Gold Gold Gold!!!

[nyuknyuk]

its a pamplona of the bulls time for gold!!
china and india and the mideast are all itching to buy up the world's gold!!
over 3 billion people all dying to get gold will make $800 an ounce like in the 70's seem cheap!!
$1000 an oz early next year and $2000 by the end of next year!!!
invest in junior mining stocks like bema gold and wheaton and golden star!!
buy up every maple leaf and kruggerrand!!
cash in the dinars for gold and euros!!!

[RogerL]

While I don't disagree that gold can be valuable in your portfolio, I'm not so sure about gold skyrocketing in value. Too many experts are predicting it, so the contrarian in me says no. Gold is a hedge investment used to protect against either high inflation or devaluation of the dollar against foreign currencies. Lately, gold has been rising because of the weakened dollar, but who knows if that trend will continue?

The budget deficit is falling, albeit still remaining at high levels. The main concern is the trade deficit, which remains stubbornly high due to weak foreign economies and high oil prices. If the major trading partners start seeing a pickup in their economies or oil falls back, I can see a improvement in the trade deficit.

The other big reason for a weak dollar is the low interest rates in this country. With the Fed bringing rates back to a net positive interest rate, after inflation, the dollar will strengthen accordingly as dollar-denominated investments become more attractive.

If you believe the dollar will remain weak, then by all means invest in gold. It's not bad to have some in your portfolio regardless, but don't necessarily expect it to zoom upwards. I've been watching predictions of such a thing for over a decade now and have yet to see any such appreciation.

As for America returning to the gold standard, forget it. It'll never happen. The Bretton Woods accords signed after WWII left the dollar as THE currency of note with all other currencies pegged to the dollar. In exchange, the dollar had to be redeemable with gold. Eventually, the dollar began to weaken in the 60's and investors began redeeming gold to the point where American reserves were decimated. Eventually, we had to leave the gold standard to avoid a complete collapse of our currency. It's highly unlikely we'll ever go back to it to prevent such a near disaster from happening again.

[TYSON]

While I don't disagree that gold can be valuable in your portfolio, I'm not so sure about gold skyrocketing in value. Too many experts are predicting it, so the contrarian in me says no. Gold is a hedge investment used to protect against either high inflation or devaluation of the dollar against foreign currencies. Lately, gold has been rising because of the weakened dollar, but who knows if that trend will continue?

The budget deficit is falling, albeit still remaining at high levels. The main concern is the trade deficit, which remains stubbornly high due to weak foreign economies and high oil prices. If the major trading partners start seeing a pickup in their economies or oil falls back, I can see a improvement in the trade deficit.

The other big reason for a weak dollar is the low interest rates in this country. With the Fed bringing rates back to a net positive interest rate, after inflation, the dollar will strengthen accordingly as dollar-denominated investments become more attractive.

If you believe the dollar will remain weak, then by all means invest in gold. It's not bad to have some in your portfolio regardless, but don't necessarily expect it to zoom upwards. I've been watching predictions of such a thing for over a decade now and have yet to see any such appreciation.

As for America returning to the gold standard, forget it. It'll never happen. The Bretton Woods accords signed after WWII left the dollar as THE currency of note with all other currencies pegged to the dollar. In exchange, the dollar had to be redeemable with gold. Eventually, the dollar began to weaken in the 60's and investors began redeeming gold to the point where American reserves were decimated. Eventually, we had to leave the gold standard to avoid a complete collapse of our currency. It's highly unlikely we'll ever go back to it to prevent such a near disaster from happening again.

Roger

Thank you for being a part of this forum.

[minigirl]

Roger

Thank you for being a part of this forum.


He never ceases to amaze me.
:huge:

[onepence]

In Gold We Trust


From gun-wielding libertarians to radical Muslims, an unlikely global cabal is plotting financial revolution. And they're putting their money where the Web is.

By Julian Dibbell

http://www.wired.com/wired/archive/10.01/egold_pr.html

a person of oneness,
Dean Hedges

[irons]

Nice blast from the past!!!Poor RogerL!