The price of gold and what it's telling us?

What is going on in America and elsewhere with the price of gold? Sure everyone knows that the price has skyrocketed and some of us see this as a good thing but what could happen as a result? What could the high prices of gold be telling us about our future? Is there a melt up around the corner? Has anyone seen the melt up documentary on youtube? Anything to say about it?

http://www.youtube.com/watch?v=eb1n1X0Oqdw


Here's a shorter video for those on the move!!

http://www.youtube.com/watch?v=XFDd6syEwME&feature=related

 

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Most major industrial countries are printing money. Gold is going up as a response to that. I think it will reach a plateau at some point because there will be no new buyers entering the market. The average person can't afford to get into gold and won't.

 

Gold Will Win Currency War from Numismaster.com [10/12/2010]

 

I disagree good sir...I got a 1 gram gold bar...and I'm not even into buying gold for investment...I bought it so I'd know what the silly stuff looked like exactly while I was panning for it and I found a few pieces that paid for my trip and a great steak dinner...plus it paid me back the $35.03 I put into buying this credit card with a stickered on piece of gold ...now I'm sitting on it til...I either need to trade it for my life in a mad max timeline or choose to actually go see a movie in a movie theater which I'm told still exist and also tells me that netflix and redbox has still failed to run them out of business....

sorry for the rant but my point is valid...one can buy 2 ASE's or a gram bar for instance...or 6 ASE's or 1/10th ouncer...and up and up and up some more

 

If gold wins the currency war - the US Gov't holds 1/3 of the world's governmental reserve - therefore will have 1/3 of the world's currency.

 

Gold is in a bull market. It has been for a long time. More people are waking up and jumping on the band wagon. Analysts will hunt for a reason and claim there is too much printing of fiat currency. The problem with this explanation is that the money supply is contracting, if anyone bothers to check. I think a simpler explanation is that world-wide production of gold is declining [despite the economic theorists who claim higher prices lead to greater supply].

 

Interesting! Did anyone take a look at that video, is it just a crock?

 

Most of the run in gold/silver this fall are is USD terms. USD weakens, gold/silver go up. Many days this month have had more selling than buying.

 

Gold mines take a long time to bring online, so even if increased supply is possible then it would still not happen until prices had stayed high for years. What the money supply is doing depends on which measure of it you use. It's confusing.

 

I primarily agree with Fishy. The dollar weakens and is reflected in increased metals prices which are based in US dollars. There is an additional investor component kicking in right now and running the price up, especially silver...that might just be creating a 'bubble'. I'd be selling at these prices.

 

I`d be willing to bet that if You were to ask Your local dealers about new people getting into the PMs, most would tell You that the "newbs" are slowly increasing. In my neck of the woods the PMs are smoking hot,(except for platinum which is lukewarm) and I`m meeting more people who don`t care for bullion or numismatics that are starting to pick up some PMs.

As the times change, so do people`s priorities and habits. Much of the frivolous and compulsive spending is starting to diminish as times get tough. Retailers are expecting this holiday season to be one of the most cut-throat ever. Everything from flatscreens to appliances are going to go cheaper as retailers go to war with each other. (or should I say Walmart) They know how much harder it is to get the average person to buy something that they don`t need in a stagnant economy.

I`m seeing people tighten their wallets and look for the most bang for their buck.....unfortunately the American dollar is too pooped to pop, which will mean a very bright future for gold and the PMs.

 

The video is well done and the facts presented are all true. The conclusion they draw, hyperinflation, is only one possible outcome. Whether or not we have inflation, deflation or a return to prosperity depends on policy decisions that haven't been made yet, so nobody can possibly know the outcome yet. It's a guess.

 

Maybe you didn't take your own advice. Additionally, current M3 is sky rocketing, but the Federal Reserve has decided to stop reporting it.

 

Interesting! I find it really hard to believe that the US could ever reach a point of hyperinflation but if you listen to the right, the current administration is printing more money than we can ever pay back and of course China is the new owner of all our debt! It's a bit ironic the the country who we owe our life blood to is the same country that is allowing their citizens to rip us off with counterfeits of our money! If we continue at this rate the only money we will have will be counterfeits!! Is anyone following all of this?? Am I reading too much into this?? Didn't we see this coming? Anyone?

 

dollar down gold up as far as know this is always the case. I have read several times treasury can't print money fast enough and they may/or have tried kicking off inflation in another feeble limp attempt to get the economy moving. That's what happens when self interests and amateurs are running the show.

are we rearranging the deck chairs? I think yes.

>Interesting! I find it really hard to believe that the US could ever reach a point of hyperinflation but if you listen to the right, the current administration is >printing more money than we can ever pay back and of course China is the new owner of all our debt!

there's no other way I can read it from the Right or from any other source. I believe we past the point of no return a long time ago.
I remember beating up on the last administration when the debt reached one trillion silly me.


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When people reach a panic mode in the economy, PM's always get bullish. It has happene with the business cycles as long as I have been around anyway. I have seen it go from $250 to $1100 back to $300 and now up to nearly $1200. Given that China recently allowed more than 1 billion people the right to possess PM's coupled with an economic downturn, we are seeing the result. Silver is along for the ride. It will cool eventually, but WHEN? If you guess that correctly, congratulations on your windfall. But to play, you need to get in the game. If you aren't already holding, it may be risky. IMHO

 

the price of gold is telling us and keep rising. because the gold is quite undervalue. it should be around $2,300.00 as a base and go higher to $5,000.00 or $10,000.00. before we can talk about bubble.

 

Good... because it ain't happenin'. Annual Inflation Rate for August* was 1.15%. In 2009, we had 8 consecutive months of deflation.

...a bunch of rotten rat finks. That's what challengers always say about incumbents. Left, Right, whatevah... they're all the same.

They use very fanciful, hypnotic language to portray half-truths as Fact. It ain't true... it's politics.
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Yes... you are reading too much into this. Relax.

The people who are most consistently wrong are the doomsayers. Why listen to someone who is consistently wrong ?


* most current month for which data is available

 

I don't think the price will go down for at least 2yrs. It's easy to see in past recessions that prices of PM's always go up. Gold and silver are the only hedges left, especially when you can't get a good interest rate from banks!! In hard times ppl don't even want to use banks and nobody has money so when you look at the bigger picture, gold and silver are the only legal non-ponzi schemes left!!

 

The price of gold is telling us that people don't have any faith in fiat currency. They shouldn't.

No one knows how this is going to turn out, yet. I have a position in silver. I've decided that I will sell half when/if it doubles purchase my price. If it doesn't, I'm going to ride it out unless I need to cash out because of an emergency.

I might make some money. I might be sitting on 1000 oz of silver worth less than half of what I paid for it. There is risk. Just like any other investment.

Also, if silver does fall, you don't have a loss until you sell. You can just sit tight and wait for it to rebound. Frankly, if silver went down to $10 oz I'd buy like crazy......