The world has a very thin margin of gold prices. The first gold cut would probably hit the bottom to all those gold pickers out there and they are now hedging their positions.
In the past week or so there have been a number of recent articles on this subject. The forex gurus seem to agree that this recession will continue and although the news may be negative for the bottom of the trade the latest gold prices down and fear of war or inflation won’t. The gurus are out today with another chart indicating that the price of gold is going to fall.
The economy is weak as ever and economic indicators are sounding very gloomy. But even the strong dollar is down today. This makes the goods in my country almost impossible to sell in the US and the price is down.
Press releases are never accurate and most are produced for some part of the business’s expense. I will not read press releases.
Let us take a look at the last seven or eight days. Just recently, I went down to the petrochemical hub of Montreal and was astounded that the main competitor is pushing down gold prices down a couple of dollars, you have to wonder what is going on.
The weak dollar makes the oil barons’ gold production costs more than they would be paying in a currency for an ounce of gold. When there is no real value to the dollar, why should they use any dollars when they can sell it to the petro-barons for a nice profit?
Why is the strong dollar hurting the very consumers who are the ones who buy the products? The strongest currency is always going to be at the top of the list.
The other item that comes to mind is that many online business owners are shorting gold. Some of the large gold miners are being unprofitable because their mines are being depleted and their CEO’s are retiring or are leaving to run other companies.
I think the economy is like a small person dying. It can’t move and in order to survive, it will be crushed.
They can’t go to the grocery store or the payday loan or the doctor because they don’t have the money or the time. The only thing they can do is turn on the television and watch the economy to see how this decline will play out and then we are going to blame the gold market when the following months are simply going to be worse.
Gold prices are going to be down and be depressed. I hope this isn’t true but I can see the news on television and I want to know the truth. So be careful what you believe.