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Comex gold finished with sharp losses, -1.6% to $1,670.70/oz. and its lowest settlement since...

Comex gold finished with sharp losses, -1.6% to $1,670.70/oz. and its lowest settlement since Aug. 30, and futures continue to spiral lower, down ~2% at $1,664. The usual reasons are cited - expectations of a fiscal cliff resolution, a drop in the U.S. current account deficit, rising homebuilder confidence - but gold has been losing out in a recent trend toward riskier assets.
Comments (33)
  • willfly4food
    , contributor
    Comments (82) | Send Message
     
    OR, could it be that all the Fed-speak is really an attempt to ward off deflation?
    18 Dec 2012, 02:17 PM Reply Like
  • Venerability
    , contributor
    Comments (3048) | Send Message
     
    Gold and especially Gold stocks have been moving in lockstep with other "Risk On" assets for the past four years.

     

    This is the New Market Mechanics - and any attempt to change it will not be received very well.

     

    The sector is now the province of more grizzled veterans - i.e the Strongest of Strong Longs - than any other sector in recent Market history, with the possible exception of Energy MLPs.

     

    Nobody is about to migrate to Cloud Computing Advertising Agencies, Effete Dress Designers, $7 Coffee, or any of the rest of the (Bad Word Deleted) kinds of stocks CNBC is pushing.

     

    And we are not going back to 1997, however much some in the UK would love to get Hong Kong back - or at this point, even the LME.
    18 Dec 2012, 02:49 PM Reply Like
  • machiavelli
    , contributor
    Comments (427) | Send Message
     
    LMAO at gold and silver bugs... I enjoyed reading all your predictions of $2000 Au and $60 Ag by the end of 2012 throughout the year. I guess you fellas didn't get enough monatomic gold to fuel your Mayan spaceship away from Earth this week. Cheers!
    18 Dec 2012, 03:01 PM Reply Like
  • pbppbp
    , contributor
    Comments (133) | Send Message
     
    It is also entertaining that you associate an entire asset class with end of world prepping. Hey, whatever floats your boat.
    19 Dec 2012, 02:39 AM Reply Like
  • machiavelli
    , contributor
    Comments (427) | Send Message
     
    You mad, bro?
    19 Dec 2012, 02:45 AM Reply Like
  • Rousseau SC
    , contributor
    Comments (284) | Send Message
     
    What will happen when the details of the deal disappoint?
    18 Dec 2012, 04:39 PM Reply Like
  • WMARKW
    , contributor
    Comments (10275) | Send Message
     
    The details of the deal will surely disappoint, but the question is "who" will they disappoint? We have passed the tipping point, and there is no going back. There is no solution that any deal could even contrive to accomplish, because the results are baked in. The only question is how long will it take until debt repudiation across the entire world.

     

    In the meantime the moneyed and the central bankers will continue to accumulate gold. Thus when the "new" financial system is installed after global debt reupdiation, the moneyed will have even more control than they do now.
    18 Dec 2012, 05:53 PM Reply Like
  • Venerability
    , contributor
    Comments (3048) | Send Message
     
    Note that Short positions in pretty much all the majors are down to just 1-3 days to cover. Just game playing at the bottom.

     

    (Besides, I bought a little something last week, and it is an ironclad DOGgy rule that if I'm in close to the bottom, I have to get punished a few days before they relent. They tend to follow me in, though.)

     

    Ninnies still falling all over themselves coming up with directly contrasting "explanations" for what is yet another Musical Shares move: Hold hands and dump together, See who gets a seat when the music stops.

     

    Same ole, same ole, sillier than usual same ole.
    19 Dec 2012, 01:14 AM Reply Like
  • ziggysdad
    , contributor
    Comments (35) | Send Message
     
    I just sold 48K of my gold on December 4th. Still hold 100K in bars due to my thinking long term with our govenment printing it will go up after a drop to around 1500 per OZ in midterm.
    18 Dec 2012, 06:08 PM Reply Like
  • ziggysdad
    , contributor
    Comments (35) | Send Message
     
    I'm just a muppet, LOL
    18 Dec 2012, 06:08 PM Reply Like
  • marketwatcher23
    , contributor
    Comments (935) | Send Message
     
    If you own gold and let days like today get to you, you should probably re think your philosophy.
    18 Dec 2012, 08:30 PM Reply Like
  • Rummeljordan
    , contributor
    Comments (477) | Send Message
     
    If you still own gold you should re-think your philosophy
    18 Dec 2012, 09:54 PM Reply Like
  • Sal Marvasti
    , contributor
    Comments (1364) | Send Message
     
    no, if you own fiat dollar, you risk everything.
    Gold is new trade mechanism.
    19 Dec 2012, 12:42 AM Reply Like
  • pbppbp
    , contributor
    Comments (133) | Send Message
     
    It's my zsl puts that are really bothering me. They are far out time wise though.
    19 Dec 2012, 02:41 AM Reply Like
  • New Low Observer
    , contributor
    Comments (2054) | Send Message
     
    Yeah, but some gold dealer is telling gold bugs that fiat dollars are bad and that they should exchange their fiat dollars for gold. Now why would a gold dealer want to accept worthless fiat dollars for their valuable gold?
    19 Dec 2012, 03:10 AM Reply Like
  • pbppbp
    , contributor
    Comments (133) | Send Message
     
    Dealers make money on both the sell and the buy side.
    19 Dec 2012, 06:41 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8774) | Send Message
     
    Because they are kind at heart.
    19 Dec 2012, 10:08 AM Reply Like
  • divestor
    , contributor
    Comments (92) | Send Message
     
    Interesting that Apple can go from $700 to $500 in a couple of months and its still considered a great investment by many contributors on this site. Gold moves down and it's time to sell out and gold investors are called names. Nothing is said about people calling for Apple to hit $1100, but a gold prediction gets linked to the Mayan calendar joke. I feel sorry for the people that owned 100+ shares of Apple. Makes my loss on a couple of oz of gold look small.
    18 Dec 2012, 08:33 PM Reply Like
  • marketwatcher23
    , contributor
    Comments (935) | Send Message
     
    I did not sell, so I did not lose. Sorry for your loss.
    18 Dec 2012, 08:34 PM Reply Like
  • JohnBinTN
    , contributor
    Comments (3621) | Send Message
     
    " I did not sell, so I did not lose."

     

    I've said that about a couple stocks in the past to justify holding them (even averaged down! into some). Ultimately I ended up losing. On all of them.
    18 Dec 2012, 10:45 PM Reply Like
  • Denny_Chasteen
    , contributor
    Comments (700) | Send Message
     
    Don't worry, Divestor. It's okay. You can not reason with them. That's exactly why there is a 99% and a 1%.

     

    Most investors do not understand the value of PM. I think it will be a long time still until most people recognize what a monetary mess we are in.

     

    The first sign that gold is going $2,000+ will be rising interest rates and a move out of bonds. I mean more than just this week. First they will crowd into high dividend stocks. Gold and silver will remain an after thought for most investors for some time yet to come. At some point they will "go for the gold" but it will have risen well above $3,000.

     

    As individual investors, we should buy as much gold and silver as we can. We need to get it out of the few centralized vaults and into millions of individual hands. Physically. That will make it a lot harder for the Mayan Zombies from outer space to seize and collect it all. Only a couple days left until they return for the gold. :)
    19 Dec 2012, 02:24 AM Reply Like
  • pbppbp
    , contributor
    Comments (133) | Send Message
     
    All of the anti-gold sentiment on this site reassures me that we are nowhere near a pm bubble.
    19 Dec 2012, 02:45 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9928) | Send Message
     
    What happened to the China and other central bank buying that was supposed to support higher gold prices?
    18 Dec 2012, 09:35 PM Reply Like
  • New Low Observer
    , contributor
    Comments (2054) | Send Message
     
    Greetings UI,

     

    There are many examples to illustrate the false logic of those who expound the virtue of a near unlimited pool of funding for gold and silver in the form of China, India and CB. However, there are a couple of examples that readily come to mind.

     

    In 1988, it was false thinking that Japan would own the world due to their economic prowess. There were committees set up to examine the threat that Japan would own the U.S. Now, 24 years later, we can say that although Japan holds a lot of U.S. Treasuries, they are not any closer to owning the world now as they were thought to be back then.

     

    Before the market top in 1999/2000, it was false thinking that the continuous flood of money into the stock market would always push the market higher. Somehow, that was actually a justification for investing in stocks at the time. However, like a 5-gallon pitcher of water being poured into an 8-ounce cup, some money went in but the rest was just a waste. The only difference between the peak in the market in 1999 and Dow 13K is a couple hundred trillion dollars down the drain.

     

    Similarly, the argument that buyers from China, India and CB will continually fuel the gold price higher is also as false as the previous two examples.

     

    Don't get me wrong, we're in a gold bull market that is probably in the early stages. However, China, India, and CB buying is really a sidebar issue (confidence story) that is complementary to those who generally wish to fuel others to join their over-commitment to the sector due to their overpriced acquisitions.

     

    Regards.
    19 Dec 2012, 03:50 AM Reply Like
  • marketwatcher23
    , contributor
    Comments (935) | Send Message
     
    Maybe China is dumping treasuries and the US is retaliating by dumping paper gold. Also...it's still $1675.....that ain't exactly chump change.
    18 Dec 2012, 09:36 PM Reply Like
  • hokkaido77
    , contributor
    Comments (2) | Send Message
     
    Sycophants and Quislings Abound--Stay strong.
    18 Dec 2012, 09:37 PM Reply Like
  • machiavelli
    , contributor
    Comments (427) | Send Message
     
    I would like to congratulate you on your first highly credible post. LMAO! But I'm not sure you understand the meaning of your hyperbolic words. Hi WMARKW old buddy! LMAO!
    18 Dec 2012, 10:10 PM Reply Like
  • WMARKW
    , contributor
    Comments (10275) | Send Message
     
    Hey Machi buddy - Remember, he who laughs last, laughs best. But seriously. I do not take pleasure in the deteriorating economic conditions that will do no one any good. The path we are on is fraught with ill winds and unfortunate consequences. It's hard to imagine how anyone will escape.
    18 Dec 2012, 10:49 PM Reply Like
  • WMARKW
    , contributor
    Comments (10275) | Send Message
     
    Hokkaido77 - thanks for your valuable contrbution to the dialogue. But I do congratulate you on using big words.
    18 Dec 2012, 10:50 PM Reply Like
  • machiavelli
    , contributor
    Comments (427) | Send Message
     
    Sorry, I know I shouldn't LMAO... maybe just chuckle a bit... ^_^
    19 Dec 2012, 01:57 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8774) | Send Message
     
    Who here is averaging down? Come on guys gold to $20,000/oz.
    19 Dec 2012, 12:45 AM Reply Like
  • Spyguy11
    , contributor
    Comments (4) | Send Message
     
    LMAO at QE to infinity and anybody dumb enough to think that bubble will never pop
    19 Dec 2012, 02:26 AM Reply Like
  • vendor72
    , contributor
    Comments (2) | Send Message
     
    Waiting patiently as the price drops. Lovin it. Silver will have a day of sharp pain ahead as it always does. Will position in SLV and Call options in harsh sell off insured my position with puts and switch of computor till the new year. Lovely. The bull goes up the stairs. All you got to do is look at a long term chart. The trend is your friend except at the end and all that. Do you really think it's the end of the bull market in real money? Ha ha ha some of these posts are just so ill informed it's hilarious!
    19 Dec 2012, 06:04 AM Reply Like
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