Gold or Silver prices, what will make the prices go up?? Did we top out already?

My favorite (borrowed) comment about our currency? 'The Dollar is just the leper with the most fingers.'

IMO, the future collapse of the US Treasury Bond Mkt is the real threat - but that too is a looooooong ways off.

 

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Very true. The inability of being able to sell bonds is the danger to the USD, not currency conversion rates.

What I cannot fathom is how the man on the street cannot comprehend that all of this excessive spending IS his money, not made up Monopoly money. Some day in the future the US will either have to jack up taxes significantly or simply inflate their way out of the debt. Either way it will be taking money out of EVERYONE's pocket.

For the class warfare types, always remember the IRS income tax code was PROMISED to only affect the "rich". Within 10 years 95% of americans were paying it. Funny how politicians quickly change definitions of "rich".

 

I think it is a mistake/blind spot to rule out some sort of default, which is an outcome at least as likely as the others; possibly more.

 

The strange thing is that it is the 1% and corporations that continuously pursues class warfare and only cries foul when the 99% do the same.

 

That's true, its not like there is a President and a large organization staging sit ins that are demanding enormous tax increases on "the rich" or anything. Yes, it is all one-sided. [/sarcasm off]

 

Precisely. Measuring the USD against the Euro (dollar index) is not really any gauge based in real terms. That's what gold is for. That's all gold does. If the USD is strong then gold should not be $1700/oz.

Though, faith in the USD is certainly strong enough. It will always be a better option than the Euro since Euro nations can't control their money supply, but that's not really saying a whole lot. Personally I like the Ruble. It has the highest real interest rates in the world, and should actually outpace metals at this juncture. Although I don't trust paper so I don't bother with it.

 

I don't understand your point. Hate is an emotion and I tend to avoid emotions when asking questions about currency. I never said the dollar was worthless. I'm not sure how you arrived at this conclusion.

Considering that what you got out of my post was hateful emotions and disgust, then I thoroughly confused. it seemed an innocent enough question.

 

Well, naturally it is preferable to be able to get by without the demonstrations. So the hedge fund managers pay no taxes as long as they take their contributions as partnership units and borrow against them. And electric utilities get to charge the ratepayers the statutory tax rates for state and federal taxes and keep the difference between that and what they actually pay with a wink and a nod from the regulatory commissions staffed with former executives. And California utilities get to charge ratepayers for depreciation on telephone poles while not replacing any until the inevitable storm or disaster provides government funding. And all of that accomplished without even marching with banners reading "tax the poor."

 

If only there was a way to save that post for future reference. :devil:

 

Ok, I will post your response again:

The only advantage that I can see for the USD, relative to any other currency on the planet, is the US Military.


Read more: http://www.cointalk.com/t217473-2/#ixzz2CEiE6JVz

That statement to me infers we are an inferior country with only the threat of violence of our military as an asset versus "relative to any other currency on the planet". I object to that inference, even if I disagree with our military policies.

If that was not your intent, then I would apologize for taking it the wrong way. Please explain clearer then what you meant by that statement.

 

Not disagreeing one iota. My main point was politicians love to play the "tax the rich" to get taxes passed, and the common man is then surprised how a short while later he is now "rich". They have done it continuously and are doing so yet again. Divide and conquer.

Sorry, end of politics from me.

 

This....

The military means the USA can't be defeated in war, can use the threat of military action to achieve whatever goals it wants concerning resources (namely oil), allows it to adopt economic policies without any threat of real retaliation.

Whether we have philosophical differences with this, isn't the point. We are talking about the worth of fiat currency which only has the worth if one believes that it won't be going under. The US Military therefore, achieves this stability in ways that no other currency has.

 

While I disagreed strongly with every military action this nation has performed since the Gulf War I was involved with, I disagree with your statement. I still believe the US has tremendous production capacity in large varieties of industries, and we do not use threat of violence to prop up our currency.

I guess we have different world views. If this is yours, why would you willingly live in such a nation? If I thought this of the US, I would no longer be living here.

 

Since when has the FRN based currency depended upon industrial production? Certainly not now. What restrictions are on Bernanke to halt money creation relative to the industrial output of the USA?

 

Well, I wait with anxious bated breath , as the asian markets get close to opening ,to see the "superior value" of gold or any PM for a crisis such as the renewed military activity in the mid east. Right now, gold is at 1723 ( down 6.40) and the USD index is 81.20 up .10). So lets see how the most fingered leper does against the salvation of mankind's future

 

Well according to Hamas, "Israel has opened the gates of ****!" If the shelling continues for longer than a couple of weeks then maybe it will affect the price of gold. Time will tell.

 

In Reply #6, I wrote "... a -6% decline puts ~POG USD 1,684."
POG was at 1705 today?! A -6% decline was too conservative if a major "fund" is systematically liquidating. We ARE in that season too, folks.

http://www.kitco.com/reports/kitcoNewsMarketNuggets20121115.html

 

I think it might be a catalyst for higher gold prices since the conflict would inevitably spread. War is generally bearish for money.

 

Yep, two or three weeks of Hamas firing on Israel and vice versa should show some change upward. I hate to act like a vulture waiting for the payoff but as always, things have to get really bad for some people before it gets a little bit better for others. I call it a financial teeter-totter.

 

IMO, these unfortunate skirmishes are already priced into the system so I don't see where it makes much difference. Israel is seen as an occupier by the Palestinians, the Palestinians are being forced to live in intolerable conditions in the Gaza Strip, neither side will deal with each other, hence this status quo heats up from time to time and they start blowing up each other. i.e. business as usual. It's been going on for decades. (or for millennia depending upon your POV)

Therefore, I don't see much change in gold prices unless the Egyptians get involved in a big way and does something to shutdown the Suez Canal and/or one of the other players does something to affect oil prices. As usual you won't see any leadership from the one country that could fix it because there are war profits to be made and the buffoons from Chicago don't know what the word negotiate means.