Chile Forum

Americans Like Gold – A Lot
Thursday, September 22, 2011

Gallup: Americans Choose Gold as the Best Long-Term Investment ... Men, seniors, middle-income Americans, and Republicans are more enamored with gold ... Thirty four percent of Americans say gold is the best long-term investment, more than say so about four other types of investments. Real estate (19%) and stocks (17%) are distant second choices. – Gallup

Dominant Social Theme: Gold is on a minor uptrend. When it drops back down to US$250 an ounce, the interest it has created will subside.

Free-Market Analysis: Another dominant social theme is increasingly shaky. The great Anglosphere families that run the world's central banking (fiat money) must not be happy about news such as this. One reason the West – and especially America – is deluged by such surveys is because the elites like to take, regularly, the pulse of the middle class to determine how malleable and misguided it is. And the news on this front is gradually degrading to the dismay, we figure, of the powers-that-be.

Hitherto malleable middle classes are angry about unemployment, upset about taxes, irritated with their faux-leadership and worried about their eroding savings and pension accounts. Gold ties right into this larger frustration. Yet the elites have invested endless time and energy into ensuring that people see gold and silver as (as John Maynard Keynes put it) a "barbarous relic."

Not anymore. People are well aware of the amazing run-up of gold (and silver). ... What other asset class (outside of silver) can boast a similar track record? Decades of propaganda have been vitiated by gold's extraordinary run. Instead of trusting in the power elite's false economy, its jumble of bankrupt banks, impoverished "sovereign" countries and stumbling stock markets, people are once again attracted to the glittering allure of the "yellow metal."

The hold of the power elite over the economy – and thus the citizens working within this economy – is grievously weakened. The prize, of course, is central banking, the ability (jealously guarded by the elites) to print money from nothing to fund a variety of programs leading to world government – including political, economic and military processes. They will do anything, quite literally, to maintain this privilege. And one effort they make consistently is to continually portray gold as a useless investment.

The Aug. 11-14 Gallup poll was the first to inquire about gold, at least of late. Gallup apparently, so the article tells us, asked a similar question from 2002 to 2010, but that question did not include gold. "Real estate, savings accounts, and stocks jockeyed for the top spot during that time ...

Gold is Americans' top pick as the best long-term investment regardless of gender, age, income, or party ID, but men, seniors, middle-income Americans, and Republicans are more enamored with it than are other Americans ...

After gold, low-income Americans are most likely to pick savings accounts as the best option for long-term investing."

btw...
not to cast too many dispersions on certain folks...
but really - money in a savings acct...?
please take inflation - not that you have any choice, of course...
and gubmint lies notwithstanding - (or even more realistic shadowstats)
are they not losing value - every hour-day-week-month-year...?
is our math really that flawed?
is this really a "best option" - "long-term"?
hint...
lower income amurk'ns may well pay attention...
to lower income chinese and indians - fwiw?

With Far East and European bourses down across the board...and gold remaining steady...the bullion banks started the ball rolling down the hill with the sell-off at 9:30 a.m. in London. And every time the banks stopped selling, gold rose...and they had to start the process all over again. This price pattern is easy to spot on any gold chart.
Ed Steer's Gold & Silver Daily

eeuunikkeiexpat wrote:Chinese responsible for the recent Euro----->Dollar stampede?

China Pulls The Rug From Under Europe, Halts French Bank Transactions, Makes Good On Trade War Ultimatum
Submitted by Tyler Durden on 09/19/2011 23:20 -0400
http://www.zerohedge.com/news/china-pul ... -ultimatum


If so, we can assume they are already 4 steps ahead of the western central banks on what they plan to do with their gold hoard in this chess game.

Ripsigg wrote:All I know is that China news(CCTV) is all over the Euro crises and they seem to be pushing that Europe is ready to collapse any moment.

Hackswell wrote:

Ripsigg wrote:All I know is that China news(CCTV) is all over the Euro crises and they seem to be pushing that Europe is ready to collapse any moment.

It isn't? 6 months ago they were all talking, no haircut or bankruptcy for Greece. Now, it's: Greece bankruptcy, bondholders lose 50% (but Greece stays in the Euro???). It's coming to a head, that's for sure!

There are people who make lots of money from panics. It's a real test to know whether there is really a reason to panic. (I don't imply I can 'pass' that test.) I just know there are a lot more panics than there are reasons to panic.

please... calm, all-over calm... you will not panic...

California South wrote:Gold is down, buy the dips is right, while you can.

Andres wrote:I have not read all the links privided on this thread . . . but has anyone suggested a reasonable argument why gold and silver prices are crashing?
Commodity price decline is understandable. But I don't see why gold and silver would.

By the close of the US markets on Wednesday gold was down $24.30 for the day. Volume was in the 170,000 neighborhood. This is a fairly typical day. Compare that to Thursday’s 260,000 contracts that beat the price down $44.30 for the day, closing at $1743.40. This drop came from heavy selling in London for about two hours between 9:30 and 11:30. But this was just the prelude to what happened Friday. Performing fairly normally in overnight trading, London once again brought the club out, dropping the price by half a C-note before New York opened. As New York warmed up the sucker punch came mid-day, beating the shiny yellow metal down another $70 at one point. It was a merciless persecution of the true world money. Look at this number closely though, in case you are one of those who don’t think the metals’ markets are manipulated. How many contracts were sold in the gold markets? Volume was around 340,000. That’s twice what they were on Wednesday, and 80,000 more than Thursday. When the dust settled in the US, gold regained a little before resting, in the west at least, at $1657.
Oh, but we’re not done. Silver was even worse. Down 12 cents with a volume of 41,000 on Wednesday, it was pummeled to $36.23 with the sell-off of 82,000 contracts on Thursday; a drop of $3.78 as contracts were doubled. Then came Friday. Just like gold, heavy selling occurred in London in the morning hours. And, again, the US markets brought in a barrage midday that beat silver down over $5 at one point, before it regained a little, managing to close at $30.93. This is a drop of $4.91 on the day. And, again, in case you’re still a skeptic, check these numbers. Remember, the number of contracts doubled from Wednesday to Thursday. On Friday they almost tripled Wednesday’s contracts with a whopping 114,000 contracts.
As the plot thickens, there’s more to this story. The US dollar has for many years moved inversely with gold. It’s a simple matter of the markets that reveals the value of the dollar against gold. In more recent years this movement has been largely negated, with gold often holding it’s own as the dollar drops. Sometimes it’s even moved with the dollar’s upward moves. As might be expected, the dollar moved upward rapidly on Thursday, coinciding with the sell-off of metals. However, contrary to the claim that the rising dollar led to the drop in gold, we see that on the day that gold dropped the most, Friday, that the dollar was actually down, if only a few cents. In a free market this makes no sense at all. Moral of the story? Market manipulation, of course. It’s elementary dear Watson. Gold and silver were beat down. That much is clear. Pressure on the euro is evident with recent troubles in the euro-zone. I don’t pretend to understand why exactly the dollar would go up, other than perhaps it seemed the only place to flee in light of other options dropping against it. But then, why was it flat on Friday? Don’t ask me. I’m just Another Joe.

Another Joe wrote:Gotcha covered. In a word, manipulation.