They recently had a prediction of $2500 for Bitcoins by end of year. LOL @ Sachs.

They print $ so can't lol at them too much. It's just that their price predictions are really just another tool to get themselves better prices as I imagine they want to get long gold.

I'm torn between getting some money into Miners or loading up on more silver. I'd really like some exposure to miners before this fall. Probably just go apply for some new CCs. I wouldn't mind racking up 20k in interest free(for 1 year) debt.

It's interesting to imagine the wealth that has been destroyed by gold fanatics. Either in opportunity cost or the recent dowswing

What are the odds that they will simply dump the gold on the market?

More than likely the gold will not see the market but will simply be transferred to a more powerful country like China.

I feel gold has strong fundamentals and people are seriously over worried about gold. Maybe we will have a couple more down days early next week and then then bull run will continue.

I don't mean this to be overly snarky but what are the fundamentals of gold? Dentistry and jewelry I get but isn't the rest emotion?

Interest rates are nothing. If they raise them then the economy is in major trouble.

Gold is a store of value. It seems to have dropped for a few reasons. The Fed said that they believed QE to be coming to an end. I believe that is crap. People seem to think that bigger countries will be forced to sell their gold too. I am not sure if that will happen but if it does I don't think that is bad for gold and more powerful countries will step in to buy the gold. Then will buy the gold using US dollars.

The fundamentals of the economy really has not changed. If we were manufacturing on a huge scale, had people in productive jobs, slashed taxes and made us much more competitive, then I would not want to hold much gold. I tend to compare gold to what I could earn holding paper currencies - not stocks. Stocks looks risky to me too. Basically, our economy has not changed.

Thanks, I was thinking of "fundamentals" in too narrow of a context.

This is backwards. If manufacturing were booming and wages and consumption were rising, then gold would perform well because it's a hedge against inflation. When the economy is weak and governments around the world are barely able to avoid deflation (the present situation), you should expect gold to perform poorly.

always buy when i say sell.... oh wait...maybe not

Unfortunately for you the market feels differently.

I'm definitely at least 1 day early on this one. But if you look back, you will see I recommended selling at 1900+. Not a blind bull by any means. Just trying to fade the exteme moves.

well, it is still extremely high in a long term context. there is still a big downward potential from here on imo.

gg gold

It has never hit it's inflation adjusted peak from 1980. Long term investing in gold is a fools game. Not really up for debate imo

lol

for any techincal analysis wizards out there- is there any similarity between golds recent drop and the ~50% drop during golds last bull market from 1974-1976 (followed by a 8-9x increase)? Just wondering if we've seen this before or not?

Link?

Maybe I'm the fool, but I'm not worried about this downwards swing.

I'm going to keep my silver, as I expect it's long term value to grow in relation to dollars. And if I'm wrong, I've got more invested in dollars than silver anyway. I've taken a loss on the silver so far, but my point in investing was to hedge against the potential of large inflation. If that doesn't happen, I'll be happy with that.


Although if anybody did want to invest in either gold or silver, I'd now suggest waiting until Gold is around 1150-1200 per ounce, as I think that it's not likely to ever go under 1050 an ounce.

Excellent retort sir!

One of the worst posts I've ever read on this forum. What is interesting to think about is the wealth that has been stolen by the government.

On the subject of gold, one of F.D.R.'s new deal policies was outright theft of gold from citizens.

https://en.wikipedia.org/wiki/Emerge...ing_Relief_Act


Since the creation of the federal reserve in 1913, the purchasing power of the dollar has dropped 98% in comparison with gold, and 95% when measured with CPI.
http://www.politifact.com/virginia/s...st-98-percent/

This means that if someone put their life's savings in the ground in 1913, and their grandchildren dug it up today, that family has lost 95% of their wealth.

Furthermore, the poor and middle class have been systematically looted in this country by the elite oligarchy. Look at these charts.
http://www.irle.berkeley.edu/events/...ages_graph.gif
http://www.cbpp.org/images/cms//6-25-10inc-f1.jpg

Finally, it's interesting to think about all the wealth that has been stolen through taxation. Someone works, they get their paycheck with money stolen out of it, they are then forced to pay consumption taxes, property taxes, taxes for this, taxes for that, on and on and on.

Yes, a lot of wealth has been stolen, but it's been stolen by the government, not by people trying to protect their wealth with gold from the federal reserve's wealth destroying inflation.

lol at wealth being destroyed 'gold fanatics'.

Why would any sane person do this?

The point is that gold should be compared to paper money - not stocks.

With interest rates at nothing, I would rather hold gold than paper, along with stocks.

To illustrate a point?