American traders have succeeded in dropping the gold price all the way down to $1750 and that makes for a great opportunity to buy gold coins.

August 24, 2011 – American traders have succeeded in dropping the gold price all the way down to $1750 and that makes for a great opportunity to buy gold coins. To be sure there will be a lot of squawking about a “correction,” so I’ll add some of my own.

For two days running the other world markets have done their best to correct the unfounded price drops here, and it won’t take long for gold to get back up to where it should be. Yesterday the London PM fixing barely moved from the day before while prices here dropped some 60 bucks. And as I write the price here is heading for an even deeper trough, this time approaching $100 off the London price.

Either all of the other global markets have got it wrong or traders here have gone stark raving mad. Since no matter where I look I see the same old stuff that sent the gold price soaring, and not one scintilla of improvement anywhere, I’ll go with the latter.

As absurd as it may seem, the only explanation can be that traders here – unlike anywhere else in the world – still believe that Dr. Bernanke is about to unveil his latest elixir that will miraculously cure all of our ills. Or maybe they are preparing for one last money grab, some off-the-wall Keynesian slight of hand designed to trick us into believing it is safe to return to equities.

I don’t know who Bernanke would think he is fooling if that were the case. That cat got out of the bag a long time ago. The odds of QE3 even creating the illusion of budding prosperity are slim to none. But I would be elated to see the Fed try anyway, in whatever guise they can contrive. It just possibly could spark the beginning of the end for an institution that has far outlived its usefulness.

Whatever the American traders are expecting, it won’t be real and it won’t last. The rest of the world has tired of our foolishness and they are marching to their own drummer. Gold is going to recover very quickly because very real things are driving the price. I suspect you will have very little time to cash in on this spectacular opportunity to buy gold coins.

Kevin Johnson

Senior Staff Writer – GoldCoin.net