Gold headed to $1,000.00. gold coin follow.

Gold $903.70 at this time.....

 

Log in or Sign up to hide this ad.

Is that really important in the long term scheme of things? All markets fluctuate. If you need predictable steady increases, go to the bank.

 

gold high so far is $916.00. silver high is $12.27.

 

The market for gold will be strong as the gov. keeps printing dollars it cannot back up. Therefore come about April the dollar will tank out and the demand for gold will increase. The mines haven't and will not be able to keep up with this rising demand hence gold prices will rise. Small corrections will occur(mid March for one) so sell if you can before the dip. But only if you are able to purchase gold at the low price. Availability is the question. Will there be any to purchase?? The demand will be out of sight. I don't know, too many questions and not enough asnswers!
Thanks for bearing with me.------ zeke

 

If you understood why oil prices skyrocketed and then downwards, you understand what is going on. If you don't, you should NOT dare to say that gold will keep going upwards.

 

En otros palabras, what goes up will come down. Look at oil, it is still under $100 a barrel lower than it was at it's high last July.

Gold is not a speculative investment. Too many people get their hopes up of higher gold. I like to think of it as an insurance policy and nothing more.

 

Howdy folks,

Good thread and lots of great discussion.

First - I'm a gold bug but even more so a silver bug. I don't feel that 75:1 is a viable ratio between silver and gold and this makes the profit potential higher with silver.

That said, right now gold is the deal. Last year, while the stock market puked some 35-40%, gold was up 5.5% for the year. And this is in spite of the paper price being beaten to death by naked shorts while the street price went thru the roof.

There are two basic reasons for gold to trend higher. As an inflation hedge and as a hedge against catasrophe. With the gov't throwing trillions of dollars they don't have into the economy, sooner or later, inflation is going to surface. In addition, with the stock market and economy doing so poorly, people are scared and looking for safety.

The official debt is now some $11T, but the unfunded liabilities are over $60 trillion (social security, medicare/aid, trust funds, etc.). There is no possible way they can either reduce benefits or raise taxes (or both) to cover this tab. Their only option will be to monetize it and that means printing lots of extra dollars to pay for it.

Where will gold go to this year? Geez, who knows. The trend line is up as are all the fundamentals so I'd guess 1200-1500 or so, but who knows.

As for conspiracy theories of some cabal keeping the price artificially low - feh. I'm not much for conspiracies. However, I do firmly believe that if there is someone in a position to be able to manipulate the market - they will. This is why the paper price of gold on the COMEX is lower than the street price and why you had shortages and skyrocketing premiums this past year. Everyone realized the paper price was artificially low and supply disappeared. Folks, that's Econ 101 Supply/Demand curves - where there are price controls, supply disappears.

Eventual price - I've seen $2500 - $6500. Pick a number.

good luck,

rono

 

I would counter that if you think you "know" why oil skyrocketed and then fell, you're probably wrong. Maybe it was a change in available supply. Maybe a change in demand. Maybe speculators drove it up and hedge fund forced liquidation drove it down. Maybe it is behind the scenes economic warfare. Maybe it was the Goldman Sachs change in energy index components. Maybe it's just that oil has a flat demand curve. Maybe it was the peak oil effect. Maybe it was the peak oil effect being disproved. Maybe it was supply manipulation by the oil producers. Maybe it was related to Russia shifting to the Euro and Iran to the yen. Maybe it was related to the expiration and/or renewal of major contracts with China. Maybe it was due to a change in the sailing speed of oil tankers. Maybe it was due to the impact of credit tightening. Maybe it was the supply restrictions from Nigerian rebel attacks and the strike on North Sea operators in Sweden. Maybe it was random drilling success/failure. Maybe it was excitement over the discoveries in Brazil and the Bakkan. Maybe it was the royalty tax law changes in Canada. Maybe it was the impact of nationalization in Venezuela. Maybe it was the discovery in Indonesia. Maybe it was the recession. Maybe it was the collapse of Lehman. Maybe it was good old fashioned price fixing. Maybe it was the supply disruptions from Siberia. Maybe it was the year over year change in degree days. Maybe it was some combination of the above, or perhaps one of the many other unmentioned factors.

What do you THINK it was?

 

Cloud, that's exactly what I wanted to deliver and thank you for your excellent points. Rono, thank you for your post as well - well written.

There were too much fear that oil was running out and there was an unwarranted speculation that drove oil prices to prices that are ridiculously high. Even major banks predicted that it had to go to 200USD/barrel - oh yes, that would have been at least 5 dollars/gallon in your gas station. It doesn't matter whether oil is a scarce resource that people had to fight over it with wars or whatever - if prices are too high, people can't afford it unless they start stealing (which the law will take over). It does not matter as people found out that it is NOT an essential commodity that they really need - if prices get too high, you just change your lifestyle. Big deal.

The same cannot be ignored with the gold prices at the moment. It does not matter how high the price gets, eventually there will be a point in the demand curve against the supply curve where it hits just so high, prices will either have to fall or collapse and get corrected. Oil prices, platinum, rhodium, etc have just shown perfect examples.

It is extremely alarming and disturbing for people to be bias and have a wishful thinking that gold has to go higher without any analysis on what factors can possibly bring prices down. To complete ignore about negative factors just show their ignorance and incompetence - wait till you hear people blogging about how much money they lost on metal commodities. Not a pretty scene.

 

Yes GX, there were a lot of people that got caught up in the real estate will always go up scenario, which is precisely why we are in this current predicament. Real estate in the USA had more to do with this global financial crisis than gold, silver, oil, or even rhodium.

History has demonstrated time and time again, any time there is a bubble, the bubble will eventually burst...

Great depression followed the "Roaring Twenties"
The South Sea Bubble in England
The John Law - La Louisiane bubble in France.

So see, this is nothing new. At least humanity retains it's collective stupidity and gets caught up in this speculation over and over and over again.

Gold is insurance, it is not an investment.

 

well unless u know ull be kicking the bucket soon then its an investment

 

Actually, in case you haven't noticed, the financial system is in the process of kicking the bucket:bigeyes::crying:

 

GX, I would say that gold is different from oil. When the price of oil rises, demand falls. When the price of gold rises, frequently the owners pull their bids and supply falls because folks start anticipating that it will go even higher. Those who don't own it start wanting it even more. This has something to do with gold's special historical monetary features. It isn't a necessity and it isn't consumed, so it reacts differently to price changes.

 

I totally agree....

 

My thoughts are it is some of what you say combined with folks speculating in oil and not having to take physical delivery like they used to.
FWIW:I think this is a great thread, lots to think about.

 

gold reached a high this morning at $927.50. silver also moved higher at a high of $12.61. while platinum at $995.00.

 

And it is going higher. Hang on for the fast ride up, and up, and up.
Market will bare/bear it like it or not.why the dislike about pog lately. I even get a strong impression cnbc doesn't like to talk about gold. Tough nuggies.

 

Also gold's action is volatile along with the rest of the stock market even though gold is not a commodity like many people think. . If we didn't have this financial disaster facing us the POG would be resonable. But since it's here governments and people need something to fall back on even if it is from panic and historically it has been precious metals and maybe diamonds. It's a bad thing and it's cyclic and it's here now.
The mines have never kept up with demand and it is olny going to get worse, darn it. Let's work together to get out of this mess and enjoy the good times again. and friends.

 

Gold rises to six-month high on safe-haven buying

http://www.marketwatch.com/news/sto...BFB-1A3D-4780-B49A-2AE58781A703}&siteid=moren

 

gold high $929.60, silver 12.70. just a reminder.