Gold: recent changes in market psychology "a game-changer"

[Mike]

I think it's good to do both: stock up on supplies and barter goods for the immediate phase, and gold for the new system set up which will be gold-backed currency. Also, all my gold is in coins in small amounts that would be feasible to manage in routine buying and bartering.

I agree. There might also be a window of opportunity in the beginning of the financial collapse where currencies drop, gold and silver start reaching their real value and economic activity / commerce is still going on (albeit reduced). In such a context gold and silver could a very strong purchase power in order to buy some useful assets before economic activity drops to virtually zero.

That's the way I've been thinking about it. A person is going to need to be fleet of foot and not of the mindset many PM bugs have of never selling their PMs. In my mind PMs are a means to try and enable a person to bridge the gap from financial meltdown into possible societal meltdown.

 

[LQB]

Another marker that might indicate some soon-to-come changes in the gold and silver market is the growing gap between supply and demand (of physical metals)

Yes, and another is a rapid rise in the USD as capital looks for (perceived) safety. The USD Index just crossed 90.

 

[Pierre]

Another marker that might indicate some soon-to-come changes in the gold and silver market is the growing gap between supply and demand (of physical metals)

Yes, and another is a rapid rise in the USD as capital looks for (perceived) safety. The USD Index just crossed 90.

Yes the USD index had never been this high since 2006 (the USD index reflects the value of the US dollar relative to a basket of other currencies).

 

[Pierre]

Since Monday (22/12/14), a new rule is implemented by US financial authorities. It states that quotations / trading will be halted if the price of futures / options on precious metals varies too much (the limit being around 10% from one day to the following one). Source.

That's quite a paradox for a country that describes itself as the paragon of free market.

This being said, the official document justifies this new rule because "[it will] deter sharp price movements that may, for example, be driven by illiquid central limit order books prevailing from time to time in otherwise liquid markets"

One wonders what do US financial authorities see coming in terms of sharp price movements and lack of liquidity.

 

[hlat]

The bots can control the market prices so trading halts are a good idea in case the bots become disorderly. The flash crash in 2010 was a vivid example of bots in disorder. Futures trading in grains has had locked limit up and limit down moves, meaning the market opens and trading immediately reaches the threshold limit and stays there the rest of the day until the market closes, only to be repeated the next day and the day after that. So in those instances, prices eventually get to where the bots want it to go, just not all at once.

 

[SeekinTruth]

Another marker that might indicate some soon-to-come changes in the gold and silver market is the growing gap between supply and demand (of physical metals)

Yes, and another is a rapid rise in the USD as capital looks for (perceived) safety. The USD Index just crossed 90.

Yes the USD index had never been this high since 2006 (the USD index reflects the value of the US dollar relative to a basket of other currencies).

Yeah, there's been a continuous growing gap between supply and demand of physical silver and gold for the last few years. It's only getting worse, as supply keeps dropping, as demand keeps growing. Also, the USD Index rising shows that many in the markets are spooked and wanting to get into safety, I agree - but what a mistake to see USD as safe!!

 

[Pierre]

Acoording to this article, China and Russia are taking full advantage of the articially low price of physical gold and the artificially high price of dollar by buying "cheap" physical gold with they "expensive" dollars.

If this is true, Russia / China are putting the Western world in a serious deadlock.

 

[Amaterasu Solar]

Well... Gold is a very pretty and useful metal... We transmuted lead to gold in the 1970's. Didn't make a lot - the cost of the energy would have made an ounce cost around 1 million in 1970's dollars (Yes, I'm in the area called "America"). If the technology of electrogravitics was available (not hidden in black projects), drawing energy from the aether, We could be creating all the gold We could use...

 

[hlat]

This may be an important sign for gold. It has finally broken above $1,000 euros again after spending all of 2014 under $1,000.

Click on "1Y" for a closer look in the lower left, or in the lower right drag the left vertical line towards the right.
_http://www.24hgold.com/english/interactive_chart.aspx?codecom=GOLD&chgecom=ChgeDollarCom&valecom=valedollarcom