Totally agree with your analysis Fudley61.I think people should...

Totally agree with your analysis Fudley61.

I think people should look back at how gold behaved in the last financial crisis GFC ( although Im not quite calling this a crisis yet, the likelyhood of this continuing into one is certainly high ).

In US dollars gold dropped approximately 25% from just under $1000 per ounce to just over $700 in a matter of around 8 days from the 3rd July 2008 to the 11th July 2008 with quite a bit of whipsawing in between.

One just has to look at how previous financial crisis played out...almost always they follow the same theme:

• Economic/financial crisis leads to asset liquidation and dollar shortage
• Dollar shortage leads to dollar appreciation and gold depreciation (in dollar terms)
• One form of asset liquidation – forced gold selling – leads to gold depreciation
• Eventual monetary response creates surplus of dollars
• Surplus of dollars causes dollar depreciation and gold appreciation

Will we see gold follow a similar path this time? In all honesty I have no idea but I do keep in the back of my mind the old adage that although history never exactly repeats, it certainly does rhyme. We may well yet see more significant gold drops before it finally bounces back so you may want to wack on your seat-belts and grab onto of your hats as we may be in for a wild ride...

The Federal Reserve Chairman Jerome Powell has already signalled Friday the central bank was prepared to cut interest rates to cushion the economy against the effects of a widening global slowdown and potential health emergency due to the spreading coronavirus. And i just read recently the bets are increasing that it could be a 0.5% cut instead of 0.25% which is only positive for gold.

I must admit I am kicking myself a bit right now as I only read this information yesterday and had I done a bit of research 2 weeks ago when I sold all my non-gold shares I probably would have offloaded all my goldies as well to repurchase later <sigh>

Anyway, good luck to all and perhaps this drop in gold might give some peeps a chance to buy in some goldies at a discounted price or buy some physical gold for the future.