Question about gold

#1
Rasputin_Vol

Rasputin_Vol

"Slava Ukraina"
Joined
Aug 14, 2007
Messages
72,056
Likes
39,845
#1
If we are off of the gold standard, how does the Fed affect gold prices???

GLOBAL MARKETS-Gold tumbles, dollar up, stocks mixed | Reuters


Gold prices dropped on Wednesday, suffering their biggest two-day loss since the peak of the financial crisis, while the dollar rose as investors bet a speech by the Federal Reserve Chairman later this week will not reveal any major central bank initiatives.
Click to expand...


It doesn't make sense.
 
#2
#2
It's seen by some as a hedge against inflation/weak dollar. Tge fed can inact policy that effects the value of our currency
Posted via VolNation Mobile
 
#3
#3
golfballs03 said:
It's seen by some as a hedge against inflation/weak dollar. Tge fed can inact policy that effects the value of our currency
Posted via VolNation Mobile
Click to expand...

How does buying or selling gold hedge against a weak dollar?

I don't understand.
 
#4
#4
Rasputin_Vol said:
How does buying or selling gold hedge against a weak dollar?

I don't understand.
Click to expand...

People think it's worth more than their paper money. Or at least their wealth is better preserved by putting it in gold vs. A declining dollar
Posted via VolNation Mobile
 
#5
#5
golfballs03 said:
People think it's worth more than their paper money. Or at least their wealth is better preserved by putting it in gold vs. A declining dollar
Posted via VolNation Mobile
Click to expand...

Does that mean that investors are selling gold to buy dollars? Or some other currency?
 
#7
#7
Rasputin_Vol said:
If we are off of the gold standard, how does the Fed affect gold prices???

GLOBAL MARKETS-Gold tumbles, dollar up, stocks mixed | Reuters





It doesn't make sense.
Click to expand...

Honest answer, we don't really know to what extent
the Fed does or does not manipulate the gold market.

I would think though if one considers all central reserve
banks acting in unison and coordinated though BIS,
then they would have far more control than everyone
else combined. At least I would estimate so.

Consider the short term:

Caution: Another Gold Margin Hike Imminent | ZeroHedge

But that is only futures.

If you own physical metal, exchange or brokerage
margin changes do not affect you at all.

If you bought ETFs or ETNs, margin changes affect
you not at all.

The changes discussed above are changes in the
amount of margin requirement that a particular
brokerage is charging its clients for holding
CME/COMEX gold futures contracts.

Net, net -- unless you've traded futures contracts and
simply rolled out every 2 months since the Kenyan was
elected, you have no issues or worries at all.
 
#8
#8
Rasputin_Vol said:
How does buying or selling gold hedge against a weak dollar?

I don't understand.
Click to expand...

There's a limited supply of gold. If there's a rising supply of dollars (Fed policy) and those dollars start chasing the gold, the value of the gold goes up relative to the dollars
 
#11
#11
Gold halts two-day slump, awaiting Bernanke's speech - latimes.com

Bernanke may hold the key to goldÂ’s short-term trend.

With the U.S. economy again struggling, Bernanke is expected to say Friday that the Fed stands ready to provide more help if necessary. That could mean another round of pumping cash into the financial system (a.k.a. money printing) -- which could be bullish for gold by raising the specter of further devaluation of the dollar.
Click to expand...

How is the Fed able to "print" money?
 
#12
#12
Velo Vol said:
There's a limited supply of gold. If there's a rising supply of dollars (Fed policy) and those dollars start chasing the gold, the value of the gold goes up relative to the dollars
Click to expand...

Again, I don't understand what one has to do with the other. If the dollar is no longer pegged to gold, then why aren't investors simply going to other currencies and selling dollars?

Why is everyone that is bearish on the dollar running to gold? It makes no sense... there are other investment options out there. There are stronger currencies out there that the forex trader could be involved with.
 
#14
#14
Rasputin_Vol said:
It makes no sense... there are other investment options out there. There are stronger currencies out there that the forex trader could be involved with.
Click to expand...

Are there? Look how many people are dumping money into a 10-year bond that yields just over 2%? There's not a lot of confidence. The Euro has problems, the Pound has problems, and Japan will act to keep the Yen from going too high.
 
#17
#17
Google Warren Buffet and silver ras.

It will give you and glimpse of how the precious metals market can be messed with.

But dollar goes up gold goes down . dollar goes down gold goes up. that is the trend.

imagine two kids on a teeter totter.

don't view it so much as gold vs usd ... view it more gold vs petro.
 
#20
#20
VolsNSkinsFan said:
Yes, this country needs more people in dangerous mines digging for a shiny metal
Posted via VolNation Mobile
Click to expand...

don't think gold should be the only thing backing the dollar but if petro changes and we are no longer being held in reserves our dollar could tank over night.
 
#21
#21
NEOCON said:
don't think gold should be the only thing backing the dollar but if petro changes and we are no longer being held in reserves our dollar could tank over night.
Click to expand...

never, we have plenty of printing presses
Posted via VolNation Mobile
 
#24
#24
"See if one derives an equilibrium where prevalence is a non-singular event where nobody loses, can you imagine the effect that would have on conflict scenarios?"

One question; why did the movie make Nash out to be mentally deranged when he was nothing of the kind?

I have to say, it does have some great scriptwriting thrown in there, for instance:

"Classes will dull your mind, destroy the potential for authentic creativity."

I submit Milo for exhibit A.

(Not that we will ever be in danger of running out of exhibits.)

Me? I'm well balanced, I have a chip on both shoulders! :)
 
New posts
You must log in or register to reply here.

VN Store



Back
Top