Then he tries to weasel out of it... http://www.reuters.com/article/idUSTRE65652L20100607 But keeps his bite at the 40% fall prediction, just in case. Prechter is a weasel.
But he's wrong. http://www.businessinsider.com/robert-prechter-wrong-2010-11 And is hopelessly wrong. See it's one thing being contrarian. Going for the underdog etc. But Prechter going for the US dollar is like someone going for a horse drawn buggy at the dawn of the automobile age. Sometimes the weakness is real. Contrarian for the sake of it is just stupid.
But my worst criticism of Prechter is that he has no independent mind. He believes in a theory of market waves. His entire arguments are predicated on the validity of that theory. But he cannot allow that the theory could be wrong. It's like a car heading downhill and about to go off a cliff. Prechter in the passenger seat is yelling "don't brake you fool! the map right in front of me says we're right."
Thanks for the welcome guys. I've been a silver bug for a number of years, but only just found this forum and from all accounts it seems very informative and friendly benjamind2010... You are absolutely correct. When investing you should always focus on the longer term and ignore short-term volatility. Failure to do this increases the chance you're wealth will be stolen by the sharks that prey on the weak hands. However, it's not always about making money, but moreso maintaining the value of your current wealth in REAL terms. For example, if you had 100K in gold and 100k in cash 20 years ago , which is worth more in todays money. Yes, you'd still have 100K in cash, but in real terms your purchasing power will have been significantly reduced due to inflation. Depending on your age, you can probably relate to this. However, while it may appear your gold has significantly increased in value, all it has really done is maintained its REAL value compared to it's fiat currency equivalent. So gold hasn't really increased in value, rather fiat currency has decreased in value. So why do you keep money in the bank for the long term? Because that's what the "system" has programmed us to do since we were an early age. It's in the "systems" best interest. Since inception the US dollar has lost 95% of it's purchasing power, and this is why they call inflation "the silent tax", because you're being taxed without even knowing it. So even in periods of inflation when stocks and bonds are increasing in face value, in real terms they are losing value due to the effect inflation has on the purchasing power of fiat currency. Gold is a measure of inflation, so when gold prices increase, inflation increases, which in turn devalues fiat currency, which in turn becomes less attractive to foreign currency investors because they begin to lose faith in the "value" of the currency. This is the very reason why governments do whatever they can to surpress the price of gold (and silver by proxy). No fiat currency in the history of the world has ever survived, and for thousands of years the best form of storing wealth over the long term has always been precious metals, because unlike fiat currencies, physical gold and silver has intrinsic value and can NEVER go to zero. This is why most people invest in precious metals. Hope I haven't confused anyone with my rambling
The US economy is on the way of collapse, not because of the housing bubble causing economic depression, but mostly, because the debt ridden corrupted banking sector influence on the debt ridden and incompetent US government to handle the crisis. What we see and experience in the rise of the gold price, but not hear (from the MSM anyway) is the slow but steadily increasing loss of confidence in paper currencies issued by the USA. To see gold and silver prices drop to the levels you are talking about the USA has to make so much sacrifices to fix the economic damage that no politician can make without causing public rioting. Watch and enjoy http://www.youtube.com/watch?v=fOshw4kIGR4&feature=player_embedded
[youtube]http://www.youtube.com/watch?v=fOshw4kIGR4[/youtube] If you just cut & paste the "fOshw4kIGR4" from the original link, you can use the YOUTUBE button on the Post Reply page to embed videos now
Please include something about no more videos of those hamster characters explaining anything. I think I got over those two after the first outing on a camera forum. Excruciatingly boring. What we need is someone to do a killer Downfall spoof on silver stacking.
