Bernanke led economy proving critics clueless

[Paulie]

The gold bubble will burst soon and many of you will likely STILL not learn the lesson

This discussion is SO far above your pay grade. Please stop ruining a good thread.

 

[Oddball]

I haven't skimmed through all the pages of this thread so if you were already questioned on this I apologize. But what do you mean by awful vs. catastrophic? You say gold standard is awful, but awful is better than catastrophic. Under the context of this exchange, that implies that Fed policy is catastrophic. Is that what you're saying? Gold is better than Fed?

Maybe. I don't know.

Maybe a combination of the two is better.

I just found that exchange and read it. The bull market in gold has little to do with gold supplies though. It's the result of lost confidence in the fiat currency system.

We have posters here claiming that there's no reason to assume the Fed's policies of the last 15 years or so have been inflationary, but yet we see gold up almost 1000% over that time.

Are all of these people running to gold just retarded, or are they on to something?

The prices for almost all commodities have spiked.

Good thing inflation has been held in check, huh?

 

[Truthmatters]

The gold bubble will burst soon and many of you will likely STILL not learn the lesson

This discussion is SO far above your pay grade. Please stop ruining a good thread.

will you tell us how much you lost on gold when it crashes?

 

[Truthmatters]

The price of homes ALWAYS goes up.

Land is the best investment since they are not making any more of it.

sound familiar

 

[Truthmatters]

gold discoveries are made all the time.

land isnt made very often.

 

[Truthmatters]

30 Year Gold Price History


you will not be notifed in time to get the top price when its time to sell

 

[Truthmatters]

we sure have one GREAT BIG gold bubble right now huh?


I know people who didnt listen to me about the housing bubble too.

I sure would not want their mortgage right now

 

[Truthmatters]

My advice if you own gold.

Dont chase the top price.

Sell it soon while it is still very high.

Buy land

 

[TakeAStepBack]

Gold is not in a bubble and won't crash. The dollar is in a bubble. All it will take is a "perfect storm" of event, not unlike that built up to 2008, to completely wreck the dollar. Might happen this year, might happen in ten years, but it's coming unless a serious monetary overhaul is ushered in.

Did you know, that 4, dated before 1964, quarters are worth 20 FRNs?
Current Melt Value Of Coins - How Much Is Your Coin Worth?

1932-1964 Washington Quarter
$0.25 (worth in dollar relation)
$6.0150 (worth in silver)
2406.00% (percent increase)

Do you understand why that is?

People who are hedging their nest eggs in commodities like silver and gold understand...

 

[Paulie]

The gold bubble will burst soon and many of you will likely STILL not learn the lesson

This discussion is SO far above your pay grade. Please stop ruining a good thread.

will you tell us how much you lost on gold when it crashes?

I bought gold and silver in 2007 and sold it all in 2009 at a nice profit. I haven't been back in since, because my investment has been in 2 businesses I started since then.

People aren't parking their money in gold because it's a hot investment tip, it's because the value of paper currencies is declining due to worldwide currency debasement by central banks.

I don't expect you to understand that though.

 

[Paulie]

Maybe. I don't know.

Maybe a combination of the two is better.

I just found that exchange and read it. The bull market in gold has little to do with gold supplies though. It's the result of lost confidence in the fiat currency system.

We have posters here claiming that there's no reason to assume the Fed's policies of the last 15 years or so have been inflationary, but yet we see gold up almost 1000% over that time.

Are all of these people running to gold just retarded, or are they on to something?

The prices for almost all commodities have spiked.

Good thing inflation has been held in check, huh?

If you ask me, the only sector where inflation has any significant impact on the middle class is commodities. Most anything else comes with the potential for a return on investment. Most middle class Americans don't invest in the commodity market, so when those prices go up it only hurts their wallets. I don't invest in groceries and home heating oil, I buy them to survive.

It's a shame that inflation stats have to be skewed by removing commodities and pretending it doesn't exist.

 

[TakeAStepBack]

She's definitely out of her element.

Although, I agree that owning land is a good idea. Preferably farmland that can produce commodities. A multi-million dollar condo in NYC isn't where you want to have ownership. Anyone who has one of those might consider a sell of real land.

 

[Paulie]

She's definitely out of her element.

Although, I agree that owning land is a good idea. Preferably farmland that can produce commodities. A multi-million dollar condo in NYC isn't where you want to have ownership. Anyone who has one of those might consider a sell of real land.

Yeah but her problem was that she said "Housing prices ALWAYS go up".

Which anyone who hasn't been living deep inside a cave the last 5 years knows all too well isn't true.

Like anything else, there's a time to buy and a time to sell. Her hero Krugman certainly wasn't telling anyone to sell in 2006.

 

[TakeAStepBack]

Yeah, she's full of shit. We know that.

It's all in whether you believe in a short term investment in the market dictate in FRN, or if you want to secure an asset that can produce commodities crucial to survival *if* hyperinflation occurs. The price of real estate is still on the fall. Predictions of a rise through the year could happen in the real estate market, but I believe it will be slight, if at all and mostly artificially created. Certainly buying now in real estate that has commodity production capabilities is a good investment, and will still be in the short and long term.

 

[TakeAStepBack]

Just like I recommend holding physical gold and silver and not receipts in digit or note for future payment. Which is where the "bubble" could potential foment should receipt holders demand delivery or a force majeure occur.

Check it:
How Could Silver Short Sellers Cover Their Positions? | CoinWeek

Sellers also have two other options for fulfilling their COMEX silver contracts. They can settle for cash in lieu of the commodity or they can settle for the equivalent number of shares in the SLV silver exchange traded fund. I believe that the buyer has the option to refuse these alternate forms of settlement.

The largest risk to the COMEX silver market is that a large number of maturing long contracts will be demanded for delivery. In March 2011, when a real supply squeeze affected the market, several people told me they were being paid more than $60 per ounce to accept a cash settlement rather than the physical metal.

There is also the risk, as happened in the MF Global Holdings bankruptcy, that customer assets had been re-hypothecated by a broker. That means that customer assets were pledged as collateral for debt of the broker. In the MF Global disaster, multiple COMEX gold and silver contracts suffered default of delivery.

It is also possible that some of the Commercial traders with large net short silver positions could take physical possession of some silver held by exchange traded funds in order to make delivery. This would leave the investors in the ETFs facing a loss of part of their investments.

It is also possible that short sellers might be unable to meet their contractual liabilities to holders of COMEX long accounts, and that even the counterparties to their derivatives contracts might not be in a position to fulfill their commitments. Should this occur, the COMEX would likely declare a force majeure event to relieve itself from any liability for the defaults.

As I think you see, owning paper silver may be convenient, but it does carry risks of loss. A better solution for most people might be purchase of physical silver bullion-priced coins and bars that they can have in their direct possession. Physical silver and gold don’t need credit ratings, because they are the asset rather than a promise of an asset.

 

[Toro]

I think gold will be less than $500 one day, but it might hit $5000 first.

 

[Paulie]

I think gold will be less than $500 one day, but it might hit $5000 first.

I'm going to assume you're not quite as wishy washy about these issues when you're actually managing people's money

 

[TakeAStepBack]

I think gold will be less than $500 one day, but it might hit $5000 first.

Could be. Depends heavily on what the FRN printers do and what the political climate demands are going forward. I'm not all that confident that a return to fiscal prudence with the either will occur in the short term. Should the policies change from the current policies, my confidence will likely follow. It appears we're making a bed of nails currently though.

 

[Oddball]

Personally, I buy junk coin as my backstop.

Usually the lowest premiums, really easy to liquidate, and in the event of a catastrophic meltdown will be the easiest to use for day-to-day transactions.

 

[Truthmatters]

She's definitely out of her element.

Although, I agree that owning land is a good idea. Preferably farmland that can produce commodities. A multi-million dollar condo in NYC isn't where you want to have ownership. Anyone who has one of those might consider a sell of real land.

Yeah but her problem was that she said "Housing prices ALWAYS go up".

Which anyone who hasn't been living deep inside a cave the last 5 years knows all too well isn't true.

Like anything else, there's a time to buy and a time to sell. Her hero Krugman certainly wasn't telling anyone to sell in 2006.

You really didnt understand the post then.