taojones

Gold: Now Demonstrating Trust in Obama

exactly which governments are still on the gold standard?


On Feb 16 08:26 AM Maximus wrote:

> Atlasman,
>
> Don't worry, we are all out of our league and no one knows where
> this is all going.
>
> People who are buying gold are doing so because they think the Obama
> administration in conjunction with the Bernake-led Fed will "do what
> it takes" to keep the economy from collapsing (deflation with high
> unemployment and waves of bankruptcies).
>
> The only way out of this collapse, as the author alludes, is to reinflate
> the economy through the printing of money. With more money in circulation
> and fewer goods, inflation will go up. This is the theory that current
> gold buyers believe in.
>
> There is another theory that says that the government is not currently
> "doing what it takes." Paul Krugman just published an Op-Ed in the
> NY Times saying as much. He claims that we need fiscal stimuli in
> the trillions and not just billions.
>
> If the government doesn't in fact "do enough" (i.e. print money),
> then deflation will take hold and the economy will continue to grind
> to a halt. Gold would likely go down in that scenario and the cash
> would remain king.
>
> One other thing you should be aware of, there are also those who
> talk about manipulation in the gold market: that governments will
> begin shorting gold soon (March) in the hopes of causing a fall and
> later being able to repurchase at a cheaper price.
>
> This later scenario is also possible. Tread into the market carefully.
> If you buy now, make sure you have stop loss orders in place. <br/>
>
> If gold falls significantly in the next few months, I would then
> ramp up my purchases. I think the author is right, Obama and Bernake
> have no politically palatable choice other than to create inflation.

Gold: Now Demonstrating Trust in Obama

As a manufacturing jeweler i have seen these gold prices in the 70's an i saw what happens when everybody decides to dump. the fact is that you can't pay your grocery bill with a dwt of your gold stash. it is a fools paradise to hold a handful of shiny metal and think your any richer than the fools who thought their 200 thousand dollar house was worth a million.
The high prices of gold are ruining my industry and i caution you with the one axiom that has based my trade for 5000 years "gold ( or diamonds) are only worth what the next guy will pay for it !"
guys like this author are basically saying "we can play musical chairs forever the music will never stop" and the banks said "the price of real estate will never go down because they are not making any more land" Get serious! the reason i think the gold price went up in the first place was the arabs who were raping us on the oil price ( (a bid of 10 cents on a contract ups the delivery price 500% )needed a place to park the cash because they knew they would crash the economy . but that damage is done.the new deal starts now . they will be selling gold soon because there are real estate bargains to be had. watch out when the liquidation begins, does the name Bunker Hunt ring a bell?