Does the gold collapse on april 12 prove Bernanke was right?

[JimmieD]

And the play book tells you to put stops in somewhere above $1520.

Typically, before the chart repairs itself, it has to go back to where it bounced, which then becomes support. Thus, the expected range is between $1380 and $1520, which can be traded until the ranges are violated.

I dunno, I'm not a believer in trading based on chart patterns; I think they're mostly illusions. It also seems like you're saying, "this works until it doesn't." I can't trade based on a chart repairing itself since that self repair relies on people buying (or stop selling/shorting) the object before the chart has had a chance to repair itself. The supposed patterns in the charts are dependent on human actions (and the price movements are mostly random anyway).

The reasons for owning gold are usually for speculation or protection against financial calamity. I'm not totally sure it's necessarily good for either.

 

[OnePercenter]

When the stock market goes up, non-monopolized (oil and gasoline) commodities go down.

 

[Toro]

When the stock market goes up, non-monopolized (oil and gasoline) commodities go down.

That's not correct. Oil and stocks have been positively correlated for much of the past decade.

 

[OnePercenter]

When the stock market goes up, non-monopolized (oil and gasoline) commodities go down.

That's not correct. Oil and stocks have been positively correlated for much of the past decade.

I think I wrote that wrong. Oil and Gasoline were meant as an example of monopolized commodities.

 

[editec]

ALL currency is fiat.

Some is just way more FIAT than others.

I suspect that our government is expanding the amount of money in circulation way too fast given the REAL growth of this economy.

dear, Bernanke's expansion of money supply is not related to the real growth of the economy nor has anyone one on earth ever said it was, especially since the economy is not growing!!!!!!!
You may be the only person on earth not to know that!! Why not take econ 101 so you can be intelligent rather than pretending all the time to be intelligent!!

You can unbunch your panties, now, lad.

Your misreading of my point in no way makes what I wrote wrong.

The REAL growth is, I quite agree, negative when compared to inflation...that's why I emphasized the word REAL, lad.

 

[Toro]

When the stock market goes up, non-monopolized (oil and gasoline) commodities go down.

That's not correct. Oil and stocks have been positively correlated for much of the past decade.

I think I wrote that wrong. Oil and Gasoline were meant as an example of monopolized commodities.

Neither are monopolized. But it hasn't been true for gold either. Gold has gone up 12 straight years whether stocks have risen or fallen, and at times has shown very high correlation.

Commodities historically have been uncorrelated to equities, not inversely correlated.

 

[editec]

The correlation isn't one that is easily proven but nevertheless I think it exists.

The value of gold and are inversely proportional to public confidence in the economy.

Of course other "REAL" things also play a role in fluxuating prices..like for example when nation DUMP reserves or DEMAND that their reserves are repatriated.

Or like for example when BANKS steal money from the depositors?

But MOSTLY, I think confidence defines the value of gold and silver.

 

[Toro]

I agree with the confidence part but I've downloaded all the daily closing prices for gold and the SP500 since 2000, and I can tell you that price correlation varies significantly over time.

 

[Crackerjaxon]

Dropping to 1395 an ounce is hardly a collapse. The simplest explanation is that the market was overbought and corrected itself.

Buyers snap up 'bargain' gold coins - Telegraph

It's a collapse when it falls $150 in two days.

The simplest explanation is that gold has been under distribution for nearly two years, the charts looked horrible and it finally broke support at $1520. Now, the playbook is to short the rallies until the chart repairs itself.

The sky is falling.

Right.

 

[Dugdale_Jukes]

We've been discussing this for a while. Gold has been in a very pronounced downtrend for many months now whereas stocks have been rising. This suggests that Bernanke's plan is working, because stocks rising and gold falling is what one would expect if people are less worried about inflation, less fearful and more confident about the economy.

It might be a headfake though. Only time will tell.

Bernanke's plan...you mean the one that leverages the future to prop up the current? The one that calls for indefinite money printing and bond/toxic asset buying with our money?
I wouldn't call that a plan....I would call it a ruse.

Bernanke didn't invent the "new economy", he inherited it.

One of the few things old man Bush ever got right was calling debt-fueled supply side bogusness "voodoo economics". Government borrowing set an example encouraging private borrowing that by increasing focus on short-term performance DIRECTLY caused the focus on quarterly reporting that led to the loss of faith that resulted in the crash of 87; Greenspan's affirmation that the FED plans "to serve as a source of liquidity to support the economic and financial system" SET THE EXAMPLE going forward. QE anyone? First ever FED purchases of private securities anyone?

Good to see it so clearly spelled out about nutball hero NeoConRon, the man who tripled the national debt in eight years in peacetime pumping money into his crazed voodoo-faith-based, debt-fueled "new economy". RINO Reagan's ruse fooled halfwit white trash into two generations of bovine docility as the Reagan created corporate plutocracy butchered the economic system that made so many of their blue collar parents middle class citizens in and of the greatest nation in history.

To those who are able to escape the pull of the modern political carnival, welcome to the wilderness.

 

[editec]

Bernanke didn't invent the "new economy", he inherited it.

Well that is true, of course.

But Bernanke has done nothing real to modify it, either.

Bernanke is reconstituting the banks but NOT the people.

In that sense despite the amazing changes that we saw (the bail out) , basically nothing has REALLY changed.

 

[EdwardBaiamonte]

In that sense despite the amazing changes that we saw (the bail out) , basically nothing has REALLY changed.

2000 banks disappeared!! including some very big ones; that's a huge change, dear. Millions of shareholders lost everything!! That's a change. Many lost jobs and houses. To say nothing has changed is absurd. Do you think folks all over the world are looking to buy American MBS's today or has there been a change???????