Jingle-Jangle

Why Gold Is Overpriced

Because homes rebounded when he and others thought they never would means to him that gold will pull back because many think it never will.
Well, maybe in India. I know they have not been buying gold but that is an indicator of the Indian currency strength (which has tanked). While it may not be a bad idea for those in India to keep their powder dry until gold makes a downturn, they better be ready to pounce when it does.
Gold seems also the only way east Indians know how to make money and therefore the writer of this article likens it to over priced homes and does not take into consideration that all nations are diluting their currencies (which makes gold more expensive along with everything else you may wish to purchase).
Let's wait and see, indeed. The economic storm is coming. Have some gold and silver in your pockets to weigh you down so you won't blow away.

Gold, T-Bonds, and Russia's Tu-160 Bombers

All roads lead to a debased US dollar and increased price of gold. This century will be focused on the Pacific rim, for trade and prosperity. The "economic" sun is setting on Europe. Once again Europe will enter a dark age and the US will share Europe's fate to a great degree due to the failed policies of greedy people who refuse to take the hit for their bad decisions, "under the guise of trying to help the common person".

Gold Bubble Still Expanding - Canaccord

I always find the defense of the 1980 high price of gold a non-starter for a conversation of where gold should be today.
We can all agree that the high of gold in 1980 was overdone, but it was not overdone by more than a few hundred dollars.
The fed is controlling the rate of gold's increase by having one or two banks short it to void the longs on the COMEX.
If anyone wishes to place a future on the COMEX for gold long, do it with cash and take delivery.
Eventually, a Middle East oil sheik will go long and take delivery and the COMEX will be destroyed by their effort to make good on the delivery. That will be the end game for the COMEX price control and the market will regain control of gold once again.
Fiat currencies will also be ruined by the same action of COMEX delivery orders for several hundred thousand ounces of the metal because everyone holding paper will also scramble to get some real money before it becomes more expensive than they can afford.
The COMEX is the cheapest place to buy gold today. They do not charge a premium.
My plea goes out to a rich oil sheik to buy their gold on the COMEX and take delivery. The sooner the better for all of humanity. The crooks stealing our wealth must be stopped and this is the only way to do it.


On Feb 19 08:48 AM ddearborn wrote:

> I find it incredibly manipulative that so many pundits are calling
> the current gold situation a "bubble". What a crock! Gold is still
> less than a quarter of its 1980 high in inflation adjusted dollars!
> Not only that but the dollar is being debased by the fed/treasury
> as we speak. In other words gold is increasing in value every day.
> The NWO is manipulating the entire world's currencies for trillions
> in profits. Gold and silver prices have been throttled for any number
> of reasons by them, all profit related of course.
>
> The world has just whitnessed the biggest robbery in the history
> of man. And it was perpetrated by the same small group that has controlled
> the US dollar and now virtually every world currency for for over
> 100 years.

What's Going on With the Dollar and Gold?

This economy is ripe for investors to profit from. I am waiting to buy an Infiniti G37S but not at current prices. The dollar is going down, cars are not selling, loans are low interest (still) and I am waiting.
I will buy before the dollar is devalued against cars and before the interest rate goes up. As with buying mining stocks timing is everything.
I bought Nova Gold (NG) at .71 and it is 3.53 today. It will help buy my car.

Lithium Bonanza in Bolivia

Reminds me of current liberals in our country. Laws mean nothing to them. Laws are for the little people not the Democrat politicians. Watch your back.


On Feb 03 11:53 AM User 213076 wrote:

> There is nothing wrong with a government trying to get the best deal
> for its people. Trouble is that with countries like Russia, Venezuela
> and Bolivia, they like to change the rules at a whim when market
> conditions favor.
>
> When it comes to Bolivia, the Brazilians, Argentines and the Spanish
> are the big losers here. It's there problem and it won't be ours
> because no major American corporation will invest.
>
> Evo is a typical politician in many ways. He will, like Chavez, embrace
> any photo op with Brazil's President Lula, then turn on Brazil's
> private investments in Bolivia and confiscate them.
> Lula is no longer amused, hence the recent military build up plans
> by Brazil.
> Brazil is now the Capatalist Pig of South America after getting invested
> properties confiscated by Ecuador, Bolivia and contract changes in
> Venezuela.
> The US is no longer alone. welcome to our end of the world Brazil.

Bespoke's Commodity Snapshot (1/29/09)

Democrats are in charge. Expect corruption to become common place and expect to see it out in the open without any consequences.
Manipulation is the name of the game and it is done "for the good of the country".
Get used to it.
Democrat corruption makes the rich get richer and the poor get money from the taxes from the middle class.
Democrats hate the middle class. They have no need for regulation and Democrats are all about regulation (except for themselves).

Infrastructure Spending: China Knows

China has money (US dollars) in the bank to spend.
China is a Communist country that has spent ZERO on infrastructure for 40 years. They need a lot of development.

The US has NO MONEY in the bank except what we can print out of thin air.
Democrats will spend money on projects that will benefit them and a few friends, not the country. (They have not changed and Obama is a Marxist.)
Get it through your heads that Libreals want to do what they please and put police to keep order.
Conservatives want to conserve.
Americans are stupid and they will suffer greatly for the next 4 years and will continue to blame Bush.

Fund Manager David Einhorn Buying Gold and Miners, Reluctantly

Democrats keep wanting us to believe that that they are the smartest people on the planet. Typically politicians are NOT the smartest but the smarmiest people on the planet.
Now that democrats are in charge of everything, expect unbridled greed leading to insane spending with only crumbs going to any type of stimulus.
Remember, Obama said, change comes from the bottom up. So, expect the bottom to come fast and stay long.
There will be shortages of everything real soon so stock up. Just think Jimmy Carter on steroids.
Gold and silver are a no brainer no matter what anybody says.

Gold Will Shine Again in 2009

Fiat currencies are in crash mode. That is what Mr. Rollex sees as money. 18k also thinks that the yellow metal will just sit around in lumps on the floor when real money (paper) goes up again.
What he does not understand is, only the US elites see gold as a relic. Thankfully the rest of the world is not as cultured as Mr. 18k Rollex. They all see gold as what it is, MONEY.
Sadly Mr Rollex will sit around in his parties with the other elites asking themselves why their wealth evaporated electronically and their paper dollars cannot pay taxes on their big homes any more, and why those rascals with gold seem to purchase things they really need with no problem.
That's right one day gold will be transacted in debts public and private with much more authority than your paper.

U.S. Mint Actions Discourage Gold Ownership

No body has been talking about the paradigm shift in the way gold mines do business with gold buyers.
In the last 4 years or so the largets gold producing miners with future sales at set prices to buyers such as the US Mint, bought back those futures (many times at a loss) in the belief that the gold price would go much higher.
Now, the US Mint and others do not have in place those gold contracts for delivery at set prices in future dates, well those future dates are happening now and they have contracts maturing and bringing delivery.
I guess they upset the way the US Mint did business and now they cannot figure out how to budget their purchases for gold without futures contracts with the gold producers.
They should place future contracts on the COMEX and get their delivery from them. That would solve more than one problem, if you know what I mean.

The Truth About Today's Gold Market

RJ,
I would like to take that bet of gold hitting 500 before 1k.
COMEX gold is being maniuplated by the Fed through a couple bullion banks.
They are doing a fine job of keeping gold down and everyone flooding into it.
But, eventually gold is up because even the Fed will eventually use it to cut the US debt in half or more by revaluing gold to the dollar. Only, they will do it when they feel it is time to do it.
Until then, gold will be stuck in the range of 750 to 900 dollars. Unless, Chinese or middle eastern folks take advantage of golds low price and start buying it on the COMEX with the intention of taking delivery.
Then the game will be over for manipulation by the Fed.
So, either the Fed will eventually cause the price of gold to go to four figures on their time table or some foreign entity will get into the game before that happens to keep from loosing dollars when the Fed does it.


On Jan 15 10:42 PM RJMoran wrote:

> So I'm confused! Is the price of gold going UP or DOWN?! If gold
> can't go through the roof during a 'global fiat currency' freakout,
> or credit crunch, debt bubble burst, whatever, then when? I think
> the 'tulipmania' comment. is on the right track. My sense is that
> the deflation demon will finally take out gold ('goes up on an escalator
> and comes down in an elevator'!)
> I also agree with whomever said gold was a good hedge against inflation
> NOT recession. The hysterical chatter about an inflation time bomb
> going off is exactly that... I'd say gold will hit $500 well before
> it hits $2K.

Gold Breakdown

It is only the US that sees gold as a relic.
The rest of the world still sees gold as money and the "smartest people in the room" in the US will feel the pain of their mistake about gold as money to the rest of the world.
It might be time for the US to loose its role as leader in the world because it has lost its way.
This new century will be led by the Pacific rim countries and only supported by the US when we get our act back together...say like in five years from now. After the Democrats fail miserably to turn our country into a socialist nation.


On Jan 15 09:41 AM anarchist wrote:

> Goldbugs always rally against those who say anything derogatory about
> the antique. The dollar is the current <store of value> which frustrates
> the goldbugs as they read their newsletters explaining that the Government
> printing presses are melting down from overuse, inflation will be
> rampant, blah, blah, blah. But never the less the majority of the
> world no longer sees gold as a hedge against anything. I know, the
> lines on the chart are crooked, there is a great manipulation of
> the yellow metal, etc. but I agree with Jeff, if you own gold it
> might be a good time to take some chip off the table.

Gold, Viagra and Emerging Markets: Harry Dent on 2009 and Beyond

All I read was blah blah blah.
This guy knows that we are in for big change globally but can only guess about the outcome and where and how it will happen.
Demographics are important but there is so much more to it than he can explain.

Silver ETF Reaches New Inventory High

I can only invest here if I do not plan to take home anything but dollars.
In that case when SLV goes up, I cash in and take my money profits.

Gold Loses Its Shine

I disagree, Gold can be an excellent form of currency. At real adjusted prices, gold coins and silver coins would do just fine. I could carry thousands, hundreds and tens of dollars with me in just those two metals in my pocket without weighing me down or putting a big bulge in my trousers.
Although the thought of carrying thousands of dollars of gold in my pocket may well create a bulge in my trousers of another kind.


On Jan 12 08:06 AM H.J. Huneycutt wrote:

> Gold is a commodity and just like all other commodities, it's price
> is subject to broader supply and demand trends. Using gold as a
> currency is, in a sense, similar to using any other commodity. There's
> no reason you couldn't use pork-bellies or corn as a currency. Of
> course, there would be some big problems with using either of those
> in modern American society and there are actually reasons why gold
> is the best commodity to use as currency.
>
> You speak of the fact that gold has no practical use. Well, technically
> it does have a few uses and it's popular for jewelry applications.
> That's why it has value --- there is demand. In this sense, it's
> no different than any other good out there --- if you offer me a
> cow for $10, that cow may have a useful value of $0 to me as I'm
> not a farmer and wouldn't even begin to know what to do with it.
> However, someone out there does want the cow --- hence even if it
> has zero worth to me, it has worth to someone else, hence creating
> an objective value. If that cow is worth $100 to most farmers, I
> might jump at the opportunity to buy it at $10 even if I have no
> real use for it personally since I can make a $90 profit selling
> it to someone else.
>
> Now that we've established why gold would have objective value, the
> next question is why is gold better suited to serve as currency than
> other commodities. The answer, ironically enough, is its limited
> applications. If we used palladium as a currency, for example, our
> currency's value would radically fluctuate based on demand from a
> variety of sources --- particularly right now, it's value would be
> crushed by the auto manufacturing industry's woes. So in essence,
> a currency based on a good that has volatile pricing could be problematic.
> Since gold's applications are more limited, it is more stable as
> currency. Jewelry demand may go up or down, but it's somewhat stable.
>
>
> Now, the reason why gold has value is two-fold: (a) demand and (b)
> production costs. Gold has a real cost of extraction. This cost
> varies from miner to miner and is somewhat debatable (since you have
> to determine what costs are included in obtaining the final product),
> but the same is true for all commodities. However, the one thing
> that you can say about gold versus paper money is that these real
> economic costs are meaningful. Paper money has a real economic cost,
> as well, but I imagine it's fairly trivial (a few cents per bill?).
> Hence, the argument for gold is that it has a significant real economic
> value attached to it, whereas, paper's value is rooted in something
> less absolute.
>
> Honestly, I don't think literally using gold as a currency would
> be very convenient, but there are a lot of reasons it serves very
> well backing paper money. There are also reasons why when paper
> money becomes devalued, gold --- with its real economic costs ---
> gains value versus paper money.