Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm interested in hearing where those of you knowledgeable about gold think gold prices are going. As I write, gold is down $31 to $826. I bought some a while back between $400 and $600 but stopped then because I didn't think it would go any higher. I'm looking to jump back in, so anybody got a thought where prices "should" be relative to everything else or where they might be going? Thanks in advance.
I'm interested in hearing where those of you knowledgeable about gold think gold prices are going. As I write, gold is down $31 to $826. I bought some a while back between $400 and $600 but stopped then because I didn't think it would go any higher. I'm looking to jump back in, so anybody got a thought where prices "should" be relative to everything else or where they might be going? Thanks in advance.
Gold was 1-1 with the Dow in the 70/80s. I suspect it'll get there again since the same fundamental problems are in front of us, perhaps even worse.
Lots of short selling and weak longs, perhaps central banks flooding the market to shake out the weak stomached.
You should be thinking about selling rather than buying.
This is the time to back up the truck.
Gold and silver always correct in summer, as they are very thinly traded at that time, and easier to manipulate downward. They always come back to life by Oct-Nov and usually peak for the year between Jan and May.
The precious metals are in a secular bull, with many years to go. It is not a bubble. It has not had a "blow-off top". How high will gold go? It will not equal the 1980 high until it reaches $2300 in inflation-adjusted dollars. How will you know when it's about to peak?
1) Gold should trade at about 10X the price of oil
2) Gold and the Dow often cross in price (e.g. $3,000 gold X 3000 Dow)
3) Watch silver. It will revert back to its 1:15 or 16 ratio with gold. Silver is now about 1:52 with gold - quite a way to go yet.
4) All anybody will be talking about is gold. All they talk about today is stocks.
Actually, silver is a better bet than gold right now. But if you feel more comfortable with gold, go for it. Many years of profits to go yet!
At this point, I think our economic situation is similar to what was experienced during the mid 1970's before SHTF in the late 1970's-early 1980's (except this time around, it will be so much worse). I was a buyer when it went below $900 an ounce. I cannot pick a bottom in this market, and I play to win long term. There is absolutly no way gold will be trading anywhere close to below $1000 in the next few years. We have negative interest rates for crying out loud. Inflation lags (as displayed by the Greenspan rate cuts after the NASDAQ bubble burst leading to the bubble in housing). It is my belief that at this point there is no place for that money to go except commodities. If the bull run gets out of control and people are starving on the streets, the government will likely nationalize gold, silver, farm land, and crops. It could get ugly. I'm locked and loaded though, and when fiat currency fails all around the world, I've got silver and moonshine to barter with. I'm set.
Gold and silver always correct in summer, as they are very thinly traded at that time, and easier to manipulate downward. They always come back to life by Oct-Nov and usually peak for the year between Jan and May.
The precious metals are in a secular bull, with many years to go. It is not a bubble. It has not had a "blow-off top". How high will gold go? It will not equal the 1980 high until it reaches $2300 in inflation-adjusted dollars. How will you know when it's about to peak?
1) Gold should trade at about 10X the price of oil
2) Gold and the Dow often cross in price (e.g. $3,000 gold X 3000 Dow)
3) Watch silver. It will revert back to its 1:15 or 16 ratio with gold. Silver is now about 1:52 with gold - quite a way to go yet.
4) All anybody will be talking about is gold. All they talk about today is stocks.
Actually, silver is a better bet than gold right now. But if you feel more comfortable with gold, go for it. Many years of profits to go yet!
Thanks! Very interesting info. I am not at all opposed to silver. The only thing that has ever held me back on silver is safe storage space but I can work that out.
I'm interested in your opinion about that. Why did the Fed confiscate gold during the Great "D"?
Good point. If cash was precious because so few had jobs or savings not tied in a failed bank, what's the point of having gold when money retained significant value? They say it was to preserve the monetary system. I would suspect that people wouldn't trust the government from generating so much raw money into the system to sustain it, that whatever they were able to scrape by on would be worthless.
It's so funny that any president or legislature thinks they could actually get away with confiscating gold or prohibiting barter. Gold is so value dense that one could theoretically retire on 1 cubic foot volume of the mellow yellow. Probbaly much less.
I'm interested in your opinion about that. Why did the Fed confiscate gold during the Great "D"?
Roosevelt had just taken office in 1933, and of course he was a Democrat (to myself: no kiddin' huh?). There were bank failures all around, and runs on banks, so he declared a bank holiday to give it all a rest. In thosedays, the dollar was backed by gold. He knew he was going to have to put people to work on public projects, but the government didn't have the money to pay them. Thus was born the idea of "printing money out of thin air", much as the Fed does today. But the shackles of gold prevented this. So Roosevelt confiscated the people's gold, made it illegal to own, devalued the dollar, and then started to print dollars like crazy to pay for WPA and other alphabet-projects. It still took World War II to get us out of the Depression.
What many do not realize is, that most of the people's gold was not confiscated. If you did not keep it in a safe deposit box (which would be sealed off), you were good. Lots of people said nothing and kept their gold. That gold is now the source of the old eagles, double-eagles, and half-eagles that sell for such high prices today! As for the gold that was confiscated...well, Fort Knox has not be audited since 1954 and the odds are very good that there is NO gold left there.
So...who is the better custodian of gold - the people, or the government?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm looking to jump back in, so anybody got a thought where prices "should" be relative to everything else or where they might be going? Thanks in advance.
