Posted on 06/02/2013 6:02:49 AM PDT by blam
NOURIEL ROUBINI: 6 Reasons Why Gold Will Plunge To $1,000
Joe Weisenthal
Jun. 1, 2013, 4:27 PM
Gold has been getting poleaxed in recent months, though it remains just below $1400/oz.
In a piece up at Project Syndicate, economist Nouriel Roubini says gold will fall to around $1,000 before the end of 2015.
He gives six reasons why.
We summarize:
* Gold spikes during extreme crises. The crises are over.
* Gold does well during periods when there's a risk of high inflation. That clearly is no longer a big worry, given how much central banks have unsuccessfully tried to stoke even modest inflation.
* Now with the economy recovering, nobody wants to be in rocks that don't pay any dividends.
* Real interest rates are rising. That kills gold. Governments with debt issues are selling gold.
* Gold was juiced by right-wing fanatics in the US. That boom is over.
(Excerpt) Read more at businessinsider.com ...
Roubini is always an excellent counter-indicator. I was concerned about my physical precious metals investment until I read this.
.............
Might have agreed with you but Roubini didn’t mention oil.
imho rising US oil production is reshaping everything —including the price of gold— in the world —inversely— to the first OPEC oil embargo of 1973.
The Texas guys on this board especially need to know that what’s happening in Texas right now in the oil patch is bigger than than biggest oil strikes of the 1930’s or the 1900’s.
The dollar has been tracking sideways since 2009. Check it out.
http://bit.ly/11wvJFX
For gold to move up —the dollar has to move down. How likely is that? not likely imho because of rising oil production.
Goldbug Ping.
I have a few gold coins and a silver ingot that we have had a very long tine. Not much but some.
Have some Silver Dollars & some other collectibles too.
But we do have the ability to feed ourselves. Have an orchard, blackberries, strawberries, fig trees, plum bushes and herbs. Always have a garden which we water. We have on site grain storage bins and cleaning/treating/processing facilities. We are in the planting seed business. Small operation, service local farmer families who we have know for generations.
We have deer, feral hogs, turkey and game birds. I have reloading equipment. And we have a meat processing building at the farm with commercial Hobart sausage mill, butcher’s band saw, meat slicer and a walk in box. Even have 3 AC generators if the power becomes a problem.
But I pray it is never necessary to do all of that. But we can and know how to.
We will eat.
Bump! Spot on about the impact of Texas oil company technology and impact. This has kept things in check somewhat the true damage of Obozo’s planned destruction of the US.
The Lying Fascist Quisling has taken a terrible toll.
But is that enough?
If every drilling permit asked for in recent years had been approved, maybe so.
But the libs spend at such a rate and the more they are promised, the more they spend even before they get it....
So can the oil business grow fast enough?
What we need just as much is broad based manufacturing.
We can compete with the rest of the world if the EPA, Bureau of Land Management, Interior and all of the other impediments to manufacturing would go away.
Some great points in this thread. Yeah, this US oil boom is running under the radar the past two years, but it is what is holding Obama’s crap economy from being submerged.
I’m guessing Obama can’t talk about it because it scares all the tree huggers that support him. But damn we need to unleash Keystone, fracking, all of it. Be energy independent. It is there for the taking for us. And to bring back global competitiveness.
As for Roubini, I used to follow his twitter feed, but it just got too painful as he spent half his time bashing conservative politicians in the US.
I am not a finance guy. I understand enough to know I have no business playing their game.
My experience is 35 years in the wholesale distribution business. Was in the trenches with independent businessmen all my life. First farming then distribution. Same kind of people, fiercely independent and mistrustful of Government. That is my element.
And I had lots of friends and family in the weapons research and industry.
Excellent post on every point.
That makes no difference to what I wrote. None at all.
That's for sure, and there's one fact that people need to know.
Franklin Roosevelt issued Executive Order 6102 on 3 April 1933 to confiscate all privately owned gold.
If they know you've got it ... Think about it.
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