HeliBen

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    • Sat Aug 23rd 10:23 AM | Rating: 0 0
      Commented on:
      The Strange Case of Dr. GLD & Mr. Bullion
      "If your local bakery runs out of bagels one morning, it doesn't mean there's a world shortage in wheat. With gold, there is a long lag between the time it is mined and the time it is minted. Supply chain hiccups can cause temporary shortages at each of the process stages."

      - Faulty reasoning in regards to a monetary metal. Nearly all the gold ever mined is still out there, it has not been consumed as bagels are. Supply is nearly "infinite" and there is no shortage. What is happening is gold owners are increasing switching out FRNs for gold and hoarding the gold. Never to sell it back into the marketplace. The dollar value for gold is too low, these hoarders have no reason to take their uneaten bagel back to the bakery to be sold to someone else.

      Shortages in monetary metals happening all the time in countries moving towards a worthless currency. They are a warning sign that eventually, even if you have a mountain of currency, you will not be able to exchange that currency for a monetary metal because the holders of the metal do not want the currency.
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    • Sat Aug 23rd 10:10 AM | Rating: 0 0
      Commented on:
      The Strange Case of Dr. GLD & Mr. Bullion
      "It is not proven, but certainly plausible that those investing in physical gold are the ones living in the 'really' real world, and posters like the one who posted this simple minded claptrap are among the deluded."

      - Exactly. Gold has been money for thousands of years. Paper has been money for 37 years. Not to mention this is not the first time paper has attempted to replace gold as money, and each time before failed miserably. The poster is deluded by 4 decades of "common" thought and has not taken the time to read his history. When the world heads back to gold and the paper reverts back to ink and paper, he probably still won't get it.
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    • Fri Mar 14th 12:58 PM | Rating: 0 0
      Commented on:
      Mainstream Media Cozies Up To Gold
      Good article, I have also noticed the shift in the winds. I think we have perhaps entered into "stage 2" of this bull, when some of those billion dollar pensions and such start thinking it just may be a good idea to own some PMs and commodities. Calpers upping their very tiny initial stake in 2007 to 5% (can't remember the exact percentage) through 2010 in commodities is a case in point. That's a pretty big chunk of change!

      Gold and silver are such tiny markets, it won't take much to move them much, much higher. What I suspect we may see is a very large move up followed by an equally large move down, before we really see a parabolic rise to the ultimate highs. Just like in the mid 70s with the brutal 50% sell off before the rise to 850. But, we may just keep treading along with the current pace. You have to admit the recent sell offs in gold from 730 to 550 and silver from around 15 to below 10 was nothing to sneeze at, glad I stocked up at that time, lol!

      TIPs are real rip off scam in my opinion. If you think our US Gov doesn't fudge the inflation numbers for their own benefits... well, I have a bridge I would like to sell ya!
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    • Fri Mar 14th 12:34 PM | Rating: 0 0
      Commented on:
      Gold/Dollar Ratio Goes Parabolic
      I also do not see much relevance in comparing the dollar index to gold. Fiat versus other fiats constantly losing or gaining against each other in a race to 0. Like another poster, I think the DJIA versus gold is a much better measure, the dollar and it's value is largely smoke and mirrors.

      Incidently, I started buying when gold was around 400 and people were also saying it was "overpriced"... never going to break that 450. Then came 730 and same song and dance, overpriced, never going to beat out that old high of 730. Then came 850, 1,000, etc.

      Most bull markets end with a 10-20x (and up) price increase, like the djia/nas during the 1980-2000 and pms during the 70s. That puts gold's top around 2,500-5,000.
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    • Fri Mar 14th 12:26 PM | Rating: 0 0
      Commented on:
      Gold/Dollar Ratio Goes Parabolic
      Terrible "point". Our support base in the 70s with manufactoring, debt levels, spending, etc, etc was much stronger, providing a floor for the dollar. We could raise rates to 20% and largely survive. Raising them to 5.25% is bringing down the banking structure today and the Fed is quickly backtracking. Now we have negative real rates.

      I am a holder of PMs and their stocks. I will sell them when I see a reason to be pro-dollar versus gold. So far I only see reasons to stock up on more gold. Should things get really hairy our dollar will collapse just like the Russian Ruble in the late 90s. Given that they are a very mineral rich country with something real to offer and sell to the world, I see no reason why the US could not possibly, just possibly suffer the same fate. Our main export of the dollar is just not going to cut it for very long.
      View article »
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