Gold responds to inflation/deflation. During the economic crisis and now with the Coronavirus Pandemic, growth is falling precipitously. No demand with excessive supply is deflationary and gold prices are going to fall along with all other assets.
It's tanking because one certain talking head said to booyah buy it 2 weeks ago, lol #fadecreamer Having said that, now might be a good time to buy, I bought a little NUGT Friday into the close, following NEM and sm caps like AUY, plus inverses like JDST epic eod breakout fri
Would you rather have an investment that spends more time up than down, but is down in value? I get what you're saying, but I don't need my investments to make me feel secure. As long as the investment has a good probability of putting me way ahead at some point...I'm good!
Agree to a point. The fundamentals for gold are actually improving, so expect a big reflate rebound at some point.
Please bring up a chart of gold vs. US Dollar since the early 1970's (removal of gold standard). Gold blows the dollar out of the water...the dollar is a con game especially last 50 years. I agree "botcoin" is also scam.
Check gold during the Lehman bust, it fell something like 30% in the crash phase and subsequently recovered in 2-3 months. The pattern in this cycle has been more or less the same, so far, except we had a very truncated "fearful but not crashing" period. Smart money is either DCAing or monitoring for defined buy signals, as weak hands are puking out their positions to cover margin calls on unrelated holdings - against the backdrop of a clear medium-term uptrend and abject panic printing by monetary authorities.
Gold tends to rise during inflationary periods and fall during deflation. These short term deleveraging events like now or 2008 are deflationary so gold tends to fall short term. People need cash and sell everything to cover their obligations. The banking industry response however, is vastly inflationary so you should see gold and everything else rising in dollar terms fairly soon. Gold will tend to respond faster since industry and the industrial commodities take slightly longer to recover along with economic activity as a whole.