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MichaelZZ

MichaelZZ
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  • Basel III And Gold [View article]
    Interesting Times:
    First, I didn't say that I "knew" gold would drop to $100.
    I suggested that the price will find support someplace between $100 and $600. If I were pressed to pick a "bottom", I would pick $450 within the next 5-7 years, sooner, rather than later.
    We have been fighting deflation, since 2001, and this effort has artificially stimulated asset prices.
    Contemplate RE prices when and if rates rise to 6-7%.
    I don't think we will see those rates, because the economics will continue to worsen, until we wake up......, i.e., "economic erosion".
    Remember the Nikkei, in the mid-80s, around 36,000, and is now hovering around 9,500? Long-term Japanese rates under 1%.

    As I have suggested, be careful, be very, very careful.
    And, again, the greatest human frailty: we tend to believe what we want and need to believe.

    best,

    mz
    Dec 1 08:44 PM | 1 Like Like |Link to Comment
  • Basel III And Gold [View article]
    Debutant:

    Turn on your TV to any business station and wait in the bushes.....

    mz
    Dec 1 08:30 PM | Likes Like |Link to Comment
  • Basel III And Gold [View article]
    MarketWatcher23:
    I, strongly, urge you to review JasonC's comment and answer these questions:

    What is the most hoarded commodity?
    What is the most promoted commodity?

    Finally....., think.

    best,

    mz
    mikiesmoky@aol.com
    Dec 1 06:15 PM | Likes Like |Link to Comment
  • Basel III And Gold [View article]
    Frank,
    Whatever, if any, would be the change in the POG, the ice would be that much thinner.

    Do you get it?

    Be careful, be extremely careful.

    Oh!!! One more thought.
    Greed is NOT good.
    Incentives are good.
    Greed = incentives on steroids!

    Again..., what do you think happened to the "purchasing power" of those who bought PM's in the early 80's?

    mz
    Nov 25 11:14 PM | Likes Like |Link to Comment
  • Basel III And Gold [View article]
    Interesting Times,
    Gold and silver are commodities. I am sure you are aware and I am quite certain I have stated this fact a number of times.

    What do you mean by "fiat dollar is just paper"? We are aware that currency is made from a special paper and we should know that the value "represented" by that "paper" is not the value of that paper (this is way beyond redundant, but how else do we correct your "knowledge").

    Skipping ahead, assume there is no physical currency, i.e., that all transactions are data transfers of wealth.

    Question: Would you still suggest we would have "fiat" money?

    mz
    mikiesmoky@aol.com
    Nov 25 02:56 PM | Likes Like |Link to Comment
  • Basel III And Gold [View article]
    Interesting Times,
    Gold and silver are commodities. I am sure you are aware and I am quite certain I have stated this fact a number of times.

    What do you mean by "fiat dollar is just paper"? We are aware that currency is made from a special paper and we should know that the value "represented" by that "paper" is not the value of that paper (this is way beyond redundant, but how else do we correct your "knowledge").

    Skipping ahead, assume there is no physical currency, i.e., that all transactions are data transfers of wealth.

    Question: Would you still suggest we would have "fiat" money?

    mz
    mikiesmoky@aol.com
    Nov 25 02:50 PM | Likes Like |Link to Comment
  • Basel III And Gold [View article]
    Frank,
    Price of a good is almost always under or over valued.
    Price equaling value is like a broken clock being right twice a day.

    Sorry, but I fail to understand your effort in the 2nd paragraph.

    NOTE: Gold and other precious metals are COMMODITIES, i.e., not money.
    By the way, do some research by asking buyers of gold and silver
    in the early 80's @ $500-700 and $40-50 an ounce, respectively, as to how thrilled and excited they are about those transactions?

    I remember walking a client out to her car. She pointed to her Mercedes and how her profits in silver had enabled her purchase. Silver was around $50 (about the top) and I implored her to sell.........

    mz
    Nov 22 04:20 PM | 1 Like Like |Link to Comment
  • Basel III And Gold [View article]
    Interesting Times:

    Einstein said that he could have more success attempting to explain his Theory of Relativity to someone who had never seen a ball thrown into the air, knowing it would fall to the ground, i.e., the mind was programmed or prejudiced.

    I hope you understand and appreciate the concept..................

    One thing for sure...., you understand the massive marketing that has been done regarding precious metals, which has created a massive bubble.
    Silver, at least, has a floor around $6-10, whereas gold's "floor" is more ambiguous: $100-600.

    mz
    Nov 22 04:09 PM | 1 Like Like |Link to Comment
  • Basel III And Gold [View article]
    Frank,
    How about this for "perspective"?

    Which do you believe has more "utility" (intrinsic value):

    150 new homes @ $221,000 each or one cubic foot of gold?

    What would you project to be the "market" price of gold if all hoarded gold were released into the marketplace?

    $500? $300? $100?

    It would be a catastrophic event, thus the "thin ice".

    Regarding "pieces of paper":
    These "pieces of paper" are representations of "worth", i.e., obviously, there is no real value in the paper, itself.

    mz
    mikiesmoky@aol.com
    Nov 22 04:00 PM | 1 Like Like |Link to Comment
  • Basel III And Gold [View article]
    Frank, why would you mention "paper".
    I have seen gold colored paper, but not paper that was gold. lol

    "Scarce"? Is gold scarce?

    Go to India to ask your question about physical gold.

    lol x too many!!

    In the 60's, there was a Night Gallery type show that, at the end, a man who was dying of thirst, in the desert, as he was lying there, begged a man for water and that he would trade one of his many bars of gold for a glass of water.
    The thirsty man died and when the man went back to his jeep, he mentioned to his friend that this dying man, apparently, thought that there was some value to gold.....................

    Enjoy....,

    mz
    Nov 22 12:06 PM | 1 Like Like |Link to Comment
  • Basel III And Gold [View article]
    Frank, when you pose that question, keep in mind that gold comes in forms other than coins or bars. lol

    Gold hoarders, whether they be small or large, governments or private, are skating on thin ice......................
    I advise that they wear something very very warm.

    mz
    Nov 22 11:29 AM | 1 Like Like |Link to Comment
  • Basel III And Gold [View article]
    Very good Joseph.

    Has anyone been watching the Fed, these past 4/5 years?

    The main purpose of the Fed has been to maintain or increase asset prices.

    Oops!

    What will happen when that effort ends?

    What will happen when mtge rates go to 5 - 5 1/2 - 6%?

    Oops, again!

    The Fed is "hoping" that our economics will grow enough to support these inflated prices.

    Oops!!!

    mz
    Nov 22 11:19 AM | Likes Like |Link to Comment
  • Basel III And Gold [View article]
    Out of curiosity, how can silver be "undervalued" when the cost to produce an incremental ounce is $3-5?

    Price = the exchange between buyers and sellers (how many suckers are produced in one day?)

    Value = the "worth" of a product or service

    From time to time, products are overvalued ...., and, yes, sometimes undervalued (gold and silver do not fall into the latter category).

    mz
    Nov 22 11:11 AM | 1 Like Like |Link to Comment
  • Basel III And Gold [View article]
    Re: Gold is not "hoarded" by anyone other than the central banks

    Are you a "sit-down" comic???

    mz
    Nov 22 11:01 AM | 1 Like Like |Link to Comment
  • Basel III And Gold [View article]
    Good comments and perspective.

    More important is that gold is the most hoarded of all commodities.

    How will prices be affected when this extreme hoarding, which produces artificial pricing, is mitigated?

    If banks were to use gold as Tier 1, any decline in "pricing" (i.e., not value as that ship has sailed) will come, $ for $, from EQUITY.

    Oops!

    Isn't that the cause of the 2007/2008 "crisis" when mortgages were marked down?

    What is that about "history repeating itself"?

    lol, but not really!

    mz
    mikiesmoky@aol.com
    Nov 22 10:57 AM | 1 Like Like |Link to Comment
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