Posted on 01/01/2011 2:41:10 PM PST by An Old Man
Bears are by nature cautious and while caution can be an ally, it can also be fatal where bold action is required.
It is understandable that investors who believe in paper money and paper-denominated assets do not understand gold. Gold, after all, is the natural refuge of disbelievers in the current financial paradigm; and, as today’s credit and debt-based paper markets come under increasing pressure and gold moves increasingly higher, most “paper bulls” remain increasingly perplexed.
In October 2009, when gold had again breached the $1,000 level, investment advisor Chad Brand warned investors not to jump onto “the gold bandwagon”. Unfortunately, for Mr. Brand’s clients, it was the time to jump—and still is today.
From Chad Brand, Seeking Alpha, October 7, 2009: http://seekingalpha.com/article/165317-gold-prices-a-familiar-trend
Here is a 35-year chart of gold prices. Based on what you see, would you want to jump onto the gold bandwagon?...I am bearish on gold over $1,000 per ounce and this chart is a good reason to at least be careful with the current precious metal of choice. The latest trend looks very familiar…
Chad Brand is the President of Peridot Capital Management LLC, a paper money advisory firm; and fifteen months after Mr. Brand cautioned investors to avoid the gold “bandwagon” gold is now $1,400, a 40 % gain. My advice: Avoid gold bears. They’re dangerous, especially now.
This is an Except, Read more here
I predict that sometime before the next presidential election is held, Gold will be selling at near $2,500/oz.
You could look at a chart, or you could listen to the whir of the printing press. Your choice.
Happy New Year to you too!
How do you feel about Silver?
TrimTabs: “No Amount Of QE Will Be Able To Keep The Current Stock Market Bubble From Bursting”
Gold was up about 40% last year while the market was up 9%. This means people in the markets really lost 31% when compared to gold.
“You could look at a chart, or you could listen to the whir of the printing press. Your choice”.
...exactly! We’re printing enough money to place us in the same position as Germany in the 20’s. Worthless. We’ll probably lose our AAA rating in the next 2 years as well. On the other side of the coin, what do you do with gold if paper money becomes worthless?
For years the talking heads on TV have been saying in the nightly news: “Gold was up today and the dollar was weak.”
In 2010 that slogan did not work. Gold was up 30% in 2010 and the dollar was up 3%.
We all know how fast dollars were printed in the USA in 2010.
For the dollar to be 3% higher at the end of the year, the currency presses were working double time in the other countries of the world.
There is a whole lotta money being printed that needs to go somewhere.
* Gold $1,700.00 Oz
* Silver $60.00 Oz
* Copper $6.00 Lb.
LOL! Someone post that picture of the young African boy holding a stack over billions of Zimbabwe dollars. Totally worthless. Obama is Mugabe II.
My prediction for 2011:
* Gold $1,700.00 Oz
* Silver $60.00 Oz
* Copper $6.00 Lb.
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I agree with gold at $1700, but would put silver at $45 and copper at $5.25. I believe bonds are going to be hit hard as there will be a moderate attempt to stop inflation.
The politicians do not have options other than to print money to inflate themselves out of the public debt they have created. Has anyone ever heard a politician say they made a mistake?
Dude, you remember the old posts. I got in at 322 and 340, extexan was raising hell. As you know I am 400% above board, this is not an argument anymore.
Only when they got caught committing a felony.
I'd love silver at $60 but will still settle for $45.
Debt as money was very clever, but its time is up.
All that's going on now is that debt is being moved around - Greece's debt becomes Germany's debt, but Germany does not create value equal to its new debt.
It may go on for a few more years before the end.
That stuff is cold, hand and never says anything to me. I do have a few buckets full of it though and do not intend to part with it anytime soon.
If I give you my home phone number, would you call me when that happens. I got a truck load of paper money just waiting for that.
The problem with any predictions is that there are some large holders out there, i.e. George Soros who could dump at any time.
He isn’t dumping Gold. That was 2004, get wiser.
“Gold was up about 40% last year”
What? Try 30%
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