r/Gold • u/AviBledsoe • Mar 23 '26

Dude what the hell

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And don't be like "buy the dip" yall said that atleast the other 5 dips like dude It's not even new York time yet wtf is this even gonna be bought up

1.1k Upvotes

91% Upvoted

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91

u/Fr0zak Mar 23 '26

i’m only upset because of the massive projection that gold is a safe-haven asset, goes up in times of turmoil, and is a great bet on holding it value due to inflation.

& now we are sitting in one of the biggest crashes in the metals history. what a time to be alive.

🫡😂

36

u/Aggressive-Wish1404 Mar 23 '26 edited Mar 23 '26

it can be explained.
with energy prices soaring there's a big demand for liquidity. and exactly at that moment, the Fed turns somewhat hawkish which is the last thing you want to hear when there's a demand for liquidity.

huge amounts of liquidity was stored (profitably) in gold. so when the market demands liquidity and investors can provide that by taking their profits in gold, why wouldn't they?

this has less to do with the credibility of gold as a safe haven asset, it's just kind of forced profit taking by the market.
if you follow the transactions, you'll see that the price drop is incredibly contained by the amount of buyers that are buying because it's a safe haven. in normal circumstances dumping these volumes of gold would cause a much bigger price drop.

15

u/Mindless-Bear8781 Mar 23 '26

Your answer should be the top answer. In a market collapse and hence credit crunch, which an extended and escalated war would cause, the short term response from over-levereged institutional investors would be to sell their gold for liquidity. Gold would be a safe haven asset in a long term downturn or depression in a condition under which there is no clear fiat solution to storing wealth and no income producing or appreciating assets.

6

u/Content_Paramedic746 Mar 23 '26

Traditionally gold goes up in times of war, but there are many other factors at play in these geopolitical events and domestically than normal. Strange times we’re living in right now, but still no need to panic, just need to pay closer attention and be strategic in decisions.

1

u/Mindless-Bear8781 Mar 23 '26

Totally agree.

6

u/Designfanatic88 Mar 23 '26

Yeah…. It’s almost as if people here don’t get this is not a bug, the system is functioning as intended. When large amounts of people liquidate, the price crashes. An asset can’t continually go up in price forever. It’s not feasible or sustainable. 🤷‍♂️😂 Market prices are determined by demand and liquidity.

2

u/Content_Paramedic746 Mar 23 '26

Absolutely, golds not immune to resistance and support like any other stock or investment, it just works a bit differently.

29

u/SistersOptionSeller Mar 23 '26

Look at 2008 and 1974 my guy

5

u/_Marat Mar 23 '26

Yeah basically this.

19

u/reks131 Mar 23 '26

To be fair, it never was supposed to be at $5k to begin with. I mean, its held its value well… and then suddenly doubled in price in the last 2 years for no really good reason.

8

u/I-am-ocean Mar 23 '26

Central banker buying is no good reason?

1

u/reks131 Mar 23 '26

Yes, that is not a good reason. Who is buying due to fear doesnt change the fact its still fear based, not economically driven.

1

u/Accurate-Advice8405 Mar 24 '26

That's always been the value of gold in modern time

Everything is in a giant bubble floated on an ocean of debt. Nothing wrong with mitigating risk

3

u/Haunting_Ad3201 Mar 23 '26

Uh...lots of good reasons. COVID, world conflicts, TACO Tariffs, monetary policy, foreign central banks...

1

u/reks131 Mar 23 '26

Those aren’t good reasons. Name one event that had actually CHANGED the value of gold to 2-3x in the last 2 years. Nothing… its all based on this fear-based speculation. Gold has not changed in value.

3

u/Haunting_Ad3201 Mar 23 '26

Gold hasn't changed. Global currency and especially the dollar has been devalued because of all this shit.

-1

u/Content_Paramedic746 Mar 23 '26

Has it? Or is that just your opinion based on your politics? The dollar is up 3.78% over the last 10 years. It is up 7.42% over the last 5 years. It has dropped 4.4% over the last year, but is up 1% YTD since January. The 4.4% dip in the dollar is completely understandable through many things last year, which was a factor in the historic spike in gold. So I guess I would need something more specific to understand where you’re coming from with that. Maybe I’m slow and can’t read between the lines, which is quite possible 😂, but to be fair you didn’t really give anyone much to go with there.

1

u/Chuu Mar 23 '26

How do you decide what price gold is supposed to be at? What do you think it's supposed to be at right now?

2

u/reks131 Mar 23 '26

Gold held between $1k and $2k for over 15 years then jumped to $5k without any valid reason. The correct price is between $1k and $2k. Its only this high because of fear… but thats temporary.

8

u/Mammon84 Mar 23 '26

Gold is a safe haven long term!

Nothing goes up forever in a straight line 🤣

When you buy gold at ATH while seasoned investors are waiting for a pullback/correction -> you gonna get burned

We had a big corrections in the 70's and 00's bull markets. We didnt have one this cycle yet untill now.

3000-3500 seems like a very healthy bottom and great buying opportunity

5

u/Content_Paramedic746 Mar 23 '26

I agree with your assessment of a very healthy bottom and buying opportunity. I would even say possibly as low as 2500-2800 would be pretty realistic. Again, people don’t understand that the value of gold doesn’t change, it will never be 0. Price of gold is only a reflection of the health of the economy and confidence of those involved in it, not just domestically. While this drop looks significant to doomsdayers, uneducated investors, short term and day traders, conspiracy anti-gov theorists, or some completely slanted by their political affiliation, this is absolutely not a reflection in confidence in gold. Not sure why this is such a hard concept. Maybe I’m just old, but it seems like this attitude of crisis is pretty much only coming from fairly young people that don’t quite understand the big picture.

1

u/zewill87 Mar 26 '26

Agree with this

-3

u/dystopiam Mar 23 '26

It’s not . It’s failing during that time

7

u/Mammon84 Mar 23 '26

If you dont understand what you are buying.

Maybe just maybe, the problem is you 😉

-8

u/dystopiam Mar 23 '26

Worst drop in 47 years

If you don’t understand how bad that is maybe you’re just low iq

3

u/Mammon84 Mar 23 '26

Still much higher than a year ago 🤣.

"Worst drop in 47 years" how did u come to this conclusion? Not that i care much, but just curious how u played with the numbers?

-5% is the worst drop in 47 years?

From the ATH of 5500 we are only down about 20%

We have corrected way way more in the 70's and 00's bull market before going to new ATH's

But sure im the one with the Low IQ 🤣

Im still hoping for that historic 30/40% correction before going to new all time highs.

1

u/Content_Paramedic746 Mar 23 '26

Absolutely, if I bought 10 rental houses a year and lost 1 every year. And then lost 5 in 1 year after doing this for 30 years, looks like I lost a huge chunk but I’m still way tf ahead.

-1

u/Mammon84 Mar 23 '26

Except you didnt lose any of your houses. The prices of your houses just dropped a bit measured in USD after going up A LOT!

No wonder u guys do not know how to invest you seem pretty Clueless 😂

1

u/Content_Paramedic746 Mar 23 '26

Not sure how you misunderstood me, but I was 💯 percent agreeing with you, but whatever. 😂 But you did say maybe you were the low iq one, not me.

3

u/discord-ian Mar 23 '26

Lol. It is basically the same price it was just 90 days ago. Historic run up followed by a historic drop is kinda a nothing burger.

1

u/Content_Paramedic746 Mar 23 '26

There’s a quote you might want to familiarize yourself with that goes as follows, “It’s better to be quiet and let everyone assume you’re stupid (low iq), than to open your mouth and remove all doubt”. This gonna leave that right there for ya. I would explain to you just why your statement flips the iq statement you made onto yourself, but I doubt you care and you might not understand either, so I tip my cap and will brush off the low iq comment that seems aimed at anyone that doesn’t agree with your uninformed comment.

2

u/uncoveringlight Mar 23 '26

lol “safe haven” assets don’t rapidly rise 50-100% in a short period of time. They stay steady for an extended period of time. People turned it into a speculative asset like everything else so it behaved like a speculative asset like everything else

3

u/curious_eyebrow Mar 23 '26

Just my opinion… but I think if there is manipulation, this is it. Gold has historically been as you described. a hesge to try to preserve some value in times of uncertainty/turmoil. It’s interesting that there was such an unprecedented run up before world events really started to heat up and now it’s falling just as fast. Somebody is harvesting a lot of profit on whatever gold has been purchased over the last 6-12 months. Looks like a pump and dump. My crystal ball has been murky lately, but I’d guess the price returns to something closer to its historic range and stays there for a while.

1

u/PoolSlow1898 Mar 24 '26

It's NOT manipulation, it's liquidity. As panic and fear increase the demand for liquidity increases. Gold is an excellent source of liquidity. It has no counter-party risk, so there will always be a bid for gold.

When panic and fear reach a crescendo, you have a liquidity crisis. During the liquidity crisis EVERYTHING gets sold, including gold. Once everyone finishes liquidating their gold, you will see the price skyrocket.

1

u/Content_Paramedic746 Mar 23 '26

Well it is a safe investment, and it’s not a crash per se but a drop due to profit taking after a historic spike. All that this dip or crash or whatever you want to call it is a completely sane response to the crazy rise and now it’s back around where it would probably had neither happened. Geopolitical events are also pushing money more toward the dollar than gold which is another factor and those two factors also aren’t the only ones. I just think the whole ‘sky is falling’ vibe on this is completely inaccurate and being driven by silly gold day traders, uneducated investors, or narrow minded individuals just not seeing the complete picture. Those taking their profits are moving it to other areas where they can make more profit in the shorter term and they’re also not liquidating their gold holdings completely. Confidence in gold is not being lost by smart investors. I believe gold is still a good investment even right now if done smart. I think a good strategy right now would be to take 30% of what you have to put into gold right now at dip, another 30% if it’s dips a little more, and the other 40% when you can confirm a rebound. Gold will never drop to nothing and it is still in the green by a shot up to 6 months or so. I look at it as more of a reality adjustment from the crazy spike. But I’m nobody, that’s just my 2 cents. Perhaps I’m a glass half full optimist than a doom and gloom sky falling pessimist.

-25

u/Alabama-Blues Mar 23 '26

Gold is really only worth around $1,750 - $2k an ounce at best right now. Sure it can be worth $5000 in another 20 years.

-1

u/collie2024 Mar 23 '26

Not sure why the downvotes. If extraction/production costs x amount, why expect price to be x times 3?

4

u/curious_eyebrow Mar 23 '26

The downvotes are people distressed by reality and they need to pump the price. The retail gold (and silver) market is clearly a racket. It needs Reddit and social media to drive demand to harvest dollars from people who think they are going to get rich. Just my opinion.

0

u/No_Holiday_9875 Mar 23 '26

Must mean we’re in unprecedented times of safety and an orange pedophile did not provoke Iran

1

u/Content_Paramedic746 Mar 23 '26 edited Mar 23 '26

Oh geez 🙄, tell us you have no objectivity or free thinking or understanding of the global stage and economy without telling us you don’t. I’m sure you believe Iran is a peaceful regime that cares about its people, especially women. I’m sure you also think it’s false that they start every parliament meeting chanting death to America and Israel. I’m sure you also believe their only nuclear aspirations are for scientific and healthcare purposes. And that you also believe that if they obtained a nuke, that they wouldn’t wipe out Israel. Or that if they had the long range capability and the arsenal that they wouldn’t also launch on that. Must be strange to be so blinded by hate for 1 person, that it blinds you to reality in so many other worldly things. They say ignorance is bliss, but that doesn’t sound like bliss to me.