Way back in 1980 I sold off most of my gold jewelry when the right wing in America was under the spell of a guy named Howard Ruff. Gold went up to something like 1300 dollars an ounce before plummeting to some 340 an ounce.
The cool thing about right wing suckers is the money men can fool them again and again. All they have to do is dangle bright shiny stuff in front of them and tell them how they need to be afraid of the dark skinned people.
Gold is crashing like the bad investment it generally is.
From The Guardian UK: http://www.guardian.co.uk/commentisfree/2013/apr/16/gold-crash-2013-explanation-not-obvious
Gold’s crash this weekend is, as Oprah might say, a teachable moment. Don’t buy the conspiracy theories
Heidi Moore
guardian.co.uk, Tuesday 16 April 2013
Gold crashed this weekend, falling in its deepest drop in over 30 years. From a high of $1,900 an ounce at one point, gold is now selling for less than $1,395 an ounce. So whodunit?
There are theories kicking around – so many theories, so very many unnecessary and probably incredibly wrong theories. Was it the central banks like the Federal Reserve trying to “smash gold,” as conspiracy theorists believe? Or, paradoxically, was it a show of faith in central banks?
Was it a big hedge fund suffering giant, secret losses, as many in the market have theorized? Was it a mass trade on the Comex exchange on Friday – of 13.4m ounces, or 400 tons of gold! – by gold skeptics eager to sell the shiny metal short? Was it the rumor that the central bank of Cyprus would have to sell its gold to pay off its bailout? Was it a delayed reaction to the long, slow pressure drop in gold this year?
To make it worse, some of the smartest pros are baffled. Veteran investor Bob Gelfond called the gold crash “somewhat random,” according to Investment News. “It’s almost like a fire hose flying around that you can’t control,” he said. It could make your head spin. But with all due respect to Gelfond, a crash is never random. There’s always a reason, no matter how insane or stupid or irrational. Some event or rumor made someone hit the “sell” button.
Take a moment to carefully consider all those arguments and you can come to your own conclusions. Gold’s crash this weekend is, as Oprah might say, a teachable moment. Crashes like this are a good way to find out how markets work. It’s like a game of financial Clue, a way to keep sharp your skills of deduction. You don’t have to be a stock investor or a math whiz to figure it out, either – you just have to have a good grasp of news and human psychology.
Continue reading at: http://www.guardian.co.uk/commentisfree/2013/apr/16/gold-crash-2013-explanation-not-obvious
See Also Salon: Gold prices plummet to 2-year low
