Gold at $1600

general35

5,000+ Posts
I remember the doubters who claimed gold was overpriced at $800-900. The anthony wiener's of the world who had congressional hearing to try and persuade those that the gold companies and talk radio were trying to scam americans when gold was at $1000.00. It is only going to get better. we have a government that keeps on giving....
The Link
 
As a kid when we were told that our grandparents only made $10,000 a year or less, we were never really taught why that was. I was always under the impression that people just made more money nowadays, and that that was a good thing.

There is a good reason that a hotdog cost 5 cents at one time. Our money was worth more, it had more value.

The price of gold is a direct reflection of our continuing currency value loss....
 
Gold is a product of elastic but not unlimited supply based on price. Why is gold worth $1,600 per ounce? Because speculators believe that it will be worth more than that at some point in the future. There is some fundamental value in gold, but at some point speculators believing in ever higher prices will get burned.
 
That will likely happen only when we make centralized government bend the knee to the Constitution and balance the budget without increasing taxes.
 
Crockett, Gold is the product of the earth, and nothing more. There is nothing elastic about it. What is elastic, is the fiat money that the FED is authorized to print up.

Gold use to be $30 an ounce. What pray tell has caused speculators over the years to increase that amount by hundreds and hundreds of percent? It aint speculation. Its inflation due to a loss in value of the currency.
 
2003 -- there's more gold in the earth and as the price goes up more effort and technology can be applied to its extraction and there is some supply elasticity available. Also, as scrap value goes up more gold is recycled. If you think the price of gold will go just one way though, you might look at what happens to prices of items with more intrinsic value like land, natural gas, condominiums, etc. Speculator sentiment is a big factor in prices of damned near everything.
 
Im no financial expert, and I agree that speculation does matter and does have an influence on things, but I dont believe that it can rising gold prices can be dismissed as due mostly to speculation.
 
general, A Bettik- you like gold at $1,600, so, it's a free market. Go out there as Glenn Beck has warned you, and buy, buy, buy!!

In fact, you should stop posting about it on these boards- don't want you to encourage too many other buyers to jump onto your investment thesis and run up the prices!!
 
Gold may or may not be a good buy now, but anyone that thinks it is somehow a "safe" investment is deluding themselves.

Buy it, but understand you are speculating. Even more so than investing in stocks.
 
Nobody on this post is advocating throwing all your money into gold, likewise it would be stupid to have all your money in stocks. If you buy and hold stocks forever and ever you are stupid, just like holding gold for any length of time, but there is a place in anyone's portfolio for gold when the expected price of gold will continue to rise relative to stocks. Take a look at the gold chart from 2000 until the present. Then take a look at the stocks on the S&P and DOW from 2000 until now. Given that time frame, gold has outperformed stocks. Stocks have languished over the last decade. Gold has exploded. There's no one telling you to hold on to either forever. If anyone just puts money in a bunch of mutual funds and never looks at the peformance and just "hopes for the best" you will be sadly disappointed when you retire. The days of buy and hold are over. You have to actively manage your money.
The Link
The Link
 
BBB,

I agree with that view on gold almost completely. From an investment strategy, I agree completely, but that last sentence leaves out the many valuable uses gold has in electronics...
 
My friend invested in gold several years ago, but his "quoted" value was way lower than what he got back. Apparently nobody buys real gold at market prices. He had a real negative experience, so look carefully into your investments before you believe them. He paid the market price to get in. He may have been hit by a scam or something.

If it were such a great investment, they wouldn't need to spend millions to advertise it. People with tons of money would be buying it up. You don't hear any ads to buy things like diamonds or oil.
 

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