Keep in mind that China has huge reserves (as well as everyone else) of $$$$ they can't afford to let it go way down all at once. And for those that don't seem to remember 1979 so called crash silver went from $5 at the first of the year to $54 by the end of 1979, one big spike. This has been a steady upward trend and adjusting since 2002. Nothing changed and it will go up just as fast on the next bounce. You can expect this sort of stuff IMO so don't buy if you have weak hands and have everything you buy delivered. You play the margins and you might get killed.
<<And remember the value of gold at $850 in 1980 is the same as $2000 today.>>
WHY DOES EVERYONE ALWAYS SAY THIS????
The value of gold today is about 560 an ounce!!!!!!!
GOLD (supposedly) is an inflation HEDGE, not an item that goes up with inflation. It TRADES JUST LIKE A STOCK. Some stocks BEAT inflation over time, and some, do not.
<<And for those that don't seem to remember 1979 so called crash silver went from $5 at the first of the year to $54 by the end of 1979, one big spike. This has been a steady upward trend and adjusting since 2002.>>
Real steady. Silver, 27 years later is trading at $9.63 from your $5. At that steady pace, it will hit $54 an ounce when I am age...
<< <i>What about the fact Bush is in Iraq, Iran is cooperating, And Al Zacharwi is dead. The world seems a bit safer today.
what does all that have to do with the price of rice in China?? >>
Gold is often seen as an investment haven in times of international political turmoil. If you agree with the above statement then there's a perceived decrease on the turmoil meter and thus the dumping of gold.
The long awaited meltdown came...but I am still bullish on Gold and Silver. You dont really care when your weighted avg price is in the 350/4.75 range respectively.
I believe the big boys are at it again, especially manipulating the market in silver......shooorttting..............naked shorting...........I'd love to see them lose a bundle. It will happen. It's only timing.
I don't agree that Gold will hit 495.....have to disagree with Laura......
Manipulation. The dive is not driven this low by Dollar strength alone.
A known fact the big boys are shorting, has to be disclosed......
Manipulation for thier own benefit.....
They wouldn't want to have to find the estimated 200 mil ounces to cover all those shorts.....
You cant manipulate a market for long, once the broad market buyers move in.....too much volume and pressure on these guys and the race to cover will be on. Expect the near future to bring violent upswings.
<< <i><<And remember the value of gold at $850 in 1980 is the same as $2000 today.>>
WHY DOES EVERYONE ALWAYS SAY THIS????
The value of gold today is about 560 an ounce!!!!!!!
GOLD (supposedly) is an inflation HEDGE, not an item that goes up with inflation. It TRADES JUST LIKE A STOCK. Some stocks BEAT inflation over time, and some, do not. >>
I think your misreading it. Ok $850 in 1980 is equal to $2000 today. Except you could get 3-4oz of gold for $2000 today.
I keep reading that I should remember that $850 gold in 1980 is equal to $2000 gold today. $850 gold in 1980 was overpriced and has not hit that number again in 25 years.
<< <i>I keep reading that I should remember that $850 gold in 1980 is equal to $2000 gold today. $850 gold in 1980 was overpriced and has not hit that number again in 25 years. >>
The real point is its been underpriced for some time. Which is a big reason why it has been going up so fast up until this last week when it got played.
There is probably a better chance of gold rebounding on a secondary spike to $600, than falling back further to $495. But any outcome is possible. The US Dollar Index was headed back to .82 and has now rebounded to .86. Even things in free-fall find ways to bounce back just when everyone says otherwise.
<<And remember the value of gold at $850 in 1980 is the same as $2000 today.>>
WHY DOES EVERYONE ALWAYS SAY THIS????
Probably because it is TRUE. A compensation for inflation or more correctly for the total amount of liquidity added to to our currency base. Gold, in a free market has tended to follow currency increases or decreases. It did that for centuries, long before CB's controlled currencies world-wide on a formal gold standard. With CB interference and selling over the past 10 years, gold had a tougher time following the currency inflation curve. But over the long haul, it will strive to make up the 4X increase in currency seen from 1980 to 2006. That is where the $2200 comes from. It certainly has not done it yet, but gold's primary function is to make the dollar honest. It will eventually succeed, even if only for one day...of brutual honestly.
Comments
WHY DOES EVERYONE ALWAYS SAY THIS????
The value of gold today is about 560 an ounce!!!!!!!
GOLD (supposedly) is an inflation HEDGE, not an item that goes up with inflation. It TRADES JUST LIKE A STOCK. Some stocks BEAT inflation over time, and some, do not.
Real steady. Silver, 27 years later is trading at $9.63 from your $5. At that steady pace, it will hit $54 an ounce when I am age...
...112
Tyler
<< <i>What about the fact Bush is in Iraq, Iran is cooperating, And Al Zacharwi is dead. The world seems a bit safer today. >>
Inflation
I give away money. I collect money.
I don’t love money . I do love the Lord God.
what does all that have to do with the price of rice in China??
<< <i>what does all that have to do with the price of rice in China?? >>
Well finally somebody figured out what is important.
<< <i>What about the fact Bush is in Iraq, Iran is cooperating, And Al Zacharwi is dead. The world seems a bit safer today.
what does all that have to do with the price of rice in China?? >>
Gold is often seen as an investment haven in times of international political turmoil. If you agree with the above statement then there's a perceived decrease on the turmoil meter and thus the dumping of gold.
-RG
I believe the big boys are at it again, especially manipulating the market in silver......shooorttting..............naked shorting...........I'd love to see them lose a bundle. It will happen. It's only timing.
I don't agree that Gold will hit 495.....have to disagree with Laura......
Manipulation. The dive is not driven this low by Dollar strength alone.
The Bank Of Japan!!!!
How about taking out $200 Billion in liquidity???
The hedges and speculators are being taken out of the markets. What has gone up the most has gone down the most. Check out the overseas markets.
Manipulation for thier own benefit.....
They wouldn't want to have to find the estimated 200 mil ounces to cover all those shorts.....
You cant manipulate a market for long, once the broad market buyers move in.....too much volume and pressure on these guys and the race to cover will be on. Expect the near future to bring violent upswings.
<< <i><<And remember the value of gold at $850 in 1980 is the same as $2000 today.>>
WHY DOES EVERYONE ALWAYS SAY THIS????
The value of gold today is about 560 an ounce!!!!!!!
GOLD (supposedly) is an inflation HEDGE, not an item that goes up with inflation. It TRADES JUST LIKE A STOCK. Some stocks BEAT inflation over time, and some, do not. >>
I think your misreading it. Ok $850 in 1980 is equal to $2000 today. Except you could get 3-4oz of gold for $2000 today.
<< <i>The Bank Of Japan!!!!
How about taking out $200 Billion in liquidity???
The hedges and speculators are being taken out of the markets. What has gone up the most has gone down the most. Check out the overseas markets. >>
Yep!
I give away money. I collect money.
I don’t love money . I do love the Lord God.
<< <i>What about the fact Bush is in Iraq, Iran is cooperating, And Al Zacharwi is dead. The world seems a bit safer today. >>
Iraq is in a Civil War. 1400 Iraqi's dead last month.
Al Zacharwi was ratted out by his own people. The U.S. just did the dirty work.
<< <i>Below $570 and going down faster than a cheap whore on Russ!!! >>
Go BIG or GO HOME. ©Bill
<< <i>I keep reading that I should remember that $850 gold in 1980 is equal to $2000 gold today. $850 gold in 1980 was overpriced and has not hit that number again in 25 years. >>
The real point is its been underpriced for some time. Which is a big reason why it has been going up so fast up until this last week when it got played.
<<And remember the value of gold at $850 in 1980 is the same as $2000 today.>>
WHY DOES EVERYONE ALWAYS SAY THIS????
Probably because it is TRUE. A compensation for inflation or more correctly for the total amount of liquidity added to to our currency base. Gold, in a free market has tended to follow currency increases or decreases. It did that for centuries, long before CB's controlled currencies world-wide on a formal gold standard. With CB interference and selling over the past 10 years, gold had a tougher time following the currency inflation curve. But over the long haul, it will strive to make up the 4X increase in currency seen from 1980 to 2006. That is where the $2200 comes from. It certainly has not done it yet, but gold's primary function is to make the dollar honest. It will eventually succeed, even if only for one day...of brutual honestly.
roadrunner
will purchase an extra 20-50 oz this week. if it gets below $8.42 i will purchase a 100 oz bar.