Gold Redux: What do you folks thing about this?

[4plexowner]

I figure Joe Sixpack will start buying gold around $1500/ounce (assuming there is anything left of his 401K at that point)

J6P’s frenzy to obtain gold at any price will drive the third phase of the gold bull market – the price of gold in that phase is likely to reach heights that even the gold bugs won’t believe

As partypup is saying, intelligent gold bugs will be selling their gold to these latecomers and investing the proceeds into other asset classes

I suspect that sell time for gold will coincide with buy time for real estate – I’ll be paying cash for the real estate that J6P can no longer purchase because interest rates have become prohibitive (remember it was the 20% interest rate imposed by Volker that broke the back of the gold bull in the early 1980’s)

~

another possible outcome is that gold returns to its status as the backing for currencies around the world (or at least as backing for the world’s new reserve currency, the yuan) – if this occurs, the price of gold will remain high and NOT drop back down as it would otherwise – Jim Sinclair (jsmineset.com) believes this will be the end-game for this gold bull market – I’m adopting a ‘wait and see’ attitude on this

[4plexowner]

three phases of a bull market

Richard Russell has been watching the markets on a daily basis for over 50 years – he has seen a few bull markets in his time

according to him, there are three phases to every bull market

in the first phase smart money recognizes a new trend and takes a position – in gold, this phase started in 1999/2001 as gold bottomed at the end of its long secular bear market

the second phase is when institutional money recognizes the new trend and takes a position – I’m not sure when the 2nd phase started but it is definitely happening now as we see news like this:

– Paulson’s Hedge Fund Bought Gold Stock, Miners in First Quarter
http://www.bloomberg.com/apps/news?pid=20601110&sid=a5pBM08jxvlE
$5.3 billion investment in gold

– Traditional Holders of Dollars Begin To Diversify
http://news.goldseek.com/GoldSeek/1244217600.php
$400 million investment

the third phase is when the public recognizes the ‘new’ trend (which has then been going on for literally years) – this is when taxicab drivers and hair dressers start telling you about how much money they just made in gold stock XYZ (remember the dot.com bubble?) – the third phase of a bull market takes prices to heights which even the bulls aren’t expecting (imagine investing in the Dow in 1982 when it was around 1000 – if someone told you that bull market would top at 14,000 you would not have believed them)

and, as Richard says,

THERE IS NO FEVER LIKE GOLD FEVER!!!

[4plexowner]

three phases of a bull market

Richard Russell has been watching the markets on a daily basis for over 50 years – he has seen a few bull markets in his time

according to him, there are three phases to every bull market

in the first phase smart money recognizes a new trend and takes a position – in gold, this phase started in 1999/2001 as gold bottomed at the end of its long secular bear market

the second phase is when institutional money recognizes the new trend and takes a position – I’m not sure when the 2nd phase started but it is definitely happening now as we see news like this:

– Paulson’s Hedge Fund Bought Gold Stock, Miners in First Quarter
http://www.bloomberg.com/apps/news?pid=20601110&sid=a5pBM08jxvlE
$5.3 billion investment in gold

– Traditional Holders of Dollars Begin To Diversify
http://news.goldseek.com/GoldSeek/1244217600.php
$400 million investment

the third phase is when the public recognizes the ‘new’ trend (which has then been going on for literally years) – this is when taxicab drivers and hair dressers start telling you about how much money they just made in gold stock XYZ (remember the dot.com bubble?) – the third phase of a bull market takes prices to heights which even the bulls aren’t expecting (imagine investing in the Dow in 1982 when it was around 1000 – if someone told you that bull market would top at 14,000 you would not have believed them)

and, as Richard says,

THERE IS NO FEVER LIKE GOLD FEVER!!!

[4plexowner]

three phases of a bull market

Richard Russell has been watching the markets on a daily basis for over 50 years – he has seen a few bull markets in his time

according to him, there are three phases to every bull market

in the first phase smart money recognizes a new trend and takes a position – in gold, this phase started in 1999/2001 as gold bottomed at the end of its long secular bear market

the second phase is when institutional money recognizes the new trend and takes a position – I’m not sure when the 2nd phase started but it is definitely happening now as we see news like this:

– Paulson’s Hedge Fund Bought Gold Stock, Miners in First Quarter
http://www.bloomberg.com/apps/news?pid=20601110&sid=a5pBM08jxvlE
$5.3 billion investment in gold

– Traditional Holders of Dollars Begin To Diversify
http://news.goldseek.com/GoldSeek/1244217600.php
$400 million investment

the third phase is when the public recognizes the ‘new’ trend (which has then been going on for literally years) – this is when taxicab drivers and hair dressers start telling you about how much money they just made in gold stock XYZ (remember the dot.com bubble?) – the third phase of a bull market takes prices to heights which even the bulls aren’t expecting (imagine investing in the Dow in 1982 when it was around 1000 – if someone told you that bull market would top at 14,000 you would not have believed them)

and, as Richard says,

THERE IS NO FEVER LIKE GOLD FEVER!!!

[4plexowner]

three phases of a bull market

Richard Russell has been watching the markets on a daily basis for over 50 years – he has seen a few bull markets in his time

according to him, there are three phases to every bull market

in the first phase smart money recognizes a new trend and takes a position – in gold, this phase started in 1999/2001 as gold bottomed at the end of its long secular bear market

the second phase is when institutional money recognizes the new trend and takes a position – I’m not sure when the 2nd phase started but it is definitely happening now as we see news like this:

– Paulson’s Hedge Fund Bought Gold Stock, Miners in First Quarter
http://www.bloomberg.com/apps/news?pid=20601110&sid=a5pBM08jxvlE
$5.3 billion investment in gold

– Traditional Holders of Dollars Begin To Diversify
http://news.goldseek.com/GoldSeek/1244217600.php
$400 million investment

the third phase is when the public recognizes the ‘new’ trend (which has then been going on for literally years) – this is when taxicab drivers and hair dressers start telling you about how much money they just made in gold stock XYZ (remember the dot.com bubble?) – the third phase of a bull market takes prices to heights which even the bulls aren’t expecting (imagine investing in the Dow in 1982 when it was around 1000 – if someone told you that bull market would top at 14,000 you would not have believed them)

and, as Richard says,

THERE IS NO FEVER LIKE GOLD FEVER!!!

[4plexowner]

three phases of a bull market

Richard Russell has been watching the markets on a daily basis for over 50 years – he has seen a few bull markets in his time

according to him, there are three phases to every bull market

in the first phase smart money recognizes a new trend and takes a position – in gold, this phase started in 1999/2001 as gold bottomed at the end of its long secular bear market

the second phase is when institutional money recognizes the new trend and takes a position – I’m not sure when the 2nd phase started but it is definitely happening now as we see news like this:

– Paulson’s Hedge Fund Bought Gold Stock, Miners in First Quarter
http://www.bloomberg.com/apps/news?pid=20601110&sid=a5pBM08jxvlE
$5.3 billion investment in gold

– Traditional Holders of Dollars Begin To Diversify
http://news.goldseek.com/GoldSeek/1244217600.php
$400 million investment

the third phase is when the public recognizes the ‘new’ trend (which has then been going on for literally years) – this is when taxicab drivers and hair dressers start telling you about how much money they just made in gold stock XYZ (remember the dot.com bubble?) – the third phase of a bull market takes prices to heights which even the bulls aren’t expecting (imagine investing in the Dow in 1982 when it was around 1000 – if someone told you that bull market would top at 14,000 you would not have believed them)

and, as Richard says,

THERE IS NO FEVER LIKE GOLD FEVER!!!

[Arraya]

Why is gold so popular?

http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=11107

Brett Jordaan writes: What politicians and central bankers around the world are either neglecting to tell us, or to consider, is that the current economic crisis, now a global recession and fast becoming a depression, is a result of a fundamental structural shift in the very makeup of the world economy. The credit crisis is widely accepted as the trigger for the current economic woes, but those who take a broad view of the world will see that our current predicament was actually years in the making, and ultimately, inevitable. As inevitable as the collapse of a house of cards, or the implosion of a Ponzi scheme. In fact, the global monetary system actually fits the description of a Ponzi scheme.

The irony is that as the Fed (US Federal Reserve) prints ever greater sums of money (most notably recently through “quantitative easing”), China will be left sitting on a pile of steadily declining Dollars as the inevitable devaluation that results from oversupply of money takes hold.

China knows this and this is why it has been making calls for a new international reserve currency and has tripled its gold reserves in 8 years.

Now the engine of growth in the US and the West has seized, as the housing bubble continues its inevitable collapse and consumers logically reduce their spending to rational levels. People are actually saving, as the light of sanity shines some truth on the utter lunacy of continual throwaway consumerism.

Unfortunately it seems that sanity is incompatible with running a government and economy nowadays. The solution to our problem trumpeted by the US and other governments is…. More DEBT! Yes, we must borrow and spend our way out of this mess they say. Oh, and if we cannot borrow at a national level (because other countries are seriously starting to doubt lending us money), we’ll print more money to magically create wealth and go back to the good old days of borrowing to buy a lot of junk we just don’t need

Now I find it very difficult to believe that Nobel prize-winning economists and the brilliant central bankers are experiencing such tremendous cognitive dissonance, that they actually believe that the current system can continue, or in fact be rejuvenated by more of the actual causes of this crisis. More spending and more debt, to solve the problem of excessive spending and excessive debt.

Is it just me, or are we being taken for a ride? Are the people in control deliberately sending us headfirst into an economic and social catastrophe in order to gain more power and take more of our feeedoms, or are they so incompetent that they do not see the writing on the wall?

We are in a structural recession. The global economy is structurally adjusting into a more balanced and sustainable system, one driven by savings and production, not borrowing and debt. Savings will finance investment in production of goods and services that actually provide a benefit to society and the biosphere. We live in a world of finite resources. Continual population growth, consumption and environmental degradation are not compatible with this reality.

Any attempts to turn back the clock, to return to that hitherto unsustainable status quo will just cause this transition to be more painful. The excesses of the past are gone and those that realise this and adjust their lifestyles and paradigms, will be the pioneers of the new age to come. It seems that we cannot trust our leaders to solve this problem, it is up to each of us to have the courage to face change, and embrace the opportunity it brings.

.

[Arraya]

Why is gold so popular?

http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=11107

Brett Jordaan writes: What politicians and central bankers around the world are either neglecting to tell us, or to consider, is that the current economic crisis, now a global recession and fast becoming a depression, is a result of a fundamental structural shift in the very makeup of the world economy. The credit crisis is widely accepted as the trigger for the current economic woes, but those who take a broad view of the world will see that our current predicament was actually years in the making, and ultimately, inevitable. As inevitable as the collapse of a house of cards, or the implosion of a Ponzi scheme. In fact, the global monetary system actually fits the description of a Ponzi scheme.

The irony is that as the Fed (US Federal Reserve) prints ever greater sums of money (most notably recently through “quantitative easing”), China will be left sitting on a pile of steadily declining Dollars as the inevitable devaluation that results from oversupply of money takes hold.

China knows this and this is why it has been making calls for a new international reserve currency and has tripled its gold reserves in 8 years.

Now the engine of growth in the US and the West has seized, as the housing bubble continues its inevitable collapse and consumers logically reduce their spending to rational levels. People are actually saving, as the light of sanity shines some truth on the utter lunacy of continual throwaway consumerism.

Unfortunately it seems that sanity is incompatible with running a government and economy nowadays. The solution to our problem trumpeted by the US and other governments is…. More DEBT! Yes, we must borrow and spend our way out of this mess they say. Oh, and if we cannot borrow at a national level (because other countries are seriously starting to doubt lending us money), we’ll print more money to magically create wealth and go back to the good old days of borrowing to buy a lot of junk we just don’t need

Now I find it very difficult to believe that Nobel prize-winning economists and the brilliant central bankers are experiencing such tremendous cognitive dissonance, that they actually believe that the current system can continue, or in fact be rejuvenated by more of the actual causes of this crisis. More spending and more debt, to solve the problem of excessive spending and excessive debt.

Is it just me, or are we being taken for a ride? Are the people in control deliberately sending us headfirst into an economic and social catastrophe in order to gain more power and take more of our feeedoms, or are they so incompetent that they do not see the writing on the wall?

We are in a structural recession. The global economy is structurally adjusting into a more balanced and sustainable system, one driven by savings and production, not borrowing and debt. Savings will finance investment in production of goods and services that actually provide a benefit to society and the biosphere. We live in a world of finite resources. Continual population growth, consumption and environmental degradation are not compatible with this reality.

Any attempts to turn back the clock, to return to that hitherto unsustainable status quo will just cause this transition to be more painful. The excesses of the past are gone and those that realise this and adjust their lifestyles and paradigms, will be the pioneers of the new age to come. It seems that we cannot trust our leaders to solve this problem, it is up to each of us to have the courage to face change, and embrace the opportunity it brings.

.

[Arraya]

Why is gold so popular?

http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=11107

Brett Jordaan writes: What politicians and central bankers around the world are either neglecting to tell us, or to consider, is that the current economic crisis, now a global recession and fast becoming a depression, is a result of a fundamental structural shift in the very makeup of the world economy. The credit crisis is widely accepted as the trigger for the current economic woes, but those who take a broad view of the world will see that our current predicament was actually years in the making, and ultimately, inevitable. As inevitable as the collapse of a house of cards, or the implosion of a Ponzi scheme. In fact, the global monetary system actually fits the description of a Ponzi scheme.

The irony is that as the Fed (US Federal Reserve) prints ever greater sums of money (most notably recently through “quantitative easing”), China will be left sitting on a pile of steadily declining Dollars as the inevitable devaluation that results from oversupply of money takes hold.

China knows this and this is why it has been making calls for a new international reserve currency and has tripled its gold reserves in 8 years.

Now the engine of growth in the US and the West has seized, as the housing bubble continues its inevitable collapse and consumers logically reduce their spending to rational levels. People are actually saving, as the light of sanity shines some truth on the utter lunacy of continual throwaway consumerism.

Unfortunately it seems that sanity is incompatible with running a government and economy nowadays. The solution to our problem trumpeted by the US and other governments is…. More DEBT! Yes, we must borrow and spend our way out of this mess they say. Oh, and if we cannot borrow at a national level (because other countries are seriously starting to doubt lending us money), we’ll print more money to magically create wealth and go back to the good old days of borrowing to buy a lot of junk we just don’t need

Now I find it very difficult to believe that Nobel prize-winning economists and the brilliant central bankers are experiencing such tremendous cognitive dissonance, that they actually believe that the current system can continue, or in fact be rejuvenated by more of the actual causes of this crisis. More spending and more debt, to solve the problem of excessive spending and excessive debt.

Is it just me, or are we being taken for a ride? Are the people in control deliberately sending us headfirst into an economic and social catastrophe in order to gain more power and take more of our feeedoms, or are they so incompetent that they do not see the writing on the wall?

We are in a structural recession. The global economy is structurally adjusting into a more balanced and sustainable system, one driven by savings and production, not borrowing and debt. Savings will finance investment in production of goods and services that actually provide a benefit to society and the biosphere. We live in a world of finite resources. Continual population growth, consumption and environmental degradation are not compatible with this reality.

Any attempts to turn back the clock, to return to that hitherto unsustainable status quo will just cause this transition to be more painful. The excesses of the past are gone and those that realise this and adjust their lifestyles and paradigms, will be the pioneers of the new age to come. It seems that we cannot trust our leaders to solve this problem, it is up to each of us to have the courage to face change, and embrace the opportunity it brings.

.

[Arraya]

Why is gold so popular?

http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=11107

Brett Jordaan writes: What politicians and central bankers around the world are either neglecting to tell us, or to consider, is that the current economic crisis, now a global recession and fast becoming a depression, is a result of a fundamental structural shift in the very makeup of the world economy. The credit crisis is widely accepted as the trigger for the current economic woes, but those who take a broad view of the world will see that our current predicament was actually years in the making, and ultimately, inevitable. As inevitable as the collapse of a house of cards, or the implosion of a Ponzi scheme. In fact, the global monetary system actually fits the description of a Ponzi scheme.

The irony is that as the Fed (US Federal Reserve) prints ever greater sums of money (most notably recently through “quantitative easing”), China will be left sitting on a pile of steadily declining Dollars as the inevitable devaluation that results from oversupply of money takes hold.

China knows this and this is why it has been making calls for a new international reserve currency and has tripled its gold reserves in 8 years.

Now the engine of growth in the US and the West has seized, as the housing bubble continues its inevitable collapse and consumers logically reduce their spending to rational levels. People are actually saving, as the light of sanity shines some truth on the utter lunacy of continual throwaway consumerism.

Unfortunately it seems that sanity is incompatible with running a government and economy nowadays. The solution to our problem trumpeted by the US and other governments is…. More DEBT! Yes, we must borrow and spend our way out of this mess they say. Oh, and if we cannot borrow at a national level (because other countries are seriously starting to doubt lending us money), we’ll print more money to magically create wealth and go back to the good old days of borrowing to buy a lot of junk we just don’t need

Now I find it very difficult to believe that Nobel prize-winning economists and the brilliant central bankers are experiencing such tremendous cognitive dissonance, that they actually believe that the current system can continue, or in fact be rejuvenated by more of the actual causes of this crisis. More spending and more debt, to solve the problem of excessive spending and excessive debt.

Is it just me, or are we being taken for a ride? Are the people in control deliberately sending us headfirst into an economic and social catastrophe in order to gain more power and take more of our feeedoms, or are they so incompetent that they do not see the writing on the wall?

We are in a structural recession. The global economy is structurally adjusting into a more balanced and sustainable system, one driven by savings and production, not borrowing and debt. Savings will finance investment in production of goods and services that actually provide a benefit to society and the biosphere. We live in a world of finite resources. Continual population growth, consumption and environmental degradation are not compatible with this reality.

Any attempts to turn back the clock, to return to that hitherto unsustainable status quo will just cause this transition to be more painful. The excesses of the past are gone and those that realise this and adjust their lifestyles and paradigms, will be the pioneers of the new age to come. It seems that we cannot trust our leaders to solve this problem, it is up to each of us to have the courage to face change, and embrace the opportunity it brings.

.

[Arraya]

Why is gold so popular?

http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=11107

Brett Jordaan writes: What politicians and central bankers around the world are either neglecting to tell us, or to consider, is that the current economic crisis, now a global recession and fast becoming a depression, is a result of a fundamental structural shift in the very makeup of the world economy. The credit crisis is widely accepted as the trigger for the current economic woes, but those who take a broad view of the world will see that our current predicament was actually years in the making, and ultimately, inevitable. As inevitable as the collapse of a house of cards, or the implosion of a Ponzi scheme. In fact, the global monetary system actually fits the description of a Ponzi scheme.

The irony is that as the Fed (US Federal Reserve) prints ever greater sums of money (most notably recently through “quantitative easing”), China will be left sitting on a pile of steadily declining Dollars as the inevitable devaluation that results from oversupply of money takes hold.

China knows this and this is why it has been making calls for a new international reserve currency and has tripled its gold reserves in 8 years.

Now the engine of growth in the US and the West has seized, as the housing bubble continues its inevitable collapse and consumers logically reduce their spending to rational levels. People are actually saving, as the light of sanity shines some truth on the utter lunacy of continual throwaway consumerism.

Unfortunately it seems that sanity is incompatible with running a government and economy nowadays. The solution to our problem trumpeted by the US and other governments is…. More DEBT! Yes, we must borrow and spend our way out of this mess they say. Oh, and if we cannot borrow at a national level (because other countries are seriously starting to doubt lending us money), we’ll print more money to magically create wealth and go back to the good old days of borrowing to buy a lot of junk we just don’t need

Now I find it very difficult to believe that Nobel prize-winning economists and the brilliant central bankers are experiencing such tremendous cognitive dissonance, that they actually believe that the current system can continue, or in fact be rejuvenated by more of the actual causes of this crisis. More spending and more debt, to solve the problem of excessive spending and excessive debt.

Is it just me, or are we being taken for a ride? Are the people in control deliberately sending us headfirst into an economic and social catastrophe in order to gain more power and take more of our feeedoms, or are they so incompetent that they do not see the writing on the wall?

We are in a structural recession. The global economy is structurally adjusting into a more balanced and sustainable system, one driven by savings and production, not borrowing and debt. Savings will finance investment in production of goods and services that actually provide a benefit to society and the biosphere. We live in a world of finite resources. Continual population growth, consumption and environmental degradation are not compatible with this reality.

Any attempts to turn back the clock, to return to that hitherto unsustainable status quo will just cause this transition to be more painful. The excesses of the past are gone and those that realise this and adjust their lifestyles and paradigms, will be the pioneers of the new age to come. It seems that we cannot trust our leaders to solve this problem, it is up to each of us to have the courage to face change, and embrace the opportunity it brings.

.

[scaredyclassic]

one icky fact; gold mining is very environmentally bad

[scaredyclassic]

one icky fact; gold mining is very environmentally bad

[scaredyclassic]

one icky fact; gold mining is very environmentally bad

[scaredyclassic]

one icky fact; gold mining is very environmentally bad

[Author]

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