Gold prices extend rally, surge by most in 11 years

[hugeblack]

Have we finished the stage of the economic crisis to enter a financial crisis ?, gold has returned again to rise, recording the limits of $ 1,600 "the highest trading level since early February," after the closing of gold mining operations and moves by the Federal Reserve to stop coronavirus crisis.

According to FactSet data. The percentage increase, if it continues, will represent the largest percentage since March 19, 2009.

This rise comes after the Federal Reserve unveiled a massive stimulus package that includes unlimited purchases of mortgage-backed securities and bonds.^[1] Also, the recession may be another factor.


[1] https://www.marketwatch.com/story/fed-announces-unlimited-qe-and-sets-up-several-new-lending-programs-2020-03-23?mod=article_inline

Read more and source --> https://www.marketwatch.com/story/gold-prices-extend-rally-surge-by-most-in-11-years-amid-tight-supplies-and-regime-of-limitless-stimulus-2020-03-24

[Hydrogen]

I wonder if this thread from 2019 will become relevent in hindsight:

Central Bank: If The Entire System Collapses, Gold Will Be Needed To Start Over

https://bitcointalk.org/index.php?topic=5193372.msg52775202#msg52775202


As mentioned, these bailouts and stimulus programs are funded through expansion of the monetary supply. The trend will inflate and weaken fiat currency as deficits rise.

Institutions like the federal reserve not being transparent or audited, it will remain a conspiracy theory whether these bailouts helped the US economy, foreign economies or even china. There was a day a few weeks back when china's stock market was +1 point while markets of other nations were negative by significant margins. Which could indicate at least some of federal reserve bailouts are being directed to prop up china's failing economy.

[abhiseshakana]

I wonder if this thread from 2019 will become relevent in hindsight:

Central Bank: If The Entire System Collapses, Gold Will Be Needed To Start Over

https://bitcointalk.org/index.php?topic=5193372.msg52775202#msg52775202


As mentioned, these bailouts and stimulus programs are funded through expansion of the monetary supply. The trend will inflate and weaken fiat currency as deficits rise.

Institutions like the federal reserve not being transparent or audited, it will remain a conspiracy theory whether these bailouts helped the US economy, foreign economies or even china. There was a day a few weeks back when china's stock market was +1 point while markets of other nations were negative by significant margins. Which could indicate at least some of federal reserve bailouts are being directed to prop up china's failing economy.

There is a conspiracy theory which states that trade war and everything is a compromise between China and the United States with the following assumptions.

The debt of the United States as of February 2020 is around USD 23.4 trillion, most of which is debt to its own people while the remaining balance of 6.2 Trillion is foreign debt. Debts to its people are more like recycling, ie debt is paid off, while what is used as fuel for the US economy comes from foreign debt and the majority is held by Japan and China. US debt to GDP ratios 2020 is 110%.
https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124

We will discuss two long-term simulations of economic relations between the United States and China.

First simulation,
China releases or rushes the debt securities it holds, under current conditions the US cannot possibly pay. If the US withdraws new debt to repay a debt to China, US debt will flood the market. The value of debt securities will fall on the market and the yield will be higher. then the dollar value will fall. So that US companies have difficulty getting investment funds in the market.

On the other hand, the RMB currency will strengthen further so that the cost of production in China is high and reduces the competitiveness of Chinese goods in America. The ending is the threat of layoffs in China.

Second Simulation,
China holds US debt and will not rush US bonds. But China will buy dollars on the market by printing RMB, meaning China devalues the RMB so that the dollar strengthens. At the same time, excess dollars are used to buy US bonds. Thus the US indirectly owes China from the RMB money printed by China. Which ends Chinese factories continue to operate because of competitive selling prices.

So far, China has always threatened the US with the first simulation but actually China is practicing the second simulation. Trump, who is an economic man, understands the situation and condition of the American nation which lives on debt. So the simple language of China is helping the US to print money by being in debt to China so that the humiliating US can be bought by debt. So both China and the US will both maintain the system because they both benefit. The losers are those who still think about money and exchange rates and the smart ones are those who continue to produce and store assets in the form of gold, not money.

[NeuroticFish]

From what I see in the charts the gold price started rising at the end of 2019.
Indeed, something strange has happened between 10 and 24 March, the price fell back to end-2019 values, but now it's back on high values.


original chart(s): https://goldprice.org/gold-price-chart.html

What I mean, .. why discussing the gold rise this late? It's because of US money printing machine has started?
As I said, the gold price rise has started at the end of 2019. This means that the ones who understand the gold market were expecting back then that the countries will start printing money and investing in something more stable than cash would be the winning ticket.
I'm a bit sad that while the gold price rose, Bitcoin is not doing this great. But we can't have'em all, don't we?

[LeGaulois]

Yeah, it started in December last year, at this time we were speculating on the trade war between the USA and China.
But currently, isn't it mainly because investors were forced to sell their liquid assets to cover their positions or to meet margin calls? It's a normal reaction in situations like right now. In the first week of March, it was doing its job as a store of value.

People are rushing on gold like paper toilets in supermarkets. I've heard some refineries were forced to suspend operations, and it has never happened before.
crazy...

[Twentyonepaylots]

From what I see in the charts the gold price started rising at the end of 2019.
Indeed, something strange has happened between 10 and 24 March, the price fell back to end-2019 values, but now it's back on high values.

The chart really looks strange if we point at the month of March, something definitely happened during that time that it went from high to a very low price. We can assume that, that is because of the trade war between America and China since China hoards a lot of gold on their backyard trying to defeat America in future economy. The price of gold noticeably declined these past few days along with Stock market due to coronavirus, but gold was ready for times like this and won't be long at this stage, I still believe.


original chart(s): https://goldprice.org/gold-price-chart.html

What I mean, .. why discussing the gold rise this late? It's because of US money printing machine has started?
As I said, the gold price rise has started at the end of 2019. This means that the ones who understand the gold market were expecting back then that the countries will start printing money and investing in something more stable than cash would be the winning ticket.
I'm a bit sad that while the gold price rose, Bitcoin is not doing this great. But we can't have'em all, don't we?

At a plain picture, the world is not yet ready for bitcoin and we are just sticking to much reputable tangible asset which is the Gold. As for gold's price prediction, there would be a high possibility of gold getting a price hike since the bull run started from June last year.

[The Sceptical Chymist]

I've been watching the precious metals markets lately, and gold is definitely on a tear.  What surprises me is that silver dropped massively since the coronavirus outbreak--and the reason it surprises me is that retailers like Provident Metals and Veldt Gold are having a hard time keeping silver in stock because everyone is buying it.  Before the outbreak silver was around $17.50/ounce, and right now it's right around $14.  Crazy.

From what I see in the charts the gold price started rising at the end of 2019.

No doubt you're correct, and that probably reflected the general unease around the world and the expectation of a global recession.  Anyway, I don't own any gold but I'm betting now would probably be a good time to buy some if you've got the cash to do so.

[hatshepsut93]

I've been watching the precious metals markets lately, and gold is definitely on a tear.  What surprises me is that silver dropped massively since the coronavirus outbreak--and the reason it surprises me is that retailers like Provident Metals and Veldt Gold are having a hard time keeping silver in stock because everyone is buying it.  Before the outbreak silver was around $17.50/ounce, and right now it's right around $14.  Crazy.

Maybe the price of silver is more tied to the industry, as it more often used for making things rather than being a store of value. And since factories are getting closed due to quarantines, and supply chains are getting disrupted, the demand for silver is tanking, so the price is going down too.

[FanatMonet]

Gold is always used as an airbag, and especially during periods of various catastrophic actions on our planet, such as wars or serious epidemics. Bitcoin in the foreseeable future, in my opinion, will not be able to push gold from a top position.

[abhiseshakana]

Maybe the price of silver is more tied to the industry, as it more often used for making things rather than being a store of value. And since factories are getting closed due to quarantines, and supply chains are getting disrupted, the demand for silver is tanking, so the price is going down too.

The movement of silver usually follows gold, but lately, it was depressing because it followed the movement of metal-based. As is known, the issue of a slowdown in the global economy has depressed most metal commodity prices. This is because, predictions of demand will decrease, followed by the potential for manufacturing products which will also decrease. This condition apparently also influenced the price of silver as a precious metal which also had several functions equivalent to metal metals. Data released by Hecla Mining Stock shows an increase in silver production of around 22%. As a result, these conditions dropped pushing down the depressing price of silver increasingly depressed at the beginning of the year.
https://www.businesswire.com/news/home/20200107005415/en/Hecla-Reports-22-Higher-Silver-4-Higher

Characteristics of silver prices follow the price of gold because silver is a gold companion commodity. So that when the yellow movement is exposed to negative sentiment, it also automatically weakens. While the impact of the coronavirus makes investors hunt dollars to make gold sold. The price of gold that had plummeted in the end helped make the price of silver plummeted and the price of silver plummeted deeper than gold. Inevitably, silver also struggles to rebound when gold is strengthening.

Nevertheless, with the global interest rate low and the possibility of the central bank buying gold in the market, which sees this as a positive opportunity for the price of gold so that the price of silver can be raised slowly.

[Smitty Werben Man Jensen]

GOLD is indeed extraordinary, All Time High was achieved by GOLD today, even though it was a very long wait,
I thought GOLD to be a good investment instrument besides Bitcoin, and I'm sure the price of Bitcoin will also follow Gold

[Ozero]

GOLD is indeed extraordinary, All Time High was achieved by GOLD today, even though it was a very long wait,
I thought GOLD to be a good investment instrument besides Bitcoin, and I'm sure the price of Bitcoin will also follow Gold

This is just the beginning. Soon, due to measures to combat the spread of coronavirus, the economic indicators of all countries will fall and inflation will jump to unprecedented levels. People are beginning to understand this, so gold has begun to rise in value. This is just the beginning of this process. I am still wondering why the price of Bitcoin has stopped so far and has stabilized during this troubled time. It seems that this is the calm before the big storm. I think that soon the cryptocurrency market will also begin to rise after gold.

[Naida_BR]

I think that the coronavirus outbreak played a significant role on that.
People are afraid that they are going to lose their money if an economic collapse is going to happen and as the financial markets are dropped, they try to find alternatives in order to store the value of their money.

[Cratoon]

Countries (Especially USA) will be printing money, so it's expected to see this happening.
People will start losing trust to USD and move to other assets, including gold and crypto.