Gold

redrumloa

redrumloa

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I'm seeing gold as the next big bubble. I see fundamentals (destruction of USD, panic flight away from paper currency) pushing gold much higher, but I also see scumbag trading houses like Goldman Sachs wanting to create the next big bubble to cash in on. I see gold going to $2,000 easily next year and possibly as high as $4,000ish before the bubble deflates (probably back to $2,000ish).

Thoughts?
 
I'm hoping for gold to go to $100,000 per ounce and at that rate still being worth 5 loaves of bread and a roll of single ply toilet paper. Meanwhile, the supply of crinkly green toilet paper will go through the roof but there will still be demand for the soft stuff. (Some paper cuts are worse than others).
 
$100,000 per ounce? :shocked:

But seriously, you own gold? Coins? ETF? Me? I just bought a miner's stock (IAG).
 
redrumloa said:
$100,000 per ounce? :shocked:

But seriously, you own gold? Coins? ETF? Me? I just bought a miner's stock (IAG).
Click to expand...

Yeah, I have a couple of dozen ounces stashed away - but I'm not doing it as an investment. This is a hedge against total disaster. It's a little bundle that can be shoved into a back pack and used to bribe a few border guards - or if the currency goes *poof* a la Zimbabwe then I can buy some goods to get through. I'll be happier if I never have to use them and just let the kids inherit them.
 
In times of disaster guns are cheaper but just as valuable.
 
Gold topped $1,216 over night.

http://www.cnbc.com/id/34231984

Gold is unique conisidering increased demand does not equate into increased production. Miners pretty much can only extract at a set rate. With central banks buying tons for their reserves and speculation increasing, we may not see a sharp pullback until MUCH higher. Could we see $1,300 next week and $1,500 by X-mas? Quite possible.
 
On the news this morning was that Gold reached over $1,200 in Europe. Along with this came a warning from Chinese Economists that Gold is likely to be the next bubble.
 
Stock Up on Gold—Prices Could Reach $5,000: Market Pro

http://www.cnbc.com/id/34238687

“[Gold at] $1,200 is not expensive, considering all the money that we’ve created and all the money we’re going to create—not only the Federal Reserve, but central banks around the world,” Schiff told CNBC.

Schiff said inflation pressures will drive gold prices up to $5,000 an ounce and investors should stock up right now.

“It might not hit $5,000 this year or next year, but it will eventually—maybe before Barack Obama leaves the White House,” he said.
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redrumloa said:
Gold is unique conisidering increased demand does not equate into increased production. Miners pretty much can only extract at a set rate.
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I was reading an article a while back that said we may have already reached "peak gold", that is to say, we may already have passed the highest rate of gold production. Apparently, despite rising prices, world production is falling. It doesn't seem that the prospectors are turning up many major new finds so we are starting to churn through the lower yielding sites pushing production costs up. Meanwhile there is more and more money sloshing around the system and only so many TVs you can usefully own. With the value of money falling a lot of people are trying to grab a little bit of something there won't suddenly be a lot more of next week.

The price may now have gone outside the ability of the big Western banks to control it. Despite the IMF dumping several hundred tons of gold into the market the price just kept going up because China and India are happy to buy whatever is available.
 
Gold is pulling back hard today! The absolute floor on a pullback will be $1,000 imo. If it gets anywhere near that, back up the truck. More likely see one or two more days of weakness and continue uptrend. We'll see.
 
FluffyMcDeath said:
redrumloa said:
Gold is pulling back hard today!
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It's partly gold and partly the dollar. Check out the DXY.
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That is true. I wish I could take this as all as a good sign, but I fear the jobs data today is good old fashioned propoganda.
 
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