Gold

[Daytr]

Skol/Blackcap, then we are in agreement, I was responding to Skol's statement that EVERYTHING returns to a mean & clearly it doesn't. Yes companies have earnings & they can also incur losses. Currencies also have earnings as in interest rates, gold has an interest rate although like the USD it has been around zero for some time. To be honest I'm not sure on gold from here short term, it needs to break & hold $1350 for mine otherwise it will test $1280 again.

[Stranger_Danger]

Seriously, those who are pro-gold, can you not see the QE train coming into station in less than a month? That light at the end of the tunnel is not your salvation, its a big metal object coming to squish you if Mr Bernanke decides to taper!

Would like to hear some pro-gold ideas on this, and not just "la-la-la, eyes and ears closed, Bernanke will QE forever". I want to hear what you think will happen if it does go through in a month and how you plan to stave off a crushing blow...

I'm not pro-gold, but, I am a life-long devil's advocate.

Why do people buy gold? Is it really about endless money printing, or inflation? Or perhaps it is about fear?

What will happen when QE does stop? Will gold really crash due to an end to inflation expectations and money printing, or, will everything else crash due to the support being removed? Every time the support even looked like being removed, the market freaked.

Personally, I think it could go either way. But I think fear is more than possible. I think gold would drop on this fear, but, if sustained, would later start to rise on fear too.

The fear would then lead us back to where we started, with the Fed reintroducing QE, which takes us back to the endless QE argument.

Damn. I didn't really help, did I.

[Daytr]

StrangerDanger, I think you summed it up quite nicely. I buy gold stocks as a proxy to gold & exploration upside. The gold component of the reason I buy which is the majority of the rational the other components are related to selecting the right producers who will make the most of the POG. Its my view that enough people have a degree of fear around money printing & sovereign debt issues & that Asia & developing countries are buying it. In most cases the governments & their people that are buying are in development stage of their economies with a quickly expanding middle class & large sovereign reserves, whereas the Western governments particularly Europeans are at the other end of the spectrum in regards growth & debt. The US has similar issues, but more potential for growth imo & they aren't selling their gold reserves.

[Skol]

It's hard to understand why goldbugs get so excited about gold, in the big picture, all the gold ever extracted isn't actually worth that much.
The 2013 US military budget is $682b.
My calculation is that all the gold in Fort Knox is worth $191b.

Ben Bernanke says the US owns gold because it's 'traditional'. Sounds fair to me, it's been there since the 1930's.

[Skol]

Citigroup forecasts average $1,143 gold for 2014.

http://www.ibtimes.com/gold-miners-s...s-citi-1383695

When Apple shares plummeted a while back, goldbugs gloated that the Apple bubble had burst, but AAPL actually makes things people love, I recently bought an iPhone 5 myself, very cool.

Carl Icahn has taken a large stake in AAPL and says the shares are probably worth $700.

You won't see Carl Icahn or Warren Buffet for that matter taking a large stake in gold.

[JBmurc]

Citigroup forecasts average $1,143 gold for 2014.

http://www.ibtimes.com/gold-miners-s...s-citi-1383695

When Apple shares plummeted a while back, goldbugs gloated that the Apple bubble had burst, but AAPL actually makes things people love, I recently bought an iPhone 5 myself, very cool.

Carl Icahn has taken a large stake in AAPL and says the shares are probably worth $700.

You won't see Carl Icahn or Warren Buffet for that matter taking a large stake in gold.

-Smartphones on average use

0.015g palladium
0.034g gold
0.35g silver
16g copper

According to Ken Beyer, CEO of the Electronics Recycling Company, there is in fact more gold in a pound of electronics than in a pound of rich gold ore.Forget South Africa, is Urban Mining the future for gold and silver producers/ recyclers ?

http://www.silverdoctors.com/mining-...e-infographic/

A Ton of your phone Skol "apple 5s" (yes very nice got one) would yield 9.72oz gold.... now thats 300x better than the average major gold mining operation ...
Yeah but what do you alway bleat on about ..Gold is for suckers .relic .has no use ...poor investment rah rah ..then you even come out in a post and state how little of the precious metal is held even by the USA empire...

[Skol]

If you're a gold bug and easily depressed then don't read this:

http://www.bloomberg.com/news/2013-0...oves-rout.html

[JBmurc]

If you're a gold bug and easily depressed then don't read this:

http://www.bloomberg.com/news/2013-0...oves-rout.html

Great Anti gold propaganda Skol.... NOT!! ...like the replies ...now the Gold price is $1322oz US (much higher in most other countries Fiat) you keep going on about no Inflation ....? now read the below ...

http://online.wsj.com/article/SB1000...069565780.html

It's been the amazing, runaway boom of the past decade. If you'd put your money into gold at the lows about 10 years ago, you'd have made a nearly 400% return. That's left pretty much everything else—stocks, China, let alone housing—in the dust.

But with gold now trading near record highs, the big $1,200-an-ounce question is obvious.
Is the gold rush over?

Some smart people wonder. "The time to buy gold was in 1999, not 2010," Harvard professor Niall Ferguson tells The Wall Street Journal—though he added that momentum might still drive it higher. Others will tell you that "the smart money got out of gold months ago."

------wow Gold is higher that record BOOM Bubble times "May 2010" ...yet it's all DOOM DOOM now only years apart whats going on Skol ..Gold bad bad now Gold boom boom only three years ago ? No Mining cost Inflation ?

[Skol]

JB,

Yep, gold left everything else in the dust for a few years, just like it did in 1979/80 too, but it never lasts.

Sounds like you're easily depressed, you shouldn't have read it.

[JBmurc]

JB,

Yep, gold left everything else in the dust for a few years, just like it did in 1979/80 too, but it never lasts.

Sounds like you're easily depressed, you shouldn't have read it.

LOL depressed checkout PGI gold producer brought a truckload only the other week currently I'm up 8k

As usual you didn't answer my above one minute media worldwide is boom boom Gold next Doom doom crash yet it's priced higher now
personal if gold was 700-800oz etc yeah I'd agree doom times all round for the sector....

then we get to all the Gold majors complaining about tight margins ...Inflation ??