Posted on 07/15/2011 6:21:22 AM PDT by quesney
"It is very scary: the flight to gold is accelerating at a faster and faster speed," said Peter Hambro, chairman of Britain's biggest pure gold listing Petropavlovsk.
"One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money."
(Excerpt) Read more at telegraph.co.uk ...
Some are ‘fools’, but others are driven by envy and hatred. The left has used divide and conquer politics successfully for many years. You can't sew the seeds of class conflict and division without eventually having to harvest the crop that results.
No scales. And no western saloon bartenders hired for their “big thumbs” in order to get a pinch of gold dust in exchange for a shot of whiskey. It would probably just be digital money like we have now. Gold debit cards. They are already using gold digital money in certain parts of Europe. Don’t know if I would trust it, but hey... we trust our digital dollars now, don’t we?
Then why do they put expiration dates of one year on canned foods?
Gold has no value in tough times (IMO)
Ammo.
And pray you don’t get dementia or become physically disabled because the new “retirement” age will become 80.
Yo, this is utter BS because according to one of the most brilliant men Harvard has ever put out, Bernanke asserts that gold is not money. /s =.=
Those things can help get you THROUGH the crisis. But what about when the crisis is passed and conditions stabilize? THAT'S what you need the gold for.
It's not either/or. It's both.
Now, if you expect the crisis to last forever, forget the gold, but a few months to a few years is much more likely.
...devolving electorate.
Very nice. Never heard that description before, but I believe it’s accurate.
That’s the true legacy of the left; having taken over public education, higher education, the government, the news media and entertainment, etc., our society is increasingly ignorant, class conscious and perpetually apathetic.
I’m not telling you what to do.If you wish to purchase Gold go ahead.It’s still a free country T least for now.I just don’t trust Obama not after seeing what he’s done so far.He worries me.
Government regulations. The determination of the dates is highly subjective. Most mfg don't want to fool with it, so they put dates on that will make the government happy.
If it isn't bulging or leaking, it's eatable.
I've got canned goods with dates of 2015 on them, right now.
>>I wouldn’t necessarily discourage someone from owning some gold, but it is a bubble. It has all the classic bubble symptoms:
I can’t argue with certainty, but I have to disagree, at least inasmuch as I think it makes sense for people to put at least some of their monthly savings into precious metals as a hedge against the seemingly inevitable inflation (or worse) ahead.
>>1. An initial external stimulus which creates a rapid increase in demand. In gold’s case this was the change in the rules governing securitization allowing gold to be incorporated into mutual funds. In housing it was the change in Fannie Mae lending requirements.
True, but the ETF demand is a steady factor that won’t go away. More important, the ETF demand is at least in large part a symptom of the inflationary pressures increasing the price of gold, not entirely a cause.
>>2. A rapid increase in price. Once people see the initial increase in demand they begin buying further increasing the price. The circle begins.
I don’t see evidence that an increasing trend causes an increasing trend, except in hindsight in those cases when it does happen, or as an unsupported prediction that gold is in a bubble. Incidentally, what does that mean? If you are prognosticating, what do you think the peak will be, when, and what will it stabilize back down to after the bubble?
>>3. Investors start holding in anticipation of further big gains. This is where gold’s at now. This is creating less supply and further driving up the price.
Frankly, I think most investors (especially the big ones) aren’t expecting make big gains, but simply to hedge against big inflationary losses. That said, there can be manic spikes, and as the mainstream jumps on board, there can be hefty gains. The only fools are those who wait for the mania to buy. Smarter money averages in, and doesn’t need to sell at local or historic peaks. I can imagine gold being double today’s price in 5 years, having been quadruple today’s price at some intervening peak.
>>4. Big fish start taking profit. This floods the market with supply. Usually there is a stimulus for this (big timers don’t do it arbitrarily.) In housing it was stricter lending requirements, what can do it with gold? I’m not sure.
You’re trying too hard to make the rising gold price (for which there is a fundamental reason that wont go away - government borrowing) analogous to the housing bubble, which it simply isn’t. A gold bubble might occur when owning gold is as common as owning houses, but we’re nowhere near that. If you want to imagine how high gold can go on the fundamentals, imagine every individual and institutional investor deciding to put 10% of their holdings into precious metals!
>>5. Demand drys up. Just like tulip bulbs, no one wants to catch a falling knife. This is when the smart money buys.
Here’s where your case falls apart. Gold ain’t tulips. Tulips were of local interest for a short time in an economy with a startling new source of wealth. Gold has had value throughout human history, in virtually ever society around the globe.
But if we see gold doubling in a period of months, then I’ll be all ears, and in your camp assuming that it might be a bubble, and not to overbuy at that time.
To put the 1979 bubble in perspective:
In August of 78, Gold broke through the $200 barrier after years of trading in the $100-200 range.
In the next 12 months, gold doubled its record, hitting $400 (one-third of that gain coming in the final two weeks of the period).
In the following quarter, gold doubled AGAIN (with half of that rise in the last two weeks of the period).
THAT (quadrupling a new record in less than a year and a half), might be an indication of a bubble.
Ammunition, whiskey and aspirin. I'm not really an anti-gold-bug, but those things will have a solid trade value. I've got some gold and silver, but the way the prices have gone over the last couple of years, the only way I'll get any more is with a metal detector.
You are both right. Right now in America, evolution is working in REVERSE. DEVOLUTION. It is biological entropy - going from order to chaos.
Ammunition, whiskey and aspirin. I’m not really an anti-gold-bug, but those things will have a solid trade value.
Tangibles until you have enough, then precious metals if you have more to save.
The best advice is not to put all your eggs in one basket, and limiting yourself to three barter items and neglecting either form of history’s “money” seems awfully risky.
When you see interest rates rise significantly over inflation, then you will see gold crash, but the circumstances simply do not exist to make that an attractive option for either the Fed or the US Government...
Ferfal
If you listen to the radio late at night...the conspiracy stations will tell you...your dollars are to be replaced with the beautiful new truly gold debit card.
Craig Franco hopes to cash in on it with his Utah Gold and Silver Depository.
The idea is simple: Store your gold and silver coins in a vault, and Franco issues a debit-like card to make purchases backed by your holdings. He plans to open for business June 1, likely the first of its kind in the U.S.
“Because we’re dealing with something so forward thinking, I expect a wait-and-see attitude,” Franco said. “Once the depository is executed and transactions can occur, then I think people will move into the marketplace.”
The idea was spawned by Republican state Rep. Brad Galvez, who sponsored the bill largely to serve as a protest against Federal Reserve monetary policy.
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