The Current FReepathon Pays For The Current Quarters Expenses?
Posted on 01/04/2012 4:14:41 PM PST by SeekAndFind
LONDON (MarketWatch) — No one ever said gold was an asset for the faint-hearted. Or indeed, for anyone who doesn’t enjoy an argument.
To some it is the only true form of money, a king over the water just waiting to be re-installed on its rightful throne once the impostors are cleared out of the way. To others, it remains, as the economist John Maynard Keynes described it, a “barbarous relic,” of no more relevance to the 21st century that the canal or the telegraph.
Still, even by its usual standards, it was more contested than ever as 2011 closed out. After running all the way up to $1,916 an ounce in the autumn it dropped all the way back to $1,550 as the year ended. So has the great gold bull market, which started in earnest all the way back in 2000, finally blown out?
Not quite. Gold will tip over into bubble territory one day. But it won’t move into a bear market until central bankers start hammering down on inflation as they did in the early 1980s. And that moment is still some way off.
True, it is not hard to make a bear case for gold.
Any asset that has been rising fast for more than a decade has to treated with suspicion. Back in July 1999, gold hit a 20-year low of $252.80 an ounce. The International Monetary Fund was a seller, and so were central banks in Australia and Britain. It looked as if time was finally being called on its role as the ultimate repository of value. As it turned out, that was the bottom of the market. Since then the price has climbed and climbed. Even give the correction before Christmas, gold is up six-fold in a little over a decade,
(Excerpt) Read more at marketwatch.com ...
If Europe crashes then precious metals priced in dollars may see a significant fall.
Gold does not really change very much in price at all, for hundreds of years its value has been pretty much constant.
It is the dollar that fluctuates, and goes down. There is no “bubble”. The only thing there is, is an inverse relationship between gold and the US dollar.
To answer the question what would make the price of gold go down in price in terms of US dollars, the answer is that the US dollar must go up.. What it would take, would be to elect somebody like Ron Paul who would cut spending by 1 trillion dollars in his first year.
Other than electing Ron Paul, then the value of the US dollar will continue to steadily decline and thus the price of gold in US dollars will continually go up forever.
Every time my mother-in-law starts telling me that gold is going to go down, I say, “I wish you would have warned me before I started buying at $700/oz.”
That always shuts her up.
Ron Paul wouldn’t, couldn’t, cut $1 trillion in spending.
Electing one person, even to POTUS, isn’t going to change much of anything. The Congress would just pass the spending with 2/3 in favor.
Until we are broke, nothing will change. Only when the dollar is worthless, and government largess is also worthless, might people elect a majority of representatives that only want to contain government.
Gold has fallen recently and briefly, like for a day, was considered in a bear market a week or so ago. That triggered a rally which has not stopped yet. After that fizzels out, it may sink back into bear territory.
There are several other factors involved.
If the Euro crashes, the ChiComs and Japanese are going to have to decide what to do with their forex investments, whether to switch them or dump them and take on more commodities. The ChiComs are likely to dump some of their commodities.
What’s important to keep in mind, though, is that the flight to the US dollar will only be temporary. The world is already realizing that we are Greece.
We’re the tallest midget in the room. But we are all midgets, and we ain’t getting any taller.
I agree completely.
What the liberaltarians are also overlooking is that if a Ron Paul type did win (bucking the establishment), the establishment would combine forces to destroy that presidency. Even if Paul won, he wouldn’t be able to get anything done.
And what you mention is why I’ve stated that if we cannot elect a hardcore conservative who understands monetary science and what is happening and who has not only the knowledge but the political skill to implement what is necessary to fix our economy truly, then we might as well let Obammie the Commie win. If he loses, the economy is going to implode in the next 4 years, and the left will blame it all on Republicans, the Tea Party, conservatives, capitalism, whole milk. Anything and everything they detest and are trying to destroy.
If Obammie and his Commies win, then WHEN not IF the economy implodes in the next four years, they will have no way of blaming anyone but their own failed economic policies of the past 10 years (DNC controlling the houses from 2006 without conservatives having the majority needed to bring change combined with 8 years of the Commie in Chief).
Yes, I know, it would spell ruin. But every way I analyze the economic situation, I don’t see how we avoid financial Armageddon within 5 years.
I think Bernake is causing damage by keep interest rates too low, but he won’t tighten because doing so would devastate Treasury prices and blow the deficit up even more. In fact, thanks to the Fed, I think we are in a “Treasury Bubble”.
It's been sinking into the Earth to the depth of 6 to 18 inches for the last 12,500 years.
The problem is it's in microscopic particles so you can't just see it or pan it. You first have to "concentrate it", then use various systems to pull it out.
This stuff has been mined successfully by ancient stone age societies.
The Current FReepathon Pays For The Current Quarters Expenses?
Concur. I fall back on two tenants:
1. Things that cannot go on forever don't.
2. Its a good idea to compromise about what toppings to put on the communal pizza even if you don't like black olives and have to pick them off, HOWEVER, you should never compromise with someone who wants to put dog feces in the ice-cream mix.
We are past the point of no return concerning #1, and we shouldn't take ownership of any part of the dog feces ice-cream concernine #2.
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