Gold Drops as Improved U.S. Economic Outlook Curbs Haven-Investment Demand

[Dover]

Gold dropped for the first day this week in New York on signs of economic recovery in the U.S., cutting the need for haven investments.

Industrial production in the U.S. rose 0.8 percent in December, more than forecast, on gains in business equipment and home electronics. Sales of existing homes in the U.S. probably rose 4.1 percent last month, according to a Bloomberg survey. Gold assets held by exchange-traded products declined in six of the past seven sessions.

“Market sentiment for gold has shifted since the end of 2010, as evidenced by net outflows in ETFs,” said Anne-Laure Tremblay, an analyst at BNP Paribas in London. “This shift accompanies lower uncertainty in the economic outlook following decent U.S. industrial data.” ..cont'd

http://www.bloomberg.com/news/2011-01-20/gold-may-decline-as-investors-sell-asian-equities-on-data-buoying-dollar.html

[kickysnana]

1. Blind leading the blind. n/t

[thecrow]

2. Sorry Glen Beckers

I think of all the people who followed his lead and bought gold coins from his under-investigation gold company. Now they will hold onto that gold until they lose their investment.
Like the grocery store was ever gonna take gold instead of cash anyway.

[Crazy Dave]

3. Iraqi dinars is another big scam I see people getting into

I know four people that have spent thousands of dollars buying dinars because the speculation is once Iraqi is in control of its own government and their economy grows then the value will jump as much as 500%.

I've tried to tell them that the country is and will remain 3rd world except for areas to the north because all of the skilled and educated people have left the country and you cannot rebuild a country without an educated population.

"But the value of our dinars has already gone up 15%!"

Yes...because tens of thousands of idiots are buying them up and hoarding them and they're not circulating in the Iraqi economy.

[Art_from_Ark]

4. I really don't think you understand the gold market

Gold goes up, gold goes down. No big deal, that's the way all markets are. Three years ago, gold lost $30 in one day, dropping from $870 to $840, and people were predicting it would go down to the 400s by 2010. But it didn't. At one time last year it was nearly $100 below its previous high of $1250, but it rebounded. And the market reports will ALWAYS come up with some bullshit explanation about why gold went up or went down. "Renewed confidence in the dollar" one day, "Investors fleeing uncertain dollar" the next. Bullshit reports that are all so predictable.

As for Glenn Beck viewers, this may come as a surprise, but they are very small players in the world gold market. And sophisticated buyers aren't buying from that under-investigation advertiser, there are plenty of other, legitimate places that are buying and selling gold for far more reasonable prices

[garybeck]

15. why would anyone buy anything other than real gold coins at the spot price anyway?

I hear the gold commercials and I never understood why anyone would pay more than spot price for gold. if you want to buy gold, you can usually find government issued gold coins at the spot price. if we're on an upswing and they're hard to find, you can always go to kitco.com and pay just a nominal fee over the spot price. if you are wondering if something is a rip off, look at how much the coins weigh, what percentage of gold they are, and compare to the spot price.

not all gold buyers are glenn beckers

i bought a bunch of gold coins back in the late 90s when it was 250/oz. I don't have to worry about some scam and some company who makes the coins because they were issued by the US and Canadian governments.

I never understood why anyone would buy a coin that costs more than the spot price, as an investment. if you're a collector perhaps... but investor, no.

[Po_d Mainiac]

16. At the time this was posted Au was at $1350 +/-

Today it's $1366...Yup, PM buyers sure have taken a beating
BTFD

[Art_from_Ark]

17. Spot price is for the big players

The little players almost always have to pay more than spot for gold coins from dealers, unless they are really unpopular gold coins and the dealer just wants to unload them.

[Po_d Mainiac]

5. BTFD! n/t

[Art_from_Ark]

6. Get a load of this remark:

“Market sentiment for gold has shifted since the end of 2010, as evidenced by net outflows in ETFs,” said Anne-Laure Tremblay, an analyst at BNP Paribas in London. “This shift accompanies lower uncertainty in the economic outlook following decent U.S. industrial data.”

Or maybe that shift just accompanies uneasiness about holding ETF paper gold that may or may not exist in real life.

[bemildred]

7. Or it could just be random movement up and then down.

I do wonder what exactly "market sentiment" is, and how one goes about measuring it from day to day, if it does not mean what the market did, and then statements like "Market sentiment for gold has shifted" become tautologies, as in "Market sentiment for gold has shifted" means the price went up or down some, as evidenced by the fact that the price went up or down some. So this is all really babble.

[Po_d Mainiac]

9. Babble is right

Just taking heads (stuck in tight places lacking fresh air) trying to sound like they have a clue.:rofl:

[Art_from_Ark]

11. "Talking heads...trying to sound like they have a clue"

Ain't that the truth.

[sendero]

14. Exactly..

.... whether its gold or stocks or commodities or anything else, when the talking heads try to explain the "reason" for the move I always break into a smile. Yeah, right.

[Po_d Mainiac]

8. COMEX changed the margin requirements....again

In the ever more desperate moves to save the Morgue's shorts, the margin requirements have changed every time the markets near the highs. This makes the third time in something like 6 weeks.

On each previous occasion the flow of actual has increased, and the market has bounced back at a higher level within days. Since little has changed fundamentally Re QE and even the FED is now admitting the upward price pressure on DTD necessities, I expect the drop will be shallow and short lived.

YMMV

[westerebus]

10. X2.

[girl gone mad]

12. Demand still seems pretty high..

among fleeing despots.

[Art_from_Ark]

13. Demand for the physical stuff is still high

Whether one's a fleeing despot or not. The US Mint's January 2011 sales of gold American Eagles, for example, are already well above the figures for last month.

[Paper Roses]

18. For those of us who have scrap AU and Ag to sell, it is doubly scary.

Today I scrapped the gold and silver I was planning to sell. Not that it was so much but at a point, you get nervous. A bird in the hand and all that.....

Through the years, my husband and I picked up silver serving pieces and other misc silver because we thought it was beautiful Those were during our good old days. He died, I could never get myself to use and of these items again. The wedding present from my folks 47 years ago also went into the pot. I must say that the refiner to whom I sold was very fair with me. I had calculated everything out to troy OZ, and figured it based on spot today. Actually, I did better than I expected.

I am, like many others, down to the last of my reserver. No job, laid off..now only one SS check. Whatever the speculation about the PM market, I had to make the decision. Pay the bills or hold onto this stuff when the whole PM market may go down the tubes.

I am trying not to think about it. Some of the stuff was very special to me. I know my late husband would want me to sell the stuff and be able to pay my current bills. At least that I what I am thinking.
What a mess we are all in. This will help for a while but when it is gone, I guess next comes the house.
I cannot find a job. A 68 year old with minor medical problems is virtually unemployable.

There age some good words to describe how I feel about the way things are but Emily Post would not approve!!!

[Xenotime]

19. gold is never worth zero