GOLD2000

[slickeast]

Ok, I have to make a confession. I was posting to stir the pot. I wanted to hear peoples real thoughts and MH responded as well as some others. I appreciate the comments from others that know/understand more than I do. It helps to sharpen both minds.

Gold is going crazy. Glad I only sold 15 grams last month. Gold up $100 this week already and it is only 12:15am Tuesday here in SC.

Tuesday is going to be a wild day.

Ray, where is the popcorn avatar? There is a show to watch.

[theo]

Gold is up to $1761. Unbelievable

Durden at ZH thinks the Fed will make an emergency announcement tomorrow, perhaps involving QE3. Of course that would assure a downgrade by Moodys and Fitch with further moves possible. It could be a long night and an even longer day. Godspeed.

http://www.zerohedge.com/news/futures-r ... t-possible

[beauanderos]

Ok, I have to make a confession. I was posting to stir the pot. I wanted to hear peoples real thoughts and MH responded as well as some others. I appreciate the comments from others that know/understand more than I do. It helps to sharpen both minds.

Gold is going crazy. Glad I only sold 15 grams last month. Gold up $100 this week already and it is only 12:15am Tuesday here in SC.

Tuesday is going to be a wild day.

Ray, where is the popcorn avatar? There is a show to watch.

You asked for it, Peter... you got it

[Market Harmony]

Someone else thinks $2000 by end of August:

http://seekingalpha.com/article/287090- ... urce=yahoo

[slickeast]

Someone else thinks $2000 by end of August:

http://seekingalpha.com/article/287090- ... urce=yahoo

I don't have the same thoughts. My original post in this thread was half sarcasm and half a gut feeling. I think it will continue on a slow descent until it reaches $1600 and plateau there for a month and slowly climb back up. I have a feeling that we won't see $2000 until January 2012.

[Market Harmony]

These wild bungie cord swings in the equity markets make a lot of people nervous and they, in turn, flock to safe haven assets. US Treasury bonds, of all things, and gold have seen large increases of buying from across the globe. This isn't just a US Dollar to Gold ratio type thing, this is a world fiat currency vs all other assets scenario. The world money supply will need to explode in order to fund the bailouts needed in the PIIGS. Smart money knows this and will attempt to find any other means to protect their wealth. This is where bonds and gold have come into play recently. In my opinion, those in the bond market will eventually repent their decision.

Gold's safe haven status is not just US-centric, it is a much larger global phenomenon. Central banks, institutions, and individuals flock to safer assets when a currency is devalued. The global issue at hand is that the world reserve currency, the US Dollar, backed by the faith on our ability to pay our debts, was DOWNGRADED. The entire system, predicated on AAA status of the USD, has just had their currency devalued. Now, re-read the second sentence in this paragraph.

Immediate reaction to the downgrade was to sell US equities and rush to gold and bonds. But this will settle as the value of these various assets find their respective levels against the other assets. Does an ounce of gold become better than X number barrels of oil, or a tailored suit, or so many shares of Apple stock? This rebalancing of assets has not yet fully occurred. There will be fluctuations, they will be wild and mild, there will be misdirection, there will be finger pointing. The important aspect is that you keep a clear head and continue to ask yourself, "What is the best asset out there?"

Gold will find its new level soon enough.

[theo]

Good explanation. I think what it all boils down to is that gold is in the process of recapturing its reserve currency status it lost 40 (or 78) years ago. The real question is what would the Fed do the prevent that? The story of Andrew Jackson's ultimately successful struggle against the Bank of the United States is chilling. Nicholas Biddle, the chairman of the bank, crashed the economy by sharply decreasing the money supply in an effort to force Jackson to renew the bank's charter. I wonder if the current crop of bankers are capable of such treasonous behavior if similarly threatened?

[shinnosuke]

Good explanation. I think what it all boils down to is that gold is in the process of recapturing its reserve currency status it lost 40 (or 78) years ago. The real question is what would the Fed do the prevent that? The story of Andrew Jackson's ultimately successful struggle against the Bank of the United States is chilling. Nicholas Biddle, the chairman of the bank, crashed the economy by sharply decreasing the money supply in an effort to force Jackson to renew is bank's charter. I wonder if the current crop of bankers are capable of such treasonous behavior if similarly threatened?

Jack Kennedy wanted the Treasury to assume the responsibility of printing money, relieving the Fed of that burden. That earned him a ticket to the morgue.

[warthog]

eh personally I think the COMEX will increase the margins on gold much like they did to silver earlier this year if it gets too high, too fast for their liking. Are we at that point yet? I dunno... many a smarter boy than me has lost their A$$ trying to outguess the commodities market short term.

http://online.wsj.com/article/BT-CO-201 ... 20386.html

Someone else seems to think its time to take a profit and run...
http://www.thenewamerican.com/economy/m ... ting-price

[slickeast]

Doesn't look like we will hit $2000 any time soon.

I believe we are still a little ways from the bottom. Maybe $1500. I really don't think it will stop there either.