the post-Lehman redemption panic gave investors the fire sale price in the low 700s. Since then it's been straight up, with all-time highs in plain sight.
Posted on 02/11/2009 7:37:53 PM PST by TigerLikesRooster
'Paper gold market will crash at Comex'
Do you want to see gold in the big picture? Read an interesting interview with Marc Gugerli by Oliver Disler. Marc Gugerli is Fund Manager & Advisor of Gold 2000 Ltd and the Julius Baer Gold Equity Fund.
Oliver Disler: Mr. Gugerli you are a specialist for Gold and Gold mining stocks. Are you disappointed about the performance of the Gold price the recent months?
Marc Gugerli: No, I am not. Gold has outperformed all major asset classes like bonds and shares. The Gold price calculated in South African Rand, Australian and Canadian Dollar, British Pound, EURO, Swiss Franc and some other currencies Gold just recently reached new highs. Rather disappointing is the performance of gold mining shares.
Oliver Disler: We are facing one of the heaviest global financial crisis, why is Gold not trading much higher?
Marc Gugerli: Gold has primarily a function of conserving the value of purchasing power. Gold is money and goes hand in hand with the development of money supply long-term. In recent months a lot of money has been destroyed, although on opposite central banks are printing money.
The various problems and issues we have in financial markets, have been recognized much too late and most central banks (especially the ECB) are “behind the curve” reacting with adequate counter-measures. This is one of the reasons, why the gold price did not go up explosively.
(Excerpt) Read more at commodityonline.com ...
Ping!
I tried the same thing on diamonds and that did work. But I had to go to the black market.
In the absence of demand for physical, the large institutions have basically been able to keep the price low by selling it back and forth between themselves.
They HAD to do that to make the paper market for stocks and bonds and various instruments look more attractive.
The S is about to HTF.
I want to believe Gold Bugs sometimes, but I haven’t seen them be right yet.
I do believe we need to go back to the Gold Standard though. Fiat Currency is a disaster
There really isn’t much difference in the opinion of a gold bug, and someone who says “fiat currency is a disaster.”
the post-Lehman redemption panic gave investors the fire sale price in the low 700s. Since then it's been straight up, with all-time highs in plain sight.
I’ve been accused of being a goldbug but all I did was follow investment advice. I have money market accounts, bond accounts and very aggressive stock accounts. My gold assets haven’t lost a penny and are in fact up over 100%.
It a hedge against all things that you try to get to. Greed always loses.
bump
I’m not selling Gold is the difference. And usually the Chicken littles are.
I’m with you TLR, This time might be different.
Gold has been the one commodity (perhaps silver, I haven’t checked it) that behaved that way.
The Gist of this guy’s argument is that gold should breakout to 2k an ounce. Fundamentally he’s correct, but I don’t think the reality will prove it out.
I’m buying gold as part of my portfolio as well, but this is the normal tactic of gold bugs to stoke crazy demand by unsophisticated investors.
I have some gold, too.
Can I ask a silly question?
If our currency ObamaBucks are worthless as our fiat currency isn’t backed by anything, what could we trade it for?
The only function of the Federal Reserve should be to use open market operations only to keep the price of gold unchanging. That and drastically reduced corporate and capital gains taxes would suck the world’s industrial base to the United States.
Fia currency is political currency and is expanded and contracted to suit political desires, not the market.
Yea, they’re both right...
They have five mandates. All of them contradictory
Once the fanatical Iranian dictatorship announces they have nuclear weapons (thanks to the Kremlin), gold, silver and most likely platinum will be jolted upward, based on the fear factor.
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