knew how and what caused that I could see how one could use such knowledge to advantage.

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[coop44]

Usually more contracts being sold than there were buyers to pick them up. Simple supply and demand. The seller(s) needed funds for something more advantagous, gold has become a commodity used to park assets at a rate better than a bank can offer. The sellers probably did not lose a thing by the price drop, likely it was expected. Do you recall if it was contracts, or spot price?

 

[Partsproduction]

I was looking at a daily historical chart.

 

[A.I.P.]

I bought gold 2 weeks ago when it was on up-swing but I'm still Fiat Dollars (Obama Dollars) ahead.
Gold is being used as a safe haven for euro-dollars and is tied in with the Stock Market/.
The Stock Market is now a Casino where Traders bet using other PPLs money hence the wild swings described here some months back
The truely telling indicator is that Gietner has promised several trillion Obama Dollars to the EU, hence the Surge a few days back but even that news could not propel the market trough Friday!
The world economy is not headed towards a Crash but an Engineered Collapse and the hammer is falling. Euro Dollars are buying anything solid in the US, Gold, Realestate, farmland, water, timber anything not affected by a worthless dollar

 

[Burt Gummer]

Banksters like J.P. Morgan print certs out of thin air in order to manipulate pricing. The ratio of funny-money paper to real physical silver or gold is about 300:1, some say many times higher than that. The ETF Ponzi market that the banksters control also controls the price and they can change that price at will. Until the Ponzi finally collapses - that can only happen at the real economic collapse when everyone demands their PHYSICAL metals - the banksters have complete control of precious metal pricing. They can make it $50 or $5000, their choice. All they do is print little slips of paper or not.

Goldman Sachs was successfully sued for millions for not only NOT having the gold reserves they said they had, but charging clients STORAGE on the invisible metals. The corruption of the financial markets right now is off the charts.

People that hold gold or silver ETFs are not aware of the fact that they hold worthless notes. Once they figure it out and try to rush to physical, it will be too late. The price of physical metals will hit the stratosphere.

Even with the banksters being able to control the metals pricing FOR NOW, gold/etc, is much better to have than paper/dollars since those can go to $-0- via the same bankster manipulations.

 

[baada]

Sounds very similar to what happened to silver right before JP Morgan bought Bear Stearns. Just watch for who buys who. That'll be a clue.

 

[Wenis]

If you buy physical, you should be in it for the long haul. The daily swings in price shouldn't worry you.

 

[Burt Gummer]

Exactly. Owning PMs is for the long haul, period. There are many things more important to have than silver or gold. The key word is 'things.' If ownership of anything is represented as a piece of paper or field type in a form ... in a word 'poof.'

PMs are only as a substitute for fiat money, that is all. If you have $10k sitting in a savings account get it out and buy silver before the bank closes, the dollar hyperinflates, and you are sunk. If you have an IRA, cancel it, take the tax hit, and buy silver. An IRA or social security future entitlement/payment is a joke at this point - it will NOT be there for you down the road. Anyone who thinks it will be is a fool. 600 trillion in debt derivatives and the worst balance sheet on the planet say otherwise.

"... and they are coming for your social security money so they can give it to their criminal friends on Wall Street; they'll get it too because they own this f-ing place" - G. Carlin

You already have all the critical items that one needs to survive in bad times? - if so, then go for it. Do not buy silver instead of food stores, tools, ammo and toilet paper, etc.

 

[unionguy]

Quick Question: Is there some amount of money that if you withdraw in cash it triggers some notice to the IRS? I'm assuming you need to show up at a place that sells PM's with cash. thanks.

 

[Siglvr]

Can anyone tell me what happened to cause gold and silver to fall so precipitously? About 9AM gold lost approximately $55.

"Profit taking"


LOL


Same thing as when the stock market falls. It fell almost 199 points today for instance. "Profit taking" "Troubles in Europe" blah blah. Today gold was up $2.10 an ounce to $1711....why was that? Bottom line is this. Unfortunately, buying gold right now is a gamble. Not an investment. A gamble. My brother recently toured that Newmont mine in Ely Nevada. Do you know what their aggregate cost to pull that yellow stuff out of the ground is? Do you, serious question you must answer....


$260 and change....so they are running multiple shifts as fast as they can. So why, if they can mine it for that cost, do you see $1711 as the quoted price on the world market? Obviously other mines can't refine it for that cost, so it's a higher number for a worldwide aggregate cost. Serious question #2.....really....why is gold priced at $1711 if Newmont can pull it out of the dirt in Ely for $260?.....



Yup...the old supply and demand curve. That doesn't mean all gold costs $260 to pull out. I don't know Newmonts average cost to pull it out of the ground, I'd suspect it's much higher. Some producers may have a $1600 cost. As the supply fills will the that void, more mines that would be unprofitable to run at $1500, $1400 or $1300 an ounce gold on the spot market, will open up and start putting more gold into the market. Thus restraining price increases. If more people want to buy than sell, like now....see that supply- demand point up thread? That's it. Price keeps rising. Once supply ramps up and the average cost to produce gets way up there...when demand finally drops (and it will) that curve goes inverse and gold prices will drop like a rock. Not a pretty shiny yellow rock, but more like a dull grey one. PLOP. As prices start to drop mines who have an average cost to produce near the top of the range, say, $1500 an oz. will close - this exaggerating the situation. Here's the real unfortunate part of this roller coaster to be, lots of folks will get burned and lose some serious scratch. AND, it might not start to seriously drop till after it hits $4000, $5000 or$6000 an ounce.

It's all a guessing game. Your guess will be as good as the next one. Remember that George Soros (allegedly a real sharp financial fella,) sold all of his gold (it was a huge amount, google it) at something like $1300-1400 an Oz I think. Do you think gold is a buy at$1700 an oz? Soros didn't and he has access to data you and I don't have. Which suggests that the worldwide aggregate cost to pull this crap out of the ground is somewhat less than $1300 and oz.

Have a nice day. Sorry to lay it down that way. I don't know much, but I knew enough to start buying at $280 an ounce. Back then, 1997 or 98, the average aggregate cost to pull it out of the ground and refine is was in the low $300s. I think it was $342 or something like that. I don't know what that number is today, but it's critical to knowing if you are investing or gambling.

 

[Grunwald]

Can anyone tell me what happened to cause gold and silver to fall so precipitously? About 9AM gold lost approximately $55. If we knew how and what caused that I could see how one could use such knowledge to advantage.

There is a hedge fund run by a guy named Paulson (no relation to the former treasury secretary as far as I know).
He is the single biggest shareholder of GLD (physical gold ETF) and he has been selling.
Gold is the only thing he's made money on this year, and all his other bets are big losers.
In addition to Paulson, Black Rock is also a big shareholder in GLD and they have also been selling.

You have to remember that these people only try to make a quick buck and cash in.

Besides this, as someone else mentioned; we have no idea how many fake gold paper contracts are floating around out there.
These financial institutions sell contract for inventory they do not have and would be in real trouble if everyone who held one, demanded a physical delivery of the gold.

 

[Baggerman]

Quick Question: Is there some amount of money that if you withdraw in cash it triggers some notice to the IRS? I'm assuming you need to show up at a place that sells PM's with cash. thanks.

Make any transactions under 10K. Cash always talks and as far as PMs go "if you don't hold it you don't own it".

 

[A.I.P.]

Well GLD ended the day up $17 that's a swing of $72 in 8 hours which is a BIG CLUE as to how scared investors are

 

[A.I.P.]

Newmont is hireing 2000 new employees in the next 2 years

 

[Burt Gummer]

The Rothschild central banksters (via the Bank of Engliand) own almost half the world's gold (including Vatican Gold). The Euro bankers cleaned out most of the gold at Fort Knox as collateral many years ago and moved most of it to London. No audit since 1974 (which was more of a peek-a-boo show than an audit), and really no truly independent audit since the 50s. More on Fort Knox: http://youtu.be/S1Vki1AtWeM?t=50s

If you took illegal ponzi manipulations out of the equation Gold would be work many thousands of dollars an ounce.

Most Americans are clueless about that of course like they are clueless about many things.

UnionGuy: The IRS doesn't care how/where/why you BUY silver or gold. Many people hold PMs their whole life. There is nothing illegal about buying as much as you like.

When selling over $10k in a DAY/24hrs to a dealer/pawn shop they must ID you and file an IRS form. Many PM dealers talk about this openly on their websites. If you are ever audited and you had forms submitted to the IRS they will want to know if you made a profit in order to take their cut back to the banksters/IRS/Fed. If you buy a large quantity online or from a dealer retain your records so you can prove cost.

 

[R-Rizzo]

Any cash transaction of 10,000 or a combination of transactions that equal over 10,000 triggers a report to the IRS...

Sent from my Sensation using Tapatalk

 

[kenno]

So if someone buys a car over 10k the IRS is notified?

 

[jbett98]

I believe he meant transactions through financial institutions, such as cash withdrawals from savings accounts, etc. Not walking into a car dealership and plunking down 10k cash for a car.
But who knows with big brother watching us cradle to grave.

 

[BroncoFan]

I believe he meant transactions through financial institutions, such as cash withdrawals from savings accounts, etc. Not walking into a car dealership and plunking down 10k cash for a car.
But who knows with big brother watching us cradle to grave.

Actually any sizeable cash transaction -deposit or withdrawal - (say over $3K (or combination thereof)) in a certain period is techincally tracked and potentially reportable. Also Financial Institutions are required to track and pattern trends (say you go into one branch on Monday and withdrawal $4k and then go into another branch Wednesday and withdrawal $5K, it's going to get pinged (it's called "smurfing" -seriously). Also - If you plunk down $10K cash at the car dealer it will be tracked.
Welcome to OFAC - The Office of Foreign Asset Control.

 

[Benny503]

So if someone buys a car over 10k the IRS is notified?

Yes the dealer get your ss# file it to the IRS. Been there did that: -)