Gold Drops Again...and Again
The price of gold dropped, then dropped again.
First it broke the $1,650 resistance level, then the $1,612 level, then $1,600. Today it's dropping yet again. Time to buy? Time to sell? Time to panic?
I can't help you with the panic thing, if that's got a hold of you. And if it has, it's time to ask yourself why. Why did you buy gold in the first place? If you can't come up with an answer, then you're right to feel panic, I suppose.
But let's understand something here.
First, when people tell you where they believe gold is going (up or down), don't take the numbers they spit out too seriously. How do they really know? If you don't know how they know, just ignore them. If you do understand how they know, then by all means use their "wisdom" to make your decision...I suppose.
But remember one thing when it comes to gold - and this is REALLY important: the price of gold is manipulated, probably more than any other item.
In a world where the Fed has more or less taken over the markets in the same way the government has taken over(or tried to take over) the economy, little old gold is one item that's relatively easy to push around. We won't get into how and why today, but it is.
For many years I avoided focusing on this fact, mostly because I do believe that in the end all the manipulation in the world - no matter whether it comes from big commercial interests, the federal government or the Fed - will ultimately fail. Gold will have its way. But that manipulation has increased with an intensity and consistency that makes me wonder whether the powers that be have grown ever more frightened that more people are catching on to their awful monetary policies. And the best indicator that the monetary policies of a country - for example, the U.S. - are awful is the price of gold. And the price of gold has been grinding steadily higher for the last 11 years - the longest bull market in history.
So the manipulation may indicate that the fear of being found out by too many of us has increased to where they just want to stop the gold bull for at least this year. Please, at least one year since 2001 where gold doesn't go up. PLEASE!
First it broke the $1,650 resistance level, then the $1,612 level, then $1,600. Today it's dropping yet again. Time to buy? Time to sell? Time to panic?
I can't help you with the panic thing, if that's got a hold of you. And if it has, it's time to ask yourself why. Why did you buy gold in the first place? If you can't come up with an answer, then you're right to feel panic, I suppose.
But let's understand something here.
First, when people tell you where they believe gold is going (up or down), don't take the numbers they spit out too seriously. How do they really know? If you don't know how they know, just ignore them. If you do understand how they know, then by all means use their "wisdom" to make your decision...I suppose.
But remember one thing when it comes to gold - and this is REALLY important: the price of gold is manipulated, probably more than any other item.
In a world where the Fed has more or less taken over the markets in the same way the government has taken over(or tried to take over) the economy, little old gold is one item that's relatively easy to push around. We won't get into how and why today, but it is.
For many years I avoided focusing on this fact, mostly because I do believe that in the end all the manipulation in the world - no matter whether it comes from big commercial interests, the federal government or the Fed - will ultimately fail. Gold will have its way. But that manipulation has increased with an intensity and consistency that makes me wonder whether the powers that be have grown ever more frightened that more people are catching on to their awful monetary policies. And the best indicator that the monetary policies of a country - for example, the U.S. - are awful is the price of gold. And the price of gold has been grinding steadily higher for the last 11 years - the longest bull market in history.
So the manipulation may indicate that the fear of being found out by too many of us has increased to where they just want to stop the gold bull for at least this year. Please, at least one year since 2001 where gold doesn't go up. PLEASE!
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