Posted on 11/10/2010 11:29:31 AM PST by GilGil
This is not an article about investing in gold. This is an article about the total collapse of the dollar and Obama’s utter mismanagement of the country.
That gold will reach $1600 by next January is a given. Things are falling apart so fast, that very few people understand the dynamics of this implosion.
As we have said $1600 is a given.
Where $5,000 comes in is a function of how quickly the liquidity of quantitative easing (QE) reaches all the cogs of the economy. The rapidity with which the QE lubricates the economic machinery is a function of the Federal government’s ability to move fast enough and to do the right thing.
If the Federal government fails us, values will start collapsing and there will be a total loss of faith in the dollar’s inherent ability to hold value. When that happens, markets will panic and go to the only store of value left which is gold and the $5,000 price tag will be reached. That loss of confidence has already started.
(Excerpt) Read more at examiner.com ...
What the heck is anyone, normal person that is, going to do with $5000 worth of gold? Barter it?
“QE is not a choice. It is the only tool the Fed has left. Austerity at this time would prove to be more dangerous than QE.”
Confused and hysterical.
The article is not about buying gold. It says so clearly. It basically says that gold is the canary in the coal mine. The higher gold goes the worse things get is the point.
Unless you know what you are doing, you are correct most people have no business owning gold. There is no danger there though because most people won’t understand that gold has gone up 500% in the last 5 years.
“What the heck is anyone, normal person that is, going to do with $5000 worth of gold?”
Buy a very nice dinner for your family, I imagine.
Gold by and large maintains its purchasing power. The fiat dollar depreciates.
Do you honestly not grasp what he is saying? When gold is $5000/oz, bread will be $20 a loaf. Everything will be crazy expensive and any physical dollars you have won’t go far.
If you had gold, you would exchange it for dollars and buy what you need.
Same with silver
It’s hard to explain gold to most. You summarize it perfectly. It cannot be any simpler.
does anyone here have the link to the real-time values of coins in and out of circulation based on their melt values?
I understood what he was saying. It is a warning—once gold hits $5000/oz. the *&(% has already hit the fan. I get that.
I want to know what to do with it. An ounce of gold won’t go very far with prices so exaggerated. How is a person going to use the gold more than once after people SEE said person using it?
The human mind always does this. It sees a trend and thinks it will be left behind should the body not follow. We see stocks rising and we are compelled to get on “before the train leaves the station”. All traders, no matter how experienced, ultimately learn they have to fight this built-in tendency. More often than not, we are late getting in and get freaked when the collapse occurs. It doesn’t ALWAYS occur, but more often than not, it does. Reactive investing is not a good plan.
I am not saying gold will or will not do this. (Silver got CRUSHED today, btw)
“What the heck is anyone, normal person that is, going to do with $5000 worth of gold? Barter it”?
...you sell it. To Goldline, Blanchards etc.
Try coinflation.com
Scary how this article says “$1600 by January is a given” when just 1 month ago $1350 was the target.
It's more about the preservation of ones assets.
Here is a clue. My granddad was French and he did the best in his entire business life during Nazi occupied France because he owned sacks of gold and very few people had any. Those who have assets understand gold. If you have it you will be able to get whatever you want.
Thanks.
Maybe by then we’ll be able to pay our houses off with it.
“I am not saying gold will or will not do this. (Silver got CRUSHED today, btw)”
Crushed? So it fell back to where it was on what? Monday? Last Friday?
Over the past 60 days silver is up what? 30%? in SIXTY days?
Instead of falling back on cliche I would suggest taking a look at the multiple factors driving this silver bull - or don’t and miss out.
You stole my thunder.
Point very well made!
This is how it works.
Let’s say you buy a single gold coin today fro $1400.
What can you buy today for $1400? Most likely, it would cover your bills for 1 week (avg family of 4). This is the buying power of the gold.
Then let’s say the stuff hits the fan. Yes, when its @ $5000/oz it’s hit the fan (if it ONLY goes to $5000 we’d be lucky). Now what would you do?
Just like exchanging one currency into another, you would exchange the gold coin for $5000 dollars.
At that time, that $5000 will most likely be enough to cover your bills ... For one week. The buying power didn’t change, but the dollar did.
Even if gold were to drop to $500/oz ... Odds are, all your bills would have also dropped... And $500 would be enough to cover your bills for ... One week
That’s how it works
Very simple explanation that’s on the money.
If I have $100 today and a loaf of bread costs $2.00. I can buy 50 loaves of bread.
But if the dollar drops by 80% of it’s value my same $100 will only buy 5 loaves of bread.
But if I had $100 worth of gold today and the worth climbs to $500 then I can buy 25 loaves of bread.
I just wish someone would tell me what I should pay per ounce of silver. Either “junk” silver or silver dollars. Yesterday a dealer quoted me a 10% charge above current market prices. Is that way too much?
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