Gold price collapse – worst for 30 years…now $US1,200/ oz

Gold price collapse is the worst for 30 years…now $US1,200 per oz

DECEMBER 29, 2013 | (http://www.telegraph.co.uk)gold bar

Gold will   finish the year as one of the worst-performing asset classes of 2013, bringing to an end a decade-long rally in the precious metal.Gold has suffered its sharpest fall in 30 years, down alm

That compares badly against other assets, with the S&P 500 up 28%, the FTSE 100 gaining around 13pc and Brent crude oil futures up about 2.5% in the same period.ost 28% over the past 12 months to close 2013 at about $1,200 (£725) an ounce.  

“Equities have won the battle over gold for investors’ money this year,” Ole Hansen, head of commodity strategy at Saxo Bank, said. Last year, Mr. Hansen correctly predicted that gold would finish the year at $1,200 and for 2014 he is forecasting that prices may have already bottomed out.

Read more : http://www.telegraph.co.uk/finance/commodities/10540875/Gold-price-collapse-is-the-worst-for-30-years.html

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Comments

  • Hubert Williams  On December 29, 2013 at 8:44 pm

    It strikes me as more than slightly humourous that the world should now be wailing about the “collapse” to US$1,200 per troy ounce in the price of gold, a commodity which I recall used to be officially traded at US35 per troy oz. Oh,
    My ! How things change !! For Guyana’s sake, I hope the lower price spurs much greater demand for the commodity.

    • de castro  On December 30, 2013 at 2:58 am

      Most countries held gold in their central banks against “money” printing
      for internal circulation….”legal tender”……
      but with QE (quantative easing) new terminology in markets
      that has fallen from favour.
      BOE FED have had their printing presses busy over past few years
      2008 or so…to stave off/balance their books when recession hit
      the fans……China India holding most of USD in reserve.
      Today EURO (new kid on block) seems a better reserve currency.

      Its simple arithmetic……
      £ = 1.20 EURO
      £ = 1.45 SWISSF
      £ = 1.65 USD …..AND SO ON…….

      The pound being the most valuable currency on the planet…..why ?
      No one knows if BOE has any gold left in its vaults after Gordon Brown
      s sell off …at 300 USD ounce ….ex PM UK….2008/9

      If and a big “IF” India China et al …are holding GOLD to off set their
      money printing for internal “legal tender” circulation…then they
      have been “S******” Royally…..big time.

      The most spectacular speculation I have ever put in print……

      My friends “read between the lines” and draw your own conclusions.
      If however you are hoarding “GOLD” it is never too late to liquidate/liquify
      into “black gold” oil futures….ha ha!
      Insanely/madly/lunatically

      Kamptan

  • Clyde Duncan  On December 31, 2013 at 7:54 am

    If you believe that money is in a bank-vault, then you believe in the tooth-fairy and Santa Claus. In 1971, money and gold parted and went their separate ways. The common acceptance was that if money is inflated [or devalued], then the price of gold would increase. So, we have seen the price of gold manipulated to the point where money can be inflated [or devalued] and the price of gold would also decrease at the same time. How does that happen? [do your own research]

    The government has pegged interest rates at zero percent. Now, the government believes that the economy still needs stimulus. They cannot peg interest rates any lower than zero, so they decided to print money out of thin air. But they can’t or won’t tell us that, it would sound insane, therefore, in politically correct terms; they call it “Quantitative Easing”.

    This sounds like madness and recklessness to sane people, but there is a method to this madness. The West is intentionally weakening their dollar, so that they could pay back all the trillions of dollars in debt with worthless, monopoly money.

    If you are a sophisticated investor, I suppose you may part with your gold, but do your own research before accepting financial advice from the internet. Here is something of interest from a banker: http://www.michaeljournal.org/lesson3.htm

    • de castro  On December 31, 2013 at 9:17 am

      Clyde
      now that’s a lot of homework reading for “simple simon”….
      but will do later…..
      There are areso many “spins” on money available today that our
      grey cells becomes clogged…log jammed.!!!
      However will circulate to some of my more “interested”
      money folks for their comments…..

      I do agree that QE is a form of devaluation….but if you buy(import)more than you
      sell(export) you end up worse off by devaluation.QE…More in debt….
      but not less creditable..UK USA are the most indebted on the planet….
      hence the “option” of EURO as a reserve/trading currency seems
      more likely….
      Now that GOLD “yellow gold” is so cheap “stock-piling” now hoarding later
      is an option China India etc may choose.
      BOE FED BOG no exception…..CENTRAL BANKS.

      I did ask the question…..can we have -% interest rates…..in lie of zero
      but no answers were forthcoming…..
      I will ask again…..is central banks interest rate of -1% possible ?
      Why the government cannot peg interest rates below zero ?

      A direct question deserves a direct answer.!!
      My thinking is “pay me to borrow” indebtedness !

      It is not how much you borrow that matters most to lenders…
      more your ability to repay…..credit rating.

      Kamptan

  • de castro  On December 31, 2013 at 9:36 am

    Clyde
    The west has no intention of paying back or repaying their debt.
    They probably couldn’t even if they wished/wanted to.
    They will wait for the next “bubble” to burst before restarting
    their printing presses.
    BRAZIL has defaulted twice as in many decades….now BRAZIL
    is a money lender ….part of the problem not the solution.
    IT WAS G3 then G5 now G9-10 …tomorrow G20±
    if you believe in miracles for the solution of world poverty.

    In UK today we have “pay day” lenders who charge astrominal
    interest rates for “pay day to pay day” borrowing…now the
    “Powers that be” government wish to “illegalise” these …..
    Where does it all end…..your guess is as good ass mine…
    Kamptan

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