Gold hits record high on debt fears and chance of more Fed stimulus

edit this please.

 

Calling something a "meme" isn't an argument.

I based my comment on investment advise and market "opinion" explained by people who understand the market. That isn't a "meme" it's an example of an opinion that people have. I've proved that certain people have that opinion with multiple examples. There is nothing more for me to prove.

That people have the said "opinion" is a fact. Whether or not that opinion is valid isn't the question. Why do you fail to understand even basic logical arguments? What's the point in demonstrating that you don't grasp a topic of discussion?

 

Dude, logic and logical fallacies mean nothing to "conservatives". Don't even try.

 

I agree. But that's like trying to explain rocket-science to a stray dog.

Except the rocket-science is monetary theory and the dog is an internet-troll.

 

BTW - Gold is $1661.14 (new record).

Silver is $40.74...up $1.44 (over 4%).


http://www.reuters.com/article/2011/08/03/businesspro-us-markets-precious-idUSTRE7592IU20110803

http://silverprice.org/silver-price-history.html

 

is a good long term investment, however, it doesn't wipe your but or put clothes on you. Buy tangibles now - rural land, food with a long shelf life, water, shirts, pants, jackets, shoes, toilet paper, deodorant, shampoo, guns, ammunition, etc. Even if I am a **** and the USA does not collapse, you will be getting these items at a better price now relative to the future.

 

I just wish 1. I had known about this trend earlier (maybe 5 or 8 years ago) and 2. I had enough SPARE money to buy a lot of it lol.

Now, that would be overly risky because it WILL crash. And SOON.

 

Please define 'soon'.

 

That's no surprise at all.

 

Silver May Rebound to Test $100 Level, Citigroup Says: Technical Analysis

'Silver may more than double to $100 an ounce if the current bull market follows similar patterns seen between 1971 and 1980, according to technical analysis by Citigroup Global Markets Inc.
The attached chart shows spot silver had “two legs up” with an interim corrective move down in the last major bull market from November 1971 through January 1980, Citigroup analysts led by New York-based Tom Fitzpatrick wrote in a report. In the current uptrend that started in November 2001, the metal jumped 5.8 times through March 2008 before slipping 60 percent, they said. The price then rebounded and tested the 1980 high earlier this year, they said.
“If the final rally in the last bull market repeated then we can expect $100 over the long term,” Fitzpatrick and two other analysts wrote. “While the high so far this year was at the same level as the peak in January 1980, we are not convinced that the long-term trend is over yet.”'

http://www.bloomberg.com/news/2011-...to-100-citigroup-says-technical-analysis.html


NOT that this is why I am bullish on gold/silver.

But I am just sayin'...

 

You really are clueless as to the meaning of your favorite word.

 

Soon enough to where I'm not going to risk anything on it. Assuming it crashes like it did in 1980, it has many 2 years left.

 

Actually, I am a little surprised.

I figured about a week ago that once Congress raised the debt ceiling that gold/silver would have a temporary pull back as the markets breathed a sigh of relief.

But I guess the rather lousy solution (imo) Congress came up with, together with the really negative numbers coming out on the economy have spooked the markets/investors and sent people running for cover.

 

Or it could also partly be because wealth disparity continues to increase..and increase..and increase.

So there's a lot of people with a lot of spare money to invest in things like gold. Even despite most people not having jack these days.

 

If by 'many' you meant 'maybe'?

2 years?

Heck - that's plenty of time imo.

In the last 2 years gold has gone up 71% and silver has gone up 181%.

http://www.goldprice.org/gold-price-history.html

http://silverprice.org/silver-price-history.html

 

There is also a lot of money available since people are obviously fleeing the markets lately:

This is the DOW over the last month:




http://www.theglobeandmail.com/globe-investor/markets/indexes/chart/?q=djia-I\


But they are not running to the dollar like they historically do:

This is the dollar index (note - only the 'July' part of the chart is applicable to my point):



http://www.bloomberg.com/apps/quote?ticker=DXY:IND#chart

 

Foreign credit rating agencies have downgraded the US post debt deal.

Link

US credit agencies warn a downgrade is still possible if spending isn't further reduced.

Link

The general consensus is that the US did not agree on enough spending reductions to the deficit.

 

Well, that'll do it.

The fact that Moody's hasn't downgraded the U.S. rating already just shows - imo - how relatively incompetent they are.

 

I doubt it is going to crash. Come this Friday the NFP number is bound to disappoint sending the stock sell off on an even bigger tear. Bernanke is going to have to announce some form of QE3 and when that happens you can kiss 2k/ounce gold good bye and watch it shoot toward 3k/ounce.

 

How far can it rise?

 

As far as it needs to, that is entirely in the hands of the Central Banks of the world. So long as they attempt to keep the inflation rolling Gold will go up and up and up. If they start to tighten monetary policy you will see gold fall relative to fiat.

 

I agree completely.

Btw - Silver is at 41.59 right now...up .85 (over 2%) from my last quote yesterday.

 

agreed.....but you have to ask yourself, do you think governments and central banks can stomach another banking crisis once intererst rates tighten and this phoney recovery collapses?

 

No, that is the reason they have not tightened up...the financial markets would collapse in a heartbeat. It's a (*)(*)(*)(*)ed if you do and (*)(*)(*)(*)ed if you don't situation, the only option is to prolong it as long as you can and hope something shows up or until you can transfer all the risk to the public sector....one or the other.

 

Probably irrelevant. Where can investors put their money that's safer? In Malaysian denair?

I don't expect T-Bill yields to rise much, and they're already at historical lows because of the Bush Recession.