Posted on 10/03/2014 6:28:13 AM PDT by blam
The problem with gold as an investment is that the medium and long term value of gold is the cost of production plus an acceptable profit for the producers.
At times when the price is high, so is the profit. When the price is low, there may even be a short term loss if cost of production assumed a long term high sales price.
Venezuela has a lot of gold it will need to sell because its USD reserves are almost gone.
This one worries me as it is much more tied to manufacturing demand
Goldbug ping.
I feel sorry for anybody who didn’t buy as much as they could possibly need at 200, 400, or even 800. Heh heh heh.
In 1992, I bought many Krugerrands at $382.00 each.
Yup. That's why It's called Dr copper.
LOLOLOLOLOLOL. As you obviously know, gold has no other value than demand, and since supply far exceeds demand, gold is overpriced by almost any standard.
The dollar is strong because all other currencies are declining.
Want to feel depressed? In 1983 I bought some silver for $16 an ounce. To be more exact it was somewhere between $16 and $17 per ounce
Part of the US Dollar strength is our increasing oil and gas production via fracking and other unconventional methods.
Strong USD = lower gold price
Even with all the flooding of fiat money into the system by the Federal Reserve all this dollar strength! Amazing
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