Gold price is on the verge of collapse
- Thread starter leon1998
- Start date
Long term, I can see gold spot in the range of US$800; after studying gold/crude and gold/silver ratios.
The world economy is so weak that we might see crude and silver prices stay low for quite some time; and if that happens, the only way gold/crude and gold/silver ratios start to drop from historical highs as they're, is for gold to have significant crash in the near future.
Just a thought,
The world economy is so weak that we might see crude and silver prices stay low for quite some time; and if that happens, the only way gold/crude and gold/silver ratios start to drop from historical highs as they're, is for gold to have significant crash in the near future.
Just a thought,
leon1998 said:Long term, I can see gold spot in the range of US$800; after studying gold/crude and gold/silver ratios.
The world economy is so weak that we might see crude and silver prices stay low for quite some time; and if that happens, the only way gold/crude and gold/silver ratios start to drop from historical highs as they're, is for gold to have significant crash in the near future.
Just a thought,
The assumption that gold/crude and gold/silver ratio will drop from historical high is a big one.... But I understand why you are thinking like that, if you consider gold a normal commodity.
Pirocco
Well-Known Member
The question that applies to all prices of products that are speculated (stockpiled / destockpiled): which one has at the moment the biggest stockpile and lowest consumption (ie not recycled) rate?
I see big stockpiles of 2 products: fiatmoney that was earnt by production and thus is available at own choice by them, and gold. The worlds governments shifted from 400 tonnes annual sales to 400 tonnes annual purchases, being a price effect sized as 800 tonnes. If they would shift back, the transitional zero crossing alone would slam golds price down to sub $1000.
Of course, if enough speculators stay willing to purchase gold at the higher price range that governments brought, they won't.
So it all depends on you folks!
I see big stockpiles of 2 products: fiatmoney that was earnt by production and thus is available at own choice by them, and gold. The worlds governments shifted from 400 tonnes annual sales to 400 tonnes annual purchases, being a price effect sized as 800 tonnes. If they would shift back, the transitional zero crossing alone would slam golds price down to sub $1000.
Of course, if enough speculators stay willing to purchase gold at the higher price range that governments brought, they won't.
So it all depends on you folks!
Pirocco said:The question that applies to all prices of products that are speculated (stockpiled / destockpiled): which one has at the moment the biggest stockpile and lowest consumption (ie not recycled) rate?
I see big stockpiles of 2 products: fiatmoney that was earnt by production and thus is available at own choice by them, and gold. The worlds governments shifted from 400 tonnes annual sales to 400 tonnes annual purchases, being a price effect sized as 800 tonnes. If they would shift back, the transitional zero crossing alone would slam golds price down to sub $1000.
Of course, if enough speculators stay willing to purchase gold at the higher price range that governments brought, they won't.
So it all depends on you folks!
Thanks Pirocco! I agree with you, of course.
I bet that also some asian central banks will gladly help us goldbugs to absorb part of the goods on offer.