http://www.monex.com/prods/gold_chart.html
http://www.goldprice.org/gold-price.html


It's $1567 per ounce right now.
It's down $7 from $1574 a couple days ago
It's down $300 from $1900 since September 2011

It's up $1000 per ounce since July 2007


I know gold is overpriced based on the current value of the dollar.
However gold is way underpriced if the dollar collapses.

Is the bubble bursting until the next president is decided?
If obama is re-elected, will the price of gold skyrocket again??

5/24/2012 12:12:18 PM

The price of gold will probably stay somewhat stable unless the Fed announces another round of QE. QE will be necessary at some point, but the timing is unknown. Monetary policy in this country will change based on stimulus. For instance, a chaotic exit from the euro by Greece could initiate a domino effect, which may actually be a benefit to the dollar -at least until the focus shifts to the insolvent U.S.

5/24/2012 12:19:44 PM

There is no such thing as overpriced or underpriced gold because the use purchases of gold are not motivated by consumer value. Unlike other investments, after you invest in it, it does not turn into consumption today or in 1000 years from now. Once you're done investing in it... you keep investing in it. There is no analytical objective price for gold unless you use the niche industrial uses as a basis, which would not give anything anywhere close to the prices gold is now or has ever been.

Currencies themselves can be underpriced or overpriced relative to each other, but not to the goods and services traded in the economy. There is no predictable natural level of cash in circulation. The vast majority of cash holdings could be eliminated by converting to equity or debt holdings for a short to medium store of capital. The same applies for gold.

[Edited on May 24, 2012 at 3:01 PM. Reason : ]

5/24/2012 3:01:20 PM

Specifically talking about the gold/silver ratio


When the ratio is HIGH, it's a good time to big silver.
When the ratio is LOW, it's a good time to buy gold.


Does this work

(a) in all cases?
or
(b) depends on their individual velocity?

6/5/2012 11:06:56 AM

Nothing in investing "works in all cases" if there was a magical way to always get investment returns we'd all be rich.

6/5/2012 11:45:25 AM

Quote :

"Specifically talking about the gold/silver ratio"

funny, you left that out of the OP. dumbass.

6/5/2012 11:47:00 AM

Silver is crashing

Reach $26 territory for the first time

6/21/2012 1:26:35 PM

The first time? What are you talking about?

From 1985 to Dec 2010 it never came close to as high as $26... I don't have full data back past that.

[Edited on June 21, 2012 at 3:06 PM. Reason : X]

6/21/2012 3:04:51 PM

LOL... I'm talking about first time it's reached that level since the peak. (It's really the second time now that I look at it since January)




[Edited on June 21, 2012 at 10:49 PM. Reason : .]

6/21/2012 10:46:56 PM

Quote :

"Specifically talking about the gold/silver ratio When the ratio is HIGH, it's a good time to buy silver. When the ratio is LOW, it's a good time to buy gold. Does this work (a) in all cases? or (b) depends on their individual velocity?"

a) No. If we assumed that the ratio between gold/silver has to return to some long term historic ratio (quite the assumption) this still wouldn't be correct in all cases. If the ratio is HIGH, it may be a bad time to buy silver and a worse time to buy gold. If the ratio is LOW it may be a good time to sell gold and a great time to sell silver. Follow?

One very important factor. Sllver has various industrial uses. Therefore in an economic collapse the industrial value of silver can decline sharply even if the inherent "store of value" present in silver is rising. This can cause the metal to fall, rise, or remain stable in any given economic scenario depending on which factors are present and how strong they are relative to each other.

Gold has little industrial use and trades more as a store of value in the long term and a function of current and expected future interest rates. In the short term though it can trade on liquidity factors, margin rates/hikes, lease rates, etc.

Another big difference is that the silver market is TINY relative to the gold market and can be much more easily manipulated in the short term than gold markets.

6/22/2012 1:26:23 AM

Quote :

"However gold is way underpriced if the dollar collapses."

The dollar and other major world currencies already have collapsed. That's why gasoline is down to $3.219 now and we think that's cheap and gold has doubled in price the past 5 years. Governments worldwide the past five years have intentionally completely debased their currencies.

As far as politics and the election, it really doesn't matter. When it comes to macro-level economics, the Republicans and Democrats are each as dumb as the other.

http://www.ritholtz.com/blog/2012/06/economic-crosscurrents/

Quote :

"Yesterday’s FOMC meeting has lots of people chattering about whether the Fed did too much or too little. Forget consensus, there is a notable lack of any sort of recognition of where we are in the overall economic cycle. Some of this confusion is a lingering effect of Economists lagging recognition of balance sheet versus cyclical recessions. What other factors are making this such a challenge for the seers? Consider: • The Fed’s QE/Twist is an unprecedented intervention. Economists have not figured out how to quantify the impact. • The Warm Winter pulled lots of economic activity forward. Housing starts, nonresidential construction, auto sales and retail all benefited. • Q1 looked much better than it should have courtesy of that warm weather; Q2 ended up looking much worse for the same reason. Average them together and you get a mediocre (but non recessionary) 1.5-2.5% first half GDP; • The aggressive layoffs in the private public sector — teachers, firemen, cops, etc. — is an ongoing drag on the recovery. It is offsetting about 1% of jobs in private sector. • Ex-Public sector layoffs, Unemployment would be about 7.2% • Parts of Europe are already in a recession. Spain, Italy, Ireland and the UK are contracting; Germany and France are on the verge. • Greece is in an outright depression (if you want to include Ireland also, I won’t argue with you) • Apart from and in addition to the reductions in economic activity detailed above, the Euro Zone is teetering at the abyss of a Credit Crisis. Their Lehman moment has not yet happened. • China and India have seen a rapid deceleration in their economies. • The perma-bull attitude that infects so much of Wall Street works better during secular bull than secular bear or cyclical bull markets. • In the US, the public has suffered from recession fatigue. While some people continue to up their savings, big ticket discretionary items like vacations and cars are showing improvements. Thus, we are not in a recession, but we cannot rule one out over the next 18 months. And while our growth is mediocre, it is certaily better than the contraction of Europe..."

[Edited on June 22, 2012 at 8:50 AM. Reason : .]

6/22/2012 8:32:44 AM

Quote :

"The dollar and other major world currencies already have collapsed. That's why gasoline is down to $3.219 now and we think that's cheap and gold has doubled in price the past 5 years. Governments worldwide the past five years have intentionally completely debased their currencies. "

Cute, but I'm talking about a full scale collapse. There should be no reason why prices are regressing right now because frankly, the national debt hasn't been touched and spending is as big as ever. The dip HAS to be artificial for election's sake so that they can ram us in the ASS after we elect the wrong man again. For as long as I can remember, gas prices always go up in the summer and down in the winter-- but not this year. The presidential candidates will use gas prices as an indicator that the economy is okay... but it's really not.

6/23/2012 4:36:19 AM

Gas is going down because demand is slipping due to the global slowdown and because the dollar is strengthening.

The dollar is strengthening because its the only currency large enough to absorb the flight from the euro.

It's a classic jumping out of the frying pan into the fire mentality. The dollar is the safest haven until its not.


We are only a few years away from not.

6/23/2012 12:45:27 PM

Gas going down has nothing to do with demand at the current moment of time.

Found a good article from 2011 whose catalysts still linger in 2012

Quote :

" The surprise currencies of 2011 were the US dollar and the Japanese yen. Despite a weak economic recovery and an S&P downgrade, the dollar showed resilience. Despite Fukushima and burgeoning debt (over 200 percent of GDP, which would put Greece to shame), the yen strengthened against the dollar. Why are these two currencies defying the laws of economics? The answer is not that the US and Japan did something right, but that Europe got many things wrong – especially the euro and sovereign debt. The resultant panic drove every risk-averse investor back to the dollar. http://www.firstpost.com/economy/why-one-shouldnt-bet-on-the-us-dollar-in-2012-13-168441.html"

As far as the dollar goes: I found this highly accurate post by another user:

Quote :

" Did you know that the Fed doesn't really print money. Money is created from debt. The only time the Fed prints money is when there is quantitative easing. Quantitative easing is just a fancy name for printing money.[b] Only 3% of the worlds money is in the form of Federal reserve notes or in the form of cash! The rest is in the form of digits on a computer screen created (buy) debt from the fractional banking system! This is why there is such a emphasis on the banks keeping you in debt with credit card offerings and why we have a consumer based economy! When the debt stops and people start saving or the well runs dry this put a hardship on the fed. This is when quantitative easing comes in handy! The central banks have been using the fractional reserve banking system to plunder the world wealth and take control of nations corporations and natural resources! Think about it this way, when a nation borrows money they borrow that money from anothers nations central bank! Then that nations central bank owns that counties debt in the form of Treasury notes. Theses Treasury notes are backed by that nation, if that nation defaults well guess what? The lending central bank owns that nations assets! I always laugh when people say China owns the debt of the US! China owns nothing China's central bank owns the US debt! Just like Greece and there bailout, the bail out is coming from the International Monetary Fund. Well were does the fund get its money? It get its money from the international communities and who supplies the money? Not that nations because there all broke so they borrow from the central banks! The central banks own and will control Greece, this is a just a start of whats to come next who will it be Spain, Portugal, Ireland or maybe France? The fractional reserve system is not sustainable and will implode on its self! The central banks know that this gravy train will end soon and that is why there is a push towards globalization and a One world government with a new form of global currency! The central banks will have to stabilize there newly found bounty that they have pilferaged and plundered off the back of a nations people! "

[Edited on June 23, 2012 at 1:06 PM. Reason : .]

6/23/2012 1:04:48 PM

^ the above quoted passages are REALLY basic info.

I applaud your quest for knowledge, but if you really want to understand things you need to increase the quality of the sources you follow.

You're ahead of 93% of the country, but based on your posts you seem serious and you can do better.

6/24/2012 12:22:38 AM

Quote :

"If you really want to understand things you need to increase the quality of the sources you follow. "

Unfortunately, there is no such thing as a quality source when you're dealing with speculating with money.

The most quality of quality souces ( if there were such a thing as a quality source) would be listening to the words of beloved Ben Bernanke, the spokesman for the Federal Reserve. Surely, the spokesman for the biggest bank in the world and closest person to knowing the real state of the external effects on the value of our currency, would give us good information about fixing our currency. You can't get any better information than hearing it from the horse's mouth, am I right?

No way! He and the people he works with are the same people that RUINED the value of our money in the first place. We can't trust the horse's mouth because it's known to lie to us.

Who's next in line as quality sources? Monetary experts? The monetary experts in the media are basically in bed with the establishment which is controlled by banking corporations that are controlled by the federal reserve. I can't say that all financial analysts in the media are biased, but sadly, there is no jewish star stitched to their shirt to differentiate the good intentioned analysts and the analysts who are placed on TV for the purpose of deceiving the population.

Then you have crappy quality sources like you and me. On our level, we have to deal with ignorance, stupidity, and credibility. If someone with no credibility says something intelligent, I can't quote him because he's not a quality source (like I posted above).

What's the only thing left to do? Trust nobody and trust everyone at the same time. How do you pull this off? The same way policemen seek the truth from witness accounts. The overlapping details among witnesses are usually true facts, while details that don't match are usually a lie.

I don't think many people know what's going to happen because I hear from some high quality sources that everything's going to definitely crash and I hear from some high quality sources that nothing is going to happen and we're all going to be okay. I hear the same thing from intermediate sources and I hear the same thing from low quality sources.

I don't know what gives you the 7% advantage over me, but I know you don't know as much as you say you do based on your idea that gas price are going down because demand is slipping. It was just up to $4.00 a gallon four months ago and the global slowdown has been around for 5 years as well as price fluctuations between an amplitude of $2 and $4 over a relatively consistent wavelength of 4-5 months.

We can see by this illustration that gas prices can and ARE ACTIVELY being manipulated by only god knows who. They call them speculators, but do these guys have names? You'll probably yourself when you see who the major speculative players are, if they're ever exposed.



Price per barrel manipulation.
Nothing to do with demand at all.


[Edited on June 24, 2012 at 1:50 AM. Reason : few typos]

6/24/2012 1:23:07 AM

Seriously? No. Obviously the Federal Reserve is one of the worst "sources" you can use for information. Unless you are a member of Congress or a prominent hedge fund manager who finds out what they are going to say a few minutes before their announcement. (Remember, inside trading is not illegal for members of Congress and congressional portfolios always generate outsized returns . Why do you think so many rich kids line up to be lowly congressional aides? It's for the information, clearly not the salary.)

The sources you want to follow are people who know what they are talking about. People who know markets and more importantly history. People who form opinions based strictly on the market events they have seen in their careers (nearly every sell sider out there) are not credible sources. What happened in 1985 may not be relevant to what will happen in 2013. But 1860 sure as hell may be.

Here's an example of a good source. Read this opinion on the Greek default scenarios from John Hempton of Bronte Capital. Note how the author actually knows what he's talking about, doesn't push an agenda or talk his book, and doesn't try to summarize everything as being unimportant.

Quote :

" Models for a Greek Sovereign Default I am on a plane - long-haul over the Pacific - and someone asked me to spell out what I thought would happen with a Greek sovereign default. As this is drafted on a plane it is designed to outline extreme views (you know the ones after two glasses of wine). If people want to explore more modest views that is for the comments. Still all options look bad. I see two broad variants - both of course stick most of the losses on Germany and France. Some variants are totally disastrous. Variant 1 - the Argentine option: Default and de-peg the currency. When Argentina defaulted not only did the government default but they forced a private default. If you had a debt in US Dollars in Argentina prior to the default you were forced to pay it back in Peso. Indeed it was illegal to make payment in US dollars. Likewise if you had a US dollar asset you got back Peso. A dollar deposit in Citigroup in Buenos Aires became a peso deposit. If you really wanted to keep your dollars you needed to make your Citigroup deposit in New York. The forced private sector default was necessary for Argentina. The Argentine banks all had lots of US dollar funding. If you devalued without forcing their default then they would all have uncontrolled defaults (a true disaster) and the country would lose its institutions. Telefonica Argentina would have failed too - failing to replay USD debts. The same applies in Greece. If the Greek Government were to devalue the new Drachma (to perhaps a third the value of the Euro) then the banks (which are loaded with Greek Sovereign paper) would default. Even Hellenic Telecom would default because they would be forced to repay their billions of Euro borrowings whilst collecting only Drachma phone bills. The Argentine economy was doing quite nicely after the devaluation. The lesson was that devaluation worked - provided you simultaneously forced private sector default. If you were Greece you would take this option without hesitation. However this option has explosive implications for Europe. You see a bank deposit in Athens is going to turn your Euros into Drachma. Overnight it will lose 70 percent of its valuation. So it has to be done quickly and with an element of surprise (as per Argentina when most people did not get their dollars over the border). Without surprise people will rush their money to Deutsche Bank in Munich. One weekend we will just find that the Greeks have done it. But now suppose Greece does pull this trick. The day after we have a Drachma - deposits are in Drachma. We might print a single 10 drachma note and allow it to settle against the Euro - then over time print more. This should work for Greece. Now if you are Irish or Italian or Portuguese (or even Spanish) you know the rules. You get to get your Euro out of the PIGS and into the core (Germany) as fast as possible. So max all your credit cards (for cash), draw all your bank deposits and load them in the boot of your car and make the drive to Switzerland or Germany. Somewhere safe. Otherwise you are going to lose half the value the day that the rest of the PIGS do a Greece. And this bank run – a run including tens of thousands of Italians driving their Fiats - will surely blow apart every Italian bank. And their Euro-skeloritic compatriots will sign the death knell for for all their banks too. If you are going to go the devaluation route you are going to have to do it all at once. Like the big-bank weekend (maybe coinciding with a week long bank holiday) in which all core European countries get their own currency back. There is a precedent. It is not a pretty one. When the Austro-Hungarian empire collapsed there was a single currency over a huge area covering much of what is now Euroland. In this case the rather Germanic Austrians were in charge (or rather were in charge until their empire collapsed). What they did was put troops on all the borders and made it illegal to take cash (or wire cash!) across borders. Then all Austro-Marks in each country was stamped - converted to Drachma for Greece, Marks for Germany, Peseta for Spain or whatever the currencies of the day were [If someone remembers the 1918 border splits better than me they are welcome to say...] In this conception all Spanish debts become Peseta debts. All German debts become Mark debts. All Greek debts become Drachma debts. Unstamped currency goes worthless. If you are going to split the currency I see no alternative to a big bang - and if you do that I see no alternative to troops at the border stopping transfers (and wire transfers) because shifting cash North looks so profitable against a sudden devaluation. Suddenly – and against all historic hope – its time again to guard the French-German (and every other European border) with troops for a week whilst the money is stamped. Note however almost every country borrowed in hard currency (Marks) and got to repay in soft currency (Drachma). This is a scheme which shifts the loss home to Germany and with little compensating benefit except that they get their beloved Mark back. Its a scheme that is way better for the periphery because they get to keep their institutions. In two years they should bounce back like Argentina bounced back after their default. Unilateral Greek default and devaluation without planning for the periphery to do the same - well that is a true mess. Too ugly almost to think about - and it would be unilateral for less than a week. The rest of Europe falls into that abyss with maximum movement of deposits and cash in the meantime. The second variant on Greek default. Greece defaults and stays in the Euro The second variant on Greek default is the one that Germany prefers – Greece defaults and stays on the Euro. (Credit Agricole also prefers this.*) In the second variant Greece has a huge problem after the default - which is that its banks are insolvent. They own a whole lot of Greek Paper. Moreover Hellenic Telecom does not look that great either. The recession goes from bad to worse and the government deficit goes from bad to worse. The Germans wind up owning the banks and the telephone company as partial offset to their losses lending to them. The Greek Institutions are captured by the Germans. (All your base are belong to us.) They also wind up getting paid a little more as Greek austerity - as long as it lasts and that might be a long time - partially reduces German losses but at huge social costs. The Eurozone becomes really dysfunctional - with the whole periphery totally unable to work their way out and having lost all their key institutions to the Germans who neither know how to run them nor really want them. Moreover Greece stays expensive and unproductive and becomes more socially fractious. The likelihood of them staying the the Eurozone would be pretty low. (After all what have the Germans ever done for me!) Europe would be held together by a massive and compulsory German aid budget. If they can't get that agreed on on day dot (and Merkel and the German constitutional court are not of that mind) then my guess is that is is in Greece's interest to go the Argentine route and let the rest of Europe fend for themselves. And for that Europe will need troops on borders. Armed and dangerous. Bring out the guns. John *I have a known partiality to that stock but do not own it at the moment..."

http://brontecapital.blogspot.com/2011/09/models-for-greek-sovereign-default.html

Oh yeah one thing I forgot to mention. He didn't write this last weekend when everyone would agree with him. He wrote this nearly a year ago when everyone was saying a Greek default/exit from the Euro was impossible. Those are the people to follow. Not the mainstream media or the talking heads with a vested interest in cashing out as much from the global system as they can before it collapses.

[Edited on June 24, 2012 at 11:00 PM. Reason : a]

6/24/2012 10:46:16 PM

Don't bother trying to learn from or educate the people on this messageboard. It's rare that you'll find anyone who knows what they're talking about here and they'll mostly just dismiss correct ideas as bunk because it wasn't taught in their Econ 201 class or Paul Krugman and Dick Bove disagree.

Here's a piece he wrote this week on Gold & China that is also quite insightful.

Quote :

" China and the shiny stuff In my kleptocracy post I described how the range of investments available to the median Chinese family is limited. They can't take their money offshore (unless they are rich enough to afford casino junkets). The local stock market is rigged. There is no worthwhile mutual fund market. They can own see-through apartments. But their main saving mechanism is bank accounts and life insurance contracts (life insurance being a bank account proxy). Rates are regulated - low. Inflation is high and ex-ante the return to Chinese savers is negative. Despite negative real returns Chinese save in huge quantity. This may be because of the "four grandparent policy" as described in the kleptocracy post or because of gender imbalance (as described in the follow up post). Whatever: in China we have huge quantities of savings at ex-ante negative real returns in some sense compelled by local social and political structures. This pool of savings (part of what Ben Bernanke once described as the "excess of global savings") has global implications - and these will be explored in a forthcoming posts. But here I state the obvious. If you were forced to save huge amounts of money at negative real rates of return wouldn't gold look attractive? There is no data I would trust on how much gold has been socked away by middle-income Chinese. Being a kleptocracy where government officials expropriate land, hydro dams and any other private assets they take a fancy to, the gold buried under the house is hardly going to be declared to official statistics collectors. But it is there in some quantity. Gold is a market I have studiously taken very little interest in. I agree with Warren Buffett - that it has no real return over very long periods and is thus unattractive. But in China no-real-return is a good return and until recently I had not thought about that clearly. If people have a decent knowledge of the non-official gold-market in China please leave it (anonymously if you wish) in the comments. Observations on gold demand in China now and in the future I have no knowledge of the specifics of middle income people trading gold in China. But I do note that inflation in China (with regulated low interest rates) is likely to be strongly positively correlated to gold demand in China. Inflation in China is clearly declining right now (which is very bad for Chinese gold demand). However I do not think that falling inflation in China is likely to be sustained. Low inflation would result in the collapse of many State Owned Enterprises (and probably the regime) - and the regime is the hand that holds the printing press so to some extent inflation is a choice for the regime. They will print. And print. Their very lives depend on it. "

http://brontecapital.blogspot.com/2012_06_01_archive.html

6/24/2012 10:58:10 PM

Face. No offense, but you didn't read my post very well.

6/24/2012 11:14:56 PM

He hasn't realized how stupid you are quite yet. Give him time.

6/24/2012 11:26:30 PM

A troll post, nice.

6/24/2012 11:30:19 PM

i dont have time to respond to 100 questions, im just trying to help.


What specifically do you want to know?

6/24/2012 11:55:25 PM

:shrugs:

I have all my questions answered as of right now.

USD


EURO


USD


EURO

6/25/2012 1:18:40 AM

i've got about $45k in gold/silver at the moment.

I may buy more soon, but i like holding USD right now.

The oil markets have entered contango for the first time in a long while and now just doesn't seem to be the time to pour money into commodities based on how it typically trades in these scenarios.

But I'm still not sure what you're trying to convey with those charts?

6/25/2012 1:22:36 AM

I only have $1000 in gold right now. I can't justify buying at these prices when the price has been regressing for over a year. I really can't explain why it's receding unless people know something I don't about the economy getting better?

6/25/2012 1:34:18 AM

Dollar is strengthening, QE3 was priced in but hasn't occured yet, banks are deleveraging, margin rates have been hiked numerous times, lease rates were temporarily negative.

Look at 2008. When the economy was collapsing gold got nuked. It doesn't matter what you think of an investment class when you HAVE to raise cash.

That's why I'd never recommend buying gold on margin. If they shake the tree really hard all the monkeys fall out. Don't be a monkey. Buy gold that you aren't going to want or need to sell regardless of the current price. The current price doesn't really matter to me. Of course if there was a magic way to know where it'd bottom/top I'd trade it more actively. But that's not really possible. It's one of the asset classes where buy/hold makes a lot of sense.

6/25/2012 2:24:14 AM

Since selling gold and siliver is not recommended in almost all conditions, what conditions do you believe you should sell gold and silver?

6/25/2012 11:17:44 AM

I'd sell gold/silver if I'd already eaten my canned good stock, drank all my water supply, etc.

Otherwise not going to happen. I don't speculate on gold, I don't like to take risks with my financial security and safety.

Great day for gold, up huge relative to the market.

6/25/2012 5:21:55 PM

Just buy a shitload of water and canned goods and sell it for gold to people like face whenever his Road Warrior thing happens.

Or load up on guns and gasoline and take it by force while roaming the post-apocalyptic wasteland with the gyro-captain.

6/25/2012 10:31:27 PM

^ best post in the thread so far

6/25/2012 10:45:12 PM

I made a G today.

Well 1.3 G's.

6/29/2012 10:22:21 AM

If you didn't do it with gold/silver, how did you do it?

And was is the initial investment?

6/29/2012 12:24:52 PM

^^ Make another 2Gs today and you'll break even for the quarter!

6/29/2012 2:09:22 PM

It is gold and silver. Predominately IAU. Some gdx though

6/29/2012 2:19:42 PM

You can't make money unless you sell it and rebuy it.

Quote :

"I don't speculate on gold, I don't like to take risks with my financial security and safety."

6/29/2012 2:26:17 PM

Since inflation simultaneously raises the value of gold, and reduces the value of debt, wouldn't it make the most sense to buy as much gold on credit as possible? That is, so when the US goes Zimbabwe you have way, way more gold than you would otherwise, and the debt incurred to buy it is suddenly trivial? Alternatively, taking out mortgages on property you could never afford with your (currently non-inflated) salary/wage would seem incredibly wise as well.

[Edited on July 13, 2012 at 12:00 PM. Reason : .]

7/13/2012 11:59:48 AM

gold prices are also affected by demand, man.

7/14/2012 2:15:31 PM

That's nice now could you try to comment on the actual meat and potatoes of my post? That is, how the devaluation of debt as a side-effect of inflation might influence investment decisions that hedge against it?

[Edited on July 17, 2012 at 3:23 PM. Reason : .]

7/17/2012 3:22:31 PM

Quote :

"The price of gold will probably stay somewhat stable unless the Fed announces another round of QE. QE will be necessary at some point, but the timing is unknown. Monetary policy in this country will change based on stimulus. For instance, a chaotic exit from the euro by Greece could initiate a domino effect, which may actually be a benefit to the dollar -at least until the focus shifts to the insolvent U.S."

Well, QE3 was announced, except this time there's no limit on it. Hope you folks bought the dip.

9/13/2012 2:33:10 PM

9/13/2012 3:06:15 PM

^Holy fuck. The system has been hacked.

10/24/2012 3:54:54 AM

Stop posting

10/24/2012 8:57:19 AM

some day the world will realize gold is worthless beyond a few technical uses and the price will collapse overnight. Kind of like those big stone "coins" the polynesians used to have. You know, like the one that fell in the ocean but they still counted it as being owned by such and such.

don't buy things that don't have intrinsic worth.

10/27/2012 5:15:37 PM

^ very misinformed.


Dollars have no intrinsic worth. Gold is a store of value.

10/30/2012 1:26:03 AM

The Incas refered to these as "Sweat of the Sun, Tears of the Moon"

http://www.youtube.com/watch?v=4Xx_5PuLIzc

10/30/2012 4:21:46 PM

What on this planet has actual intrinsic worth?

Food?

Corn and wheat will be worth more than gold and dollars?

11/1/2012 8:17:51 AM

Any intrinsic value of gold aside from uses in electrical components is basically due not to any special property it has but to flaws in human psychology that assign value to things because they're shiny. In other words, a perceived or extrinsic value.

In either event, exchange value is a strictly social phenomenon and gold could be worthless in the future just as easily as Rai stones are to us in the present.


[Edited on November 1, 2012 at 10:17 AM. Reason : .]

11/1/2012 10:14:36 AM

Gold has far less intrinsic value than other things such as tools, resources, electricity, or labor. Gold's value is as intrinsic as paper money's minus the sliver of industrial uses. In other words, if society collapsed, and I had no faith in anything being worth any more than I could use it for, I wouldn't trade you a blanket for a wheelbarrow full of gold.

11/1/2012 10:40:06 AM

If society collapses, you want guns and a whole lot of food and fresh water.

I don't think society will collapse, though. Certainly not on a global scale. Gold and silver being valuable isn't going away any time soon.

11/1/2012 10:44:26 AM

http://www.spiegel.de/international/germany/german-politicians-demand-to-see-gold-in-us-federal-reserve-a-864068.html

It's there, guys. No, you can't see it. Just trust us, k?

11/1/2012 11:41:55 AM