[quote=UCGal][quote=walterwhite]i think 1000 an ounce was a while ago.[/quote]
A while ago = 2 years ago.
What else doubled in the last 2 years?[/quote]
Nothing doubled, but credibility of lawmakers and fed is one half of what it was 2 years ago.
I think the question is not, “how high can gold go?” but “how low can the dollar go?” The answer is theoretically to zero, so the nominal $ value attached to gold is meaningless.
Bernanke announced in early August that he was going to keep interest rates at a very low rate for two years. You can’t just say the words. The only way the central bank can do that is to intervene in the market and force interest rates down. Just look at the Fed’s unadjusted numbers since the beginning of August and you will see they shot up at the same time.
Its all about relative supply curves – the supply curve for bullion is far more inelastic than is the case for paper currency. Its really that simple.
All I know is that I see signs everywhere saying “We Buy Gold” or “Se Compra Oro”. I do not see signs everywhere advertising gold for sale, nor do I see online advertisements on any mainstream websites advertising gold for sale.
I thought gold was in a bubble and sold mine at a loss back around $600/oz or so. I sold again to break even at $1000/oz. Don’t own any today because of my poor track record in the past and it’s too rich for my blood now…
[quote=CONCHO]All I know is that I see signs everywhere saying “We Buy Gold” or “Se Compra Oro”. I do not see signs everywhere advertising gold for sale, nor do I see online advertisements on any mainstream websites advertising gold for sale.
I thought gold was in a bubble and sold mine at a loss back around $600/oz or so. I sold again to break even at $1000/oz. Don’t own any today because of my poor track record in the past and it’s too rich for my blood now…[/quote]
It’s actually cheap! The fed is printing waaaay too much!
Italy is the third largest gold holder in the world with some $150 billion held. Given they will need to sell this soon to keep the lights on I suspect gold will temporarily crash in a manner similar to the 90’s when Russia was dumping its stock to keep the lights on. Demand for consumer electronics is tied to the economy as well.
Me thinks in the near term (2 – 3 years) gold back down to around $800.
Of course I may be totally wrong about Italy as it is possible their gold will be used or has already been used to secure their debt and will never enter the market. In this case we could see gold up over $2000 within the year.
[quote=enron_by_the_sea][quote=UCGal][quote=walterwhite]i think 1000 an ounce was a while ago.[/quote]
A while ago = 2 years ago.
What else doubled in the last 2 years?[/quote]
Nothing doubled, but credibility of lawmakers and fed is one half of what it was 2 years ago.[/quote]
Nicely put
.
