Gold going to $700?

[Oakair]

An individual's paradigm becomes their own truth.

Ah, well that explains a fair amount. Appreciate your honesty.

This...that is truth...

Absolute truth is an illusion...that which conceptualizes (humans/rational beings) brings into being the conceptual categories by which they understand the absolute which is the world...truth refers to our (in)ability to see things as they are in themselves, for we seem them precisely as we, as we, see them...

Gold in the short term can do anything...but in the long term, gold is golden...

Historically, economically, sociologically, philosophically...etc, speaking, gold has support (empirical, probabilified, cultural, and ideological) and fiat has faith...

The notion of value is...problematic, and this problem has become the central issue of the modern global capitalist economy: how to reconicle the, in capitalist mentality, arbitrary devisions of land into nation states according to the traditions (ha...how antiquated a notion on which to base the coherence of a social structure) of the people thus divided...

It seems to be the case that a universal currency is inevitable, and thus, given the current progression one of two paths will be taken, neither of which is particularly helpful in terms of investment foresight...or is it :

1) a universal currency is established based on the traditional Conceptions of pm's as 'relevant because rare'...(relevant can refer to any number of mechanisms: be they direct utility/ functionality as in the past and in the current case of silver as instrumental to solar and alternative means of energy or plat as a catalyst..)

2) some new form of a 'store of value' is established: hopefully directly tied to the individual--money is exchange, but worth inheres in the thing itself...a person should be granted funds in entering into the world and must use their 'vitality', use their contributions to broader society as the basis of their value as a person...

This has been a rambling post, but I hope I conveyed something of value...(iPad typing is hard, but ya...)

The future of the dominant conception of value/worth is going to be interesting to say the least...

[silverflake]

As far as gold being in a "bubble", I am beginning to think that people (even these financial commentators) don't know what a bubble is. He mentions gold has gone parabolic. Where and when? If you look at a 10 year log chart of gold, we are in a perfect uptrend. We haven't even broken down to the trend line yet (which lies at about $1400/ounce). And, for the most part, THE PUBLIC IS NOT IN ON GOLD YET. Not until the public gets in is there a chance of a parabolic bubble.

However, as most realcent members know, gold is not like speculating on a stock. Most of us don't plan on selling. Most of us don't buy it with a future price in mind. And most of us realize that gold doesn't pay a dividend because it is really not an investment. It is a HEDGE. A hedge against the never ending stream of fiat currency being pumped out by worldwide central banks. As long as they keep infalting, gold will always have a place as a HEDGE.

If you want to speculate, trade GDX or IAU or GLD. Create some income by selling covered calls off of them. But those who buy these equities have to know - THEY ARE NOT GOLD. The coins and ingots that you can hold in your hand - those are gold (and only those).

When all is said and done, all I can tell you is keep stacking!

[barrytrot]

For us poor end of the chain investors, it might be wise to have more credit cards (with a zero balance of course) on standby, and whatever pile size of cash you have to spend. Then, if a super buying opportunity ever comes along you can have some extra pull.

You will be hard pressed to find a lot of situations where "it is wise to have more credit cards"

But I actually concur on this one. If you have credit cards with zero balance that you can call on in a rare situation it can definitely play to your advantage.

Me: I will stick to buying with cash though, but I see the wisdom in this strategy.

[BamaJoe]

Gold (along with silver) will go up and will go down, ebb and flow, but in the long run the creek will keep rising. I've been reading prophecies of doom since it was $400 an ounce. As long as politicians keep acting like politicians it will keep going up.

The idea of gold being in a bubble can only be believed by utter fools.

When will I start worrying about a bubble? Here are some warning signs.

Top ten signs that a precious metals bubble is actually forming

10. Commodities trading jackets are the best selling items at Abercrombie & Fitch

9. George Foreman is the pitchman for an infomercial featuring a "Home Panning Kit"

8. The most popular major at Chico State is Geology

7. Due to high prices, Olympic metals are replaced by ribbons

6. Monster Park in San Francisco is re-named Glamis Field

5. Analysts upgrade shares of McDonald’s based on mineral rights to its real estate holdings, bringing new meaning to its “golden arches.”

4. Snoop Dogg introduces the "Bling Mutual Fund."

3. Hustle and Flow wins another Oscar for their single “It’s Hard out Here for a Miner”

2. The WB has a new hit show about teenage prospectors called “Dawson’s Claim”

1. Tom Cruise and Katie Holmes name their newborn son Newmont.

[Mossy]

Oh, there's a bubble around, and it involves gold.

It's the value of the dollar against gold that's the bubble.

[Ardent Listener]

I do not see gold at $700 but it could go below $1000 in coming years. IMHO, the gold rush is going to stall and the industrial metals will be the new hot commodities as industrial production improves world wide.

[mongo]

With so many places in the world now printing money at an accelerated rate how in the world could the price of gold drop by more than 50%? It defies logic and common sense . If any of you can explain this to me PLEASE tell me how this could happen.



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Mongo

[mongo]

With so many places in the world now printing money at an accelerated rate how in the world could the price of gold drop by more than 50%? It defies logic and common sense . If any of you can explain this to me PLEASE tell me how this could happen.



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Mongo

[SoFa]

With so many places in the world now printing money at an accelerated rate how in the world could the price of gold drop by more than 50%? It defies logic and common sense . If any of you can explain this to me PLEASE tell me how this could happen.

I don't know.

But what if everyone is broke and can't buy gold?
I doubt Greece is buying much gold right now.
Plenty of banks have reached a point where they couldn't buy gold, or anything else. What will they do if the supply of cheap dollars dries up?
What if the Europe reaches a point that they can't print more money? And can't borrow?
What if the US reaches that point?
A lot of the big gold holders are living in la-la land right now with a supply of cheap Dollars, Euro, etc.

[John_doe]

watch your charts kids.

[beauanderos]

it's more likely that the economy will create a great deal of "weak hands" even among present holders of gold, but there is a more than ample amount of strong hands to absorb that dishoarding. The dollar will never recover, and although I won't predict a timetable, gold will ultimately become priceless as the dollar becomes worthless. We are in the process of that occuring now.

[68Camaro]

So, the argument that started this thread is that a moderately finite resource, which is well-valued, gold, is going to be worth a lot fewer dollars - those thing which are printed out of thin air in increasingly trillions?

Sure, there can be short-term spikes up and down, and/or momentary panics, but in the long-term - it just makes no sense - none at all. Listen to Ray, folks.

[barrytrot]

Listen to Ray, folks.

You had me until this line

[68Camaro]

Listen to Ray, folks.

You had me until this line

[Jonflyfish]

An individual's paradigm becomes their own truth.

Ah, well that explains a fair amount. Appreciate your honesty.

While folks with differing views look to support their own paradigm and justify their actions, the one arbiter of truth is the tape.
Like it or not, the price is what it is.

Cheers!

[beauanderos]

The actual price is REALITY. To call it the truth is to turn a complete blind eye to the utter manipulation that occurs in precious metals. The markets are controlled, and price discovery (other than what THEY want) is not permitted. So, yes... the "real" price is what the tape states, regardless of how much we root for our own personal agenda and beliefs... but to call the tape price "the truth" is disingenuous and merely proclaims that those so convinced have been succesfully deluded, as has been their intent all along.

[Jonflyfish]

The actual price is REALITY. To call it the truth is to turn a complete blind eye to the utter manipulation that occurs in precious metals. The markets are controlled, and price discovery (other than what THEY want) is not permitted. So, yes... the "real" price is what the tape states, regardless of how much we root for our own personal agenda and beliefs... but to call the tape price "the truth" is disingenuous and merely proclaims that those so convinced have been succesfully deluded, as has been their intent all along.

I'm sorry but to say that the market prices are not real and that I am disingenuous (lacking in frankness, candor, or sincerity; falsely or hypocritically insincere) is nothing short of offensive and utter rubbish. The market price IS the REALITY. The mark to market prices are the settlement prices- PERIOD. You cannot nor will you ever be successful in convincing the IRS, bullion dealers or commodity desks otherwise. The price is the TRUTH. Without it counterparties have nothing to reference on their deals because deals are contractually done at a certain price that both parties believe to be the true agreed upon price.

Again, your paradigm is your own. That is how markets work. Prices are set by two or more parties that disagree on value (relative worth, merit, or importance) but agree on a true PRICE (a verified or indisputable fact).

I believe what you are arguing about is VALUE, NOT PRICE. Reality of value is personal. Without differing values there would be no market.

Cheers!

[beauanderos]

Perhaps, Jon, you are correct, my argument does lend itself more to value than to price. Thank you for the semantics nudge. My point, though, is that it is unfortunate that so many, who could otherwise begin to prepare for oncoming hyperinflation by taking defensive positions in physical precious metals (which were once deemed safe havens, prior to the blatant manipulation taking place on a regular, predicatable basis for the last year or so) have been deluded by the duplicity of the bullion bank cartel, by creating immense volatility, failed breakouts, and egregious TA violations, into believing they need to "stay in the dollar." With technical analysis "out the window" under what many acknowledge as rigged markets... if you are able to somehow still trade these markets profitably, then my hat is off to you.

[OneBiteAtATime]

Dang. Wish I had some popcorn.

[SoFa]

I didn't know gold was controlled by manipulation. If you look at the gold price chart, it seems to have gone up in a rather orderly fashion (along with the money supply and inflation).

[beauanderos]

I didn't know gold was controlled by manipulation. If you look at the gold price chart, it seems to have gone up in a rather orderly fashion (along with the money supply and inflation).

You're looking at a macro-view, in which case you would be correct. But a number of studies have demonstrated that gold price is suppressed during London and New York trading hours, and for the most part (until recently) not so during the overnight Asian markets. If you had been invested in gold, this during a period when gold was up between four and five times, the whole while (in the paper markets) your profit would be nil if calculated during the open hours of the London market, but would have been about six to seven times greater if held only during the hours when they are not tampering.

If you want to see silver and gold manipulation in action, all you need do is watch a feed of netdania prices minute by minute. All day long, every day, over and over again... a gain that took several minutes to print will be erased in one oversized (spiking of orders) waterfall downdraft. What makes such events irrefutable manipulation is that they occur at precisely the same times, every day. This is not how a free market would operate. TPTB have an agenda to dishearten, disillusion, and destroy investor's confidence in precious metals as a safe haven. Notice that every time there is ostensibly gold positive news... that the bullion banksters without fathers go into overtime painting a negative correlative picture upon silver and gold. Read Ranting Andy Hoffman for a quick primer, although many others write of what is occurring as well.

[Mossy]

With so many places in the world now printing money at an accelerated rate how in the world could the price of gold drop by more than 50%? It defies logic and common sense . If any of you can explain this to me PLEASE tell me how this could happen.
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Mongo

"Oooo, looky the pigs flying!"

[SilverEye]

silverflake, you get it. It's a hedge. It's not the price of gold that goes up, it's the value of a dollar that goes down. Preserve your purchasing power.

BamaJoe, love that top 10 list!