Gold prices

What happened to the prediction that gold was going to $2000 an ounce by the end of the year? It appears everyone thinks things are turning around and arent panic buying or China has aquired enough until it takes a dip. At least i got 3 batches of the found stuff in during the real hay day..... easy money.

Dew

dewcon4414 Wrote:
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> What happened to the prediction that gold was
> going to $2000 an ounce by the end of the year?
> Dew

Dew...it's not the end of the year yet ! JP Morgan just crapped the bed with a 2 Billion dollar trading loss (wonder how many more big banks are in that predicament), we keep on printing money, China's economy is slowing, Europe is a mess. It's only a matter of time before gold starts to creep up again. There will be dips in the road, but I think the overall trend for gold is still on the upside long term.

May be a good time to get in at the 1450-1550 mark if it starts to consolidate there.

Dew - Some very powerful "traders" have been Shorting gold as well as selling it short whenever the price goes up a certain amount (whatever is too much for them.)
That has been going on for a while. Look up GATA to find out more there.

I don't necessarily think Gold is any savior in these times but rather a hedge or protection against paper currency.

Rock paper sizzors ..... someone needs to start cutting up some worthless paper and bring gold back to Ft Knox. There is always someone with big bucks playing the shell game and most of the time its with the tax payers money. Man to me when everything goes down the toilet id think a tater is going to be PRICELESS.

Dew

It will never happen.....but.....if commodities/stocks speculation were banned worldwide.......then cost/pricing would be more stable. That would benefit the everyday person and not the monied elite. Wishful thinking on my part.
Good example...JP Morgan/Chase recent 2 billion dollar loss/speculation...which will be forgotten by the public in 2 months.....until the next time it happens.



Edited 1 time(s). Last edit at 05/11/2012 08:22PM by TerraDigger.

earthmansurfer Wrote:
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> I don't necessarily think Gold is any savior in
> these times but rather a hedge or protection
> against paper currency.

Great point Earthmaster and exactly how an investor should look at it. Don't put all of the eggs in one basket, but do put enough in to balance things out.

Not only will inflation creep up, but the reality of the dollar at some point being debased ( other entities out there working on creating a new world currency) or becoming very weak ( it's strong now, but for fake reasons), is a very strong possibility.

One thing on the horizon that is still not being addressed the way it should be is our debt...and the upcoming debt bubble if we don't drastically change some things. Just like a household over their head in debt, where the family has to cut spending, pay down the credit cards, sell stuff, etc. we as a nation, haven't been doing any of those things in a way that actually starts to make a change. The nickel and dime stuff has to stop. And continuing to print money and buy back bonds doesn't help either in the long run.

If the Fed goes to QE3, it's gonna be that last sugar rush before the crash.

therover61 Wrote:
-------------------------------------------------------
> earthmansurfer Wrote:
> --------------------------------------------------
> -----
>
> > I don't necessarily think Gold is any savior in
> > these times but rather a hedge or protection
> > against paper currency.
>
> Great point Earthmaster and exactly how an
> investor should look at it. Don't put all of the
> eggs in one basket, but do put enough in to
> balance things out.
>
> Not only will inflation creep up, but the reality
> of the dollar at some point being debased ( other
> entities out there working on creating a new world
> currency) or becoming very weak ( it's strong now,
> but for fake reasons), is a very strong
> possibility.
>
> One thing on the horizon that is still not being
> addressed the way it should be is our debt...and
> the upcoming debt bubble if we don't drastically
> change some things. Just like a household over
> their head in debt, where the family has to cut
> spending, pay down the credit cards, sell stuff,
> etc. we as a nation, haven't been doing any of
> those things in a way that actually starts to make
> a change. The nickel and dime stuff has to stop.
> And continuing to print money and buy back bonds
> doesn't help either in the long run.
>
> If the Fed goes to QE3, it's gonna be that last
> sugar rush before the crash.

To be honest I really didn't think the currencies would last as long as they did. It has been an amazing prop up job and being the world currency for oil transactions has greatly helped - but that has been dropping of course. Did you know that the banks in America a few months ago loaned the EU Trillions of dollars (forget the amount, but it was around 2 Trillion)? Pretty hard to find that and it wasn't at all talked about on the news - probably because it is illegal. But, they found a loophole of course, using those overnight swaps or something of the like. I really don't know where they get the money from, I mean, yes they create it and back it with Bonds.

I really have no idea about how they expect to handle our debt. Unfortunately they have resorted to wars in the past and it appears like they are walking us in the direction of Iran but that would be beyond stupid for many many reasons. Unfortunately the people who control the money supply seem to be wanting prophecy to come true...

Gold is valued against the dollar, or should I say, all things are assets with the dollar, by the end of the year we are going back to the gold standard , what this will do to prices, I don't know, but it's going to be a bumpy ride, China and Germany, are going to run the money now

I was listening to an interview with Rick Rule, who is president of Sprott Asset Management. Now I know some of these guys pitch stuff for their own advantage but this guy is pretty darn smart and knows how to clarify things.

He put something into perspective for me. He stated that the USA is 75-80 Trillion dollars in debt ( that may be a low figure too). He stated that the total amount of savings of all US citizens is 500 Billion.

Putting in lay mans terms and using a simple house hold as an example, if you do the math (using the 80 Trillion figure), it comes out that for every dollar of saved/disposable income that household has, it has 160 dollars of debt. If that household went to a bank for a loan, and the bank officer looked at their finances, do you think they would get the loan ?

At some point, China is going to do the math. Right now, as long as we keep buying up their cheap products, it's one hand washing the other. But at some point, they are going to stop lending us money for our consumption. When the majority of it's own citizens are able to buy their own products, things will change. At this point, since Communism continues to hold the masses down, and their economy is slowing, it may be a good thing. Not sure how long that's gonna last.

China and a few other countries are buying up gold in record amounts. We just keep printing money.