Forum Post: Goodbye $1700 Gold... Gold and Silver are Blowing Up RIGHT NOW!
Posted 12 years ago on Nov. 8, 2011, 12:53 p.m. EST by MonetizingDiscontent
(1257)
This content is user submitted and not an official statement
(It has come off the highs for the day, but central banks around the world are quietly buying it up)
The Highs for Nov 8th 2011 were:
$1802 GOLD http://www.kitco.com/charts/livegold.html
$ 35.31 SILVER http://www.kitco.com/charts/livesilver.html
Goodbye $1700 Gold
http://www.zerohedge.com/news/goodbye-1700-gold
In lieu of the period of unbridled peace and prosperity that was supposed to be ushered once the European summit ended, we have more chaos, more uncertainty, and record blow ups in all Euro-sovereign paper. Which means only one thing: the long-awaited moment of coordinated and endless central planner printing is getting ever closer. And once again, gold has figured this out albeit with a slight delay, having left the $1700 handle behind. Once the general public notices the most recent break out in the yellow metal expect yet another manic phase higher, coupled with the now traditional margin hike buffoonery (or wait, maybe this time the CME will lower margins to, gasp, make sure there is no liquidity stress).
The next bubble...
hmm next bubble. the euro, then the dollar probably. Inflation is our biggest export, Ben fell asleep on the Print Button again.
http://www.creditcontraction.com/images/affiliate/Great-Credit-Contraction-Liquidity-Pyramid-Large.jpg
http://www.youtube.com/watch?v=PaiL4h55rzk
Hey, nice picture, thats a great illustration where did you find that? Share more. (Oh! a video too, didnt see that one, watching now)
Thanks. I got it off the video, heh.
This video does a better job of explaining the problems caused by the monetary system in general: http://www.youtube.com/watch?v=nOO_AVwfZ9Q
US Mint Gold Coin Data And Research Casts Doubt On ‘Gold Bubble’
http://www.zerohedge.com/news/us-mint-gold-coin-data-and-research-casts-doubt-%E2%80%98gold-bubble%E2%80%99
Yup we'll see....only time will tell and like all bubbles they POP
You should short some gold. You will make a killing when it pops.
those who saw a bubble in nothing now see a bubble in everything.
Really...you'll see. Bubbles make money...for those who already have it ; )
my disagreement with you is that it is in a bubble.
http://www.forbes.com/sites/feeonlyplanner/2011/08/28/gold-bubble-or-not/
The size of the gold ETF screams bubble because it indicates that everybody and their dog have bet all on gold. The relationship between the price of gold and S&P 500 earnings also screams bubble. The gold price relative to industrial metals and personal incomes shouts bubble, but compared to the GDP or the S&P 500 index value it only a murmurs the question: “Bubble?”
Over long time periods, gold has been a terrible investment while stocks, bonds, and income-generating real estate have produced good returns. This is likely to be the case going forward as well.
Even if gold doesn’t unambiguously qualify as a bubble, it is likely that price drops will be drastic when investors shift back into more sustainable investments. The sheer size of the gold ETF virtually guarantees that sellers will not be able to find buyers at current prices. Buyers will appear once gold has become cheap, but all of our ratios indicate that this would require a substantial price drop.
It is always easier to identify assets that are bubbling than to predict when the bubble will pop. Gold has much more downside than upside at this point, but this has been true for years without slowing price gains. Home prices and tech stocks also suggest that bubbles can exist for years even after objective measures (e.g. P/E ratios or rent to buy ratios) show that markets are out of equilibrium.
It is anybody’s guess when gold will correct, but it is very likely that it will be ugly when it does.
yes but the euro is about toast and the dollar keeps losing value...pretty much most of the currencies are doing poorly
i see nothing empiric to indicate gold is in a bubble.
nor do i see anything indicating to me in this economic environment that it is a good idea to go long stocks.
Ben keeps printing, Obama keeps bombing, Congress keeps spending, all the fundamentals that brought these prices to where they are, are Still Intact.
Or are you saying that you know something which governments and central banks around the world do not?
Central Banks Quietly Accumulating Gold - Declared Purchases of 206 Tons Through September 2011
http://www.zerohedge.com/news/central-banks-quietly-accumulating-gold-declared-purchases-206-tons-through-september-2011
And besides gold/silver makes a wonderful Christmas or Birthday gift for anyone. Newlyweds appreciate it too.
Pump andddddd DUMP
[Deleted]
to be clear, i was saying it is not in a bubble.
i also would not buy silver, i think it is more industrial and will plop down once we see a double dip, which i expect we will.
oops your right i responded to the wrong comment that was meant for GreedKills (sorry!!!!) lol
Gold has no real commercial value. It's a luxury good. It's a bubble for sure. A 10 year bubble, maybe.
If central banks and governments all over the world don't seem to think it's a bubble, what makes you so sure it is? What do you know that they don't?
Central Banks Quietly Accumulating Gold - Declared Purchases of 206 Tons Through September 2011
http://www.zerohedge.com/news/central-banks-quietly-accumulating-gold-declared-purchases-206-tons-through-september-2011
Gold dug up from 5,000 years ago purchases today basically about the same as it purchased back then. An egg today has the same value an egg had 5 years ago. The only thing that changes is how many of your dollars it takes to pay for those eggs. And since gold isn't legal tender anymore and must be purchased with dollars today, it takes more dollars to buy gold too.
This is because the value of money goes down when the Ben Bernankes of monetary policy fall asleep on the 'moneyprintingbutton', much the same way the value of a bottle of whiskey will lose its value when it has been watered down too much. (because it takes more to get drunk, weak whiskey=lessvalue)
The value of the DOLLAR has gone down, gold hasn't gone up. The dollar has gone Waaay down. The money injections through quantitative easing has flooded the world with so much cheap money backed by nothing, that it takes more of our dollars to buy anything, just like it would take you more shots to get drunk from that bottle of watered down whiskey I mentioned earlier.
Gold is what it is. It needs no ones promise and relies on no ones performance for value, unlike paper promissory notes of debt that dollars actually are. The money in your pocket IS debt. Its a promissory note. A promise to pay. (with interest I might add)
Gold owes no one. Its worth is in its very content. It is worth its weight, because you can do things with it. Make a spoon, whatever... Its has value because it makes a beautiful birthday present. pick a reason.
oh, and Solar is already taking 11% of silver production. I think it takes 22 kilograms of it to make a cruise missle so I think it will do ok as an industrial metal (sick) but I would just emphasize that it has enjoyed a much longer run in history as 'a peoples money' than any paper currency in history.
Stephen Leeb - This Will Drive Silver to $100 Rapidly
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/7_Stephen_Leeb_-_This_Will_Drive_Silver_to_%24100_Rapidly.html Ben Davies - Gold & Silver to Hit New Highs Within Months
Ben Davies - Gold & Silver to Hit New Highs Within Months
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/7_Ben_Davies_-_Gold_%26_Silver_to_Hit_New_Highs_Within_Months.html
Gold is decreasing as the market's go down. It just goes to show, there's no need for gold in a sh*t economy. We want eggs, so we are going to invest in eggs.
The market won't die, too many people agree and live by it's rules. Globalization has eliminated the need for total-war.
Try looking at the 1, 5 and 10 year graph, and you will get an idea of the trend. Its going up. You have to begin by looking at the historical charts first to have an Idea of what it is doing. Most people only pay attention to the daily charts. People also forget that ups and downs happen and they are natural. The trend says it all.
As long as the establishment bails-out banks, continues to expand the wars and continues to spend more than government generates, metals will certainly continue to rally off of the lows and rise, overall.
In other words the very fundamentals that drove gold/silver prices to where they are now are still very much intact, and nothing has changed. So metals will continue on their path. And we will see 2,000.00 gold in a few months time.
Governments and central banks around the world are buying it up, too, so one has to consider what THEY know, that we are not being told. Meanwhile Solar is taking 11% of silver production so that drives prices up... lots of indications out there that the bubble theory is incorrect. The fundamentals say gold is not a bubble.
I would buy the dips, if I could.
10 year: http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx
5 year: http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx
1 year http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx
Its has a long way to go before one can say that gold is actually down.
Just because people do it, doesn't mean it's the right thing to do, you know? Gold is resource, there's no finite amount of gold. They will continue to mine it.
Golds been increasing for 4000 years. 10 year bubble my ass
And mining equipment has gotten a lot better in the last 50 years.
It has very little industrial use.
It has aesthetic value. Cotton has no use besides for clothing so why do people care about it?
Because it makes clothing?
Ok, Clothes, sheets, carpets and drapes. As usefull as gold is
OK. Name one use for gold.
decoration, jewery, circutry, chemistry
jewery? Is that what you call the "I'll Buy your Gold!" guys on TV?
Like I said, other than decoration, it has very few uses.
If you own a computer, you are using gold. If you develop pictures, you use gold.
And why are you against gold having intresic value?
It's a rock
it's a metal. and if that's how you want to phrase it, what would you put value in?
I'd put my value in manufacturing, energy, alternate energy (especially patent holders), programming (especially video games), drugs (especially illegal drugs), and all the stupid sh*t the occupy wall street hippies hold in their hands when they appear on Camera, like Star Bucks, Apple, and cardboard. Huge marketing going on, big sales opportunity.
I'd also invest in Christmas, because (no offense) Americans are too stupid to avoid Christmas shopping.
they damp it down to the ground than they will buy it again because is going to up $5000
I have a small personal pile of Gem BU 1924 $20 St Gaudins gold pieces and 1922 Liberty Dollars I bought in the mid 70's stashed in a safe deposit box.... muhahaha !
Too bad I sold all my bags of "junk" silver coins back when the Hunt brothers almost cornered the market in silver (see http://en.wikipedia.org/wiki/Silver_Thursday ). Heck, they WOULD have cornered it if they hadn't changed the rules on them !
The Hunt brothers thing makes me wonder... what DOES the world do if someone manages to corner the market in silver or gold ?
Hi Rico! """what DOES the world do if..."""
Make owning it illegal?
Yep. Been there, done that, right?
So what DO you propose we would do to prevent that ASIDE from making it illegal to own ? If I can't OWN it, then how is it any different than any OTHER monetary system?
Bundesbank gold location kept secret
http://www.thelocal.de/national/20111108-38731.html
"As pressure grows for Germany to tap its gold reserves amid the European sovereign debt crisis, the Bundesbank is refusing to end its silence on where its more than 3,000 tonnes of the precious metal is stored."
Economics Minister Philipp Rösler firmly ruled out digging into the country's reserves to help rescue the euro.
"German gold reserves must remain untouchable. I say this explicitly as Economics Minister, as representative of the Chancellor and as party chairman of the Free Democrats," he said on Monday on ARD television.
On Tuesday, the daily Financial Times Deutschland examined the speculation on where Germany’s horde of gold is being kept. The country's estimated 3,401 tonnes is the second largest national reserves after that of the United States.
Much of Germany’s gold would appear to be still in America, where it was held during the Cold War to ensure it never would fall prey to invading Soviet forces.
Continue Reading at: http://www.thelocal.de/national/20111108-38731.html
I wonder why the people think its so "worthless" and "without value" here in America when Central Banks and Governments everywhere are absolutely scrambling for it.
LoL they say its a bubble, maybe it is. But I bought 1/4 an oz each month for 8 years @ 800 an oz. Do that math sheep, I made a fucking nice profit.
Census Update: What the World Will Look like in 2050
Read more: http://www.time.com/time/nation/article/0,8599,2080404,00.html#ixzz1d98VNaAj
http://www.time.com/time/nation/article/0,8599,2080404,00.html
Here is the world in 2050, as imagined by the U.S. Census Bureau: India will be the most populous nation, surpassing China sometime around 2025. The U.S. will remain exactly where it is now: in third place, with a population of 423 million (up from 308 million in 2010). And declining birth rates in two of the world's most economically and politically influential countries, Japan and Russia, will cause them to fall from their current positions as the 9th and 10th most populous nations, respectively, to 16th and 17th.
The findings are the result of population estimates and projections of 228 countries compiled by the Census Bureau's International Data Base (IDB). They offer a revealing look into the future. "One of the biggest changes we've seen has been the decline in fertility in some developed countries, such as China," says Loraine West, an IDB project manager, "while others are experiencing a slight increase." In other words, China's population boom is finally slowing down, while Western Europe's long-declining birth rate is — in some places, at least — once again rising. Spain and Italy are "on an uptick," says West, "but how high will [the birth rate] rise? Or will it simply fluctuate up and down on some long-term level? We'll have to see." According to Italy's National Institute of Statistics, the country's recent population increase can be largely attributed to its immigrant population.
Read more: http://www.time.com/time/nation/article/0,8599,2080404,00.html#ixzz1d98OhHJU
If our economy crashes because of the natural scarcity of an element - well, we deserve everything that we have coming. It's a natural freaking resource, and it should be valued based on it's pragmatic value - namely, it's conductive qualities. Beyond that, what use is it?
http://occupywallst.org/forum/this-takes-the-piss-out-of-all-of-us-just-check-th/#comment-313758
Kicking myself. I sold some of my gold when it hit 980. I thought it wouldn't go much higher.
aye, I sold some too, at 1400... but now I know that it will continue to rise as long as they print more cheap money, and as long as the wars continue to be funded, and as long as the government spends more than it is generating.
Really, its not rising, its just such a good indicator of inflation.
yep you nailed it. its not that the value of gold is going up. The dollars purchasing power is going down, so it takes more dollars to buy anything.
I remember when it was $35 an ounce, shortly after Nixon took us off the gold standard. If I had bought a hundred pounds of gold then... $56,000 then becomes $2,720,000 today. Yehaaaa!
I guess it just shows you what a dollar is really worth these days. It buys less and less and less while they print more and more and more money.
Oh 'cmon MD... you know that only describes the cost of Gold and Silver, not the cost of anything else ! We've had this debate before, so we don't need to do it again, but i was HOPING you'd moderated your stance on this a little !
(just call me stubborn -grins-) Eggs, hogs, energy ...they all cost more. Gas, etc etc ...It all goes up. Why shouldn't metals go up too? Everything else does.
But why are costs going up. The dollar is losing its value because of dilution. So it takes more dollars to buy things. Dilution causes lack of confidence. The dollar requires confidence. If printing money continues to dilute the money supply, confidence will naturally fall. Money isn't money without confidence.
Im confident gold and silver Are what they Intrinsically Are. Gold's value always just 'is'. because its not a promise to be something. It already is what it is, without a promise from anyone.
The dollar on the other hand is a promissory note, a promise to pay, and well... those words are worth what they are too ...and words are cheap these days.
You got me thinking about US Energy and I couldn't help but notice Solar is already taking 11% of silver production. How long before it takes 100%?
Stephen Leeb - This Will Drive Silver to $100 Rapidly
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/7_Stephen_Leeb_-_This_Will_Drive_Silver_to_%24100_Rapidly.html
Ben Davies - Gold & Silver to Hit New Highs Within Months
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/7_Ben_Davies_-_Gold_%26_Silver_to_Hit_New_Highs_Within_Months.html
Real cost is measured in the percentage of income required to buy what we need and/or want. In some cases, technology has ALSO changed the equation... the REAL measure of oil's cost is the cost per mile driven, so its real cost has been impacted by more efficient cars. You know all this.
As for silver and every OTHER resources, the bottom line is that we simply have too darned many people on the planet !
There was an excellent show on PBS a few years back discussing how personal liberty diminishes in proportion to population density (i.e. I can shoot my shotgun on my farm in Kansas, but not in New York City) and how stresses on natural resources have led to war in the past (i.e. Japan).
As a 'systems' guy, I wonder WHEN we're going to start limiting population? If we were to roll population back to the level in 1900, for example, we'd all have more liberty AND we wouldn't have to be so worried about our impact on the planet. As it is, it seems like we're just seeking to maximize efficiency, carbon footprint, etc, simply so we can KEEP trying to pack more people on the planet. In the end, we're STILL going to have to limit population, so why not do it BEFORE we're all crammed into 3 foot square 'living boxes' ?
yikes. your spooking me, but if you say that its for our own good, i guess you know whats best for us.
LOL ! It's not all THAT weird ! You MUST admit that we're going to have to do SOMETHING about population, right ?
I see less and less to indicate that is true with every day that passes.
Census Update: What the World Will Look like in 2050
http://www.time.com/time/nation/article/0,8599,2080404,00.html#ixzz1d98VNaAj
Claire Suddath (June 30, 2011)
Here is the world in 2050, as imagined by the U.S. Census Bureau: India will be the most populous nation, surpassing China sometime around 2025. The U.S. will remain exactly where it is now: in third place, with a population of 423 million (up from 308 million in 2010). And declining birth rates in two of the world's most economically and politically influential countries, Japan and Russia, will cause them to fall from their current positions as the 9th and 10th most populous nations, respectively, to 16th and 17th.
The findings are the result of population estimates and projections of 228 countries compiled by the Census Bureau's International Data Base (IDB). They offer a revealing look into the future. "One of the biggest changes we've seen has been the decline in fertility in some developed countries, such as China," says Loraine West, an IDB project manager, "while others are experiencing a slight increase." In other words, China's population boom is finally slowing down, while Western Europe's long-declining birth rate is — in some places, at least — once again rising. Spain and Italy are "on an uptick," says West, "but how high will [the birth rate] rise? Or will it simply fluctuate up and down on some long-term level? We'll have to see." According to Italy's National Institute of Statistics, the country's recent population increase can be largely attributed to its immigrant population
The two countries on track to make the biggest population gains are Nigeria and Ethiopia. Nigeria currently boasts 166 million people, but by 2050 its population is expected to jump to 402 million. Ethiopia's population will likely triple, from 91 million to 278 million, making the East African nation one of the top 10 most populous countries in the world for the first time. In fact, according to the U.N. Population Division, although only 18% of the world's population lives in so-called high-fertility countries (places where women have more than 1.5 daughters on average), most of those countries are in Africa; the continent is expected to experience significant population growth in the coming decades, which could compound the already-dire food-supply issues in some African nations.
While the U.S. appears relatively stable — it's the only country in the top 10 whose ranking is not expected to change in the next 40 years — previous reports have highlighted dramatic demographic shifts within the country's borders. Last week, the Census Bureau announced that more than half of children under age 2 in the U.S. are ethnic minorities. Add to that the non-Hispanic white population's increasing age (in California, for example, the median age for non-Hispanic whites is almost 10 years older than that of the state as a whole) and the U.S. in 2050 will look a lot different than the one we know today. (See TIME's video "10 Questions for Census Director Robert Groves.")
Perhaps the most unfortunate change is the one happening in Russia. The cold, vast country has been undergoing steady depopulation since 1992, and the U.S. Census Bureau expects it to decline further, from 139 million people to 109 million by 2050. That's a 21% drop, even more than what the country suffered during World War II. Like many countries, Russia is experiencing declining birth rates, but it's also suffering from a relatively low life expectancy. According to the World Health Organization, Russian men have a life expectancy of just 62 years, a fact that is often attributed to the country's high rate of alcoholism and poor diet. (By comparison, Japan is also struggling with depopulation, but the World Health Organization puts its life expectancy at 80 for men and 86 for women).
So what does all this mean? The U.S. is not yet experiencing the kind of population decline that Europe experienced in the 1990s and 2000s, although immigration and differing birth rates among races means that the country's ethnic composition is changing. Something similar will be going on in the rest of the world as well: the booms of Africa and India, the decline of Russia and the expected plateau of China (holding steady at about 1.3 billion people between now and 2050) will all change the makeup of the estimated 9.4 billion people who will call Earth home in 2050. The future, it seems, is not as distant as we think.
Read more: http://www.time.com/time/nation/article/0,8599,2080404,00.html#ixzz1d98VNaAj
By the way... do me a favor and read/comment on my post at http://occupywallst.org/forum/i-want-my-government-back-now/ . That Tavis Smiley interview is worth a watch, but posts get pushed down soooo fast anymore, I'm not sure anyone will even SEE it !
Fair enough. Maybe we WILL self-limit soon.
Of course, we would need a change in the Catholic and Muslim faiths to limit THEIR population growth, wouldn't we ? It's going to be ironic if the Catholic church reemerges as a dominant force in the world simply because THEY keep reproducing while the REST of us slow down !
...good gawd... you are way beyond My reach friend.
Crash JP Morgan!
Buy Silver!!
What ?
..lol.. you know you want to.
Take that gold and silver talk elsewhere. Anyone with brains knows that fiat money printed by private banks is the way to go. You can buy whatever you want that way, like magic.