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.

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).

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 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.

Either Gold Has to Come Down - Or Gold Miners Need to Come Up

The demise of mine projects will hurt those of us invested in them, even though they are great projects, they are being killed off by manipulators.
Shame on them. They are anti free-market, anti-capitalist manipulators.
What does that say for the future of trading? Will only the rich be allowed to get richer because the game is rigged?
And now we have a Socialist in the White House and Socialist Democrats in charge of the Congress.
It is going to be a bumpy ride no mater how you play the market for the next four years.

Either Gold Has to Come Down - Or Gold Miners Need to Come Up

"Either gold has to come down or gold stocks have to come up a lot."
That is a mouth full!
Which way will it go? Only time will tell. Many sites are predicting gold to go down. Even Jon Nadler at Kico.com is always predicting the down turn in gold price.
However, the downturn in price will only hasten the closing of many new mine projects as well as the many zinc and copper mines that produce gold and silver by-products. This will only help dry up the availability of gold and silver for sale at any price.
That is the up-side for the gold and silver stocks.
Eventually, the stocks will go up because of low inventories of the metals and the demand for them that is being ignored now. (Try to buy some, you will pay dearly on premiums.)
Us neophites/newbees/smal... investors are the ones left twisting.
Thank God for the folks above us doing the math and watching the market AND explaining it to us.
Thanks!