Posted on 02/05/2010 6:47:32 AM PST by GBA
This morning, I watched a video of the CEO of Gold Fields, Mr. Nick Holland, expressing his surprise at Soro’s recent statement that gold is the “ultimate bubble”. Mr. Holland said that almost every other expert on markets he talked to had a vastly different opinion of the metal - that it was “fundamentally sound” etc.
So, that being said, how does one explain the drop to a new low for this gold bear market, just moments ago? If fundamentals are so good, if the experts all agree that gold is a solid buy and say things like “you just can’t go wrong with gold”, why is it that the price is in a sharp decline that will carry on for some months and shave nearly (or possibly more than) 50% off the recent highs of over $1200.00 /oz?
(Excerpt) Read more at dailymarkets.com ...
As usual. I just keep some heavy metal stashed for the Big One. Whatever the price I can say it is hard to get ahold of old junk siver coins.
Gold is something of a mystery. Paper money is being devalued right and left, but there are MILLIONS of ounces of gold out there in the ground accessible for $400/oz or less.
Gold is down less than the stock market. It sounds like soros is shorting gold to make a fortune and has paid of some writers to help him.
Gold and silver are stationary. It’s the relative movement of currencies that takes place from time to time.
That’s my view of it, too. Gold/silver/platinum/palladium are the things that are constant.
And with China and other countries buying up gold, that has to help the price.
Is there still a large amount in Fort Knox?
I’ll be buying.
I’m a chick. I dig things going on sale.
;)
BINGO! And it ties into the decline in the price of other commodities, like Oil which dropped, $3.00 yesterday I think.
Here’s a possible explanation which has had me worry enough to stay away from Gold/Silver for the moment. There’s going to be huge explosion of new foreclosures as the next round of ARM’s reset and as Commercial property loans, (which are only of five year duration) can’t be reset. What this does is add more awful assets to the Banks balance sheets. That’s going to be trillions of dollars, but wait........there’s MORE. Jobs aren’t coming back and indeed, the next round of layoffs will occur in State, Municipal and Local gov’ts that can’t make payroll. So, what does this do?
The losses offset the dollars coming off the printing presses; the balance sheets have to balance and all those bad loans offset the “credits” of the free gov’t money. Thus.......there’s less “Dollars” in circulation. And to top it off, just saw an article where the Commiecrats are going to cut farm subsidies! WooHoo; all we have to do now is factor in the Farm loans.
It’s the perfect storm for a Deflationary Depression.
Everybody should stash away some metal for the time when it all goes to hell.
Right now I am invested in gold, silver and lead. Not much, but enough to survive for a couple of weeks. Especially the lead part.
.....Bob
Because buyers of gold as a hedge against inflation are starting to realize that they made a huge mistake.
If the articles I'm reading are correct, London doesn't have enough physical gold available for people demanding delivery, so they naked-short-sell the GLD ETF, forcing the GLD trust to sell physical gold to balance its books, freeing it for London to buy it for delivery.
Much more here http://www.marketoracle.co.uk/Article16987.html
Well "they" got me on my last silver buy in the mid-$16 area, but I'll be buying more here either today or Monday.
Good idea. I just keep about 500 face value of silver coin. I figure what the hell. I do not do it for investment. I do not invest or go to casinos.
it takes about 3 years to open a gold mine that has been mothballed. After that, it will stay in production until the cost of mining is so high that the company will not make a profit. Don Luskin was buying gold 2 years ago as the price was going up. Others were borrowing money to reopen mothballed gold mines at the same time. Only sucker money buys gold now, but gold is still a better bet than staying with dollar denominated stocks/bonds, with “drop money from helicopters” as the modus operandi of the Fed Reserve.
Optimists by gold. Pessimists buy brass and lead (in those neat little packages called “Rifle Cartriges”.
On Monday I was considering buying gold. So there you go. Explains it all.
I think oil stocks are good as anything. The rest of the world will come out of depression as the US remains mired in Obamanomics.
What form of metals do you buy? Certificates? Actual? How?
$1000 face bags of 90% silver are readily available (in halves, quarters, or dimes). Click on spot price chart on my profile page for link to dealer.
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