Why did gold take off in 2016?

[RDHC]

I ask the question because I have forgotten the economic situation at that time. I know why it happened after the 2008 crash but 2016 has me scratching my head. The rise in 2016 wasn't so dramatic as in the years after 2008, but it still stands out on the charts.

Also, any would any wise person(s) care to say that there has been a permanent sea-change in the value of gold since 2008, ignoring the many bumpy ups and downs on the road of course? And if there has been, why? Perhaps a permanent better understanding of the fragility of the capitalist economies (and their currencies), despite their apparent success? Or is this a stupid question to pose at all? Perhaps I should be looking even further back than 2008 to get a true perspective.

[Gordon]

I remember it going up a good £100-150 over night with the britexit vote

[silenceissilver]

I think in 2015 we had a short, slight deflation in the real economy, according to official figures. In any case there was nothing outstanding economically, in 2016 but politically. The Brexit vote and Trump getting elected both of which events posed uncertainty on geo politics and uncertain times means more demand for gold. So, it was political, not economical.

[Guest]

Yup, Brexit definitely had an effect, but I remember people talking like Trump being president was the end of the world. 😄 A couple of them told me they thought WW3 was on the cards, so I can just imagine what a lot of Americans were feeling like. 

[RDHC]

Thank you all. You seem to be in agreement and what you say makes good sense. I'm a bit surprised that Brexit could have such a wide effect outside the UK or Europe but I suppose it is all about psychology. Trump's arrival I can understand.

Pity that no one has taken up my the second part of my question. Perhaps I need to start a different topic on it.

Thanks again.

Roger

 

[Guest]

I was going to answer it, Roger, but I didn't want anyone thinking I was a crazy conspiracy theorist.

I think the prices are being manipulated by the Federal Reserve and other big players.

[Martlet]

Brexit had an affect on £:gold price as the pound fell dramatically, dont see it would have much direct effect on gold prices. 

Trump was risky, gold is hedge against risk, but that came after the rise of gold in early 2016.  Thought might be something middle east, nothing stands out.  Just market cycle.

Edited July 22, 2021 by Martlet

[HawkHybrid]

the dec 2015 first rate hike(after many years) resulted in gold bottoming and creating it's peak in 2016.

 

HH

[RDHC]

1 hour ago, Floyd1504 said:

I was going to answer it, Roger, but I didn't want anyone thinking I was a crazy conspiracy theorist.

I think the prices are being manipulated by the Federal Reserve and other big players.

Thank you. I'm not entirely averse to a soundly based conspiracy theory or two, though I am inclined to be sceptical of them, and certainly nothing plain crazy  such as: '9/11 was the work of the American government'. But how would the Fed gain from a sustained rise in the price of gold unless it plans to sell off its reserves in Fort Knox - and then do what with the proceeds? Unless it is run by the US equivalent of the idiotic Gordon Brown.

[Guest]

Oh Gordon! 🤣 I totally forgot what he did, lol!!! What a plonker he was and that's coming from another Scotman.

I've seen a lot of vids online about the Feds printing presses running overtime, dumping loads of extra money into the system is a sure fire sign that they're in trouble. Online experts like Mike Maloney and Peter Schiff say the price of precious metals are being deliberately manipulated and kept lower than they should be to stop it looking like the economy is wrecked.

I can't remember who it was in Canada, but they were caught manipulating the price of PM, with a fine of around 100 million and JP Morgan Chase were recently fined over 920 million for manipulating the prices. That's nothing to them though. I'm sure they were back at it straight away.

[Tortoise]

You could get over 1.40 US Dollars to the £ before the brexit vote and just under 1.20 dollars just after.  It wasn't so much that gold went up, but the purchasing power of the £ went down, which made it look like the proce of gold went up.

[Guest]

Do you watch the gold price regularly? It seriously spiked after the brexit vote. Even I know that and I only had half a dozen 1oz bars at the time.

Regardless of the £ dropping, the price of gold shot up.

[Tortoise]

25 minutes ago, Floyd1504 said:

Do you watch the gold price regularly? It seriously spiked after the brexit vote. Even I know that and I only had half a dozen 1oz bars at the time.

Regardless of the £ dropping, the price of gold shot up.

Ah, your right, just checked,  the price of gold did go up too, but the pound falling would have made it seem higher to a British person paying in £.

Brexit was way before I started even considering gold as an investment, so no, I didn't and even today don't watch the gold price much.  I just tend to assume that with so much money printing that prices on almost all assests will rise in the long term.

[Guest]

I only remember because I bought those bars the year before and used to watch the gold price like a hawk. 😄

I was dabbling in crypto at the same time, but I couldn't hack it. I watched the prices too much and was panicking constantly.  My nerves were very grateful when I chucked crypto.

[RDHC]

11 hours ago, Floyd1504 said:

Oh Gordon! 🤣 I totally forgot what he did, lol!!! What a plonker he was and that's coming from another Scotman.

I've seen a lot of vids online about the Feds printing presses running overtime, dumping loads of extra money into the system is a sure fire sign that they're in trouble. Online experts like Mike Maloney and Peter Schiff say the price of precious metals are being deliberately manipulated and kept lower than they should be to stop it looking like the economy is wrecked.

I can't remember who it was in Canada, but they were caught manipulating the price of PM, with a fine of around 100 million and JP Morgan Chase were recently fined over 920 million for manipulating the prices. That's nothing to them though. I'm sure they were back at it straight away.

Right, I see: it's the price being artificially low that you meant. Sorry, I thought you meant the way round. 

[eblend]

9 hours ago, Floyd1504 said:

Do you watch the gold price regularly? It seriously spiked after the brexit vote. Even I know that and I only had half a dozen 1oz bars at the time.

Regardless of the £ dropping, the price of gold shot up.

It's not "regardless" but because of ... Gold, as with pretty much all commodities is, in world terms, priced in dollars.  If the pound falls against the dollar, the sterling price of dollar valued commodities rises immediately.  (Pretty much what Martlet pointed out above.)  There was a similar change in the prices of petrol, although that one was partly masked by the fact that the oil price in dollars fell, as it was considered by the markets that the Brexit vote had weakened the whole European trade area.  

[Guest]

I agree with you, but the price of gold still risen more than the pound fell, that's the point I was trying to make.

I'm on a lot of meds dude, first thing in the morning is when I'm coherent,  after that there's up to 150mg of Morphine in my system, so by those times I type, I don't always make points clearly, but I take on board what the rest of you are saying.

Perhaps I shouldn't post anything like that when I'm a bit out of it. 🤭

I'm sorry if it sounded argumentative, but my judgement is a bit clouded at times and I agree, I couldn't made that post sound a lot better.   ✌🏼

[HawkHybrid]

17 hours ago, Floyd1504 said:

I was going to answer it, Roger, but I didn't want anyone thinking I was a crazy conspiracy theorist.

I think the prices are being manipulated by the Federal Reserve and other big players.

you have to have done something crazy in relation to conspiracy theories to qualify to be called

a crazy conspiracy theorist. most people just repeat misleading information as you have just done.

15 hours ago, Floyd1504 said:

I can't remember who it was in Canada, but they were caught manipulating the price of PM, with a fine of around 100 million and JP Morgan Chase were recently fined over 920 million for manipulating the prices. That's nothing to them though. I'm sure they were back at it straight away.

jp morgan have historically been fined for manipulating the silver price - not the whole truth.

Quote

The charges against JPMorgan and its subsidiaries were for "manipulative and deceptive conduct and spoofing that spanned at least eight years and involved hundreds of thousands of spoof orders in precious metals and U.S. Treasury futures contracts."

https://www.nasdaq.com/articles/jpmorgan-to-pay-%24920-mln-fine-for-manipulating-precious-metals-treasury-market-2020-09-29

the fine included manipulation of us treasury futures contracts. not just silver.

also manipulation means moving prices both up and down in order to make a profit - not just

down(which is what you would expect if the conspiracy theory was true). only ever moving

prices down is called price suppression(not the wording that is used here). did jp morgan

manipulate silver prices? yes. did they manipulate other things in order to turn a profit? yes.

what is so special about jp morgan manipulating silver? nothing, they have and would manipulate

any other market if they believe that they can get away with turning a profit this way. the only

reason to take the silver manipulation out of context is so that it can be shown as proof that the

elites are suppressing the price of silver.

do you still believe in these half truths or are you prepared to read a little into the details?

(you can make half truths say whatever you want if you are prepared to omit whichever part of

the story that doesn't suit your stance)

 

HH

[Guest]

Sorry, I dont know your name, but I was only going by what Mike Maloney said in one of his vids. From what you posted, it's obvious several facts were sexed up to make it sound worse.

I've not been collecting long and I've just been following what was said.

Maybe he has his own agenda for making it sound the was it did and now I'm beginning to realise he's not always telling the full truth.

 

Andrew

[eblend]

On 23/07/2021 at 08:18, Floyd1504 said:

I agree with you, but the price of gold still risen more than the pound fell, that's the point I was trying to make.

I'm on a lot of meds dude, first thing in the morning is when I'm coherent,  after that there's up to 150mg of Morphine in my system, so by those times I type, I don't always make points clearly, but I take on board what the rest of you are saying.

Perhaps I shouldn't post anything like that when I'm a bit out of it. 🤭

I'm sorry if it sounded argumentative, but my judgement is a bit clouded at times and I agree, I couldn't made that post sound a lot better.   ✌🏼

I know I'm only a n00b, so can't in any way speak for others around here, but I'd say that you should post whatever you want and whenever the fancy takes you.  I can't see that you've done any damage, as far as I can see, and if it does you good, then that's good enough, in my book.