so gold continues to fall While the dollar is strong International opinion is that the us economy is doing well http://www.seattlepi.com/news/article/Price-of-gold-falls-to-lowest-level-in-5-years-6394903.php On Monday the price of gold sank another $25 to $1,106 an ounce. That's about 40 percent below its recent peak and the lowest price since March 2010. "It's the strength of the dollar, that's what's been drilling gold down this year," said Jim Steel, chief precious metals analyst at HSBC in New York. So i am wondering why this is happening Given the talk that the us economy is collapsing That the feds creation of fiat money will result in i runaway inflation And gold is the only real money And putin us strategically swelling his gold reserves Seems to that none of the conservative talking points are all that prescient
Gold fell today because someone dumped $2.7Billion in gold right when the Chinese market opened this morning. http://www.zerohedge.com/news/2015-...lash-crash-following-27-billion-notional-dump This happened once before a year and a half ago. Nothing has changed in the US economy, or the world economy, to change a persons expectations regarding inflation, interest rates, potential US economic depression, etc.
What was the price of gold then? Yeah, just checked Gold was around 1300 per oz So about 10% fall in a year Pretty good investment, wot? I guess holding your wealth in REAL money also has its down sides Other than the fact that if you wait long enough, the doom sayers nay be right F Of course i the ling run, we are all dead So it may be a victory only your heirs will enjoy
If a person is trading in a commodity then the value of the investment depends upon the buy and sell price. If a person buys low and sells high, then its a good investment. There are always opportunities, in all economic conditions, to make money. For example, the trend in gold has been down for 2+ years, but its been cycling every 6 months or so with a $150-$200 spread, its a classic technical graph, people willing to risk it have made a killing buying at the trough and selling at the peak. Today's dump on the market probably broke the cycle. But you are trying to ridicule the people that buy gold & silver not as a financial investment but as a hedge against a catastrophic event such as a depression or worse. Nothing has happened that will change their logic, the gold dump today and the price drop actually plays into their reasoning since the major buyers have the ability to dump $2.7Billion all at once, drive the price down for an extended period, and buy back the dump and more at the lower price. That's sort of what happened 1.5 years ago.
I am not ridiculing commodity investors I am ridiculing those who claim gold is something other than a commodity And that so called fiat money is worthless And that all the money the fed has put in the system will cause horrendous inlation And that the value of the dollar is collapsing And that the american economy is in tatters THOSE ARE THE PEOPKE I AM RIDICULING
OK, but its a pretty miniscule group that believes all those items, so small I think you are tilting at windmills. Gold is something other than a commodity, it is in essence a type of currency similar to fiat. Fiat has no intrinsic value, gold has some intrinsic value in manufacturing, but as currency both fiat and gold only have value because people give it value. The fed & treasury have dumped a tremendous amount of money into the system, they have inflated the money supply (the real definition of inflation) but prices have not increased correspondingly because the velocity of money is at an extremely low level. That money can start moving for many reasons both good and bad, the fed/treas are gambling they can pull the money supply down fast enough to prevent prices from increasing out of control (but slow enough to not kill a recovery if a true recovery is the cause of increased velocity), that's a huge gamble. That's the concern, even the Fed has written about it. The US$ is being phased out as the world reserve, that's just the reality of a world in which US international power has decreased and the economic power gap between US and many other nations has shrunk considerably. That change combined with other issues might cause the US$ to collapse. The US economy is not in tatters, but it is weak and treading water with a lot of fault lines. I definitely have a negative outlook on the US economy, both are remote but on the course the US is on a collapse is more likely than a booming recovery.
The group may be minuscule But they speak loudly and with faux assurance of expertise Your views not withstanding Most people agree with wiki that In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4] The opposite of inflation is deflation. I agree that a booming economy is not in the cards, but think the collapse scenario is also unlikely. Lots of muddling through i expect If you are unclear on the popularity of the idea that gold is REAL MONEY a simple search on gold real money should clarify that confusion
Considering that as the U.S. Economy goes so goes the world's economy the world better hope there will never be a U.S. Economic Collapse. Fact is we are fine....and while all other Nations economies are floundering the U.S. Economy is getting stronger. AboveAlpha
And the dollar as a reserve currency Well lots of people thought the euro might compete But people who bought into that idea have lost lots of money the last few years And given recent issues, the euro does not inspire reserve currency enthusiasm I suppose you could pick chinese yuan as a reserve currency But they still hold and invest in dollars And given chinese export driven economy It is hard to imagine their govt will not continue to manage the value of the currency They would not allow a strong yuan to damage competitiveness Lots of people would love to have the dollar topple But there are no obvious replacements the transition to bit coin also turned out to be prematurely hyped
Btw Money fulfills many roles One of which is a storehouse of value Gold has some function there i guess All though there have been many historically better stores of value other than gold Gold is the storehouse of value best suited for the worst case scenario And lord knows Always a ton of People fearing the worst case Operation jade helm anyone .
Its not going to happen tomorrow, nations don't want to commit or risk suicide by collapsing the US$. Its a gradual process of easing the US$ out rather than a sudden eviction. There are a lot of proposals for a replacement, none really stands out yet, it will probably just evolve. And there might not be a single replacement but several nations who step in, the world has seen how the US used (and abused) its role as the world reserve to gain a lot of power and impose its will on other nations, while each nation wants that power for itself, no nation wants to see its rival have that power. The result might well be no single nation acting as a world reserve.
I doubt it, I don't believe the world trusts the IMF, and the UN is far too political. I think the world will naturally gravitate to one or a few nations with a trustworthy and reliable economy & government.
If I knew the answer I would be a zillionaire. China is a good candidate right now, there is distrust regarding the accuracy of their economic reporting and their government, but their sheer size makes them a candidate. I don't believe the euro is not a candidate right now despite the talk, from the beginning people questioned the ability of the EU to operate successfully because its not really a single entity, its like a forced co-op of dissimilar nations. If select European nations truly merge then that might work. There have been proposals based on various combinations of oil rich Arab nations, that might work simply because of their economic power but its risky to base so much on a single consumable and eventually exhausted commodity. There have also been proposals of various combinations of the BRICS, Arab nations, gold. I think its likely within the next 20 years the replacement will simply evolve and not be deliberately planned and created.
Heck, opec cannot even agree on oil production And china is large but not transparent. You have us dollars, you can buy stocks, or real estate or entire us companies..... What you gonna do with a few billion dollars worth of yuan? What are the chances that people in some remote part of the world will want the equiv of a 100 bill? To tell you the truth. Your idea seemed to make sense to me a few years ago But i just have not seen any fungible alternative to the dollar Never mind that the Fed was the only org in the world that could address the 2008 panic Europe could not do it, nor china, nor brics
As I wrote, its not going to happen overnight. Look how much the world has changed since 1995, it will change even more in the next 20 and in very unexpected ways.
Change is the one constant in the world but for the forseeable future the U.S. Dollar will remain the worlds emergency currency. There are not many nations that would trust either China or Europe's currency as a secondary emergency currency. And the U.N. takes forever and a day to make decisions and could not be counted upon to swiftly aid any nation. For now....it is the U.S. Dollar. AboveAlpha
US Mint Sells Most Physical Gold In Two Years On Same Day Gold Price Hits Five Year Low http://www.zerohedge.com/news/2015-...-years-same-day-gold-price-hits-five-year-low The demand for physical gold is very strong. It's just 'paper' that is weak. Personally, I think governments/central banks are deliberately forcing the price down for various reasons. One maybe so that the Fed can buy back cheaply much of the gold that they have fractionally lent out. Two maybe that governments/central banks do not want people to think things are not stable, and suppressing the price of gold helps make the economy look more stable.
One reason is to hault the sale of Privately Owned Gold in the U.S. which ends up on the Open Market as the amount of Privately Owned Gold in the U.S. is vast. Less supply for purchase by Russia and China slows down their intention to make issues with the Petro Dollar and U.S. Currency. AboveAlpha
I foolishly cashed in my stocks in 2011 and bought gold and silver. It was the worst financial mistake I ever made and last week I sold all of my gold and silver off. I think I am going to invest in Treasury Bonds that seems to be the safest investment.
yep, they may not run around with cardboard saying the end is near, now they sit behind a computer screen and type the end is near over and over it's when people start believing them you have to watch out, enough people believe the end is near, they will make it happen
If you do not mind me asking What prompted you to make that choice I mean was it your own thoughts Or some analysis that you heard?
And people wonder why Social Security was invented. I've heard of so many educated Americans who have trapped themselves by placing a bet on a single retirement vehicle. People who lose nearly everything EXCEPT their SS to retire on. Diversify. Diversify. Diversify.
