Bernanke,the Fed,and the central bankers have only postponed the mess that the have,for the most part caused---Hold on to your hats folks-the fan is running full speed and there is plenty of s--t around. this fiat economic model has a used by date and time is ticking.
Goldbugs love to quote Marc Faber. Here's a couple of quotes;
"Dollar will eventually go to zero". ------------- Dated 26/10/2009
"It's bad for asset prices but good for the US Dollar". --------------- 7 hours ago.
"Gold and silver are the best currencies". ---------------Dated 24/4/11
"Gold could fall to $1100".---------------Dated 26/9/11
I suppose it pays to have a bet both ways.
The quotes above make sense to me. Currently when there is a market crisis (such as with the Eurozone at the moment) money moves to a liquidity safe haven. For a long time that has been (and continue to be) the US dollar. Coupled with that the crisis has a lot of deflationary pressures. Again that tends to drive down asset prices including gold and silver.
That's the short term outlook. Over time the USD will continue it's inexorable decline. The US is insolvent.
Last edited by corran; 13-10-2011 at 09:48 AM.
Reason: fixed typo
Gold has been trading sideways, but importantly is not dropping much either. Some good signs with the HUI index moving up too, every company on the index reported a SP increase yesterday.
Gold has been trading sideways, but importantly is not dropping much either. Some good signs with the HUI index moving up too, every company on the index reported a SP increase yesterday.
The XGD went down. Opened at 7206, closed at 7106.
The goldbugs poster boy, Jim Rogers, said the other day gold will decline for "months".
Hi Skol, I mean that the trend over the last few days has been for the HUI to improve from a low. It's all a matter of market confidence, even I'm not so sure about buying more goldies right now. But they might be a safer bet than general stocks. The goldies I'm holding are still OK (above cost), expecting better, and maybe I'll get a multi-bagger.
Here's a gold artice from that guy you found and posted to the silver thread.
A variation on the dow/gold ratio, interesting very long-term chart, including the period when the gold price was fixed. According to the charts, gold's value should be about $600/oz, so it's overvalued. Less attention is paid to when the change in direction might occur, or what the actual cost of extracting gold these days is. On average, the extraction cost would be over $600/oz, so to allow for company profit, replacement exploration and the setup costs, energy and labour costs would have to significantly drop.
Gold could still double from here, and it wouldn't look too out of place on the long-term chart. It's been more volatile since the gold standard was removed.
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
I watched the three clips JB. Looks like there's a good chance the guards at Ft Knox are watching over artefacts, and that the gold room has been taken over by other items. The gold being used to fund small wars etc. The value of the Ft Knox gold has not been changed on the public record for years, even though the value of all other gold has been climbing for 10 years now. Even if it was there, who owns it? Why wouldn't it have been added to over the years anyway? The govt can easily resolve all this, simply do an audit like they did in 1974. I have to believe the USA landed on the moon, now we can see photos of the landing areas, complete with leftover parts. The Fort Knox gold? Hmm. They must still have it, right Skol?
Of course they do, the President's head would roll if they didn't. Can you imagine the consequenses for the most senior government and military officials if it the gold wasn't there?
What military official would assume command of Fort Knox if the gold wasn't there?
It would be the most scandalous, serious, outrageous event in American history.
Then the USD wouldn't be the reserve currency and that isn't going to happen.
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Originally Posted by Skol
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