Posted on 11/18/2009 2:10:43 PM PST by blam
Roubini Says Gold $2,000 Is Utter Nonsense
Commodities / Gold & Silver 2009
Nov 18, 2009 - 11:28 AM
By: Q1_Publishing
“Maybe [gold] will reach $1,100 or so but $1,500 or $2,000 is nonsense.” That’s what Nouriel Roubini said a few days ago at the Inside Commodities Conference in New York.
The comments from the economist credited with foreseeing the banking crisis were aimed squarely at investing legend Jim Rogers.
According to reports, Roubini specifically referred to Rogers’ call for $2000 gold as “utter nonsense.”
Since then, gold has continued to set new highs and is attracting a lot more attention from some of the best investors in the world.
The Day Gold’s Fate was Sealed
Back in March, when the S&P was sliding back to 1997 levels and wiping away years of gains every couple of weeks, the prospects for gold became more attractive than ever.
In March the Fed officially announced it would be monetizing government debt. In an official announcement the Fed announced it would “purchase up to $300 billion of longer-term Treasury securities over the next six months.” This was in addition to its purchases of more $1 trillion worth of agency debt and mortgage-backed securities.
On top of all that, Chairman Bernanke forthrightly declared in a 60 Minutes interview the Fed was “printing money.”
[snip]
Getting sick of all the ‘buy gold’ copmmercials on TV these days- the days of profitting from Gold are long gone- IF you owned gold back when it was hoverign around $300, then yeah- tyou made money- but to buy now is insane- especially since thsoe sellign the gold aren’t sellign you actual gold, but ‘certificates of owenrship’. Gold will most likely hover around $1150 and then start goign down again- sounds liek a losing ‘investment’ to me.
IMHO Roubini has been comprimised by the Fed, white house or white shoe gang.
Yeah, those US$ are lookin really really good these days, aren’t they? ...
What the US$ is in continuous decline? How could that be?
If the FedGov continues to 'eff up the economy, then the dollar could end up devalued to a point where it would require $2000 USD to buy one ounce of gold.
Since 1991, central banks around the world have collectively reduced their gold holdings by some ten percent. However, it now appears that attitudes are changing.
Gold has been hitting new highs in recent weeks, with the US Dollar weakening under loose monetary policy, reversing the gains it made in late 2008. Investors are betting that Asia's emerging economic powers will buy more of the precious metal to diversify their foreign-exchange reserves against a weakening US Dollar.
Exactly: Gold is not going up in value... its the same as its been for at least a few years if not alot longer. But the dollar, that’s another story.
You don’t buy gold to make money, you buy it to protect your savings from inflation.
You probably won’t make much money buying gold, but you’ll lose a hell of a lot less than you will keeping it as fiat US Dollar currency in a bank account if the dollar continues to decline over the long term as looks to be the case now....
You can’t eat gold or dollars. Food will be more valuable than both.
i might not be able to eat gold... but in the days where food is expensive, i could probably sell an ounce of gold for $5000/oz... thereby buying a loaf of bread for $10/loaf
You can’t eat gold or dollars. Food will be more valuable than both.
Gold and silver on the other hand, will help your spare WEALTH survive a crisis.
Keep your gold. I’ll learn how to make bread.
point being... the gold will keep its buying power and people will still want to buy/sell. hell, even in rural china where they are dirt poor, capitalism is still alive and well.
I have realized that personal wealth doesn’t have any value to me. Family, fellowship and eternal salvation are what I now cherish. Their value never diminishes.
I can’t control yesterday or tomorrow. Worrying about or trying to prepare for what may or not come to me is unfortunately a monumental waste of time.
I can tell you, my friend, that one thing is for certain, We will all meet the great equalizer. Is anyone who cherishes gold ready?
Related
Gold Glitters for Investor Paulson
http://www.thestreet.com/story/10616155/1/gold-glitters-for-investor-paulson.html?puc=_tscrss
My point being is if bread is $10 a loaf then wouldn’t the bread makers be the richest? Or ranchers? Or landowners? Or the gardener?
I’m not saying what you are doing is wrong. What I am saying is don’t buy the hype. If you spend all your time concerned about what the future you risk missing what is standing right in front of you.
Being prepared for the worst doesn’t mean giving up salvation.
A blogger I admire happened to write today:
Although our lives are brief in the grand scheme of things, they can and should be used for God’s glory. (That is our Great Commission.) I can think of no better Christian witness than being well-prepared and hence being in the position to share copious Christian charity in a time of crisis or catastrophe. The bottom line is that you can’t share the gospel when you are room temperature.
the purpose of transitioning SOME of your assets to gold would be as a hedge against such a situation. in that situation, the baker or farmer would be rich in their resource, but unless they are doing it strictly for personal use, they would want to trade/barter/sell the goods for other stuff. this is the foundations of capitalism
and if that situation happened, there would always be someone, somewhere, to buy/trade the gold for whatever currency is being pushed (having a few pieces of silver will help for the smaller purchases)
That’s what I am getting at. I didn’t say don’t be prepared, if that is what you are doing. My concern is that too many people are buying the hype. They have “gold fever”. They aren’t buying gold to prepare but are believing they are enriching themselves. Those that are pushing gold are doing it for a reason.
Your friend who has the blog is correct. As a Christian it should be a witness to us to prepare not only materially but spiritually. If we are blinded by the glory of gold we miss the true glory.
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