Posted on 05/18/2010 3:14:05 PM PDT by blam
Here's Why The Gold Run Is Just Getting Started
The Mad Hedge Fund Trader
May. 18, 2010, 5:18 PM
The good news is that you no longer have to be crazy to buy gold.
Until recently, certifiable believers chasing the barbaric relic were driven by a host of urban legends and conspiracy theories, such as the imminent bankruptcy of the US Treasury, Fort Knox holding only titanium bars that had been painted gold, Weimar style hyperinflation that is just around the corner, or the gold ETF (GLD) owning only paper, and not physical gold.
No more. The long term structural demand for the yellow metal is now so well known, that I can read about it in the tabloids while waiting in line at Safeway.
There is an emerging market central bank bidding war going on, with India and China trying to outmaneuver each other to raise their gold holdings to developed world levels.
The EC or the IMF may sate that demand by selling off their remaining holdings to bail out Greece. A rising emerging market middle class also brings large, newly enriched consumers from countries that have long cultural preferences for owning gold and silver over paper fiat currencies.
Now that we have decisively broken through to a new all time high, how high can we go? Surely peak gold is upon us.
Barrick Gold (ABX), the world's largest gold producer, would not be hacking out new mines under incredibly harsh conditions at 15,000 feet in the Andes if there were easier supplies to develop.
[snip]
[Compare] the performance of gold so far to other bull markets of the last three decades, and it is clear that we are only just getting started.
[snip]
(Excerpt) Read more at businessinsider.com ...
Stopped reading there. Bad research makes it incredible.
"Here I drove to Vienna yesterday to buy gold from the Austrian Mint, and a very interesting thing happened. As I got there, there was a long line extenting into the street. I bought stuff from them at least 4 times in the past 2 years, and there usually was no line at all. And there were security guards now, which was a new thing too."
FWIW...
I believe the rumor was tungsten, electroplated heavily. After all, titanium is just a wee bit light to pass.
So why were all those tungsten bars whipped up, (during the Clinton administration) anyway? Enquiring minds want to know...
If true, this is a powerful SELL signal.
People say “You can’t eat gold” well you proabably shouldn’t eat Crude oil or natural gas either.
The price of gold is breaking all records because it is and has always been historically a safe reliable and secure investment.
What? I guess you believe what the US Govt tells you?
Well the reality is that the fiat paper rpinted by the US and Europe is not worth much and is sinking.
Exactly, this sounds like a sell signal. Not tht gold can’t go to $5,000 - I mean anything is possible, but right about the time your coworkers are all jumping on the bandwagon and your mother calls up asking how to buy it online, you know the bubble is getting toasty.
I did qualify this - we just don’t know how high gold will go before it peaks. Many have talked about it peaking at par with the DOW, which means the DOW has to collapse below $4000 or something. We just don’t know how high as fear of a depression soars.
Tungsten or gold, it doesn’t matter.
The supposed 90 million or so ounces ($110 billion at current prices) would be insufficient to support the currency, the government or the economy, no matter what it is made of.
Except maybe bomb-grade uranium or plutonium (which would spontaneously blow up if cast into a brick).
You have to agree that it depends upon the current price and the future (expected and hopeful) changes... Like any other investment, it comes with risk.
It is a good investment against inflation but at today’s prices, not exactly a good bet. Now, it just might be that it does go up to 2000 or more, but like most investments, it is a gamble. If if falls back to 300 or so..how much will you lose?
How long before it’s illegal to own gold? And if it gets “Mad Max” bad even the gold won’t be worth anything if there’s nothing to buy. Reminds of that old Twilight Zone episode.
When I bought gold back tin 2004, I told a money manager/stockbroker type what I had done and he sneered that I should rub it on my body for a nice tingly sensation as that is the only good it would do me.
Yep, buy now before it drops back down to 1999 levels. You can fool some of the people some of the time but you can’t fool all the people all the time.
http://www.finfacts.ie/Private/curency/goldmarketprice.htm
Only until the government makes it illegal. Which it did before and will do again, if needed.
And if it gets “Mad Max” bad even the gold won’t be worth anything if there’s nothing to buy.
Indeed. As I recall, major currencies in Mad Max world were fuel and food. Ammo would be also popular, being a product of technology (it requires metals, chemicals for primers, and the modern propellant is not your old black powder any more.)
In any case, preparations for the end of the world are often incompatible with living a normal life. There are so many scenarios and they are so all over the place that it hardly makes any difference what you do. When the real disaster strikes nobody will be ready for it. US-based people with coupons in hand for gold bars in Switzerland will never see their gold - even if we for a moment assume that the physical gold was there to begin with, which is probably a lie.
I have found this website to be an excellent source of information about gold, silver, and the economy.
http://goldismoney2.com/forum.php
I believe what the Periodic Table tells me. Titanium as a gold adulterant is nonsense.
Tungsten, yes.
Probably easier to change gold into food though. (Or anything else, and No Alchemy Needed.)
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