Comments on: Gold flies above U$1,100 for 1st time in history

By: LibertyLover

LibertyLover — Wed, 11 Nov 2009 22:05:21 +0000

#19, and the lessening of consumption brought on by $4/gallon US gasoline seems to be holding, which keeps the price from rising too much

I don’t think that is the case. If it was, that would mean that supply and demand works.

And I’ve been told many, many times that it doesn’t work, it’s just a figment of my libertarian imagination.

By: Uncle Patso

Uncle Patso — Wed, 11 Nov 2009 10:06:18 +0000

Yep, inflation and deflation are fighting it out; right now, they’re pretty much at a standstill, with just small movements in each direction. Let’s hope it stays that way for a good while.

In the meantime, the price of oil seems to be having a bigger effect on everyday prices, and the lessening of consumption brought on by $4/gallon US gasoline seems to be holding, which keeps the price from rising too much. Once again, let’s hope that situation continues.

By: LibertyLover

LibertyLover — Tue, 10 Nov 2009 17:44:25 +0000

#17, Wait until they loan out that $1T. It magically turns into $10T due to fractional reserve lending.

By: Bob

Bob — Tue, 10 Nov 2009 15:47:04 +0000

Well, you pump 1 trillion of fake money into an economy and don’t expect any consequences? This is simple economics, everyone with half a brain realized this was going to happen, once you started printing money like dollar menu’s a McDonalds, and its only going to get worse.

By: chris

chris — Tue, 10 Nov 2009 05:12:17 +0000

Right now the talk of gold is more closely related to the value of the dollar rather than the value of gold.

Over-printing leading to dollar collapse is a well established scenario. Inability to continue derivative and junk loan idiocy leading to deflation is also a well established scenario.

Try this: http://www.zerohedge.com/article/how-federal-reserve-bailed-out-world

Thesis here is that foreign exposure to above mentioned idiocy would cause massive selling of dollar denominated assets to cover margin calls. Rather than create a world of dollar-asset sellers the Fed printed enough dollars to let foreign investors off the hook. Different, no?

I think the dollar will come back dramatically, but I don’t know where it goes afterward. I don’t think economists, as a group, have a firm handle on how anything works.

In this environment it isn’t surprising gold is up. Gold was up previously, in real terms, much higher. It fell then, costing some buyers a HUGE amount of money.

Anyone now who will tell you they can outperform everybody is just as likely to underperform everybody.

By: green

green — Tue, 10 Nov 2009 04:01:02 +0000

When the media tells you to buy, it’s already too late – short this mofo.

By: amodedoma

amodedoma — Tue, 10 Nov 2009 02:22:57 +0000

Big money’s found a new scam. Their speculation on the general lack of confidence in the economic recovery’s really working out for a select few, and probably accelerating inflation for everyone. Nothing like a totally immobilized asset for causing a lack of reserves, but of course, you can always print more, right?

By: Rick Cain

Rick Cain — Tue, 10 Nov 2009 01:05:00 +0000

That’s because aluminum was considered a rare metal back then, being solely extracted from aluminum chloride. It was considered so precious that an aluminum cap is on top of the Washington monument.

Then of course, they found out that bauxite ore was full of aluminum, and there’s plenty of bauxite!

Now aluminum is pretty much the cheapest metal around.

By: JimR

JimR — Mon, 09 Nov 2009 22:43:56 +0000

#9… Re”Considering we’ve dug out 10x as much Aluminum EACH YEAR as Gold since 1900,…”

Curses! Foiled again!

By: RBG

RBG — Mon, 09 Nov 2009 22:38:03 +0000

Now let’s all laugh at Australia, Canada, Switzerland & the others who sold their Gold reserves a decade ago, severely depressing the market, because I presume that generation of treasurer thought holding gold was just a depression-mentality old fogey thing to do.

RBG

By: JimR

JimR — Mon, 09 Nov 2009 22:04:11 +0000

RTaylor, it’s like this…

Fool me once, shame on you…
…fool me 35,797,223 times, shame on me.

By: LibertyLover

LibertyLover — Mon, 09 Nov 2009 22:02:51 +0000

#6, Here’s the article that pic is based on:

http://tinyurl.com/yayk36b

If you RTA, you’ll see that gold has only increased in quantity by 1% a year. Considering we’ve dug out 10x as much Aluminum EACH YEAR as Gold since 1900, I don’t think that would be very wise investment choice.

By: RTaylor

RTaylor — Mon, 09 Nov 2009 21:58:42 +0000

Why are the experts claiming victory when the numbers don’t seem to back it up? Does anyone here believe there is a lot of denial and disconnect from reality?

By: dusanmal

dusanmal — Mon, 09 Nov 2009 21:20:44 +0000

Looking at President Carter works in office and comparing them to President Obama, we can say from chart #4 that same actions lead to the same results. Prepare for gold at 2000$+.

By: JimR

JimR — Mon, 09 Nov 2009 20:51:21 +0000

In the mid 1800′s, aluminum was worth more than gold, so let’s adjust that for inflation as well and see what a pretty chart we can make.

HOLY SHIT…BUY ALUMINUM… NOW!!!