Posted on 10/08/2025 7:59:08 PM PDT by SeekAndFind
>> But the real explanation is very simple: it is the only way to hedge against soaring government debt.
The ONLY way? Nah.
Anyway, broken record that I am, I’ll ask again: WHY is it so easy to buy that precious GOLD!!! with a handful of those crappy paper dollars? And what idjit would SELL me gold in exchange for my worthless paper?
Yet there are literally THOUSANDS of gold sellers taking worthless paper dollars for shiny GOLD!!!!
Why?
gold will be 3000 before 5000
but I think silver will take a huge run to about 69 before everything crashes.
this is not investment advice.
you would do well to bet I am wrong cause anyone who says they can predict the exact futures of manipulated metals is mentally ill or a liar.
although Kramer said “buy silver” this morning which means more than anything I could say
Ohnoes!
Kramer said “buy silver”!
>> although Kramer said “buy silver” this morning
Kramer??!? Guess I need to sell my silver, then! Thanks for the investment tip! :-)
Gold not increasing, it is taking more declining USD’s to buy an ounce. ALL the world’s paper currencies are rapidly losing purchasing power at an alarming rate. History shows this to be the outcome for all fiat currencies.
US debt is a contributor, but not primary. Since senile Joe weaponized the USD, countries are ditching it and buying Gold.
>> Gold not increasing, it is taking more declining USD’s to buy an ounce.
So what do you suppose the gold sellers do with the declining USD’s they take in exchange for their rock-solid gold?
RE: gold will be 3000 before 5000
Gold is $3,985 today and touched $4,000 yesterday.
I don’t see it crashing unless we fix our deficit and debt problems ( and it seems that our government don’t even see these as problems ).
>> I don’t see [gold] crashing unless we fix our deficit and debt problems
Given our debt and deficit problem (and I don’t deny them) —
I just had a look at the FOREX rates and futures. If our economic outlook sucks so bad, why isn’t USD crashing through the floor relative to other world currencies?
RE: I just had a look at the FOREX rates and futures. If our economic outlook sucks so bad, why isn’t USD crashing through the floor relative to other world currencies?
If you’re talking major world currencies then I don’t see them doing any better when it comes to debt to GDP.
Measure the value of gold with mismanaged fiat currency such as the euro, U.S. dollars, yen, etc. All around the world, governments are addicted to debt. The cycle is simple.
Politicians overspend revenue. Rather than default, they inflate the currency. In other words, they print new currency and expand the money supply. More “worth less” currency units compete for a finite number of goods and services. As a result, prices for everything that has value increase.
That can be for a cup of coffee, a gallon of gas, a new home, a college education and, of course, for an ounce of gold.
Until there is a will from Parliamentarians, Congressmen and Senators to balance a budget, this vicious inflationary cycle will continue.
Edit to add....
Central banks worldwide ( China and India included) continue buying at a pace of roughly 1,000 metric tons per year. This will be the fourth year in a row. And investors are only now starting to buy in a meaningful way. We know this thanks to several indicators:
Premiums on fabricated coins and bars are still low.
The gold price is lower than three times the previous bull market high of $1,921.
The bull market still has a few years before it reaches a minimum expected duration of 10 years.
Interest rates are too low to dissuade investors from buying gold, and they are coming down.
The U.S. dollar is entrenched in a weakening trend.
The Gold/Silver Ratio (GSR) is above 80. Expect it to take 50 ounces of silver to buy an ounce of gold when the bull market is near to running its course.
Geopolitical crises continue globally ( now this is going to be interesting because the Gaza crisis seems to be going in the right direction, but not Ukraine/Russia, or China’s beligerence towards Taiwan ).
Social uprisings continue domestically.
The Dow/Gold Ratio stands at 11.5. The end of the bull market is only expected when it takes 5 ounces of gold to buy the DJIA.
Then there’s another something to observe...
Morgan Stanley recently changed its investment allocation guidance. For years, Morgan Stanley recommended a mix of 60% stocks and 40% bonds. Now, they recommend cutting your bond allocation in half and allocating that to gold.
Yes… that is 60% stocks, 20% bonds and 20% gold.
It may not seem like much, but consider this. Morgan Stanley is a blue-chip brokerage with $4.8 trillion in assets under management. If its brokers implement their recommendations for all their clients, 20% of $4.8 trillion will be moving out of bonds and into gold.
Until you can find me a consensus in Congress that will deliver balanced budgets for the foreseeable future, gold’s price will continue to wind its way higher.
I believe Dips should be embraced.
But to each his own. I have owned gold since the mortgage crisis of 2008 and have NEVER regretted it.
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The sellers buy more gold of course...USD is just the most convenient way of taking payments. BTC would be a better means of payment...it hit an all-time a couple of days ago.
I would guess because they need the $$$ to pay off debt or make some sort of purchase. Maybe they want to buy ammo(?)
>> I have owned gold since the mortgage crisis of 2008 and have NEVER regretted it.
You were smart to buy gold then.
Now...? I’m not so sure.
>> Maybe they want to buy ammo(?)
:-)
Silly argument. Gold selling is a business. A business needs to make money daily, because the US dollar is still currently THE unit of exchange. Is a gold seller supposed to sit on their inventory? Does an automobile dealership sit on its inventory because it may be more valuable in a few months? No, they need to sell cars to stay in business.
RE: Now...? I’m not so sure.
The reason I bought gold then has not changed. Then, it was TARP, then, Obama made TARP the base line budget long after the mortgage crisis passed. Ten years later, it was Covid, After Covid, do you think we would go back to the budget we had before Covid hit? NOOOO, the massive Covid spending became the baseline for the next budget and so on and so forth.
Heck, we can’t even cut a measly $9 billion from our budget without everyone crying foul. Now, with the shutdown, the Dems want to spend an ADDITIONAL $1.5 trillion for Medicaid and Obamacare and even if they did open the government, I forsee Republicans and Trump ( ever the negotiator ) coming to terms with the Dems with spending that’s less that what they demand but STILL elevated.
I don’t see an end to this unless we have more responsible Republicans like Rand Paul in the Senate and we get a 60 seat majority ( which is not possible at this time ).
So I am DEAD SURE that Gold will continue to rise. But don’t say I didn’t tell you.
>> If you’re talking major world currencies then I don’t see them doing any better when it comes to debt to GDP.
Be that as it may... when you buy (say) a BMW, you buy it with $USD converted to EUR. Ditto with the other things in life that one uses money to buy. That BMW price isn’t going to the moon anywhere near as fast as the price of gold! So my USD are holding their purchasing price pretty well in Germany, regardless of their (and our) debt and deficit problems.
might be interesting for someone
https://worldpopulationreview.com/country-rankings/debt-to-gdp-ratio-by-country
isn’t USD crashing through the floor relative to other world currencies?
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The USD is down 11 percent since January.The USD index (value) is compared to a basket of world currencies.
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