Posted on 06/13/2010 2:00:01 PM PDT by blam
Goldman: A Slowdown Now Would Be Deadly, Given That Governments Are Out Of Ammo
The gold bugs are a-bitin’?
Wonder if any of that black gold washing up on the Gulf Coast can be harvested/mined?
...and you think they’re not going to take steps to prevent this from happening? Soaring gold prices are an impeachment of the credibility of a currancy. Soaring gold says loudly the paper money is an unbacked hoax.
This administration, above all others, has the gall and hypersensitive reactions to re-confiscate gold.
Watch it happen.
Let me know what you figure out...I smelled the oil fumes at my house this morning.
Very much so... If they were serious, they’d realize that gold is a fiat currency - it has no real-world value other than what we attach to it. In all ways silver is a more valuable, useful commodity: higher conductivity (thermally and electrically), hardness, brightness, antibacterial, molecular weight, and current price.
Try to barter with a ounce - or even tenth ounce of gold; it’s like trying to buy groceries for two days with a $1000 or $100 bill. A lot easier to use silver, available in small denominations.
For metals freaks, the upside in silver is much bigger, and it has actual high-volume industrial uses as compared to gold. Gold is literally like diamonds - small real-world application, valued high simply because it’s a fiat value - deemed to be high because we want it to be high.
Silver, copper, lead - those are the metals that have big upsides.
Gold strikes me as a metal you want when you plan on long-term investing as its value goes up over time, but it’s not something you’ll want to use for day to day activities. Problem is, if TEOTWAWKI takes place, the whole system that puts value on gold also goes away. In such a case, I can see a case of whiskey and a jerrycan of .45 ACP getting you a lot further than the equivalent amount of gold by pre-collapse value.
If gold hits 10k/oz. by 2013 I’ll eat my shorts. My Email address is: _____________________ LOL.
$10,000? Talk about picking a number out of thin air.
Confiscating it will be very difficult.
Preventing gold holders physically within the 50 states from realizing any spendable money from it will be very easy.
Or, "This time it's different, baby."
That's the line of every scoundrel. And he uses it at the top.
When I read this kind of stuff, I ask “How much gold does the author own?”
The author is trying to talk up the price of gold. There has been a lot of talk lately, and the price is now at roughly $1200. Hard to see how they can improve on the fear that we have now. In the US, we obviously don’t have the inflation which would justify the high prices that are prevailing. The only things that might lead to a higher price in my mind are 1) US inflation, and 2) foreign inflation. There is little evidence of US inflation at this point, but the gold market is a world market, and inflation certainly is possible in some of the other countries of the world. Even so, at this point, there is not much evidence of it.
I don’t imagine there is much risk in owning a small portion of your portfolio in gold, but I would certainly not want to bet the farm, as some have done or advised others to do.
I am also suspicious that at some point, it will become apparent that some of the gold suppliers are just as fraudulent as Madoff. It is easy for the criminal element to sell fake gold, as demonstrated by the discovery of gold plated tungsten bars of late. Some of these outlets don’t actually deliver the gold. They claim they are holding it for you, but who knows? Some of them are simply selling you paper that represents gold. Maybe they own gold to back their obligations, maybe they don’t. If not, then how do you know they will make good on their paper obligations? And if you do take delivery, then you have the risk not only of fake gold, but also the storage and theft risks. Another factor not often appreciated is that the fees for selling gold can be substantial—much more than the fees for purchasing it.
Why not..... $20,000 ?
What's his position? How much did he get stuck with today at $1,227? Well, somebody has to ask....
Industrial metal prices have industrial factors tied into their price/value which can be bad for an investor in an industrial slow down.
The only way this would even remotely be likely is if the S really HTF, and even then, much more humble, useful subsistence items would be far more desirable.
That's not to say that those who have held gold for, say, the past ten years haven't profited handsomely. But this sort of thing has been a pretty reliable indication of a top in the past.
I predict it will be at $20 trillion by next year. Go get ya some now!
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