Thread: Gold Price Watch

Originally Posted by IgnoranceisBliss

You look at it far to simply. Interest rates in relation to inflation definitely have a significant impact on the price of gold. However, it was a cut and dry as you think, everyone would make fortunes by simply following the Fed. The question is how much is the price of gold "overvalued." It has no cash flows, which means nothing right now, but if it interest rates start changing or the economy kicks into gear, prices could drop quickly. Gold is based on speculation, not value/income creation.

DA60 and I were talking more in terms of long-term investments. In the next year or so Gold could very well go up and probably will. In my opinion gold isn't a viable "investment" over the next 5 years.

if interest rates change and the economy kicks into gear? Are you listening to yourself? Interest rates can't rise or the entire house of cards collapses.....there are several zombie banks in the US now so any rise in interest collapses those banks.......add to that the fact that the US government needs low interest rates to finance its huge debt.

And nobody said hold gold forever.......only until the fed gets its act together and raises interst rates and the US government cuts the deficit in half!

Originally Posted by IgnoranceisBliss

Who's losing confidence in dollars? Since the S&P downgrade the demand for U.S. treasuries has actually increased. The primary driving factor being the Euro fears.

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the main purchaser of treasuries and american debt in general was bernacke and the fed......the only other buyers were some central banks and not because they love zero interest rates but but because they want to peg their currency to the US dollar!

Originally Posted by IgnoranceisBliss

The budget is slowly being cut, albeit not as quickly as it should be. However, the U.S. economy is slowly starting to pick back up. If this trend continues revenue will increase and the deficit will become less of an issue (which is silly but true). The U.S. may be able to "grow" itself out of its debt a bit (as it did ALOT following WW2). I don't think it will be anything like the 50s, but economic growth always takes the edge off of debt.

1) the debt is growing faster than the GDP
2) the growth is phoney....its coming strictly from Bernacke's monetization of the debt.....when you add alot of currency to the system its bound to create a little economic activity for awhile
3) the debt is not shrinking anywhere near fast enough.....and if history is any guide then I am willing to bet that when the next recession hits soon you will have 2 trillion +++ deficits in the US.


you want to believe that gold is "NOT" the place to be then go ahead......I know better!

Originally Posted by IgnoranceisBliss

I see a lot of people invest in gold with the intention of holding on to it long-term. If you pay attention to the market and are willing to sell when you see rates change or the economy pick up, then by all means do it. I just see how high gold is right now and don't see a lot of room for it to grow.

if you think gold is high now just wait a couple of years LOL


You see.....again I say you just look at the price .....thats it........look how much money the US and the european central banks are creating? Right now the velocity of money is quite low.....just wait until it picks up......prices will rise so quickly it will make your head spin. In the 70's the money supply want up less than half as much as it did in 2009/2010 yet it produced double digit inflation over a period of 5- 9 years.....it takes time for all that money to work its way to the grocery store but trust me eventually it will.

You say in terms of dollars gold is expensive? How about in zimbabwe dollars? Its over a trillion dollars per ounce there. You see....again I say to you just dont look at price....look deeper. Notice a silver dime can still buy you a gallon of gasoline...what does that tell you. Just look deeper will ya and look at why gold is "REALLY" rising....and not the propaganda on the network televisions!

Gold closed out the week at $1713.00/oz..

That's down $59.42 (or about 3.5%) for the week.

http://www.goldprice.org/gold-price-history.html

Gold Bulls Strengthen as Wagers Hit $131 Billion

'Gold traders are the most bullish in four months after investors accumulated more metal than ever and hedge funds raised bets on gains to a five-month high.
Sixteen of 23 analysts surveyed by Bloomberg expect prices to gain next week and one was neutral, the highest proportion since Nov. 11. Investors increased their holdings in exchange- traded products backed by bullion for seven consecutive weeks and now hold 2,407 metric tons valued at $131 billion, data compiled by Bloomberg show.
Demand for gold is strengthening as European leaders seek to contain the region’s debt crisis and governments from the U.S. to the U.K. keep interest rates at all-time lows to shore up growth. The Federal Reserve and Bank of England have bought debt and the European Central Bank offered unlimited three-year loans to the region’s lenders, actions that spurred some investors to buy gold as protection against inflation.'

http://www.bloomberg.com/news/2012-0...mmodities.html

Originally Posted by DA60

Gold Bulls Strengthen as Wagers Hit $131 Billion

'Gold traders are the most bullish in four months after investors accumulated more metal than ever and hedge funds raised bets on gains to a five-month high.
Sixteen of 23 analysts surveyed by Bloomberg expect prices to gain next week and one was neutral, the highest proportion since Nov. 11. Investors increased their holdings in exchange- traded products backed by bullion for seven consecutive weeks and now hold 2,407 metric tons valued at $131 billion, data compiled by Bloomberg show.
Demand for gold is strengthening as European leaders seek to contain the region’s debt crisis and governments from the U.S. to the U.K. keep interest rates at all-time lows to shore up growth. The Federal Reserve and Bank of England have bought debt and the European Central Bank offered unlimited three-year loans to the region’s lenders, actions that spurred some investors to buy gold as protection against inflation.'

http://www.bloomberg.com/news/2012-0...mmodities.html

looking forward to when gold breaks that 2,000 dollar milestone!

Gold closed out the week at $1713.00/oz..

That's down $53.58 (or about 3%) for the week.

http://www.goldprice.org/gold-price-history.html

Gold closed out the week at $1660.24/oz..

That's down $52.76 (or about 3%) for the week.

http://www.goldprice.org/gold-price-history.html

Right now the banks are still de-leveraging, it will take another year at least before significant growth occurs. Gold is being driven up by speculation alone so it sits atop a giant bubble, all you guys that think it won't tank are the same guys who fought for deregulation. I find any product touted by someone like Beck to be so suspect as to have me running the other way. Bully for any of you who invested when it was in the 600's, but it might be a good time to invest somewhere else. I know you all wish for the mighty crash of the system but the powers that be won't allow it (by hook or crook). Plan for a recovery. Think about this post in a year, I'll be considered a prophet.