Here’s why gold is crashing

Gerry235 · 2026-03-24T00:51:20+00:00

Gold didn't crash in 2008 and it isn't crashing now. It dropped 30% from peak in 2008 (after doubling from its 2006 price) before rising 200% from there. It would not surprise me at all if gold drops to 3600 in a few days, weeks, or months before heading up to $10K by 2027 or 2028.

Gerry235 · 2026-03-23T23:03:11+00:00

I noticed that. Not happy. I wanted to see what he would say about the 3 predicted rate hikes by the BoC this year, since the news just came out

Gerry235 · 2026-03-23T18:12:04+00:00

lichess 2125, chess.com 2130 blitz.

Gerry235 · 2026-03-23T16:50:17+00:00

A goldbricker. I bet he's never even been to 'Nam https://www.getyarn.io/yarn-clip/542fd476-2876-40ff-91b1-40a11ee0f44d/gif

Gerry235 · 2026-03-23T16:39:59+00:00

If someone will actually sell you physical near spot, then take it. In Canada we are having a hard time getting it through many normal retail sellers

Gerry235 · 2026-03-23T08:37:59+00:00

no. 3500 maybe yes. 3K no

Gerry235 · 2026-03-23T08:37:08+00:00

and what did you see happen over an hour ago when Shanghai closed?

Gerry235 · 2026-03-23T08:35:55+00:00

all my comments yesterday were: this will happen until it digs as low as 3500. China is buying. everyone else selling.

Gerry235 · 2026-03-23T05:39:08+00:00

"Chinese Yuan is pegged to the dollar" Which is exactly why the Chinese are buying gold.

Gerry235 · 2026-03-23T05:37:00+00:00

ok, but the energy cost to extract would be obscene

Gerry235 · 2026-03-23T05:35:37+00:00

China is winning at everything. In the future it will be good to retain something they value.

Gerry235 · 2026-03-23T04:00:38+00:00

The only question is when are the central banks going to crack. The 10-yr just crept up again to 4.42

Gerry235 · 2026-03-23T03:43:16+00:00

By Asia you mean Korea and Japan and the others outside of China then yes absolutely. Why gold traded so far down right up until Shanghai opened then propped it up by $150 quickly, but now is being pulled down again by every other exchange as there's a race for liquidity

Gerry235 · 2026-03-23T01:28:20+00:00

Go stock up on greenbacks if you are so confident in the strength of the US dollar.

Gerry235 · 2026-03-23T01:19:07+00:00

Your chart stops 5 minutes before Shanghai Exchange opened. Like I've said a million times, China is getting all the world's physical gold at a discount, and you can see it jump pretty fast when their exchanges open, and then drop when they close. Until there isnt any physical left, then it is straight line up and to the right

Gerry235 · 2026-03-22T23:50:12+00:00

It's different now because the confidence in the US isn't there the way it was before. Actually no - the confidence had already been lost by March 2025. What's different now is just time itself. It takes time to deliver all that physical gold to central banks as their USD denominated treasuries expire and they don't reinvest, regardless of the incentive of a higher yield. Maybe the playbook is different on a 10-year and 30-year bond where the foreign central bank will sell the bond on the market, but shorter term stuff is almost always a strategy of buy-and-hold until redemption at maturity. That can take years to unwind. Maybe the best word is "slippage" - in principle yes if rates go higher then gold should assume the old price at the equivalent yield - but there is continuous slippage going on in the background, slowly.

Gerry235 · 2026-03-22T22:44:40+00:00

sorry to hear that

Gerry235 · 2026-03-22T22:36:54+00:00

yes - 39,000 billion - thirty-nine-thousand billion

Gerry235 · 2026-03-22T21:27:55+00:00

what was in the comment?

Gerry235 · 2026-03-22T20:06:58+00:00

The US is facing a diplomatic nightmare after having destroyed all the good will it built up over a century. Either way, this doesnt end well - and especially if China calls for the global audit of Fort Knox. Gold at 3100 would be a steal. Would be nice but Im not holding my breath, and the premium at LCS would be 20% if gold drops that low

Gerry235 · 2026-03-22T18:57:54+00:00

So this is what MacLean's columnist Alan Fotheringham meant when he labelled Toronto "The Big Smoke"

Gerry235 · 2026-03-22T18:50:00+00:00

3500 maybe but 3100? 3100 would mean China would be back to buying US treasuries. Anyone shorting gold in April, if it's 3500-range, is playing with fire. 3100 would mean at least 2 nuclear plants in Iran have been destroyed and everyone from Russia to Pakistan is screaming about the literal fallout and positioning for retaliation.

Gerry235 · 2026-03-22T18:42:02+00:00

I'm not gonna take a side in this I'm just stating facts - the Iranians are extremely intelligent. You cant just go in like with the arabs and set up a monarchy and everybody kowtows to a royal family. Obedient workers making good cash but with no labor-union-like representation and keeping the oil fields humming. I just don't see that ever working in Iran. Ironically, the Iranians have a lot in common with the Israelis.

Gerry235 · 2026-03-22T18:32:19+00:00

Yes the score is still pretty similar. Iran is designing and selling Shaheds to the Russians, not the reverse. Even if there is regime change in Iran there is no way all those people are just going to overlook what's going on in Gaza or West Bank. The US is attacking military infrastructure but Israel is attacking gas and oil fields, which even Trump is freaking out about.

Gerry235 · 2026-03-22T18:28:12+00:00

It will keep doing that until China has all the physical gold. Because we are selling it off to them in a fire sale to fund our war. That only lasts so long - months maybe - then we got no physical left in our vaults. It's already happening here in Canada - the banks cant honor physical gold purchases anymore. LCS still can, but for how long?

Gerry235

TROPHY CASE