How Much Lower Can Gold Fall?

As of Thursday's close, the price of gold has fallen nearly 23% in the second quarter, setting up the yellow metal for its worst quarterly loss since President Nixon ended the dollar peg in August 1971. In the following video, Fool contributor Alex Dumortier explains the reasons behind this decline and provides investors who own physical bullion, the SPDR Gold Shares (NYSEMKT: GLD  ) , or the Market Vectors Gold Miners ETF (NYSEMKT: GDX  ) , with a clue to the question that is now at the top of everyone's mind: How much lower can gold fall?

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  • Report this Comment On June 30, 2013, at 5:34 PM, WORLDSCAM wrote:

    Alex is on the right website. He's truly a complete "FOOL!" Are the central bankers right? Is it true that Money Printing doesn't call inflation? The answer is NO! it's impossible for all the PHONY QE not to cause REAL inflation. The CPI is a lagging indicator and it's full of LIES! The reason why no inflation has been found in the CPI is because in their ridiculous, ever changing 'basket of goods' - they keep raising the weight of housing-- as they continue to try to inflate the housing bubble. And now that the brainless Bernanke merely mentioned the word 'taper' - the interest rates have risen withOUT any Fed tightening- and that will be the beginning of the end of the NEW bubble that the FRAUD FED tried to REinflate in order to save the PHONY economy. The FRAUDULENT RESERVE lies about everything- just like our socialist President (Benghazi cover up when he purposely didn't agree to save the attacked because he's fearful of the words 'terrorism' -and Al Qaeda especially before debates that would call him out on his LIES) and Obamacare (yeah- no taxes involved, no raise in premiums, keep your old plans- sure, Barack)-- And, no involvement RE: IRS targeting of the group that kicked his butt in 2010- yeah sure, Barack. Barack is 10000x worse than Nixon. But back to gold- contributing to the decline are the speculative shorts that will be forced to cover quickly once the CPI lies are exposed and the QE drug wears off and the country goes into convulsions. SCAMerica's Government is made up of the most pathetic basket of liars that have ever existed. The rest of the world's economies are crashing- and you're supposed to believe that the country with $17 TRILLION in debt- now hated by every country because of the NSA scandal is going to be the only economy where QE works. HA! The NASDAQ fell 80% in 2001 from just above 5000 to just above 1000- because of another Fraud-Fed caused bubble. Now, the Dow, NASDAQ and S&P are well into those bubble zones again because the economy they've been basing their earnings results on has been a phony scam. Once people start losing their home values even more than in 2008 - which is coming soon- the stock market will CRASH. The FRAUD Fed will not be able to HIDE the rampant inflation anymore and Gold will be the ONLY investment that will be going up. NASDAQ has now climbed 300%- since its drop. If gold does the same - it's at $3600 per ounce. That's the more likely scenario than NASDAQ reaching 3600 again. Soon, even the Dow will be on a 1:1 ratio with gold. DOW, S&P and NASDAQ will soon crash and Gold will soar. I can't wait to see Alex's video, at that point, about how completely wrong he was.

  • Report this Comment On July 01, 2013, at 12:06 AM, bocacassidy wrote:

    The expectations of Alex are based on simplistic and totally flawed premises ...As the price of Gold approaches the average COP, production declines ...Meanwhile the global central banks continue to print fiat currency without respite .. The rebuttal of WORLDSCAM is much closer to reality .....The eventual correction will be swift , brutal and without warning ,,,If - as in the past - the buying power of gold does not experience a radical increase , assuredly the buying power of paper currency will severely collapse ... Alex needs to study history .

  • Report this Comment On July 01, 2013, at 12:07 AM, Dizengoff wrote:

    I predict gold will fall to mid $800's.

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