Gold Price Crashes

23rd September 2009

The Price of Gold at this current time of writing is $998.30.

Last week we saw Gold reach an 18 month high of $1,023.85 an ounce, nearing the $1,030 record set last year.

Mondays Gold Price closed at $1,001 per ounce, when it had reached Wednesdays close, gold was at $1010.25.

Gold tumbled earliar today with the announcement by the U.S. Federal Reserve, and other major central banks, that they intend to cut back on some emergency lending facilities, adversely causing the dollar to rise.

The IMF finally decided to sell the 403.3 tonnes of Gold that they’ve been publicly touting about for weeks. On Friday it was announced that the sale of $13 billion of Gold would not disrupt the market and that it would be sold directly to central banks.

With China and India queuing up outside the gates, it will be an interesting prospect to see who ends up the winner in this affair.

In comes the news that whilst the rest of the world are selling their scrap gold profiting from the rocketing gold price, India’s gold scrap sales have in fact declined. The reason stated for such a frugal outlook is the expectation of the gold price to continue hiking up the summit of its colossal mountain.

Other news, consumer spending is down, and in a consumer capitalist economy, people are hedging their savings. This is little wonder considering the vast credit expansion that has taken place over the last 15 – 20 years. People have finally realised that debt leads to more debt.

So people are looking for avenues to save, and with the fall of the dollar, they are looking at safe havens. The Housing market use to be one of them, a guaranteed haven for folk alike.

But we all know what happened there, people jumped onto the bandwagon any which way they could. Banks we’re granting mortgages ‘willy nilly’. Even now, the mortgage is set at 5 times your earnings. That’s pretty much a life time of debt!

And who’s the winner? The Banks of course. Interest upon interest upon interest.

Market news

The graph below shows the money that’s been pouring into Gold ETFs over the last couple of years. Its quite phenomenal when you consider the economies been in a recession.

Source: www.businessinsider.com

Finally news that a huge Anglo-saxon gold hoard has been discovered in Staffordshire should give all gold investors green eyes. The finding is said to contain 5kg of gold!! Wow!! I think I’ll grab my metal detector and go for a walk with the dog.

That’s all for this week,

See you all out walking your dogs.

Digger
Gold Price Today

Important

Information in Gold Price Today is for general information only and is not intended to be relied upon by individual readers in making (or not making) specific investment decisions. Appropriate independent advice should be obtained before making any such decision.