Oh boy !
bidask
Posts: 14,017 ✭✭✭✭✭
I manage money. I earn money. I save money .
I give away money. I collect money.
I don’t love money . I do love the Lord God.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
0
Comments
Should of sold yesterday. When the banks start the to da moon forcasts lookout below.
The whole worlds off its rocker, buy Gold™.
$3000 target 18 in months from BAC
I give away money. I collect money.
I don’t love money . I do love the Lord God.
$3,000 might raise a few eyebrows.
I knew it would happen.
Just based on US reported inflation since January 1980 (+213%) today's gold price should be $2738. If you went by the increase in sovereign debt, M2, M0 or other monetary measures, it would be considerably higher.
The money supply and debt ratios were always the most accurate. Gold has always tended to head to the balancing of the US Debt. That's been kept under wraps the past few decades with paper gold derivatives. One can only hold a balloon under water for so long as you increase the air pressure inside said balloon.
CPI - $2,738
M2 - $8,400/oz
M0 - $17,500/oz
National Debt - $23,200/oz
All indications seem to point to a significant rise in gold.... Of course, selling it for the increased quantity of dollars, will not compensate for the rise in cost of goods...and what is the future of the dollar under these, and coming, conditions?? The future is murky... except for the conclusion that 'something is going to happen'...
Cheers, RickO
Actually, in gold's rapid rise in the 1977-1980 period, gold more than compensated for the rise in other commodities, pretty much out-pacing them all. Gold's monetary job is not to make you rich.....but to maintain your life style. There were many anecdotal writings back in the mid -1970's (and repeated again in the past 20 yrs) saying "I don't want to live in a world with $1,000 gold. Well that happened in 1980 and the world wasn't a terrible place. The price of "other" goods and services (including bread and milk) didn't go out of sight as many predicted. It was mainly gold and silver rising on their own. Same thing happened again in 2011. While many in 2004-2006 didn't want to live in a world with "$1,000" gold they pretty much got it by 2008. The world wasn't that horrible a place. Then the same mantra was repeated about not wanting to live in a world with $2K-$3K gold. Well we got nearly to $2K gold in 2011.....the world withstood it. While oil prices got of out whack in 2011, not much else did. Same thing will probably happen with $3K to $5K gold on the next go-around. and the world won't be a horrible place just because the price of gold is high. The world hasn't become a horrible place because the dollar has lost 96.2% of its purchasing power since December 1913....at least as reported by the USGovt. It's actually large than that.
Gold also did a nice job in the recessionary years of 2000-2003 (up 50% while most everything else was down - including silver)........and very well in the 2004-2008 inflationary years.....and even better in the recessionary period of 2009-2011. Go figure....multiple uses. SM up 2X since the 2000 peak? Gold up 6.7X since the 2000 lows. Despite the naysayers, both gold and the stock market have their individual strong 8-12 yr cycles. Palladium and Rhodium seem to give the most wild rides in the PM sector if that's what you're looking for.....boom to bust.
And drop some jaws.
if the shutdown lasts a year or longer, several more bailouts would be needed, probably enough fuel on the fire to ignite a price over 2,000, not sure about 3,000 though
I> @coinpalice said:
Your comment reminds me of a golf outing I had back around 2006.
The three other gentlemen were retired financial advisors.
We got on the topic of gold.
It was around $600 an ounce and I said 'not too soon $1000 an ounce will be a common value'.
To which all three replied 'you'll never see it above $700 in your lifetime'.
I just let it pass and thought to myself 'for older financial experts, who have lived through the time when Nixon took the US off the gold standard and all hell broke loose, they really should have known better."
So 'coinpalace' , crazier things can happen and I believe in five to ten years (and maybe sooner) $2000 to $3000 an ounce will be a very common gold price.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
If the Gold/Silver ratio is 100/1 that puts silver at $30 an ounce and if the ratio drops to 60/1 (average over last 20 years). That put silver at $50 an ounce. At $50 Im a seller.
MIKE B.
GSR should continue in opposite direction. 150: 1 would not be surprising. 200:1 seems out there but certainly possible.
The whole worlds off its rocker, buy Gold™.
lets hope it goes the other way. 100/1 80/1 60/1 and finally 25/1
MIKE B.
During the last silver rally in 2011 when the ratio got to about 30-1 for a day, the perma bulls we waiting for 16-1 before they would sell. They were so adamant that would happen.
Knowledge is the enemy of fear
I'm in the opposite camp. I expect silver to move much higher bringing the GSR down even as gold slowly climbs.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
150:1 would be surprising to me. Gold at $3,000, silver at $20? Enough inflation/mania to drive gold to $3,000 would take silver well over $20.
$100 trillion in free floating USD will result in higher silver prices too.
If the Gold/Silver ratio is 100/1 that puts silver at $30 an ounce is inline with my thinking for 2021.