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Read on another forum last week gold options expire tomorrow. The thinking is the expiration will be the bottom for now. Those members were planning to buy. Gold did need a pullback and some consolidating. Traders were saying 1650. It's below that, so we'll see.
Last edited by Ariadne22; 09-26-2011 at 05:14 PM..
Try looking at a mutual fund in precious metal and minerals that own a mix of platuim, gold, mining etc. I have owned USAGX and it has brought amazing returns for the last 10 years. It is a great investment to own and has solid management. I believe Vanguard has a similar fund as well.
... if the economies worldwide are collapsing
Gold has less worth than food at this point.
Yeah, someone else posted that stuff like bleach, soap, and other
practical things had tradeable value while gold was worth nothing.
This is only true while people only have a gallon or so of bleach or
a pound or so of soap or a few loaves of bread.
Gold became money in the first place because you can't spill your gold on
the ground and you can't lose your gold in a house fire and gold doesn't
go all moldy on you and spoil. If there is a functioning economy, any
surplus whiskey or cigarettes, will be converted into gold.
If there isn't a functioning economy, someone with more and better guns
will take your guns and beans and ammunition away from you and leave
you dead. If one is buying gold for the collapse of civilization, you might
be better off buying a bunch of good drugs and taking them.
Read on another forum last week gold options expire tomorrow. The thinking is the expiration will be the bottom for now. Those members were planning to buy. Gold did need a pullback and some consolidating. Traders were saying 1650. It's below that, so we'll see.
I'm issuing a sale at 1550 Broker's already ready for it.
Yeah, someone else posted that stuff like bleach, soap, and other
practical things had tradeable value while gold was worth nothing.
This is only true while people only have a gallon or so of bleach or
a pound or so of soap or a few loaves of bread.
Gold became money in the first place because you can't spill your gold on
the ground and you can't lose your gold in a house fire and gold doesn't
go all moldy on you and spoil. If there is a functioning economy, any
surplus whiskey or cigarettes, will be converted into gold.
If there isn't a functioning economy, someone with more and better guns
will take your guns and beans and ammunition away from you and leave
you dead. If one is buying gold for the collapse of civilization, you might
be better off buying a bunch of good drugs and taking them.
At least you'll be happy for a while.
forget all that crap. all you need is bullets and guns in that scenerio and you can get everything else you need.
Gold will continue it's up trend until the US raises interest rates above inflation rates. If we did that, the government would not be able to make it's debt payment. This is why Bernanke has the Fed engaged in "Operation Twist" (OT) to finance the debt 10 years out at zero interest so short term rates can rise without bankrupting the US government. OT is a long way from that goal so far. Their plan is to have central banks buy up gold & run OT at least past 2014. When we start comming appart like Greece & the Eurozone the Fed will dump gold & raise rates to scare investors out of gold & into dollars. This will cause gold to dip for a short time & that will be the time for smart people to buy gold.
The US is far worse off than any of those socialist Euro countries that are in the news.
America's debt is greater than the combined debt of the entire Eurozone and the U.K.. As the chart shows, America's debt is currently $15.1 trillion, while the Eurozone (which includes France, Germany, Greece, Italy, Spain, the U.K., and others) has a combined debt of $12.7 trillion. (All dollar amounts are in U.S. dollars, and the data refers to closing 2011 numbers.) The Eurozone is larger than the United States, so America's debt per capita also exceeds the Eurozone's. According to the Census Bureau, the U.S. has a population of 313 million, whereas the Eurozone has a population in excess of 331 million.
Gold will continue it's up trend until the US raises interest rates above inflation rates. If we did that, the government would not be able to make it's debt payment. This is why Bernanke has the Fed engaged in "Operation Twist" (OT) to finance the debt 10 years out at zero interest so short term rates can rise without bankrupting the US government. OT is a long way from that goal so far. Their plan is to have central banks buy up gold & run OT at least past 2014. When we start comming appart like Greece & the Eurozone the Fed will dump gold & raise rates to scare investors out of gold & into dollars. This will cause gold to dip for a short time & that will be the time for smart people to buy gold.
The US is far worse off than any of those socialist Euro countries that are in the news.
America's debt is greater than the combined debt of the entire Eurozone and the U.K.. As the chart shows, America's debt is currently $15.1 trillion, while the Eurozone (which includes France, Germany, Greece, Italy, Spain, the U.K., and others) has a combined debt of $12.7 trillion. (All dollar amounts are in U.S. dollars, and the data refers to closing 2011 numbers.) The Eurozone is larger than the United States, so America's debt per capita also exceeds the Eurozone's. According to the Census Bureau, the U.S. has a population of 313 million, whereas the Eurozone has a population in excess of 331 million.
The metrics in those charts seem scary, and I'm not one to downplay the US debt position (we need to do something about it immediately, and I think the only way we can get out of it is both tax increases and cuts to military budgets).
But for gold prices to increase as a function of the dollar, you would have to have a drastic decrease in the usage of the USD as the reserve currency of the world. An amazing percentage of international trade is done in dollars. Simple inflation of the currency isn't enough to increase the value of gold vs. the dollar - if international trade picks up so does the demand for dollars for the exchange of goods where equal value is not met, which is basically 100% of all trade anywhere.
Now, the international trade figures right now don't seem very promising, and I do think that will cause an increase in the gold values, though I wonder if people will flock to gold and not other assets like oil or silver. There's a lot more upside potential for silver and other metals and oil.
Anyways, so long as the economy doesn't completely tank, and international trade doesn't collapse, gold will likely piddle around the 1400-1700 mark. The fact that the asset has seen 20 years of growth isn't lost on investors either so there's a psychological barrier to investing in gold as well. 20 years of anything running away just screams bubble.
20 years of growth isn't lost on investors either so there's a psychological barrier to investing in gold as well. 20 years of anything running away just screams bubble.
Bubbles are formed by excess credit. People are not drawing on their credit lines to buy gold. Most people are simply allocating a portion of their savings into gold as wealth insurance instead of blindly investing in junk government debt bonds. Until the majority barrows to purchase gold it will not be a bubble. Rates must increase quite a bit to get people to risk saving in junk government bonds over gold. Currently rates are going the wrong way to lure anyone into government bonds over gold. Gold will continue to rise until the government bonds properly rewards investors for their risk & inflation.
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Mom called me this am and told me our fin advisor back home notified her about the pullback.
Broker's already ready for it.
