Originally Posted by
PistoneScrapProcessing
Gold has been on basically a 12 year bull run. What goes up must come down. The stock market has gained seven percent this year while gold has dropped six percent. Investors are taking there money out of gold and funneling it back into the stock market. Last year the price of gold was propped up by what seemed like a never ending soap opera with congress, debt limit, greece, The euro collapsing, Etc. It has been relatively calm this year as far as crisis that affect the US economy and gold as a safe haven. Just an opinion though.
As more people become more affluent and demand those goods we have been enjoying in the western world for so long, gold is going to become more and more in demand.
There is more gold used every year than the year prior
All those places that buy gold jewelry, do you think they are making more gold jewelry? No, the gold is being melted, refined, and sent to China to keep the machine of industry rolling
Our government is actually encouraging this because without gold, those items we consume that are made in China, will be in short supply. We are a nation of consumers, not builders, if we don't have things to consume with our revolving credit, we don't have an economy. Although it's all fake and based on oil rather than gold, it's still an economy, fragile as it is.
More gold is recycled and used in industry every year, than the year prior.
More gold is hoarded every year than the year prior
We have already hit peak gold, meaning there is less gold being pulled out of the ground every year, than what is demanded by industry
Knowing these things as fact, how can it be that gold ever looses any value on the marketplace. It's because it's on the marketplace, and being controlled by people who are able to control it. It's blatant and obvious market manipulation. It's done for many many reasons, and done so with intent and purpose. If the market wasn't manipulated, gold would become far too expensive, electronics would rise in price way past what most middle class consumers would be able to afford, industry, consumerism, everything would come to a screeching halt.
Gold is being manipulated, this is not a natural function of the marketplace.
Scott
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