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<p>[QUOTE=&quot;Rono, post: 508363, member: 6492&quot;]Howdy folks,</p><p>&nbsp;</p><p>Good thread and lots of great discussion.</p><p>&nbsp;</p><p>First - I&#039;m a gold bug but even more so a silver bug.&nbsp; I don&#039;t feel that 75:1 is a viable ratio between silver and gold and this makes the profit potential higher with silver.</p><p>&nbsp;</p><p>That said, right now gold is the deal.&nbsp; Last year, while the stock market puked some 35-40%, gold was up 5.5% for the year.&nbsp; And this is in spite of the paper price&nbsp; being beaten to death by naked shorts while the street price went thru the roof.</p><p>&nbsp;</p><p>There are two basic reasons for gold to trend higher.&nbsp; As an inflation hedge and as a hedge against catasrophe.&nbsp; With the gov&#039;t throwing trillions of dollars they don&#039;t have into the economy, sooner or later, inflation is going to surface.&nbsp; In addition, with the stock market and economy doing so poorly, people are scared and looking for safety.</p><p>&nbsp;</p><p>The official debt is now some $11T, but the unfunded liabilities are over $60 trillion (social security, medicare/aid, trust funds, etc.).&nbsp; There is no possible way they can either reduce&nbsp; benefits or raise taxes (or both) to cover this tab.&nbsp; Their only option will be to monetize it and that means printing lots of extra dollars to pay for it.</p><p>&nbsp;</p><p>Where will gold go to this year?&nbsp; Geez, who knows.&nbsp; The trend line is up as are all the fundamentals so I&#039;d guess 1200-1500 or so, but who knows.</p><p>&nbsp;</p><p>As for conspiracy theories of some cabal keeping the price artificially low - feh.&nbsp; I&#039;m not much for conspiracies.&nbsp; However, I do firmly believe that if there is someone in a position to be able to manipulate the market - they will.&nbsp; &nbsp; 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.&nbsp; &nbsp; Everyone realized the paper price was artificially low and supply disappeared.&nbsp; Folks, that&#039;s Econ 101 Supply/Demand curves - where there are price controls, supply disappears.</p><p>&nbsp;</p><p>Eventual price - I&#039;ve seen $2500 - $6500.&nbsp; Pick a number.&nbsp; </p><p>&nbsp;</p><p>good luck,</p><p>&nbsp;</p><p>rono[/QUOTE]</p><p><br /></p>

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