Gold continues to plunge.

I'm a Libertarian, but also worked an economist for a large bank. So my opinion on gold is a bit different. Any prediction of prices would be work product, so I'll refrain, but what is gold really worth? Oddly, it's worth the exact same as anything else. It's worth what people are willing to pay for it. No less. No more. It has no more inherent worth than tree bark or strips of cloth that say "Legal Tender" on them.

 

Not sure who you think you are talking about, because that clearly is not obama

 

So then the broker is the one who losses out eh ?. If the broker is the one {lender}
who loaned out the shares.Because the broker is the one now stuck with
stock worth half { $5,ooo } of what he loaned it out at { $ 10,ooo }.
Therefore the need of a short trader to post some kind of margin or
collateral in the event of a loss,which obviously the broker or lender
may be gambling on.

 

I can't see copper either. Anything put on paper without physically taking delivery of it may as well be completely non existent. I'm sure they're fudged those numbers as well.

 

The broker doesn't lose. Only the gold buyer loses.

 

Copper is pretty liquid, as you can readily sell it to a scrap dealer. Its intrinsic value is close to its current price. If the economy totally crashes, your copper will still be valuable.

 

You only lose when you sell. If the stock goes up after the short the original owner still owns it and can still sell at a profit.

Am I correct????

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And it is everywhere....you can strip wire for free...and don't forget them older pennies.

 

I think gold has become somewhat of a bubble, but at the same time I believe the real rate of inflation is much higher than is generally realized and that the U.S. dollar is overvalued. I feel it is at a point where the price of gold could really go either way. I would be cautious buying gold, but if you already own it, it might not be worth the transaction cost of selling either.

My recommendation is that if you are thinking of buying gold right now, at the current price, you should not be buying it as an investment, but rather as a security. In other words, assume that it is a safe place to put your money but that your wealth will not grow. Do not expect to make money.

 

I think most gold buyers expect to make money. If you want a hedge against losing big, copper is better.

 

I think most gold buyers expect to make money. If you want a hedge against losing big, copper is better.

 

That's a recipe for a commodity bubble.

 

You're missing the point entirely. Copper as a hedge against inflation is fine but in the event of a total collapse it would be nearly useless. Let's say that you have $100,000 that you want to put into metal in case the bottom falls out. When the proverbial (*)(*)(*)(*) hits the fan would you rather have ~5lbs. of gold, ~300lbs. of silver, or 16 TONS of copper? If you're forced to evacuate your home, would you rather transport a bag of gold coins, a couple of suitcases of silver, or a pickup truck convoy of copper? If you need to trade for food, shelter, ammunition, transportation, fuel, etc., what do you think you'll have better luck with? Gold and silver coins from your pocket or bars of copper offloaded from your convoy?

 

Have fun trying to buy small items with your gold coins.

 

That's what the silver is for...

...have fun transporting your 16 TONS of copper...because it won't be nearly half as fun as convincing people searching for food that they need your melted down pennies when there is no new construction going on...Woops!

 

Your gold and silver will be worthless. Copper can be used in homemade batteries and for other things.

You painted a scenario involving evacuation. If it came to that, few people would last a month.

And you are more likely to survive that month with $5,000.00 in copper.

And "woops" isn't a word. "Whoops" IS.

 

If you say so.


WHEN the economy collapses, copper at 3 bucks a pound well, hope you have literally mountains of it, versus some piece of paper that says you do.

 

Thousands of years of history prove your contention that gold and silver will be worthless wrong.

Few people would last a month? Humans have survived for hundreds of thousands of years and "a scenario involving evacuation" will suddenly decimate the population? I mean, sure, the idiots lugging around tons of copper won't do so well, but most people will have a decent chance of surviving more than 30 days.

You STILL don't get it. $5K in copper weighs ~1600lbs and there are already literally TONS and TONS of it laying around for the taking.

ORLY? How do you spell "pedant"?

But while we're on the topic...
http://www.merriam-webster.com/dictionary/woops
woops - variant of oops

WOOPS!

 

It will go until it reaches its stabilizes to reach its true value relative to the dollar. Anybody who knows anything about free market economics understands this basic concept.

 

If the economy collapses, the value of copper will increase. And you won't need mountains of it. Even at current prices a cubic foot is worth $2,000.00.

 

You are wrong about everything.

And my spelling of "whoops" is from the American Heritage Dictionary, which is a PRESCRIPTIVE dictionary, meaning that it tells how words are supposed to be spelled and used, rather than including the incorrect spellings and usages of dumb people.

 

Gold is being taken down because big money is preparing for currency collapse. This is transfer of paper wealth to real wealth. The demand (whether US Fed or China) was so high that the price had to be taken down to avoid default.

According to legendary trader and whistleblower Andrew Maguire:

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From Clive Maund

http://www.kitco.com/ind/Maund/20130415_gold.html

In other words and again from my limited perspective, BIG money is moving into Gold and Silver. Probably in preparation for a global currency collapse.

 

Why do you think this? In the event of a collapse, what would make the demand for copper rise?

...And weighs well over 500lbs.

 

If that isn't the Herp-Derp post of the year then I don't know what is. Stop acting like a petulant child, Jeffrey.

ETA: Oh, and the American Heritage Dictionary lists "woops" as a valid word as well. Woops...Again!!! You're embarrassing yourself.

 

About $350-$400, it's actual worth........before all the flag waving and food storage and bullet buying frenzy commenced.
Copper and nickel......different story. More people/more needed. SHHHHHHH ! That's our lil secret. Fools.

 

I thought a naked short was when you don't have the physical to deliver, in which case you have to cover.
And when you cover, at a lower price than you sold, you make money. Buy low, Sell High, Sell High, Buy low the order doesn't matter if bought it for less than you sold it, you make money.

There is a bullish component to naked shorts, in that they will have to be covered within some time period.
If someone sells gold for December delivery and has no gold to deliver, then those are naked shorts, and that selling will have a price depressing effect.
But inherent in that contract is the idea that the same amount will have to be bought to cover those shorts between now and December.
If the market collapses, (can you say Bubble), then the guy who shorts it now wins big time, if the market rebounds and makes new highs, then the guy who is short loses. It's gambling.