Gold Going to Parabolic Top of $10,000 by 2012 For Good Reasons

The Market Oracle ^ | 6-13-2010 | Lorimer Wilson

[hinckley buzzard]

Most silver is mined as a byproduct of gold mining. Very few pure "silver mines." The Comstock Lode was a rarity and even there gold was a major factor. If gold mining is in decline, then so will silver production be also, regardless of "industrial demand."

[arthurus]

entrepreneur

[arthurus]

Put a 6 month moving average on that and it will look a lot like a chart of actual inflation, I think.

[palmer]

According to gold.org, gold demand is 68% jewelry, 19% investment and 13% industrial. Apart from a slight economic influence on jewelry, gold is going to be relatively free of economic influences. Silver demand on the other hand is much more strongly tied to economy although its monetary qualities have kept demand up

so gold would be held instead of traded for productive uses. The other aspect is that gold is an especially important form of money right now since most other currencies can (and probably will) be printed to pay of excessive debt.

[Titus Quinctius Cincinnatus]

I agree. Typically, we tend to think that any bad times are the beginning of the end - but we don’t know that. Jesus may come in five minutes, or in five centuries (though I tend to think it’s closer to the former than the latter!).

Point is, we ought to take wise precautions for the future, but at the same time, we should not make money, gold, etc, into our security. God only can be that. But it’s much about our attitude as anything else!

But seek ye first the kingdom of God, and His righteousness, and all these things shall be added unto you. (Matt. 6:33)

[Yorlik803]

If gold goes that high, you will need one ounce to buy two bags of food.
If it goes that high, we would have been better off stocking up on seed and other food stuffs.

[Redhd2]

"entrepreneur"

entrapenuer=my bad, but close enough for government work. :)

[jiggyboy]

Goldbug ping

Mail me to get on or off the Free Republic Goldbug Ping List.

[Jet Jaguar]

[PugetSoundSoldier]

Thanks! That’s a pretty handy bar of silver!

[Jet Jaguar]

Northwest Territorial Mint.

Good company.

[Jet Jaguar]

You bet!

[Christian_Capitalist]

I think that you under-rate Gold's value as a scarce store of value; what makes Gold a non-Fiat currency is precisely the fact that "you can't just make more of it". Combined with Gold's other monetary qualities, it's not surprising that Gold is historically the element chosen by advancing monetary societies (like the gold-standard West of the 19th Century) as a form of large denomination Money.

But that being said, I agreed with everything you said about Silver. Gold has its monetary utility; but Silver has that as well, plus much more. I like the yellow metal, but I like the white metal a lot better myself.

[dubie]

I predict it will be at $20 trillion by next year. Go get ya some now!

yeah... but what will 20 trillion buy you then??? That's the question... perhaps a single loaf of bread?

[Arthur Wildfire! March]

Bernanke Puzzled by Gold Rally [The guy should be a professor / sarc]
http://blogs.wsj.com/economics/2010/06/09/bernanke-puzzled-by-gold-rally

[stephenjohnbanker]

Bernanke is a real traitor. He knows his policies will wreck the US, but is following through with them anyway.

[betty boop]

The gold bugs are a-bitin’?

LOL TQC! Well, they certainly bit me. We'll see how all that works out!

Thanks for the ping to a fascinating article! Jeepers, if what the author is alleging — that there's a whole heck of a lot of "paper" trades in gold going on of possibly dubious settlement — well, that is deeply disturbing to me....

[Alamo-Girl]

Thanks for the ping, dearest sister in Christ!

[investigateworld]

Bumpworthyastherearealotofinterestingcommentshere