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Like virtually everything right wing conservatives spew it was nonsense. Their positions almost always don't stand up to reality.
Not nonsense. The federal government does not like gold because unlike dollars that can be printed out of thin air, not even the government can make gold. The problem that you seem to forget is inflation. Now I understand that the reports of inflation show little of it. I also understand that how the government measures inflation in the market place is flawed. Inflation is measured by price increases. Most consumer products have not gone up in price, but instead most companies have made the option to shrink their products! That is not measured in inflation.
The national debt coupled with the fed printing more money to pay the debt will lead to the dollar devalued. Those who have invested in gold will be safe.
Understand that when the dollars are printed and trillions of dollars are injected into the economy, it devalues our money...it devalues what the dollar stands for.
It's looking more and more like gold's glory days are behind it - with gold prices on an apparent downward trajectory, it's now given up all the gains it made since Dec of 2010 and many analysts now expect it to end up where it was in the middle of 2009 - in effect, giving up virtually all the gains it made during the Great Recession. As it is, the S&P 500 has now outperformed gold over the last year, last 3 years and last 10 years. Only the 5-year term shows gold with a SLIGHT price gain advantage over the S&P 500 (and that will be gone too if gold drops another 100 points or so).
More to the point however, the US dollar has NOT crashed - the expectation of which was likely THE reason for gold's rise back then to begin with. Now that's becoming more obvious that the US dollar is NOT going to collapse (US economy well into recovery, US deficit on the way down) folks are realizing that there is no real upside to owning gold.
Bad news for gold is good news for the US - and lately gold has been experiencing not much else but bad news.
Ken
I am not an economist and really don't know how the interest rates on the dollar would impact the price of gold.
It seems to me that faith in gold is the result of having no faith in human beings and human societies. They seem to think that gold is some magic machine that is separate from human valuation/manipulation. They seem to foolishly believe that when it all collapses their gold will be worth what they paid for it. LOL.
It could be five times the 2008 price, but since it's only doubled in five years, this proves positively that everything the regime is doing is working just fine.
I am not an economist and really don't know how the interest rates on the dollar would impact the price of gold.
It seems to me that faith in gold is the result of having no faith in human beings and human societies. They seem to think that gold is some magic machine that is separate from human valuation/manipulation. They seem to foolishly believe that when it all collapses their gold will be worth what they paid for it. LOL.
My theory is that many believed what they were told by the Wall Street Journal editorial pages, namely, expansionary fiscal policy and loose money from the Fed was going to cause high interest rates, inflation and devaluation of the dollar. Those would have been ripe for gold to sour.
Since this didn't happen, gold investors are reversing their positions.
It's looking more and more like gold's glory days are behind it - with gold prices on an apparent downward trajectory, it's now given up all the gains it made since Dec of 2010 and many analysts now expect it to end up where it was in the middle of 2009 - in effect, giving up virtually all the gains it made during the Great Recession. As it is, the S&P 500 has now outperformed gold over the last year, last 3 years and last 10 years. Only the 5-year term shows gold with a SLIGHT price gain advantage over the S&P 500 (and that will be gone too if gold drops another 100 points or so).
More to the point however, the US dollar has NOT crashed - the expectation of which was likely THE reason for gold's rise back then to begin with. Now that's becoming more obvious that the US dollar is NOT going to collapse (US economy well into recovery, US deficit on the way down) folks are realizing that there is no real upside to owning gold.
Bad news for gold is good news for the US - and lately gold has been experiencing not much else but bad news.
Ken
Patience, Ken.
I can tell you that I have bought one to two ounces of gold every month for the last 22 years. The returns have beaten the DOW handily, but that is not why I did it.
I sold out of the market at DOW 10,500, as I thought the market was overvalued at that time and locked in profits.
I converted those profits into ag investments.
I still hold all the gold I have ever purchased.
I own farmland in Iowa
I own farmland in Brazil
Beyond 401K funds, I do not have money in the market
I avoided the market crashes of '87, 2000, and 2008. This market "smells" toppy to me. The way to wealth is preservation of capital.
Gold is a thousands year old global store of value.
Politicians hate anything that restrains them from putting our children and grandchildren into deep, choking debt.
My point is - all those 'doom and gloom" types who were constantly pushing gold on this site were wrong to assume the US dollar would tank. The DOLLAR is fine, it's GOLD that's tanking.
It's NEVER a good idea to bet against AMERICA.
Ken
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