OilyGasMiner

Precious Metals Will Depose Cash from Its Temporary Throne

Peter, it seems our thoughts appear to align very well. Is it no surprise that the money supply is up over 100% over the past few months? According to Obama, TARP has already spent some $300B of the $750B. Hence money is being pumped at a RAPID pace into our withering economy.

I fully agree that this action coupled with the US debt increasing each day, will only result in furthe devaluation of the US. Dollar.

We must recall that the massive sell offs in hedge funds aren't usually voluntary and fund managers are being FORCED to sell because many investors believe that they are forced to sell. For example in Canada, investors with RRIFs, must pay taxes on at least $10,000 of their investment. However this value was determined at the start of the year, and with some portfolio's down by over 50%. They are now actually paying taxes on 20% of their current portfolio. Due to the lack of transparent investment advice, we will continue to sell these massive sell offs take its toll on already undervalued equities. It is only a matter of months IMO before we see a commodity correction.

And as we know "Concurrently, the U.S. Government runs large operating deficits in circumstances where its National Debt approximated $9.6 trillion at July 31, 2008, up from $9 trillion at December 31, 2007 and $6.2 trillion at December 31, 2006."
Quote Source: www.stockresearchporta.../

The question is with the money supply increasing, debt increasing, unemployment increasing, foreclosures increasing, consumer confidence on the decline. How worse can things really get?

Response to Bloomberg's 'Gold May Pay Only in Case of Maximum Despair'

Michael, you've seemed to uncover a group of the less intelligent individual flabbering their jaws on the market. I trust no one but my own analysis and perception of what is going on in the market. I do this as I've realized how LOST analysts are relative to retailers. As Jim Cramer would say: "THEY NO NOTHING".

Gold is not just a speculative play, but is also a sound investment, I hate the fact that their is this huge misconception that you MUST be rich to afford it, and I'm glad you've highlighted that. Gold rises during times of uncertainty. But as other investments posses a lag period, where it takes time for prices to truly reflect its trued value. And in essence one could say that at these levels the yellow bricks are considered undervalued. no?

I read that "Finally, it was reported last week (again I have not been able to verify this) that the European Central Banks sold 7.6 tons of gold in the week ended October 10. If this is true, that ought to have put downward pressure on the gold price"

This might also indicate the sagging prices in the market. But, a word of warning for investors, be ready to pounce, because once gold starts to take off, you'll be saying. Shoulda, Woulda, and Couldas.