Home Forums Hunting & Shooting Hunter's Campfire Why Has Gold Price Not Skyrocketed ?

You would think that at times like this ......that it would have gone through the roof . What gives ?

gold is smarter than the news media

Usuall,

Good question.

Best I can tell, it was just another casualty of across the board panic selling. During the panic every asset class was indiscriminately sold, stock, bonds, commodities, even the cryptocurrencies got killed, it just didn't matter, and Gold and Silver were victims of this selling as well.

The only asset safe havens appeared to be bottled water, ammo, and toilet paper.

I am trying to find the answer to that question. Maybe a few of the smart investor guys on here can chime in. Ive read various reasons.

Based on what I know gold and precious metals have not increased as well as stocks the past 3 weeks. I like the somewhat low prices now and slowly accumulating in down turns. Probably pick up more slowly.

Try to find physical gold or silver right now .... hint - you can't. There is disconnect between wall street prices and the street.

Lots of selling pressure on gold as it gets sold to cover losses in equities. Give it a few months, I think it will rip 30% this year as global synchronized money printing goes into over-drive.

thanks for input

I haven't tried to buy any, but from what I've seen here, you are right. There seems to be a big difference between SPOT and what you can actually buy precious metals for. That hasn't always been the case.

Easy. The reason is that the COVID 19 virus is shutting down the economy, causing companies and corporations to have trouble paying their regular bills, since they are not getting their usual income. What this means is that, in order to make those payments, these companies are selling their gold and silver holdings. When lots of people sell something all at the same time, it exerts a downward pressure on the price of that something. So we have pressure in two directions operating simultaneously. Firstly, economic and monetary insecurity causes there to be a desire to acquire gold and silver, which is an upward pressure on the price. Secondly, there's a downward pressure on the price from folks needing to sell their holdings in order to pay their bills, since their usual sources of income have been cut off or dramatically reduced (think restaurants, resorts, nightclubs, and on down the line).

The upward pressure is overtaking the downward pressure, but only slightly. Once COVID 19 is gone, the need to sell gold and silver will fade as an influence on the price.

I know you cant get physical gold right now.

Or silver.

This.

Probably because in our modern cashless society, few of us have the ability to actually use the stuff. Filing off a grain here and there for a loaf of bread is a pain in the rear.

No inflation.

Gold is your hedge vs inflation. Likely have deflation in some sectors (see petroleum now).

Gold was volatile before the virus.

Sometimes +/- 100$ in 2 days.

When the market started to dive.....margin calls demand $$$$$$$ and gold was sold.

Gold and silver still available in any amount.

Maybe people are smarter than we give them credit for being?

I think the gld index on wallstreet is a futures contract market, not the physical stuff. All the local shops and online sellers are out of the physical stuff. Look at what prices are on ebay, The best price on ebay is around $1830 for a 1 oz canadian maple leaf. Within a week of the crash all the physical stuff was sold out. I had to order some when prices dropped, none available anywhere around me. Orders for gold and silver were backed up 15 business days for shipping in the big shops. Like TP, there was a run on PM.

1/10 oz gold coins $195

Nope. The GLD is physically backed with gold:

https://www.ssga.com/us/en/individu...lgE8ZWUqpAA0A6tolujdRNC-D8MaAu2VEALw_wcB

Reflecting a real price of $1,950 per oz where the rubber meets the road.

It may go up if this cshit lasts much longer.