If (or when) gold bubble bursts....

When the only tool you have is a hammer naturally every problem looks like a nail, how do you like that? :goofer:

 

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Peter Schiff predicted the housing bubble- "How to Profit from the Coming Economic Collapse". BO cares nothing about American Jobs- listen to all his rhetoric about globalization and every single action of his has worsened the economy as it was intended to do. He is puppet of the same globalist advisors throough every president since Kennedy. Let's all buy some gold and silver!!!!

 

Sorry! (even though I don't know what PRWE means).

But I do think it will cause the price of gold (as measured in american dollars) to rise.

 

Correct. Time to close this thread.:computer:

 

Guys? How can bullion prices be seperate from PWRE- Politics, war, religion, economics (for Joe)???? They are absolutley interconnected. Political changes such as major shifts in gov policy, the Fed, Globaization, a potential change in our currency, Wars, etc -100% affect the price of Gold, Silver, etc.. You all know that. It feels like censorship otherwise. People are posting things that shake other people's beliefs and they don't like it. Let's live in the real world. Gold is not a DBRCT study (double blind randomized contoled). It is absolutely dependent on the above variables. To me, it's like trying to make water without Hydrogen. Impossible.

 

There hasn't been a major shift in government or economic policy in several decades. It takes neither intelligence nor analysis to take a political position on anything, which is why political debate has so many adherents. Just turn on the TV and you'll find some talking head who tells you what you need to say and think. Coins and bullion purchases and the economics behind it are a completely different topic. There are hundreds of political and religious forums on the internet. There aren't many devoted to coins or the subset of bullion coins.

 

It is here !

Depending on what you buy from whom, gold is already decoupled from the spot paper price.
Stocks should have a bump and gold may go down for a bit.This will be a second down phase in the recession that will not go away. It could last for a year or so then comes the tidal wave of inflation. Everything that is being done is counterintuitive to what works in a bad recession.
You must get taxes down,and let evolution and capitalism work.
Everything being done at once is wrong, throwing money at very large problems make companies an individuals very nervous. Gold is being gobbled up but profits will have to take place for gold to rise higher.
I like gold for the art of the creators and the safety of the hedge. Buy for life and enjoy some safety and the beauty of art. For some it is about profit, that is ok. Others are pure collectors. Some do a bit of both. I have not problem with anyone who reconizes a fiat money system will have vast movements in currency when times are tough. China and Russia are in the gold buying markets with both hands as we speak.They are not buying our bonds any longer.
Gold in one hand, paper in the other, any bets ?
I also like silver , some of the strikes are amazing.
Pep.

 

are you selling those hammers :goofer:

 

Cloudsweeper99- I don't want to be argumentative by any means, but I don't think your response really changes my opinion. I think there has been, in fact, a major shift in policy which affects the precious metals markets. Spending 12 trillion is a major shift that affects inflation and every other thing that affects the coin market. Consumer confidence, civil and political unrest, the current job market all impact coins. I just feel that when people say anything the sounds negative or doom and gloom, then they get the PRWE censor button. I'll leave it there. No harsh feelings I hope.

Spock: Great post- a good summary.

 

Spock don't start looking like a nail now. :hammer:

 

hmm as i feared. you are delusional from seeing the grandeur of the royal court :hammer:

 

It happens, Spock. I'm just a frail, loyal subject.

 

i am looking for a new minister of internal security. someone whom i can trust in case of an evil monster attack interested?

 

You know I am! :hug:

PS: Of course there's gold in it for me... :whistle:

 

Democracy ?

We do not have a democracy . We have a democratic republic. Capitalism is the basis for our economic development over a very short time. Corruption , and socialism are causing the problems.
Europe is in a ditch with socialism and they have not the rights our constitution affords Americans. Europe can not field a true army with socialism. Their only real option when the chips are down is America, or nuclear.
High taxes mean fewer new small companies and less development from the large companies. Fewer jobs and greater out sourcing.

Pep

Gold will require a period of profit taking before it can make a bigger move. Silver could be a suprise ,as not all like gold, or wish to try to afford gold.

 

It is never my intent to change anyone's opinion, and I'm never offended by any opinion. I write what I write to give other readers a different perspective.

Spending more is not new policy. Every administration spends more than the previous one regardless of party. Gold and silver prices will rise in an irregular pattern as long as spending trends remain unchanged, which means basically forever unless/until there is a deflationary debt collapse. The 1980 gold price bubble is always dragged out as an example of the dangers of holding gold. If gold prices rise fivefold in a year, it will probably be time to sell. Until then, enjoy the ride.

But none of this is new.

 

I spent some time on usgovernmentspending.com. You can make your own graphs for any time period, and I looked at each decade from 1800 to present (and projected to 2014). Cloud is correct, every decade showed increases in spending and national debt. There were 3 main "explosions" in national debt, the civil war, ww1, and ww2. The graphs show the debt jumping, then gradually get paid down somewhat, then back up. We still haven't paid for the civil war!

The civil war, ww1, and ww2 didn't affect the price of gold, since we were on the gold standard. We won the war, we showed that we could make payments on our debt, and then we borrowed more. Now that we're off the gold standard, how do we show we can make payments on our debt? We keep the dollar strong. But the dollar isn't real like gold was. As long as everyone pretends its worth something, it stays somewhat strong. We have to keep everyone believing.

But our economy is having bubbles. Its like squeezing a baloon, and making a bubble. You can squeeae that bubble, but another will pop up. Thats how our government, under both parties, has tried to deal with bubbles. Now that we can just print money, and not have to dig up gold, we have more tools to control bubbles. But I'm afraid these new tools may break the whole balloon. Once a run on the dollar starts, i.e. gold starts to bubble, there's no popping that bubble.

I've tried to envision a way to prolong the black hole gold bubble. The Chi-Coms could tell us they'll back us a few trillion, if we give them amwar. What could we do if they pushed the point? That could buy us a couple of years.

The last time we had a gold bubble was Jan, 1980. That was the end of the Carter administration. I think there are a lot of parallels with the current administration and Carter. I think its the prospect of 4 more years of the last 3 months, and Carter's legacy, that fuels the thought that the last bubble could repeat. The Carter administration saw gold go from $140, to over $800, and settle down at over $500. If Obama repeats, we'll see gold spike to $4000, and settle to $2500. I think its quite possible, (assuming there aren't any outside events that will cause gold to soar on their own).

 

Good stuff Joe. Educational!!

 

ok you are now in charge of internal security make sure to slay all the monsters who make it to the palace