Comments on Fat Prophets' articles Comments on Fat Prophets' articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/fat-prophets/articles Gold: The Last Carry Trade http://seekingalpha.com/article/99495/comments?source=feed#comment-739062 739062 Sun, 01 Nov 2009 09:08:55 -0500 pica56.com/diet-food/s...
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Gold: The Last Carry Trade http://seekingalpha.com/article/99495/comments?source=feed#comment-670489 670489 Thu, 10 Sep 2009 12:23:36 -0400 www.e-koto.co.jp/]中央線 不動産[/url]
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Gold: The Last Carry Trade http://seekingalpha.com/article/99495/comments?source=feed#comment-306541 306541 Fri, 14 Nov 2008 23:47:22 -0500
Seems true on the surface, but the fact of the matter is that the Federal Reserve ALWAYS overestimates required money supply, rather than underestimating. In other words, the Fed errs on the side of low interest rates and excessive liquidity in times of crisis because of their predominantly Keynesian views. The only exception I can think of was Volcker back in the 80s, who went to great pains to control money growth in an effort to kill inflation. The current chairman will do no such thing, and the end result (realized after the fact) will be that interest rates were kept too low for too long.]]>
Deflation, Loud and Clear (for Now) http://seekingalpha.com/article/103469/comments?source=feed#comment-296775 296775 Sun, 02 Nov 2008 22:35:12 -0500

gold = sex & fear
love = money & oil

oil = goods

oil = greed & sex
gold = love & fear
]]>
Deflation, Loud and Clear (for Now) http://seekingalpha.com/article/103469/comments?source=feed#comment-296768 296768 Sun, 02 Nov 2008 22:19:06 -0500 buy all their gold, they get our dollars.
lower treasury rate to 0.
buy foreign equities with debt service, economy stabilizes. their dollar deflates.
we sell the gold get their currency.
we buy their goods with their own currency.

repeat as necessary. that works for 1:1 system.]]>
Deflation, Loud and Clear (for Now) http://seekingalpha.com/article/103469/comments?source=feed#comment-296764 296764 Sun, 02 Nov 2008 22:13:27 -0500 Deflation, Loud and Clear (for Now) http://seekingalpha.com/article/103469/comments?source=feed#comment-296610 296610 Sun, 02 Nov 2008 17:51:17 -0500
But I have a question for you. Say you have a child who makes straight A's in High School. You would be proud.

Now someone comes to you and says that those A grades are going to me removed so that a student making straight D's can be elevated to a C grade.

All of the High Schooler's polled had a problem with that type of reasoning. Why bother studying hard to get an A or B for that matter, if it will be taken away and given to students with lower grades. ]]>
Deflation, Loud and Clear (for Now) http://seekingalpha.com/article/103469/comments?source=feed#comment-296557 296557 Sun, 02 Nov 2008 16:24:13 -0500 Deflation, Loud and Clear (for Now) http://seekingalpha.com/article/103469/comments?source=feed#comment-296556 296556 Sun, 02 Nov 2008 16:24:03 -0500 Deflation, Loud and Clear (for Now) http://seekingalpha.com/article/103469/comments?source=feed#comment-296424 296424 Sun, 02 Nov 2008 13:12:29 -0500 Deflation, Loud and Clear (for Now) http://seekingalpha.com/article/103469/comments?source=feed#comment-296423 296423 Sun, 02 Nov 2008 13:11:52 -0500 Deflation, Loud and Clear (for Now) http://seekingalpha.com/article/103469/comments?source=feed#comment-296413 296413 Sun, 02 Nov 2008 13:00:55 -0500 giving us back the now appreciated dollars. not to mention it will force the rest of the worlds depreciating dollars in relative strength to our own to invest in their own country first. stopping their own downward spiral of deflation too.
correct me i am wrong? ]]>
Deflation, Loud and Clear (for Now) http://seekingalpha.com/article/103469/comments?source=feed#comment-296320 296320 Sun, 02 Nov 2008 11:18:27 -0500
Rogers is short the TYX for just this reason, but where should he be long? He says the yen (FXY and China). Fading the current US Bureaucracy is seemingly a sure and agonizing bet. UDN and maybe PCY are other possible plays. It should make us all sad to speculate against our own economy. Thank your Congressperson.]]>
Lihir Gold: Price and Reality Part Ways http://seekingalpha.com/article/101909/comments?source=feed#comment-290973 290973 Sun, 26 Oct 2008 16:13:04 -0400
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Lihir Gold: Price and Reality Part Ways http://seekingalpha.com/article/101909/comments?source=feed#comment-290920 290920 Sun, 26 Oct 2008 14:45:16 -0400
You must be a masochist to publicly flaunt your ignorance the way you do here at SA. I'll now try to shed a little light on gold, but it's up to you whether or not you keep your eyes open.

Back in the day, when gold was $35/oz., an oz. of Au would get you a well-tailored suit. Today at $730/oz., that same oz. of Au still gets you a well-tailored suit. But in dollars, that same suit has escalated in price 21 fold. Today, the tailor will make you one sleeve from the elbow to the wrist for $35. Furthermore, there is no other commodity that can make the same claim of purchasing power retention over the past 70 years.

Let me go biblical on you. Back in the time of King Nebuchadnezzar, an oz. of Au bought about 300 loaves of bread. 3000 years later, an oz still buys you those same 300 loaves.

Au has been exchanged as a currency or surrogate for currency off and on for over 6000 years. Which might explain why every central bank of any significance still retains Au in their vaults. But can you point to a single fiat currency that has lasted more than 500 years at best before ultimately collapsing into the abyss of worthlessness?

Au will get you across the border if it comes to that, Alan. And at the rate we are going, it very well may come to that. But if you ever do need to get across the border, it's highly doubtful you'll find any assistance if all you are waving in people's faces is greenbacks.

Au is money, Alan. But it's money that retains its value. Unlike your beloved dollar.

Been fun. See you around SA.]]>
Lihir Gold: Price and Reality Part Ways http://seekingalpha.com/article/101909/comments?source=feed#comment-290913 290913 Sun, 26 Oct 2008 14:29:42 -0400
Chart: www.rapidtrends.com/bl.../]]>
Lihir Gold: Price and Reality Part Ways http://seekingalpha.com/article/101909/comments?source=feed#comment-290903 290903 Sun, 26 Oct 2008 14:19:00 -0400 Equity Markets: The Thaw Begins http://seekingalpha.com/article/101912/comments?source=feed#comment-290775 290775 Sun, 26 Oct 2008 11:11:04 -0400 Lihir Gold: Price and Reality Part Ways http://seekingalpha.com/article/101909/comments?source=feed#comment-290738 290738 Sun, 26 Oct 2008 10:38:17 -0400
Where is gold actually a currency? What makes it different from other commodities? Do investment theories that pre-date the advent of the internet and the massive globalization still work? If anything, energy/electricity are more important than gold today. You can't eat gold, and you can't use it for much. I have some tulips for sale, by the way.

You are probably correct that the divergence between the miner stocks and the commodity price will correct - gold will decline. It is being held up by Joe Fearful, who is trying to buy coins/bars and foaming at the mouth even more when he realizes that they are in short supply (for now).
]]>
Equity Markets: The Thaw Begins http://seekingalpha.com/article/101912/comments?source=feed#comment-290656 290656 Sun, 26 Oct 2008 08:25:49 -0400 The success of the new bubbles that will be designed to replace those now deflating will depend on how effectively financial engineers can circumvent the new regulatory frameworks.
Commodities and hard assets will benefit eventually as all the new phantom money that is created from even more complex instruments implodes again but it could be a while. Governments may well be the next patrons of the financial whizz kids that are now being laid off by the banks and hedge funds as they try to figure out ways to prop up their bond markets and currencies.
]]>
Gold: Beware the Bucking Bull http://seekingalpha.com/article/100625/comments?source=feed#comment-286530 286530 Mon, 20 Oct 2008 14:40:29 -0400 Will the Market Break Its October 10th Lows? http://seekingalpha.com/article/100624/comments?source=feed#comment-286043 286043 Mon, 20 Oct 2008 01:34:42 -0400
because of this look forward to a long period of low and negative growth in the usa.]]>
Will the Market Break Its October 10th Lows? http://seekingalpha.com/article/100624/comments?source=feed#comment-285743 285743 Sun, 19 Oct 2008 14:22:57 -0400 Gold: The Last Carry Trade http://seekingalpha.com/article/99495/comments?source=feed#comment-282885 282885 Wed, 15 Oct 2008 10:36:59 -0400 Gold: The Last Carry Trade http://seekingalpha.com/article/99495/comments?source=feed#comment-282871 282871 Wed, 15 Oct 2008 10:20:54 -0400
Exactly huskerbob!

In bubble after bubble, people get into the mentality that their investment of choice is inherently superior to all other investments. That's ideology. As a result, they won't sell even when the fundamentals or critical observers with good arguments say otherwise. As a result of ideology, they will never sell at the top.

Tech stocks - earnings will exponentially rise for the next 25 years! And look at the recent performance trends!

Real estate - it's never gone down before exept in a few isolated markets! And look at the recent performance trends!

China stocks - (same as tech stocks)

Oil / Nat Gas / Copper / etc. - China will inevitably use up the earth's remaining reserves in the next few years. And look at the recent performance trends!

Gold / Silver - The earth is running out! We're setting deficit records (just like we have for the last 30 years). And look at the recent performance trends! ]]>
Gold: The Last Carry Trade http://seekingalpha.com/article/99495/comments?source=feed#comment-282585 282585 Tue, 14 Oct 2008 23:01:25 -0400
Gold elevator up will by-pass Dow Jones elevator down at 3000...

Gold elevator up will by-pass Dow Jones elevator down at 3000... ]]>
Gold: The Last Carry Trade http://seekingalpha.com/article/99495/comments?source=feed#comment-282573 282573 Tue, 14 Oct 2008 22:28:25 -0400
www.mikeroberto.com/20.../

Please add any thoughts or comments.
Berto

(PS - I have a personal feeling that it will dip a bit when it gets sold off as people/funds dig for cash, and think low $700s will be the next entry point. But who knows, I’ve been wrong before!)]]>
Gold: The Last Carry Trade http://seekingalpha.com/article/99495/comments?source=feed#comment-282517 282517 Tue, 14 Oct 2008 20:44:03 -0400 Getting back to my school economics,
Price x Quantity of goods = Money in circulation x Velocity, well tested and proven in Zimbabwe etc.
In most of the world economy at present velocity is very low with constipated banking sector hoarding to meet unknown CDS liabilities etc, but M is increasing by the trillions very quickly as money is printed.
When V resumes, and if Q stays the same [ or in fact reduces as producers go out of business ] seems to me P has to race away, soon, THEN look out for hyperinflation, and buy gold.]]>
Gold: The Last Carry Trade http://seekingalpha.com/article/99495/comments?source=feed#comment-282452 282452 Tue, 14 Oct 2008 19:08:05 -0400 Gold has done its job as a store of value, keeping up with inflation. Most physical gold buying is not spurred by speculation (futures are preferred for that purpose) but because people recognize that property of gold. Gold can go down, but not to the extent that, say, a share of Lehman Bros or a paper dollar can. The value of a dollar has declined 97% in less than 100 years. Unlimited dollars are now being made available. Is that a desireable quality in a store of value? Jim Rogers has seen it all before and says that we are creating "a hyperinflationary holocaust".]]> Gold: The Last Carry Trade http://seekingalpha.com/article/99495/comments?source=feed#comment-282260 282260 Tue, 14 Oct 2008 14:32:22 -0400
Regarding the argument by theaphelion that the value of gold is set by the cost of extracting it - was it any cheaper to extract gold in 1984 than it was in 1981? If I drill an oil well and my cost of production is $100/barrel does that mean oil is automatically worth $100/barrel? The markets disagree, and marginal production facilities are shut down and restarted all the time in response to price fluctuations. Their added supply shortly after price increases is part of what pushes prices back down. ]]>