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Gold investors are making a "major mistake" if they think the latest Fed minutes indicate the...
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Friday, January 4, 2:38 PM ETGold investors are making a "major mistake" if they think the latest Fed minutes indicate the end of QE is likely by mid-year or even year’s end, Peter Schiff writes, seeing the recent decline in gold prices as a buying opportunity. The Fed's hands are tied, as any end to buying Treasurys or MBS would result in higher rates that might tip the economy back into recession. Gold finishes the day at $1,648.90, -1.5%.
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EMs on the other hand are way below historical PE levels and are actually growing. I prefer to be in economies that are growing and will continue to grow.
Developed worlds are treading water.
It was clear to me back then these jokers were hell-bent on destroying the currency. The die was cast. I'd seen the only signal I needed to see. I'll keep the gold until the currency has been completely destroyed. To me, gold is money and has been for 5,000 years despite the flagrant prevarication of the bearded banker on this issue before congressional committees.
Why buy gold? Since the year 2000 the stock market has gone nowhere and gold is up what... 300%, 400% something like that. When the price on the chart, moves from lower left to upper right that's a good thing.
Silver might be better because it's a bit undervalued relatively, I think. But I'd be really slow to fault an investment in gold. As far as the fed's pronouncements on ending QE, they said the same thing this time last year, so we've seen this movie before and already know the ending.
Of course, the fed thinks we're all idiotic children with too short an attention span to think about their recent past history. Maybe they're right. They're fearless leader is one such, thinking printing money is the path to prosperity and having the audacity to say that. Very strange pronouncement from Princeton's former chair of economics, more appropriate for a grade school child.
As far as buying stocks or bonds, I'm afraid you're doing it with paper money, you're collecting your booty in paper money & the value of you beloved assets are denominated in paper money. So when you wake up one morning to find a sudden devaluation in your currency, your beloved paper asset will follow suit. It's like saying you're going sailing in this terrifically designed boat made out of toilet paper. Bon Voyage!
The problems in real estate which affect more people that any other sector is the best example of the house of cards that our economy has become. The two elephant's in the room are how Real Estate and Debt Financing will be affected by rising rates and is barely spoken about by Wall Street, so beware their abundant optimism about all things U.S. Seems to me that it can only get worse from here with practically no economist worth his salt saying we have the demographic or technological ability to grow our way out of this pickle.
Sovereign defaults are a much better reason for purchasing gold that the simple fear of inflation.
I seem to remember that there was a floor set of approx $1620 by the Fed, or some such authority, some months ago at which banks were allowed to collateralize it against loans permanently.
Gold does not really change, 100 years ago you could have gone out & bought a good suit, hat & pair of boots with a $10.00 gold peace.
You still can, even at todays price.
It seems to me that gold is a pretty metal - but in a the doomsday scenario people claim as a reason to have it - a bushel of wheat, a box of ammo, and a needed skill set have more value.
that said - my neighbor started buying coins about end of the century - value has done very well.