My bold prediction on gold

One thing is sure- it's dropping today. What bothers me though is the little news blurbs that say the government may raise taxes to cover the bailouts
and clunker funds. In the first quarter of 2010 people may find themselves selling gold to pay income tax hikes.

 

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And others will be waiting to buy from them!

 

The "talking heads" on CNBC are jawboning the market down so they can make some trades. Commodity prices take a hit when they do that...It'll last until the next wave of earnings reports come out. (imho)

 

i am going to buy many more if gold drop below $900.00. and i am waiting for that too long. maybe $900.00 plus is the low base. high will be somewhat $1,150.00 to $1,200.00.

 

Elaine,

Thank-you for your advice on the Spouse gold coins. I'm up-to-date now (Unc & Proof) and just ordered my Julia Tyler set. Gold is a risky investment at these elevated prices...hopefully the low mintages of the Spouse coins will offset some of the risk.

Best Regards, Yakpoo.

 

you are welcome yakpoo. that is why i bought a lot too. because the mintage is low. and the future will tell if we are right. my investment for gold were only the low mintage spouses. the low mintage (w) unc fractional gold eagle dated 2006 to 2008. and the 2008 proof and unc gold buffalo set and individual coin.

 

HSBC recently notified their customers using that bank as a custodian for gold that they must move the gold to another custodian. Some of these folks will no doubt sell to avoid the hassel. That might be putting a little pressure on gold.

Regarding China and Treasury auctions, the Chinese stopped purchasing Treasuries on a net basis about a year ago. Last week there was a failed Treasury auction.

So there are things happening that are both bullish and bearish for gold. Nobody knows for sure which way the price will go for the balance of this year.

 

I'm not bullish on gold; I'm bearish on the dollar. Increased taxes is the only way forward if Washington won't get spending under control. Thank goodness we only have to worry about this until 12/21/2012.

 

If people need to sell investments to pay taxes, their investment strategy should go under some serious reevaluation.

 

Not at all. If a person is making significant profits in trading options, stocks, bonds, commodities, etc... they may very rationally decide to sell some gold, if it is lagging, instead of pulling money out of what is working. Everything depends on the particular circumstances.

 

No, and that I agree with completely. Last year I has some short term capital gains tax that I got rid of by converting shares of one fund to that of another. It doesn't make any sense to pay capital gains when my portfolio was down the 20 something % that it was.

Selling investments to pay income tax seems extreme to me. Well much past the $3000 loss mark.

 

...just sayin'

 

if you want peek around my posts in the bullion section. i just found those by luck. and they were accurate and specific btw

 

Howdy,

Well, the previous admin printed a bunch of money, but regardless, the money supply chart has gone straight up since Lehman. They've ballooned the admitted debt to ~$12-13T but this is not really the problem. It's the unfunded liabilities such as Social Security, MediCare/Aid, the various trust funds, servicing the debt, etc. This boys and girls is north of $60 trillion freakin dollars. This number is too large to be covered by a reduction in benefits or increase in taxes OR BOTH and therefor the gov't has no option but to monetize it. They call it Quantitative Easing, but it means printing money and inflating their way out of the problem. Now, granted this is all about tomorrow.

How about today? Well, the only reason we haven't had inflation go nuts is that all the stimulus and bailout money has been heretofore, hoarded by the central banks. This has kept the Velocity around zero. However, as the economy starts to recover, they're starting to make loans and as the Velocity picks up, look out for nasty inflation.

I'm still accumulating bullion, and am short both the dollar and the long bond in my retirement accounts using UDN an TBT.

peace,

rono

 

Here, Here!! ...and the Chinese have said that they won't stand for a significant devaluation of the dollar.

Inflating the money supply (M1+M2) doesn't necessarily devalue the dollar (raise prices). True, too many dollars chasing too few goods and services causes prices to rise. However, if the government (after injecting liquidity into the markets) raises taxes to sop up the excess, then we're back where we started.

Expect higher taxes on those primarily benefitting from increased liquidity (e.g. capital gains). Determine how stocks, bonds, and commodities will react in that environment...and that's your play going forward.

 

bump

 

Gold might go down in the short term (next few months), but with all the fiat money printed everywhere it will rise substantially for years to come.

 

I hope so! otherwise what will I do with the MANY ounces of gold I have?.

 

"Otherwise"... you get to Hold the MANY you have for some time. Wait to sell at a higher, later date... while buying MANY more while cost/oz currently sits lower, or trade out to another commodity or PM for equivalent value that's moving more to your liking. ^_^

 

So what if it does? More gold for the goldbugs, and the price will bounce back. About a month ago I had 2 guys going door to door trying to buy gold knock on my door. I told them I didn't have any, that seriously creeped me out. If nothing else inflation will keep the price high, the only good thing about paper is you can wipe with it.