http://finance.yahoo.com/news/gold-...efore-the-metal-finds-a-bottom-162852945.html another one..conspiracy???
Cool, a stronger US dollar based on...um...17 trillion debt on the books but over 200 Trillion with unfunded liabilities Medicaid, Medicare, pensions etc etc etc, Greenspan advocating Gold, US Maples running out and the price is going down..... I agree..something doesnt add up. Guess im not that smart. I hope im smart enough (Thanks Jim Rogers for the quote) to buy more as it continues to fall.
No kidding! Strong dollar based on week currencies throughout the world. One way to stay on top is to sabotage the other players! Print money and ship out the inflation! The BRICS are sick of it and are on the war path of economic revenge! Its hard to stomach the whole process as a stacker. Stay the course and don't be sucked in to the trap. The rewards will be there and more importantly you will survive when the whole ponzi scheme implodes and most people are left holding the "paper" bag!
The thing that I find confusing about the whole gold thing is that by all reports China and Russia and other central banks are buying gold by the tonne. Why would this be the case unless there was an end game to their behaviour?
Why are they talking about gold? The price of gold is a symptom. They need to worry about the trajectory of US debt, the FED's desperate policy to keep the US dollar as the reserve currency and the world's response to that policy.
what can be done to those trillions surplus ??? gold production is 2500 tonnes a year. how long does it takes to make stacker China to achieve the desired stacks :lol:
All this is true. The US$ might be rubbish, and over the long term gold might be better. But imagine this scenario, which more or less represents my situation, and I guess that of many others: I have $300,000 mortgage and $100,000 cash (and perhaps $50,000 in gold). Say there is high inflation (above 7%) and the fed increases interest rates to 8-10% to control inflation. What do I do? I buy gold expecting hyperinflation, which likely will never occur, or I use all my cash to repay the mortgage, thereby saving 8-10% a year? Probably the latter. And will I also sell my gold to repay the mortgage? Probably yes. Then I guess some people say that the Fed is manipulating the price of gold. No. They don't care about gold. They try to control inflation, not the price of gold. The conclusion is that gold is probably not such a good investment, even in relatively high rates of inflation, at least if you have a mortgage and not repaying it involves a direct, measurable loss.
