Calling all Stock Broker / Money Manager / Hedge Fund Freepers. What IS the deal with Gold in general. I read both directions - hold or get ready to buy.
Per Stuart Varney on FOX Business, he thinks this is a temporary rise in the market, caused by investors dumping bonds and buying into stocks and doesn’t think it will sustain itself at all. The left is jubilant about this and claims this will continue. With the Fed printing 85 billion dollars per month (?) and shoveling it out the door, THAT is fake and this is NOT your dad’s Oldsmobile type of market.
Please chime in as this Freeper would love to know what Freeper experts say about Gold. Thanks and have a great day.
Simple. As it's always been -- an irrational panic metal that assumes when things get bad, you can trade gold for anything you want. Sorry; no. Aside from being used for fishing line sinkers, it has no intrinsic value when the economy goes belly-up.
Don’t take investment advice from people for whom a given investment strategy is a religion.
I think the price of gold is being manipulated down. The central banks can do this easily because of the paper transactions of gold without the actual gold to back it up. How long this game can go on I don’t know.
What kind of an idiot buys something when it is at an all time high? I guess the same kind that sells when something hits an all time low. Ron Paul, bless his deluded little antisemitic sympathizing heart, only lost this money if he SELLS NOW. If he holds onto it (and he didn't buy high) gold will probably eventually climb back to a value where selling it would have made it a good investment.
(1) It took me about 23 years to break even on those Krugerrands I bought back during the Carter administration.
(2) The internet and cable TV are full of people who tell me how my paper money will be worthless within months or years, but strangely they are only too delighted to give me some of their precioussss metal in return for those doomed pieces of green paper.
It’s looking good the past couple of days. If silver can hold $29 for a day or two, I’d say the bottom is in. Reaching and holding $1600 for gold might take a little longer.
Goldman Sachs’ talk of $1200 gold is pure BS, as usual.
Gold should not be viewed as an investment but as a hedge against inflation. It has dropped recently because so much money is being poured into the stock markets to make a quick buck while Ben "Gutenberg" Bernanke is cranking out the QE.
But monetary policies around the world [the currency wars] underline the wisdom of owning gold for the longer run. Paper money will begin to collapse at some point when people lose confidence in them as a store of value.
No telling when that will be, but at the rate they're being printed one might think sooner rather than later.
Maybe it’s just a correction from a huge gain, or maybe it’s reversion to fundamentals:
In the time that gold went up 5X, the supply of dollars in the world went up only 10-15%, so the price of gold has increased way beyond inflation fundamentals. 5X gold only makes sense as a hedge against a probable hyperinflation, so the market must be saying that hyperinflation has become less probable.
For the stock market, two factors, fundamental and monetary. Fundamental: technology is replacing people, producing huge productivity gains. Obamacare is accelerating that trend. Monetary: with zero interest rates, there’s no other place to put your money if you hope to gain. So far the gains have happened. This will work until it doesn’t.
My two cents.
I find the gains in stocks laughable with the backdrop of the world basically on the precipice of a global recession.
With that said, the price is the price, and it appears gold is ending its gold bull. Best find a way to exit in a timely way.