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Posted on 04/19/2006 11:08:46 AM PDT by Jim Verdolini
Are we in a Bullion Bubble? Gold and silver are rocketing to new highs. Look at the trend:
Monday Gold was over $604 and silver $13.33. By the end of the day Gold was $618. Tuesday it was Gold $620 and Silver $13.55. This Morning Gold $624.90 and Silver $14.16. Right now Gold is $632.70 and Silver $14.54!
I have read that there are two major things, in addition to oil prices, causing the rise. For Gold it has to do with a rumor that China plans to convert a small bit of their dollar reserves to Gold. For silver, there is a rumor that the metal will be traded differently and more vigorously. If China was to convert only 3% of their dollar reserves to gold, that would be the entire worlds production for a year!
I bought my wife a small gold crucifix last month. The chain supporting it was so frail that it broke in less than 2 weeks. I replaced it with a more serious chain and the store gave me a $20 credit on the flimsy old chain that weighs about nothing.
The Asians with their new found wealth are the reason the commodities markets are climbing quickly. One only needs to look at the price we are paying for gas. People it is not that gas is going up. It is the fact that your dollar is becoming worth less. Anyone look at the prices of gold, silver and copper lately?
"More than half of all industrial goods are made in its factories. The production and export of these goods, their prices kept low by Beijing's manipulation of the renminbi currency, has generated the cash behind China's growing economic power."
http://news.independent.co.uk/world/americas/article358568.ece
But we do create things of value, we just do it in other countries...hehehe
Hot air like that was spewing vigorously when gold rose through $300. It became rabid hot air as gold worked its way up. Lately, the hot air has cooled a bit as the turkeys stutter to explain gold's relentless climb. I may take my gold profits, but only when the hot air ceases and the turkeys start buying gold. For once, I got in at the bottom of a bull market. It feels great!
Cisco. Broadcom. Qualcomm. Krispy Kreme. But gold is different.
Supply and demand? The demand is from hoarding.
All your fiat are belong to us!<\b>
Biggest buyers of gold are orientals and middle easterners. I wonder what is going on in those areas that might make them want to buy gold?? Seen this before. My guess is a lot of the new wealth of China is being stored in gold (ditto) middle east. That, to my way seeing it is not a bad move on their part. These guys tend to buy alot of US Treasuries, but with the current yield and the currency risk they probably feel safer in gold. Also, buying bonds leave trails that central governments can observe, while gold can be hoarded.
The good thing about that perfect storm is that it will break right about the time Hillary steals, um I mean wins, the next election. It could mean the end of Demo presidents for years.
Never is a loooong time. Fiat is relatively young in this country. It won't come without major pain, so I am not really wishing for it, just being prepared.
Naw, you want Ferrari or Lamborghini money if you want sporty...
"The demand is from hoarding."
That's to limited, look at silver, copper, lumber, crude, energy, etc., etc., etc. Party is over boys, real problems that must be dealt with quickly.
About to see? Dunno. Timing these things is a fools errand. But it becoming increasingly obvious that something wicked this way comes.
When you are a rich despot like saddam, it pays to have a little gold around. The old iraqi dinar is not going to buy much. The chinese still remember when the commies took over. Unless you owned portable, stable wealth, you were out of luck.
I have a special program for people who want to magnify that gain so that their $1,000 investment can generate $100,000.
sounds like it should be 1-800-Hillary
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There's lots of room for gold to climb.
what was the high, $800 oz around 1980?
What cost $800 in 1980 would cost $2031.73 in 2005.
Also, if you were to buy exactly the same products in 2005 and 1980,
they would cost you $800 and $315.00 respectively.
Remember the Hunt brothers and $50 silver?
What cost $50 in 1980 would cost $126.98 in 2005.
Also, if you were to buy exactly the same products in 2005 and 1980,
they would cost you $50 and $19.69 respectively.
Gold like housing keeps pace (usually) with inflation.
Fun calculator to play with @ http://www.westegg.com/inflation/
The natural resources fund in my 401K is on FIYAHHHHH.
As times grow darker, gold glows brighter.
Now, whether it glows X$ brighter is always the question.
But it's always a comfort to have a little metal in your stash as an insurance bet.
Gold moves like an earthquake. The stress slowly builds, but gold remains constant. Occasional flutters release energy, but the market doesn't move much. Stress continues to build. Everyone sees it building, but no one wants to try to predict a once in a generation move. Having never experienced a major break, the younger folks discount the threat. Meanwhile the pressure keeps building until suddenly the market breaks upward. Those prepared get a memorable ride. Those unprepared get a face full of dust.
LOL, for $200 extra, will you send me "the Evils of Fiat money, die economy die" and the bamboo steamer?
Average car in 1971 cost what? Around 3500.00? That was 80 oz of Gold back then.
Same 80 ounces of Gold today is 51,000.00
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