Posted on 09/30/2010 6:57:03 AM PDT by SeekAndFind
Paulson, who is considered one of the most successful hedge fund managers worldwide, has made statements that the double digit inflation will kill the bond markets by enhancing the prestige of the gold markets. He expressed the estimation that the price of gold can easily pass the $2,400 per ounce limit reaching up to $4,000 an ounce within 2012. The billionaire hedge fund manager was speaking at an event in the University Club of New York.
At the same event, Paulson said that currently more than 80% of the placements are associated with gold, either in the form of ETFs (SPDR Gold Trust), either in cash or in shares of the industry, including shares of AngloGold Ashanti, Barrick, Gold Fields, IAMGOLD, Kinross, NovaGold and Randgold Resources. During his speech he said that the price of gold is in close correlation with the monetary base since he began to follow the path of gold. The monetary expansion alone could lead the price of gold at $2,400 an ounce while he said that is likely to see it reach up to $4,000 / oz. To support his assessment, he said that in 1980 gold prices rose 100% more than the dollars decline would justify.
At the same time, the ascending rate of gold continued on Thursday reaching the $1,314.80 an ounce after the closing yesterday at $1,310.30. In the spot market, gold traded at a new historic high while the price of the December contract was found up to the $1,316.20.
Silver also displays similar trends as it remains on 30 years high levels and for the first time since 1980 it touched the $22.02 an ounce on the spot market. The price of December contract was found up to $22.05.
At the same time, significant gains made for platinum and palladium. Specifically, platinum traded at $1,653.00 an ounce and is only 5.9% below from the year high of $1,752.00 which occurred on April 26th. Palladium is trading at 565 dollars per ounce, $6 below the year high of $571.
We'll see how it all plays out. Gold could keep going through the roof. Or, it could tank.
My only point, really, is that there have been many successful investors who have said they got rich because they usually sold too soon rather than too late.
It would most likely be a pricey black market. I doubt the government -- especially one like we have now -- would allow a free an open exchange of precious metals. After all, the government's goal is to steal our wealth via currency devaluation. Can't do that if we're converting all our wealth into metal. Remember FDR's confiscation of gold in the 1930s.
Still, I don't see any other option. The Fed is printing like mad....
Tocqueville looks like a holding company for non-diversified gold: gold mines and physical bullion.
If it’s not holding loads of cash and instruments then it seems as safe and on-Gold-price as RGLD, who own Gold royalties.
Cautious thumbs up for style of company. I don’t know if Tocqueville is well priced though (I simply mean: I don’t know, I’m not saying that they’re overpriced)
I agree with you. This is scalp only, after an overextended run on the dollar.
I agree: you guys have a unique stressor in that your Government has indeed historically stolen your Gold.
Governments of course are also trying to steal our pensions, the land under our feet, the right to breath out CO2 etc: Gold is simply one more thing for them to steal, and harder to steal than most assets.
Rules for hiding your Gold:
Bury your gold, preferably on land you control. It won’t rust, but burying it in a short length of PVC pipe won’t hurt.
Floor safes that only you and one other (see below) know about are also a good option. Safety deposit boxes in Federal jurisdiction are a bad idea.
Tell exactly one person whom you trust with your life, who is an adult and *not a member of your close family* where that gold is, and what they should do in the event of not hearing from you for (say) three months.
Don’t tell the secret of your gold (even the fact of its existence) to anyone who might be caught up in an armed visit to your house: that’s why I say “not close family members”.
RGLD is the creme de la creme of gold stocks........
I agree.
I’m embarrassed to say I don’t own any RGLD myself - being young and callow I’ve been buying Canadian miners in the hope of a larger gain, rather than the sure accumulation of royalties.
I’ve traded it for years....now. Along with many others...but it’s the best, IMO.
Whew! Out just in time at 1298.25. Went to 1297.25 and now spiked back to 1308.
Guess I need to get in on buying gold; huh? Is Goldline a reputable gold outlet?
And average in, don’t buy it all at once. Maybe 20% of your intended investment each month for 5 months. Maybe stretched out longer than that.
My concern is, as the price of gold skyrockets, how are you going to get a few groceries at the local store and then make change with a Krugerrand, for instance?
Or, they could trust you, and have you pay your grocery bill after it grew to equal an ounce of gold.
Or, there’s the old-fashioned concept of “change.”
Thanks; I appreciate it.
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