could gold be push over a cliff

[silverroller]

could the main players manipulating gold and silver ,could they seriously push the price right down to screw over Russia as Russia has been buying gold like its going out fashion.As the ruble is losing its buying power and oil dropping like it fell of a cliff. If gold was to go to say £500/£300 or even £200 then I'm sure Russia will be screwed,is this the plan of the west .

[Ares]

Doubt it, projections are Russia is going into a big recession anyway because of oil alone so is there any need?

[HighlandTiger]

There is a major reason why oil is dropping like a stone. Demand for oil is falling. Usually when this happens Oil producers slow down production to keep the prices artificially high. For some reason the oil producing countries like Saudi have decided not to do this and let it ride. My belief it's to do with preventing new oilfields and fracking being developed by other countries, the side effect of Russia going t!ts up is just a bonus as they are a competitor in the energy business to the Middle East.

The USA are just sitting back and waiting to see what develops, as in this case the Russians can't blame the USA for the drop in oil prices.

[SilvergunSuperman]

The oil price will correct itself once it has put the expensive producers out of business, a large of chunk of these being the US frackers.

 

I can't see the gold price going off a cliff any time soon as demand is strong and supply is tight. It's my belief that the corrupt market traders are doing all they can just to keep it down at $1200.

[Ares]

It'll certainly do the trick vis-a-vis fracking, from a financial standpoint (rather than a strategic energy independence standpoint) why develop fracking when you'll just be out-competed on cost from the Middle East?

[garthy]

The Russian rouble is collapsing against the dollar because of the low oil prices, one month ago a dollar was worth 47 rouble, right now a dollar will buy you 68 rouble, Russian interest rates are now at 17 per cent to see off inflation which's now forecast to be 10 per cent.

 

If you lived in Russia and swapped the rouble for gold I think you'd feel pretty pleased with yourself.

 

I guess there's more than one reason why oil is falling so fast, personally I believe it's to do with all of them, simple supply over demand, competition against alternative cheaper energy sources and a financial war against Russia. 

 

I think there's a difference with oil oppose to gold, I mean oil can fall and there won't be a buying frenzy as storage isn't the easiest, if they smashed gold to £200 to £500 the buying frenzy would be off the charts which would just push prices higher.          

[a_a]

Yep not just Russia that will see pain, Venezuela, Iran, and other small producers, the USA 'shale revolution' party is over for now, and Scotland! Imagine if they had left the union, on dreams of making big money from oil, that wouldn't be adding up at the minute

[HighlandTiger]

I think there's a difference with oil oppose to gold, I mean oil can fall and there won't be a buying frenzy as storage isn't the easiest, if they smashed gold to £200 to £500 the buying frenzy would be off the charts which would just push prices higher.          

 

 

Ah £200 Gold, where half sovereigns would be £24.50 at HGM..........I'm liking that 

 

Although I'm not too keen on the £6.50 delivery charge which would make the delivered price £31 and then it would be 32% over spot...

[Fluttershy]

but then silver would be worth about the same as copper is now, and steel/iron would be roughly Free.

so them we could build Huge storage tanks for all this cheap oil for next to nothing and create demand for oil, sending prices back up again etc...

 

so it`ll all work out I`m sure

[Pipers]

Currency wars, is what its all about.  

 

Link  http://en.wikipedia.org/wiki/Currency_war

 

Russia happens to be the target, remember the G20, Putin went home as no one would talk to him.

 

Russia's volatility

 

Link   http://www.theguardian.com/business/live/2014/dec/17/rouble-russia-crisis-greek-elections-uk-unemployment-fed-live

 

What can Russia do.   It has been suggested that Russia go onto a Gold back currency

 

Link  http://www.goldmoney.com/research/analysis/russia-s-monetary-solution

 

This would protect Russia against attacks from the US and her allies. 

 

Onto oil 

 

The Saudis are not happy with the US policy in the middle East (Iran, Syria) plus its a good chance to get at Russia.

 

http://www.nakedcapitalism.com/2014/10/saudis-deploy-the-oil-price-weapon-against-syria-iran-russia-and-the-us.html

 

One thing not reported in the west press is Iraq Kuwait and Saudi are discounting to Asian countries more than to the USA and Europe.   

LINK http://www.asianews.it/news-en/Oil-prices-plunge-elates-some,-causes-fear-in-others-32935.html

 

In the article Iran fears oil to go to as low as $40.  Then you have the discount for the Asian countries!

 

All this leave Putin in a corner.  Only an idiot would be happy for this modern Russia with its now modern military ruled by a man like Putin backed into a corner. The question is if Putin survives he will hit back financially.  If it looks like he may be toppled there may be a proper war.

 

The other question is the USA, will they remember the 3 Arabian countries that sold oil cheap to there new friends while sticking 2 fingers up to the USA and Europe. 

 

 

 

[Pipers]

but then silver would be worth about the same as copper is now, and steel/iron would be roughly Free.

so them we could build Huge storage tanks for all this cheap oil for next to nothing and create demand for oil, sending prices back up again etc...

 

so it`ll all work out I`m sure

 

But would anyone sell there Gold at that price?

[HighlandTiger]

But would anyone sell there Gold at that price?

 

yep, because they will be panicking in case it goes lower......  All the papers, blogs, gurus and experts will be saying "Get out of gold now, it's a disaster". People will do what they are told, and we can all buy mega cheap, and wait out the storm until it rises again.

[Stretch]

It's a shame about Russia, I don't think they have enough gold for it to be any use, especially for backing their currency. A similar fate could be instore for us and the pound sterling in the near future. Unlike the Russians we don't grow potatoes, vegetables and keep chickens so might not be as good at weathering tough times.

[SilvergunSuperman]

Russia officially has around 4 times the gold stocks of the UK which is over 10% of it's total reserves. I'm no expert so don't know if this is enough to back their currency but they are better placed than most countries. In fact the official gold holdings figures of the top 2 countries, the US and Germany, are dubious to say the least as there are very real suspicions that much of it has been flogged to the east.

 

Russia has been the largest buyer of gold for the last 10 years which suggests they have had a long-term plan to ditch their dependency on the dollar. I doubt they ever suspected that such a crash could happen in such a short time though.

[Pipers]

Russia officially has around 4 times the gold stocks of the UK which is over 10% of it's total reserves. I'm no expert so don't know if this is enough to back their currency but they are better placed than most countries. In fact the official gold holdings figures of the top 2 countries, the US and Germany, are dubious to say the least as there are very real suspicions that much of it has been flogged to the east.

 

Russia has been the largest buyer of gold for the last 10 years which suggests they have had a long-term plan to ditch their dependency on the dollar. I doubt they ever suspected that such a crash could happen in such a short time though.

 

I thought China was the biggest buyer?  Then again no one knows how much is bought and mined really.

 

Chis Powell of GATA was suggesting Russia may start selling its Gas/oil at a discount for Gold, to offset the low price of oil/gas.