huskerbob

Don't Believe the Gold Bears' Hype

Chris B: Yes, gold bugs are fun! But please, use your brain before posting next time.
As Paulsharketc. pointed out, gold bugs buy when gold goes up. But what happens when prices go down? Please read this release from the US Mint, 8/21/08:
"'Due to the unprecedented demand for American Eagle gold one-ounce bullion coins, our inventories have been depleted. We are therefore temporarily suspending all sales of these coins,' the U.S. Mint told authorized coin dealers in a memorandum dated on Friday."

Hmmm... prices go up, people buy physical gold. Prices go down, and the mint can't keep up with demand. Maybe people buy gold and silver because paper money and investments are looking scary? Maybe they don't sleep better knowing that the gub'mint is busy throwing billions of dollars at every financial failure in sight. That includes fannie, freddie, georgia, iraq, etc. What a great investment in the future of America!
Of course it is ridiculous for gold bugs to fret about manipulation. Just because there is a huge demand for something doesn't mean the price will rise.
"Gold bugs defy the laws of supply and demand" - it is the price of gold that is defying the law of supply and demand. Obviously the price of gold(and silver), for whatever reason, is not being allowed to reach the point of demand destruction.
BTW, Indian gold imports up 45% last month over august 07. Because of low prices.