Dow up 3% in 5 years
Gold up 96% in 5 years
I so glad I stopped investing in 401k's and all that government trap nonsense. Never again will my money go into the market. There are far better investments. My money is up 600% since 2000.
Posted on 09/24/2010 1:34:51 PM PDT by An Old Man
Nowhere to go but UP! (And then down...) LOL!
I made a tidy little sum today. :)
How is the dollar doing? This is a sign of a weak dollar, or a bubble. Or both.
Adjusted for inflation Gold was at $2200 an ounce in 1980
Inflation is usually the friend of gold. However, what we see going on here is not inflation but COMPETITIVE CURRENCY DEVALUATION. In other words, the central banks of the world are trying to out-do each other in intervening to weaken their currency.
This is especially true in export oriented countries.
The USD is weak because of lack of confidence in our debt and deficit.
Japan weakens the yen to prevent exports from sliding. The US eases. Brazil weakens the real. Japan weakens again. Around and around the print parade goes on, and the main beneficiary is gold, the anti-currency.
It’s a pretty logical argument, and it’s not obvious what will end this game.
So, what will cause gold to fall ?
The answer is probably be a return to robust, sustainable growth and modest inflation — pretty much the opposite of what we see now. But this doesn’t seem imminent (but if the GOP takes over Congress and are SERIOUS about stopping the Obama agenda, this might just happen. If they’re simply going to do surface house cleaning, gold will not fall ).
But is there any other outside event or headline that could whack gold? I can only think of one, and that would be a serious move by China to revalue the yuan.
If China did it by her own, that wouldn’t necessarily be the economic panacea many of us imagine it would be. It wouldn’t all of the sudden reverse the much-derided trade imbalances. But it might put a halt to the competitive devaluation daisy-chain, as Japan, Brazil, and the US might feel a bit less pressure to weaken their own currencies.
That would probably take a lot of the air out of gold, but that being said, it’s hard to imagine China making this move any time soon, and in a dramatic way.
Hence, in the meantime, gold will continue to rise ( and watch silver also ).
Gold and silver can only work together. There is 17 times as much silver in the Earth’s crust as there is gold. But with silver at about $20/oz, and gold averaging the past week at $1295/oz, that means gold is trading at a 65 times premium to silver. So, either gold is was overvalued compared to silver, or silver is way undervalued.
Thank you! It’s been a long 12 years, but things are finally starting to pay off. :)
Look at where it is today (on an unadjusted basis)
You made a tidy sum off of an $8 range in gold today? Sounds like a tall tale.
Packing $13,000 in gold is a piece of cake.
13,000 worth of gold is merely 13 gold oz coins, that’s nothing ...
No! You are wrong, my friend. Gold is the same now as it was in 1980 or 1880 or 1780 or forever. It is the American dollar and other world currency that is no longer worth anything. Inflation caused by printing more and more paper currency that is not backed by anything but a lying government causes the price we pay for gold and other precious metals to go up.
That was a brief spike followed immediately by 23 years at an average below $400. The spike was the anomaly. That spike accompanied the attempt by the Hunt brothers to corner the market on silver via futures contracts. It didn't work. Manipulative prices seldom hold.
That blip is NOT to be compared in any way to the run-up we are presently seeing. This time, it is about the debt bomb and the inevitable debasing of world currencies.
well just dang . . . I almost bought back when it dropped a little back in the 800’s and thought nah . . . argh and I bought Dell instead of Apple . . . back when they were both in the 30’s . . . that is now why I stick to mutual funds. :(
LOL! I bought when it was around $250. I'm smiling today...
I’ll bet!
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Those who know me know my story. :)
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