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$500 GOLD AND INTEREST RATES
Financial Sense Online ^ | 25 november 2005 | Peter Schiff

Posted on 11/25/2005 6:48:53 PM PST by hubbubhubbub

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To: ABC Choirboy
It's hard to turn on the radio without some firm trying to take your money to purchase gold. Could a gold bubble be in sight?

FWIW, and I swear to God that this is true, when I heard commodities firms advertising on the Howard Stern show I knew that the stock market bubble had finally run its course and The Top was imminent.

"The Top" didn't come for another two years, at least.

Gold has almost doubled in 4 1/2 years; NASDAQ went from 1000 in mid-1996 to 2000 by the end of 1998 -- three and a half years. Are people as excited, as obsessed, as universally giddy about gold now as they were about their internet stocks in the beginning of 1999? NFW. Gold is in a stealth bull market and IMO nowhere near bubbly in sentiment.

I recall (but I might be wrong) that the radio news back in the mid-80's always gave us the gold price just like they gave the DJII and NASDAQ. FWIW, I myself won't consider gold to be bubbly until we get at least that -- gold prices on the hour every hour.

41 posted on 11/25/2005 8:06:39 PM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: LurkingSince'98
"Otherwise why would gold go from $420 to almost $500 right now. "

Save this post.

It'll be $2,000.00 by 2008.

42 posted on 11/25/2005 8:07:05 PM PST by blam
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To: LurkingSince'98

Elmoooooo!!!!

OK. You win. The sky is falling.



43 posted on 11/25/2005 8:08:10 PM PST by Cringing Negativism Network (Hyphenated-Americans unite!!)
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To: blam

yes I agree, but what will silver be.

and even better what will silver's percent increase be.

Lurking'


44 posted on 11/25/2005 8:09:43 PM PST by LurkingSince'98
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To: Cringing Negativism Network

I did NOT say the sky was falling, you did, TWICE now.

I said the the VALUE of the dollar is falling and that is why the VALUE of gold is rising.




45 posted on 11/25/2005 8:11:59 PM PST by LurkingSince'98
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To: LurkingSince'98

46 posted on 11/25/2005 8:12:18 PM PST by Petronski (Cyborg is the greatest blessing I have ever known.)
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To: LurkingSince'98
No really ...it's "The Cabal"

Nice chatting with ya

but...GATA go now....

47 posted on 11/25/2005 8:13:50 PM PST by joesnuffy (A camel once bit my sister...necessitating her untimely death..-Mullet Omar)
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To: Petronski

And if you had purchased gold then?


48 posted on 11/25/2005 8:14:16 PM PST by GLDNGUN
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To: hubbubhubbub

As Gold has exploded in the past 3 weeks, the yield on the 10-yr note (which determines mortgage rates) has fallen from 4.70% to 4.42%, the equivalent of a Fed rate cut and then some. So much for the inverse relationship between Gold and interest rates. As a trader who trades both of these futures and currencies, it is clear that the current gold rush is mostly speculative in nature.


49 posted on 11/25/2005 8:15:07 PM PST by montag813
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To: LurkingSince'98
Otherwise why would gold go from $420 to almost $500 right now.

It has gone up even more than that in the past 5 years, all while long term rates have declined. The author's premise is provably false.

50 posted on 11/25/2005 8:16:24 PM PST by montag813
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To: Petronski

you are good with the funny pictures

kindly answer with words:

Has the increase in the VALUE of gold in dollars anything to do with the Federal Reserve printing 1.2 Trillion Dollars which are not backed by anything?

Are you aware that foreign countries OWN $6.2 TRILLION of our US dollars?

What effect would you say that has on our spending power?

Inquiring minds would like to know your opinions on those questions.

Or do you only make pretty pictures?????


51 posted on 11/25/2005 8:17:09 PM PST by LurkingSince'98
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To: LurkingSince'98

I think you should buy gold. Gold! GOLD!!!!

Hurry!


More gold!


52 posted on 11/25/2005 8:23:24 PM PST by Petronski (Cyborg is the greatest blessing I have ever known.)
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To: LurkingSince'98

No need to shout.

If you're going to publicly stake out a strident position against the historical currency of your home country (if USA is your home country - otherwise what's your agenda?), you really should be prepared for some disagreement.

It's supply and demand. More consumers buying a finite supply of a rare commodity.

Price goes up.

Sky remains aloft.



53 posted on 11/25/2005 8:27:35 PM PST by Cringing Negativism Network (Hyphenated-Americans unite!!)
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To: Petronski

Petronski

I did not tell you to buy gold I said that teh value of the dollar is going down which is why the value of gold is going up.

You are a lawyer. Look up GATA. Read the briefs.

Good bye!


54 posted on 11/25/2005 8:27:55 PM PST by LurkingSince'98
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To: Cringing Negativism Network

It is not supply and demand.

It is ablut what the true intrinsic avlue of the dollar is.

If the dollar has lost intrinsic value it will take more of them to buy something of value in this case gold, it coud also be oil, or silver or coffee or copper or zinc.

Come to think of it they are ALL up WAY up. 100-2200% up.

Are they all short supply and rising demand? NO and NO.


55 posted on 11/25/2005 8:31:14 PM PST by LurkingSince'98
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To: LurkingSince'98

I don't discuss economics with horses, preschoolers or goldbugs (but I might reconsider the first two). Sorry.


56 posted on 11/25/2005 8:31:24 PM PST by Petronski (Cyborg is the greatest blessing I have ever known.)
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To: LurkingSince'98
"...what will silver's percent increase be."

Don't know.

57 posted on 11/25/2005 8:31:30 PM PST by blam
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To: Petronski

you are laughably wrong.

I and not a goldbug, I own very little gold.

I am speaking of relative value.


58 posted on 11/25/2005 8:33:37 PM PST by LurkingSince'98
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To: LurkingSince'98

Your hyperbolically negative posts on this thread, combined with your erstwhile denial of gold ownership, make you a goldbug of stereotypical proportions.


59 posted on 11/25/2005 8:36:44 PM PST by Petronski (Cyborg is the greatest blessing I have ever known.)
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To: LurkingSince'98
The price of gold is going UP because the true VALUE of our dollars is going down.

That was true a couple years ago, but it is not the case now. Gold has gone up relative to ALL major world currencies, not just a depreciating dollar. Which leads to the second thing--the dollar is at a recent high, and has been holding for months. At 1.17 to the Euro, the dollar is not "going down" at least during the recent rally in gold price.

60 posted on 11/25/2005 8:39:22 PM PST by hinckley buzzard
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