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Check the price of gold plays up just a little after the crash yesterday 22 dollars -- it yesterday it was the biggest decline in more than three decades.
Joining us now is David -- so.
Point weak dot com president.
Now I should say everybody this man does not buy or sell gold he he reports on it he's not grinding any acts David welcome back good to see -- Good to see Stuart I'm putting myself in the position of someone who's a small investor and they owed a gold point.
I put it to you if I go back to my local -- -- In a down market where the prices plunging.
I'm not I'm not gonna get a good price from one ounce of gold in fact if the spot price is thirteen hundred bucks announced under the be lucky to get 1150 for that thing on on.
Not at all -- is trades very regularly at or near the spot price.
Worst case scenario you can get 95%.
For virtually any gold -- Where it ends up going back to a smelter so gold continues to retain it's value basis of the spot price is it goes up and down.
That's interesting because our studios are on sixth avenue here in New York.
Literally across the street -- 47 street which is pretty much the center of the gold the retail gold business in New York.
I believe they were changing their prices by the minute yesterday during the crash.
Well I was it was pretty exciting -- -- basically four reasons populated for the drop in the price of gold.
There was the -- change -- ETF profit taking bad economic reports from China.
The talk of potential quantitative easing being relaxed early.
-- bottom line -- -- ten years of pressure of profit taking that took place.
Friday over thirteen million ounces of gold were traded in futures contracts which was a huge amount that was dumped on the market.
Driving the price down once the price starts going down yes dealers are going to position themselves because everyone in the chain that -- schooled.
Cells -- off to someone else so.
As it comes into the market the person buys it they offered to someone else and ultimately end up hedging and on -- contract -- there could have been fluctuation but it was a huge drop.
I I've got to believe there's a lot of disappointment out I mean countless millions of people aboard a gold coin for the grandkids something and they've seen a lot of that value gone.
In a couple of days.
Tell -- the state of the retail coin market.
Well let's understand the investment and institutional rules people were sellers primarily.
The people that believe in gold and see that it is part of your long term financial position as a protection.
Not as an investment -- as a way to protect yourself from.
Change -- governments from dollars being overspent.
Inflationary spending they're they're not hurt they're not they're not in bad shape they actually look at now as being a buying opportunity.
Most of the places that I talked it was hard to talk to any of the traders.
Because there were so many people calling up to do business most of it buying from virtually every one David hold on site -- tell amid a lot of people yesterday were calling up those local calling and he does -- unbiased.
Is that true.
Well I'm dealing with the traders I'm dealing with the people supplying the local -- dealers.
The local people that I talk to the mom and pop levels they said it was maybe 50% -- people buying half people selling.
But remember if you only have three or 45 ounces of gold in your portfolio you're a little guy you're not going to be worried about market swings of 220.
Or even 30% the reason why you bought gold the fundamentals of it are still there.
Overspending at the government level the dollar does not look like it's going to be in good shape and three to five to ten years to come.
Entitlement spending is not going to be cut.
Gold coins are still something that people are liking and enjoying owning all right --
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