Why are gold prices dropping?

[muneeb]

Hi there,

I am all new to coins/gold/silver. Why is there a drop in the price of gold? Did something occur for this to happen? And are prices of gold to drop more, what are your predictions?

regards

[Norskgeld]

As a general rule of thumb: gold price rises when the economy goes down and lowers when the economy goes up.

It could be anything.

Any government's statement about just about anything can cause it.

[Pete]

Precious metals are commodities and prices fluctuate according to International markets.
Everyone knows there is great volatility ... and risk ... to trading commodities.
Prices can rise and fall according to "sentiment" and "global events" as investors, big financial institutions mainly, try to make money.
Gold in some eyes is a safer haven for some governments to store assets since their fiat currency can be hit by exchange rates, inflation and quantitative easing.

Check the historic charts so see just how flat in some eras and how rapidly ( on investment timescales ) prices can change.
So called "experts" will search for explanations and fit some random event to a price fluctuation that to us mere muggles appears plausible but in reality the market is manipulated by bankers trying to make big bucks irrespective of whether prices rise or fall as they earn their commissions on the first derivative ( school calculus ).

To us stackers we convince ourselves that gold ( and other PMs ) is an alternative to preserving wealth compared to cash so when gold etc falls significantly then this is your buying opportunity if you believe in the long term value of PMs. If you are nervous then buying PMs is not for you.

Many stackers that dipped into PMs relatively recently have seen their stack rise quite quickly in value so when the gloss starts to crack, panic can set in.
No-one likes to see prices fall but buy on the dips and be prepared to hold for the long term meaning 5+ more years or longer.

As for the future you might as well throw a dart and convince yourself that an even number will see a price increase whereas an odd number will see a fall.
This is as good a method as listening to the "pundits" and financial folks who cannot predict the trend as something will always buck the trend and a statement will follow in hindsight - so I believe and have experienced.

[muneeb]

9 minutes ago, Pete said:

Precious metals are commodities and prices fluctuate according to International markets.
Everyone knows there is great volatility ... and risk ... to trading commodities.
Prices can rise and fall according to "sentiment" and "global events" as investors, big financial institutions mainly, try to make money.
Gold in some eyes is a safer haven for some governments to store assets since their fiat currency can be hit by exchange rates, inflation and quantitative easing.

Check the historic charts so see just how flat in some eras and how rapidly ( on investment timescales ) prices can change.
So called "experts" will search for explanations and fit some random event to a price fluctuation that to us mere muggles appears plausible but in reality the market is manipulated by bankers trying to make big bucks irrespective of whether prices rise or fall as they earn their commissions on the first derivative ( school calculus ).

To us stackers we convince ourselves that gold ( and other PMs ) is an alternative to preserving wealth compared to cash so when gold etc falls significantly then this is your buying opportunity if you believe in the long term value of PMs. If you are nervous then buying PMs is not for you.

Many stackers that dipped into PMs relatively recently have seen their stack rise quite quickly in value so when the gloss starts to crack, panic can set in.
No-one likes to see prices fall but buy on the dips and be prepared to hold for the long term meaning 5+ more years or longer.

As for the future you might as well throw a dart and convince yourself that an even number will see a price increase whereas an odd number will see a fall.
This is as good a method as listening to the "pundits" and financial folks who cannot predict the trend as something will always buck the trend and a statement will follow in hindsight - so I believe and have experienced.

Hi there,

 

Thank you so much for your help! I am thinking of buying 10g of gold due to the drop. At the moment I can get a 10g bar for £438 and I also have the option to buy umicore 2x 2.5 bar and 5 g umicore bar for £445. So stuck on which one would be the better option to buy? 
 

the £438 is from a dealer and the £445

is from someone here, but all packed bars.

Edited August 9, 2021 by muneeb

[muneeb]

20 minutes ago, Norskgeld said:

As a general rule of thumb: gold price rises when the economy goes down and lowers when the economy goes up.

It could be anything.

Any government's statement about just about anything can cause it.

Ahhh okay, makes sense! Thank you

[dicker]

This morning's big dip may well have been banks covering their shorts as well as someone dumping a lot of Forwards contracts.

[muneeb]

1 minute ago, dicker said:

This morning's big dip may well have been banks covering their shorts as well as someone dumping a lot of Forwards contracts.

Ohh okay! Thank you 

Just now, muneeb said:

Ohh okay! Thank you 

Good time to invest?

[dicker]

I dont give investment advice other than:

(1) You wont get rich buying gold / silver

(2) Invest regularly - look up pound / dollar cost averaging

Best Dicker

[muneeb]

3 minutes ago, dicker said:

I dont give investment advice other than:

(1) You wont get rich buying gold / silver

(2) Invest regularly - look up pound / dollar cost averaging

Best Dicker

Thank you!

[dicker]

Of course the well known adage always holds true..

"In a gold rush, sell the shovels"

[KevinFlynn]

If I have learned one thing about precious metals, it is that there is never a right or wrong time to invest. And in my opinion precious metals should not be bought as a speculative asset but for worth preservation.

Before investing understand that gold is very volatile and more of a mid or long term investment. And do not buy for returns but for stability.

[Happypanda88]

There was a large sell order apparently just before asia opening hours.

Gold Flash Crashes By Almost $100 As $4 Billion In Sell Orders Hit

https://www.zerohedge.com/markets/gold-flash-crashes-almost-100-4-billion-sell-order-hits

[muneeb]

9 minutes ago, KevinFlynn said:

If I have learned one thing about precious metals, it is that there is never a right or wrong time to invest. And in my opinion precious metals should not be bought as a speculative asset but for worth preservation.

Before investing understand that gold is very volatile and more of a mid or long term investment. And do not buy for returns but for stability.

Thank you! Looking to hold gold for a long time, think right now is a good time to buy.

6 minutes ago, Happypanda88 said:

There was a large sell order apparently just before asia opening hours.

Gold Flash Crashes By Almost $100 As $4 Billion In Sell Orders Hit

https://www.zerohedge.com/markets/gold-flash-crashes-almost-100-4-billion-sell-order-hits

Makes sense! Thank you.

[SilverJacks]

39 minutes ago, muneeb said:

Hi there,

 

Thank you so much for your help! I am thinking of buying 10g of gold due to the drop. At the moment I can get a 10g bar for £438 and I also have the option to buy umicore 2x 2.5 bar and 5 g umicore bar for £445. So stuck on which one would be the better option to buy? 
 

the £438 is from a dealer and the £445

is from someone here, but all packed bars.

There is a lot of options to choose from and a lot to think about. Coins should be your fist port of call as they are more liquid, more recognisable and verifiable in terms of resale. But maybe you already have some coins and would like to add a few bars to your collection? I would rather the flexibility of multiple small bars over one larger bar. If you do prefer bars over coins, consider paying a little more for Pamp Suisse bars in assay cards with Veriscan technology.

Since you're buying new from dealers or from a trusted seller on the forum, you will know any make of bar to be legit, but when you come to sell it, future buyers may not be so confident. Pamp bars come at a slightly higher premium for a number of reasons, one being the security feature. I'm not saying the Veriscan feature is perfect, or even relevant to those that would use other testing methods, but it is attractive to some buyers as a peace of mind.

Many people want the best value per gram, but items are worth their market value regardless of price per gram. I'd be more interested in a Pamp bar over Umicore. But then, gold is gold...

[Minimalist]

Central banks selling futures (Dollar Index and 10Y-UST)

[muneeb]

7 minutes ago, SilverJacks said:

There is a lot of options to choose from and a lot to think about. Coins should be your fist port of call as they are more liquid, more recognisable and verifiable in terms of resale. But maybe you already have some coins and would like to add a few bars to your collection? I would rather the flexibility of multiple small bars over one larger bar. If you do prefer bars over coins, consider paying a little more for Pamp Suisse bars in assay cards with Veriscan technology.

Since you're buying new from dealers or from a trusted seller on the forum, you will know any make of bar to be legit, but when you come to sell it, future buyers may not be so confident. Pamp bars come at a slightly higher premium for a number of reasons, one being the security feature. I'm not saying the Veriscan feature is perfect, or even relevant to those that would use other testing methods, but it is attractive to some buyers as a peace of mind.

Many people want the best value per gram, but items are worth their market value regardless of price per gram. I'd be more interested in a Pamp bar over Umicore. But then, gold is gold...

Hi there,

thank you so much for your help. I’ve invested in the 1oz gold queens beast 2021 coin and 2 of these in 2 oz silver. Are there any other coins you recommend as I’m new to coins? Any advice/help on coins would help.

I will also look into the pamp bar and see if I can get a good deal. Thank you so much for your help, I appreciate it.

[sixgun]

There was a 24 000 GC (gold) futures contracts lot sold at market (a dump) shortly after the open last night. That's 2 400 000 ounces of gold. The market is very thin at that time. No trader would sell that many contracts at market (i'll take any price) at that time. They would be investigated and prosecuted for breach of position limits. 
So no speculation is needed here - it is officially sanctioned. There will be no prosecutions, no proper investigation.
This is more of the volatility expected between now and the end of the year as part of Basel III, as insider unallocated positions get squared off. 

Edited August 9, 2021 by sixgun

[sixgun]

42 minutes ago, muneeb said:

Hi there,

thank you so much for your help. I’ve invested in the 1oz gold queens beast 2021 coin and 2 of these in 2 oz silver. Are there any other coins you recommend as I’m new to coins? Any advice/help on coins would help.

I will also look into the pamp bar and see if I can get a good deal. Thank you so much for your help, I appreciate it.

@morezone put small bars and a PAMP pendant up for sale if you are interested.

[muneeb]

8 minutes ago, sixgun said:

@morezone put small bars and a PAMP pendant up for sale if you are interested.

Messaged them, thank you!

Edited August 9, 2021 by muneeb

[muneeb]

9 minutes ago, sixgun said:

There was a 24 000 GC (gold) futures contracts lot sold at market (a dump) shortly after the open last night. That's 2 400 000 ounces of gold. The market is very thin at that time. No trader would sell that many contracts at market (i'll take any price) at that time. They would be investigated and prosecuted for breach of position limits. 
So no speculation is needed here - it is official sanctioned. There will be no prosecutions, no proper investigation.
This is more of the volatility expected between now and the end of the year as part of Basel III, as insider unallocated positions get squared off. 

Why would they sell of a sudden?  And

who would be behind this? This is all new to me and seems

very interesting.

[sixgun]

6 minutes ago, muneeb said:

Why would they sell of a sudden?  And

who would be behind this? This is all new to me and seems

very interesting.

Likely it is coming from the gold desk of the BIS (Bank for International Settlements) - they are outside the law - the central bank of central banks. Contracts are dumped and then bought back but in the process many stops are triggered. These are long positions which are sold - and the usual suspects are there to buy them and so square off their unallocated positions.

[muneeb]

8 minutes ago, sixgun said:

Likely it is coming from the gold desk of the BIS (Bank for International Settlements) - they are outside the law - the central bank of central banks. Contracts are dumped and then bought back but in the process many stops are triggered. These are long positions which are sold - and the usual suspects are there to buy them and so square off their unallocated positions.

Ahh okay🤨🤨 thank you!

[pricha]

3 hours ago, dicker said:

I dont give investment advice other than:

(1) You wont get rich buying gold / silver

(2) Invest regularly - look up pound / dollar cost averaging

Best Dicker

Number 1 ? I've never seen a poor man with a large gold holding  . 

[CollectorNo1]

2 hours ago, muneeb said:

Hi there,

thank you so much for your help. I’ve invested in the 1oz gold queens beast 2021 coin and 2 of these in 2 oz silver. Are there any other coins you recommend as I’m new to coins? Any advice/help on coins would help.

I will also look into the pamp bar and see if I can get a good deal. Thank you so much for your help, I appreciate it.

Always buy what "YOU" like and at the cheapest premium....Good rule of thumb!

Regards.

[Minimalist]

1 hour ago, muneeb said:

Ahh okay🤨🤨 thank you!

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