Fox News:
Are We About to See a Global Gold Selling Spree?If the price goes down a few hundred bucks per ounce then I hope the Fed creates some more money out of thin air to buy gold. That will keep the price up, and if there's a finical crisis in the future they can sell the gold then. Interesting how the Fed can seemingly create gold out of thin air. Of course, central banks have been doing that for a long time.
Who wants it to go up? This was engineered because the central banks wanted to add more gold to their inventories at fire sale prices before the dollar collapses. The smart folks are taking advantage. It won't last long.
That's Al Gore logic. If it gets cold it proves global warming, if the dollar strengthens against gold it proves the dollar is ready to collapse.
Yes smart folks are going to take advantage once gold hits bottom and they'll be able to buy a lot more of it because they didn't buy when gold was over $1,700 as some on 24hr were advising.
Half of the price of gold is a fear premium, which has been coming out of the price in the last few weeks as the stock market rally continued. As gold drops below key levels it triggers automatic selling, which drives the price lower. Now fear is running the other way and investors are getting out to avoid a blood bath, which drives the price down more and increases the panic.
The best bet to stop the decline in gold prices is if NK launches a missile or some other conflict erupts that threatens world trade and economic activity.
