In an extreme credit crunch, leveraged purchases of gold cause forced sales, because any price correction triggers margin calls. As a result, gold can be very volatile - upward and downward - at the peak of a crisis.
Nouriel Roubini
Related The market is becoming very volatile. It will move upward or downward with any other news -- includi... ED MORSE When you have a gold asset, and you look at any transaction, you always look at the gold price. JOCHEN TILK The gold strength, as much as anything else, is technical in nature. The downward slide in the dolla... DAN VAUGHT The oil price is one of the big reasons in the gold market. It looks like gold can test $600 again v... ELLISON CHU Any investment bought via credit always runs the risk of margin calls and, eventually, liquidation. BARRY RITHOLTZ Luxury comes at a dreadful cost, and... the edges of a gold card can be very sharp. JENNIFER SAGINOR The timing (of establishing the gold fund) couldn't be better as the recent gold price surge has cau... CUI LIN We believe that the increased purchase price is justified as a result of recent increases in gold pr... IAN TELFER Over the long run, the price of gold approximates the total amount of money in circulation divided b... RAY DALIO This gain exceeded any of the quarterly declines in gross margin as we moved throughout the downturn... BILL AYLESWORTH The thought that is billed at the price of fear and flattery is as inconsolable as that which is pai... LAMINE PEARLHEART There appears to be a material deviation on apparent US dollar strength (or euro weakness) as the go... DAVID HALL Gold is a commodity; over the long run, as we look back, it has not been a good investment. You can&... MICHAEL LEE-CHIN Gold shares seem to have come under pressure again. The gold price started to ease and very importan... LAVAN GOPAUL You can't look at the intrinsic value of gold as you can a business. Gold doesn't give you c... MICHAEL LEE-CHIN A gold standard doesn't imply stability in the prices of the goods and services that people buy ... BEN BERNANKE Price dynamics in gold next year will continue to be largely determined by speculative interest, bac... YINGXI YU Pure gold does not rust. Only gold alloys do so. You may have golden dreams. But if you go in the co... ISRAELMORE AYIVOR I get a lot of calls from clients asking about gold. LARRY MOSS Home purchases that are very highly leveraged or unaffordable subject the borrower and lender to a g... BEN BERNANKE The company's sales were affected by deflation in food prices, lower disposable income for consumers... FERNANDO TRACANELLA Better a heart of gold and an empty pocket than an empty heart and a pocket of gold. RAIN BOJANGLES Margins on other sales and revenues grew as a result of the growth in extended service plan revenues... AUSTIN LIGON Gold is not quite ready yet to move in the upward bias. JOE ISMAIL The trade in the gold market is very, very thin, with gold off the lows and the highs of the day at ... ALAN WILLIAMSON Those in need see a light of gold, a light of richness with a delightful taste of abilities to succe... ARIEL S BRITO Obviously with a higher gold price lower grade gold dumps become more viable (to recycle). ILJA GRAULICH The main driver of the results was an increase in the operating margin and this is a credible perfor... CHRIS MILLINGTON There may be a correction in Singapore housing prices. The housing price index is reaching the peak ... ZENG HAN JUN Value of gold is understood in crisis than on a occasion. But the gold plays both the role reminding... SANTOSH AVVANNAVAR You deserve to be with somebody, who knows you're the one, from that very first moment he lays eyes ... C. JOYBELL C. The market is very volatile since gold climbed above $600 as speculators are keen to take profits on... AKIRA DOI The gold price has taken quite a hit and it does not look like it wants to post any major recovery. LEE NAISBITT But, in truth, it had not exactly been gold, or even the promise of gold, but more like the fantasy ... TERRY PRATCHETT The JSE is strong again, but it will stay volatile for the foreseeable future. The Dow was steady ov... FERDI HEYNEKE You must save what you can of your life; you musn't lose it all simply because you've lost a part. HENRY JAMES I don't dare say that I favor gold in the long run. After gold's rise to these levels, I think there... ELLISON CHU We attribute the movements to renewed interest in the group following a summer of doldrums and highe... BARRY COOPER An Olympic medal is the greatest achievement and honour that can be received by an athlete. I would ... JEFF FENECH We die a day at a time BANGAMBIKI HABYARIMANA gold, gold, gold, gold, gold, gold" 'Is there a chorus?' "Gold, gold, gold, gold, gold".' ... TERRY PRATCHETT Tuesday can be a turning point. It's set to be a big day. It has to be a very big day. We've counted... BERNARD THIBAULT [5. In his essay] Can Gold Producers Survive By Promoting Jewelry?, ... At the end of the day, to re... LARRY PARKS We are seeing forecasts of gold price rises moving towards four figures from hallowed institutions. ... JULIAN PHILLIPS You're still lovely," Mor said a bit gently. Elain offered a half smile. "I suppose that war m... SARAH J. MAAS The 20-year bear market in gold has turned around. The upward trend in price has been in place for t... IAN COCKERILL The world wants India to remain an import-based economy. Then India can be a dumping ground where go... ANIL AGARWAL The real driver of the gold price continues to be lack of selling, leaving a small volume of investm... JULIAN PHILLIPS This calls for a very special blend of psychology and extreme violence. BEN ELTON But what's worth more than gold?" "Practically everything. You, for example. Gold is heav... TERRY PRATCHETT To measure prices by a currency that is called by the same names as gold, but that is really inferio... LYSANDER SPOONER Each man lives in his own universe and when he dies the world is over BANGAMBIKI HABYARIMANA Within the next few years we believe the gold price will surpass the all-time high of $US850 an ounc... GREG CANAVAN They want to give away the taxpayers' gold. If somebody went to Fort Knox and took gold out, they'd ... JAY INSLEE At the end of the rainbow waited the pot of gold. But rainbows were made of faint and fragile gossam... V.C. ANDREWS O Gold! I still prefer thee unto paper, which makes bank credit like a bark of vapor. LORD (GEORGE GORDON) BYRON It's just a statistical correction after the very strong months before. The long-term upward trend i... DIRK SCHUMACHER The credit market is one of the factor that cause this financial slowdown. However one should not be... ZENG HAN JUN By gold all good faith has been banished; by gold our rights are abused; the law itself is influence... SEXTUS PROPERTIUS I'm very happy about this gold medal. I heard it was a record. I know I have four (gold) medals at h... CLAUDIA PECHSTEIN Obviously the higher gold price is going to be beneficial for the mining industry. JOSHUA COHEN Gold has regained its status as an investment vehicle. It's one of the better performing assets in 2... FRANK LESH The issue isn't whether he loved you, it's how much. Too much. Love can be poison SARAH J. MAAS I am broken and healing, but every piece of my heart belong to you. SARAH J. MAAS He thinks he'll be remembered as the villain in the story. But I forgot to tell him that the villain... SARAH J. MAAS Night gathers, and now my watch begins. It shall not end until my death. I shall take no wife, hold ... GEORGE R.R. MARTIN Hodor," said Hodor. GEORGE R.R. MARTIN You do what you love, what you need SARAH J. MAAS I turned. Rhysand leaned against the archway into the sitting room, arms crossed, wings nowhere... SARAH J. MAAS An offer to fight Muhammad Ali came after Stevenson won his second Olympic gold in Montreal in 1976.... BRIN-JONATHAN BUTLER She wasn't bitter. She was sad, though. But it was a hopeful kind of sad. The kind of sad that just ... STEPHEN CHBOSKY So, I guess we are who we are for alot of reasons. And maybe we'll never know most of them. But even... STEPHEN CHBOSKY I love my mom so much. I don't care if that's corny to say. I think on my next birthday, I'm going t... STEPHEN CHBOSKY We Are All Infinite STEPHEN CHBOSKY (All the grief she had suffered over her lifetime had moulded her face into a mask of eternal sadnes... JEAN SASSON You can't just sit there and put everyone's lives ahead of yours and think that counts as love. You ... STEPHEN CHBOSKY I saw other people there. Old men sitting alone. Young girls with blue eye shadow and awkward jaws. ... STEPHEN CHBOSKY That one moment when you know you are not a sad story. You are ALIVE. STEPHAN CHBOSKY Somos quienes somos por un montón de razones.Quizás nunca conozcamos la mayoría de ellas.Pero aun... STEPHEN CHBOSKY Ambos dijeron que tomara asiento y parecían hablar en serio, así que me senté. STEPHEN CHBOSKY I know these will all be stories some day, and our pictures will become old photographs. We all beco... STEPHEN CHBOSKY So I guess we are who we are for a lot of reasons. And maybewe'll never know most of them. STEPHEN CHBOSKY So I guess we are who we are for a lot of reasons. And maybe we'll never know most of them. STEPHEN CHBOSKY There's nothing like the deep breathes after laughing that hard. Nothing in the world like a sore st... STHEPHEN CHBOSKY no more pencils, no more books, no more teachers' dirty looks, when the teacher rings the bell, drop... STEPHEN CHBOSKY I don't know the significance of this, but I find it very interesting. STEPHEN CHBOSKY Maybe it’s sad that these are now memories. And maybe it’s not sad. STEPHEN CHBOSKY If fund managers apportion just a little of their funds into gold, the price goes up by quite a bit. ERMIN SIOW Though we are terrorized by death, it's not different from birth, it just happens BANGAMBIKI HABYARIMANA Based on historic ratios between gold and oil, gold should now be over $500 an ounce, FRANK HOLMES Politicians in Washington work in a small, sheltered world where they lurch from crisis to crisis th... MIKE BARNICLE The price of gold was fixed at $35 an ounce in 1934, but by the time the U.S. got through the Korean... ROBERT MUNDELL Poor air quality, which can be influenced by a variety of fumes, chemicals and allergens, is arguabl... IAN SMITH They deem me mad because I will not sell my days for gold; and I deem them mad because they think my... KAHLIL GIBRAN You may look at a rainbow and wonder if there really is a pot of gold at the end of it.. know that Y... SARAH VINE My goal is one Olympic gold medal. Not many people in this world can say, 'I'm an Olympic gold medal... MICHAEL PHELPS It is amazing at how small a price may the wedding ring be placed upon a worthless hand; but, by the... DOUGLAS WILLIAM JERROLD It is amazing at how small a price may the wedding ring be placed upon a worthless hand; but, by the... DOUGLAS JEROLD We all know I won't be killed because of this stupid allegation of espionage, but because I decided ... PAULO COELHO Any medal would be good. A big gold one even better. SHAUN WHITE
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