It was clear that we have entered a new phase of speculative in gold, which is based on a combination of factors most notably the promotion of some of the phrases that does not understand the nature or significance vast audience of small investors, most notably that gold is the only safe haven in this world, and the world was in war, and everyone was vulnerable to homelessness and eviction from his work or place of residence so that gold is a safe haven within the sandal weight and Ola price. A safe haven for whom? And why? Must not question him chanting of this misleading phrase convincingly to like me.
Big Speculators in gold chose that paper money is worthless, and America in particular plunging the world trillions of dollars that you print day and night, in an indication that the currency of the world to collapse, and that hyperinflation is coming, where the dollar is equal to nothing, and then it will be a gold floor first and last, as if the whole world does not have the money only in the form of the dollar, as if America is Zimbabwe’s second. However, the dollar and the session took place today is the strongest currencies of the world.
As well as chanting that the price of gold fixed for all goods and assets in the world, it is the only asset that keeps its value, and once again I do not know where they come from the health of this phrase, although any simple comparison between gold and commodities and other assets to prove the invalidity of this argument price growth rate to buy gold.
Since that separated gold from the world of currencies in 1971, the transformation of monetary gold metal, to a plain metal is used in the industry and in ornamental purposes. However, the trafficking funds in gold adults and speculators which finally turned into a important tool for suction small investors’ savings in gold, and by trying to drag all these to ring speculative malignant do not have them do nothing, while adult Speculators play the market rules up and down one goal is to maximize their returns from fluctuations in the price of gold, as long as there are hundreds of millions of gullible in the world we are ready to speculate in gold.
To ensure the continuation of this episode of speculation in the metal, army adult speculators group of analysts mercenaries to one goal is to promote gold, the next source of wealth, and who are using processors that some naive fools incompetent economic background. On the impact of these processors such as gold continued to rise even above $ 1900 per ounce in early 2011. Since then, the Gold falls on an ongoing basis over the long term. This week stunned the world gold rapid decline is unprecedented and as one who did not expect, that the near-collapse of gold prices this occurs within a relatively short period of time, but why this big decline in the price of gold?
The fact that there are a variety of factors, which met at the same time to push the gold to go down, and as usual in such situations taking adult speculators in the intensification of selling gold operations to leave small investors drowned in the gold market is not helpless, and with the chanting of phrases that gold haven safe, in times of decline are the first to run away from it.
For a long time remained in speculative industry chanting the words convey everybody unconsciously or aware of, which is that China buys gold and Tkdsh, in preparation to turn the renminbi into a global currency, and that China’s demand for gold is the safety element of the market, the existence of the State of China’s size and economic strength will ensure continued demand stream the gold and then higher prices. Helped to promote this statement is not correct silence China and failing to disclose gold stocks which is owned by the People’s Bank of China. Finally, China unveiled a golden stockpile, who carried the surprise was not expected by the market, namely, that the real balance of China’s gold represents only half of what is traded from the figures on the golden reserve of China, and that China buying gold and accumulation of gold in the Chinese People’s Bank is only one of the myths that are promoted for gold.
The problem in the gold market that the market is mainly influenced by the top dealers in which expectations about the future price of gold short-term trends, and expectations of speculators currently pessimistic, that is the direction of gold downward, so increasing selling gold operations which is no longer for many of the big investors a safe haven, as chanting.
Like any commodity in the commercial world are priced in the currency of the world, namely the US dollar, will fluctuate when the value of the dollar price of gold fluctuates adversely. Since the rising value of the dollar and the price of gold falls by extension, for example, the dollar value rose by 22 per cent for the currencies of the world, over the past year, and the continued rise in the dollar value of the pressure on the gold price factors down some time ago.
The fact that the rise in investor appetite in gold, especially small investors whom reflects the decline in the opportunity to him, the rates of return to be derived on savings through deposited in the banks, and this has seen a different path in the world since the crisis, where central banks are the main focus in the world pursue expansionary monetary policies aimed to cut interest rates to low levels in order to stimulate aggregate demand and try to get out of the crisis. In light of the low interest rates on Modat savers looking for investment vehicles give higher returns, so it was part of the savings directed towards investment in gold.
President of the Federal Reserve has finally announced the most powerful signals about the possibility of the Federal Reserve to raise interest rates sometime this year. Raising interest rates would mean two things negatively affect the gold at the same time, the first is the start of the withdrawal of trillions of exporting dollars a wave of expansionary monetary policy pursued by the United States since the beginning of the crisis, which resulted in the provision of a huge financing at low cost for each asset, including gold, of course, and thus will increase the cost of Gold financing deals. The second is the high opportunity cost of investing in gold, quite simply because the gold metal sterile, does not generate profits or interest as long as the market prices stable, unlike other financial assets that entail investment get the benefits or profits.
All these factors combined have helped to create a picture of a bear market, “in which falling prices” for gold, and then the shorts began to get rid of the metal at the moment, in the hope of re-buy it in the future when the gullible to sell their gold for fear of falling prices more, which put pressure on the more and more towards the market decline.
Is what is happening now is the gold price bubble burst? The answer is no, it is still the global economic situation is stable, and the risks that led to the prices of the current bubble still exists in one form or another, and although the gold since the global financial crisis in a state of great price bubble, but this bubble is different from other bubbles in It does not suddenly explode, explode it very slowly and this is what happens to gold in nearly five years.