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... what exactly is required to make gold go parabolic
It requires a mania.
A mania like in the year 1998 and I was comfortable buying high-grade corporates yielding 8-9%.
People around me tried to make me feel stupid for not participating in the 20% growth that was
widely believed to be continuing for decades. "Don't you get it?"
When the guy selling me my mattress starts trying to tell me to get into gold.
"It's a sure thing." ( This happened to me in 1999 with tech stocks. )
When I stop hearing people saying that gold is not money and it's junk, then I'll be seeing parabolas.
Right now, almost nobody owns gold. Almost nobody can say anything intelligent about it.
A mania like in the year 1998 and I was comfortable buying high-grade corporates yielding 8-9%.
People around me tried to make me feel stupid for not participating in the 20% growth that was
widely believed to be continuing for decades. "Don't you get it?"
When the guy selling me my mattress starts trying to tell me to get into gold.
"It's a sure thing." ( This happened to me in 1999 with tech stocks. )
When I stop hearing people saying that gold is not money and it's junk, then I'll be seeing parabolas.
Right now, almost nobody owns gold. Almost nobody can say anything intelligent about it.
the goverment wont ever tell people to buy gold like they tell people to buy houses or stocks , their is ample reason for gold to be soaring in price at the moment but it isnt , sure europe might get a lot worse but its already been in trouble for a long time yet gold has not responded , the only time gold jumps is when BB decides to debase the greenback
A mania like in the year 1998 and I was comfortable buying high-grade corporates yielding 8-9%.
People around me tried to make me feel stupid for not participating in the 20% growth that was
widely believed to be continuing for decades. "Don't you get it?"
When the guy selling me my mattress starts trying to tell me to get into gold.
"It's a sure thing." ( This happened to me in 1999 with tech stocks. )
When I stop hearing people saying that gold is not money and it's junk, then I'll be seeing parabolas.
Right now, almost nobody owns gold. Almost nobody can say anything intelligent about it.
well put, I don't think we are anywhere near a mania or bubble at this point. With increasing debt loads worldwide, subsequent money printing, hundreds of trillions in currency and credit derivatives, I do not see how Gold won't go up long term.
Another thing to factor in is more money and wealth will be slowly shifting to asia, particularly China and India. Both have cultures that place more value on Gold and Silver than the USA.
China is even urging it's citizens to buy gold and silver now.
Of course our own U.S. government wouldn't tell us that because they need every extra dollar they can get buying U.S. Bonds and Treasuries to keep that market propped up. (along with the stock market to some extent)
"Ten years ago one barrel of oil cost $19, or 4.5 ounces of silver.
Today one barrel costs $110, or 3 ounces of silver. Which is real money?"
It's more fun to use old US coins.
In 1960, you could buy gasoline for 15/cents per gallon ( give or take ).
Today, with 1960 dimes, quarters, halves, you can still buy gasoline for that price ( give or take ).
Quote:
Originally Posted by mathjak107
inflation takes in a whole bunch of stuff
... You can buy less gas for a dollar, but you can buy more house ...
... things like computers and electronics have plumged ... .
Things like electronics have plunged due to technological improvements.
That's why when you compare exchange rates of gold and silver, things
like bread, a man's suit, oil/gasoline, and other similar things are used.
Things that are subject to improvements in production methods don't compare so well.
all they do is put the data into the formula that the govt used back in 1980 to calculate inflation, so what exactly did they "pad"?
No, all they are doing is padding the CPI with some multiplier. There has been both changes to the underlying data and methodology so there is no way to derive the original methodology unless you collect and perform the analysis yourself.
That's why when you compare exchange rates of gold and silver, things
like bread, a man's suit, oil/gasoline, and other similar things are used.
Things that are subject to improvements in production methods don't compare so well.
Hate to break it to you, but everything is subject to "improvements in production methods". In the 1930's bread was largely made by hand, today you can make bread with automated systems that require just a few operators. Same goes for mining, oil drilling, etc....all of these have been dramatically improved by technology.
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