Thé Góld -Death March Thread-·

[z]

As you can see from this chart gold continues it's death march...





This is going to end badly for the gold bugs I fear.

[usaone]

Pump and !! ;D ;D

[Virgil Showlion]

This is going to end badly for the gold bugs I fear.

What with all those rapidly-improving economic fundamentals?

[lifewasgood]

Gold and Silver are clearing out the paper speculators and seeking a physical demand line. My opinion that line is around $1250 gold ounce and I will not sweat unless gold breaches $1200. Large corrections in the metal markets is nothing new, pull up a 10 year chart and you will see what I am talking about. Have plenty of Tums on hand while playing in the metals market.

[midwesterner (banned)]

What with all those rapidly-improving economic fundamentals?

Virgil

Funny isn't it. Where's the jobs? When I see people going off government assistance, industry growing at home, sound money policys, and middle class job creation, I'll flip back to sound stocks in the stock market. Until then, it's all smoke and mirrors.

[Virgil Showlion]

Precisely, life. The schism between paper metal and physical metal is everything at this point. As an investment (paper), seek greener pastures. As a hedge against the unknown:

www.zerohedge.com/article/scotia-mocatta-sells-out-1-kilo-silver-bars

It seems that not a day passes by without some major dealer running out of a precious metal in inventory.

January 18:


Today:


Got physical?

[midwesterner (banned)]

Life, Virgil, absolutely. Silver is running out faster than gold. Some speculate there is even less silver above ground now than gold, and paper has confused and distorted this reality.

Reason being is that silver is has been artificially manipulated downwards, and is used in many electronics and industry production. It has many non money uses as well as a store of wealth. So, it's not certain, and I won't put my name to this claim, but it's certainly realistic that silver could be more rare than gold at this point in time.

If paper shorts default and have to purchase up real assets at market price because of people taking physical possession, it's could be an overnight run on the silver coin shops if that ends up being the case. Time will tell. I'm betting that some household silver will offset the investment silver once prices go higher, but still don't see how it could fill the gag enough to cover all the paper. Some claim anywhere from 50:1 - 100:1 on paper naked shorts.

[Virgil Showlion]

100:1 has been quoted as "the historical norm" by COMEX talking heads.

[z]

Here's a 30 year chart...



Seems like only fairly recently has gold been valued in multiples of what it traded for for decades...hmmm

[Virgil Showlion]

We shall see, my dear wxyz.

Some might say that metals are Significantly Temporarily Under-Valued (STUV). Others claim they're Nominally Over-Priced for Quality (NOPQ).

So the big question is: Metals: NOPQ or STUV, WXYZ?

[domeasingold]

Has anyone actually used the "CASH FOR GOLD" to sell their old jewerly? What are they actually paying you for your "gold"?

[midwesterner (banned)]

We shall see?

What we see is the constant television commercials touting gold to the masses by using fear, twisted logic, greed, etc. A classic tale of a bubble. It is easy to tell those on this board that are inexperienced investors. They have no concept that the markets are NEVER easy and NEVER obvious. They think that siting on a few ounces of gold is going to save them if there is an economic collapse. In the meantime they have missed out on one of the greatest bull runs in history. Classic behavior, and the reason that most people can never make any money in stocks and funds.

And you claim the stock market is not a bubble ready to burst? Think about what you just said, gold is bubble yet hasn't hit 1980 highs yet with worse economic conditions than then, but stock market is no bubble and isn't ready to burst. Quit a contradiction I'd say.

Could you have increased debt notes greatly and transfered those assets into something that is not a bubble? Sure, but how do you time it, and paper is paper, a promise of paper and nothing to show but paper and digital numbers. Rich on paper are many of you and computer screens.

Best bull run? Looks like best inflation induced, PPT, inflationary bailout fueled government and fed reserve intervention we have ever seen is more accurate.

Your playing a game of Russian roulette with the stock market. You may get lucky, but your gambling more than making gains based on economic conditions, facts, fundamentals, and anything that makes good investment decision making.

Please don't compare these two markets, cause they are not the same, and conditions are different for wealth accumulation.

[midwesterner (banned)]

Here's a 30 year chart...

Funny how when we go off the gold standard, and everyone jumped into the stock market is when you pull out limited 30 year charts. Hardly a real accurate assessment of a market on fiat money.

How about pull out a 30 year inflation chart.





WATCH HOW THESE CHARTS CLOSELY RELATED TO THE 1970'S WHEN NIXON TOOK US OFF THE GOLD STANDARD. INFLATION SKYROCKETED, AND MONEY SUPPLY SKYROCKETED. THEY ARE THE SAME!!!!!

[z]

Well, gold continues it's death-spiral. I wonder how much longer it will be before the terrified gold bugs come pouring out into the streets stopping passersby and pleading with them to buy their gold at any price. That will be a sad thing to see.

[midwesterner (banned)]

Well, gold continues it's death-spiral. I wonder how much longer it will be before the terrified gold bugs come pouring out into the streets stopping passersby and pleading with them to buy their gold at any price. That will be a sad thing to see.

LMAO!!!!!!!

I see no such thing today. It's pretty much held it's own, right now. Death spiral would be dropping like 50 bucks a day. Love how you boys think this is it for gold, LOL, it may correct for a bit, but it will be back, it's done this before and will do it agian.

[midwesterner (banned)]

This an open comment to all "who are you trying to convince"?

Huh, this is Z's thread, and since he's one of your paid poster boys I'm guessing that he's trying to convince posters Gold is a bad investment. Funny how you boys stick to the same line about Gold, never once say this coming, and bashed it all the way to where it's at.

Then when it goes for a dip, like it does, you somehow think it's at the end.

[frankq]

Interesting. Money is just currency and has no value, but gold dealers worldwide are willing to give you gold for...uh...dollars...Hmmmmmmmm

Here is another tidbit. In 1978 gold was about $750. One dollar then bought what $3.50 buys today, so, if gold is the end all to everything financial, why isn't gold selling for at least $2625 just to cover inflation? And remember the gold taxes and dealer fees paid just to have gold have not even been factored in. And gold pays no interest, no dividend. Oh by the way, gold down another 1% plus today. In the mean time, DOW at 850 in 1978 and tickling 12,000 today while gold flirts with breaking $1300 on the downside .Really, if you want to own gold, more power to you, but don't try to justify it with long term math.

Gold sold like chocolate from German vending machines - TelegraphJun 17, 2009 ... Shoppers in Germany will soon be able to buy gold as easily as bars of chocolate after a firm announced plans to install vending machines ...
www.telegraph.co.uk/.../Gold-sold-like-chocolate-from-German-vending- machines.html

GOLD BULLION VENDING MACHINES NOW IN HOTELS! 2010
1 min - May 16, 2010
Uploaded by traynickel
( this one is from a favorite source out here: youtube

Gold vending machines go global - May. 27, 2010May 27, 2010 ... As fear in the marketplace drives the price of gold to new highs, the maker of a gold-dispensing ATM machine is attracting attention from ...
money.cnn.com/2010/05/27/news/.../gold.../index.htm

Gold Vending Machines: Why We Think It's a Sell Signal ...Sep 28, 2010 ... Gold decisively hurdled the $1300-an-ounce barrier, currently hovering around $1308. It got a lift after lackluster economic data trickled ...
blogs.wsj.com/.../gold-vending-machines-why-we-think-its-a-sell-signal

Oh yeah......Gold is very rare..........LOL!

[frankq]

"I see no such thing today. It's pretty much held it's own, right now. Death spiral would be dropping like 50 bucks a day."

Yeah you guys! Geez! Whats a drop of 1-2% a day for Gods sake! You make it sound like gold is losing value!!! Wake up!!!!

[midwesterner (banned)]

If you took all of the gold in the world and put it in one place how much would there be?

money.howstuffworks.com/question213.htm
Watch folks, this is Q-Tip getting another lesson today. My guess is he will say the dog ate his homework, or look a fool and do what he's best at, not paying attention. He still has no comprehension of inflation.

­It is amazing, but the total amount of gold in the world is a surprisingly small q­uantity. Here's how you can calculate the total amount that is available.

If you look at a page like this one, or if you look it up in an encyclopedia, you will find that the annual worldwide production of gold is something like 50 million troy ounces per year. Gold has a specific gravity of 19.3, meaning that it is 19.3 times heavier than water. So gold weighs 19.3 kilograms per liter. A liter is a cube that measures 10 centimeters (about 4 inches) on a side. There are 32.15 troy ounces in a kilogram. Therefore, the world produces a cube of gold that is about 4.3 meters (about 14 feet) on each side every year. In other words, all of the gold produced worldwide in one year could just about fit in the average person's living room!

This cube weighs 1,555,210 kilograms (3,110,420 pounds). A recent spot price for gold was $256.10 U.S. -- using that number, all of the gold produced in a year is worth $12,805,000,000. That's a lot of money, but not an unimaginable amount. For example, that's about how much the Pentagon spent launching the GPS satellite system. NASA's budget in 1998 was $13.6 billion.

Figuring out the total amount of gold that has been produced by man is a little harder. To get at some kind of estimate, let's figure that the world has been producing gold at 50 million ounces a year for 200 years. That number is probably a little high, but when you figure that the Aztecs and the Egyptians produced a fair amount of gold for a long time, it's probably not too far off. Fifty million ounces * 200 years = 10 billion ounces. Ten billion ounces of gold would fit into a cube roughly 25 meters (about 82 feet) on a side. Consider that the Washington Monument measures 55 feet by 55 feet at its base and is 555 feet tall (17 x 17 x 170 m). That means that if you could somehow gather every scrap of gold that man has ever mined into one place, you could only build about one-third of the Washington Monument. Platinum is even more scarce than gold. Only 3.6 million troy ounces are produced per year. Its specific gravity is 21.45, and it was discovered in the 18th century, not in 3,000 B.C. If you assume that the world has produced 3.6 million ounces per year for 50 years to estimate the total worldwide supply, all of the platinum in the world would fit in a cube that is 6.3 meters (about 20 feet) on a side. In other words, all of the platinum in the entire world would easily fit in the average home!

NOT RARE YOU SAY?? FOOLISH PUMPER.

[neohguy]

Lots of gold was found in the walls of houses when they were building the Interstate highway system in Cleveland. It was hidden there during the 1930's when it became illegal to own gold. The gold bugs eventually died and the gold remained hidden. They were sure that the dollar was dead. Eighty years later the dollar still works.
Imo all fiat money eventually dies but will it be now or another 80yrs?

[frankq]

"Here is another tidbit. In 1978 gold was about $750. One dollar then bought what $3.50 buys today, so, if gold is the end all to everything financial, why isn't gold selling for at least $2625 just to cover inflation? And remember the gold taxes and dealer fees paid just to have gold have not even been factored in. And gold pays no interest, no dividend. Oh by the way, gold down another 1% plus today. In the mean time, DOW at 850 in 1978 and tickling 12,000 today while gold flirts with breaking $1300 on the downside .Really, if you want to own gold, more power to you, but don't try to justify it with long term math."

Inflation you say? Apparently you didn't read this..........

Oh....Gold down another 1% today.

[midwesterner (banned)]

Hey Q-Tip, why don't you join our little MT experiment with your pals. Na, figured you wouldn't.

[frankq]

Mid,

The only experiment I would consider would be to give you a lobotomy in an effort to make you normal. As evidenced by the response, not many people care to join your experiment.

[midwesterner (banned)]

Mid,

The only experiment I would consider would be to give you a lobotomy in an effort to make you normal. As evidenced by the response, not many people care to join your experiment.

Sounds like we have an angry little bear fan, that is taking his aggression out on messageboards cause he couldn't hold his own with that threat he just made.

[frankq]

What threat? Awww....did I scare you? I'm just saying, if rehab is out, maybe you could try the quick surgical route?

[lifewasgood]

Gold will correct significantly lower if the fed stops QE and starts raising interest rates, putting value back in the dollar stopping inflation and setting up a worldwide deflation in commodities. If that were to happen, imagine the stock market chaos when profits erode due to deflation. What a tight little box we all find ourselves in. Correction will come and go, but for now, I am seeking yet another entry point to add to my gold and silver pile. Holding paper is a short term position purely to generate cash for transactions in reinvesting in other real assets.

[domeasingold]

Mid

I could care about your gold position. Admittedly I would have liked to get in on gold, say back when it was $750. But as you already know I just am not your savvy investor. Besides when the market bottomed out in March 2007, did you take advantage of the buying opportunities at that point? I guess re-balancing then didn't make much sense?
BTW, I am a Bear Fan too. Hey they lost, so what? I didn't think they had a chance in hell to beat Rogers. But I still am a fan of the Bears. Is there a point or do you just use that to antagonize us? Maybe in a civil conversation we could have some fun. Things could be worse, we could still be in Viet Nam.

[lifewasgood]

Dome as in Gold,

Silver is going to be the best play going forward. I started buying in 98 and bought last Sept at 19. I am one of the few that actually dig the corrections as my view is more buying opportunities. Buying precious metals is a long term investment strategy and requires a bottle of Tums to play as the moves up and down can be large as indicated by the last 10 years. Have I ever sold the metals I have purchased (Physical) absolutely. My last large unloading of Gold was in Dec 09 when gold went through $1200. Why, profit, but more importantly I needed cash to fund another long term investment I was working. I also wanted a larger position in SILVER. Hope this helps, I personally do not like paper of any kind, I only use it as a means of transactions, but I do not hold the dollar, it is a loser.

[usaone]

Jan 25, 2011 18:31:07 GMT -5 @lifewasgood said:

Gold will correct significantly lower if the fed stops QE and starts raising interest rates, putting value back in the dollar stopping inflation and setting up a worldwide deflation in commodities. If that were to happen, imagine the stock market chaos when profits erode due to deflation. What a tight little box we all find ourselves in. Correction will come and go, but for now, I am seeking yet another entry point to add to my gold and silver pile. Holding paper is a short term position purely to generate cash for transactions in reinvesting in other real assets.

Gold is correcting because investors think that Qe2 is the end of QE and the Fed will raise rates later this year.

[usaone]

Jan 25, 2011 18:47:18 GMT -5 @lifewasgood said:

Dome as in Gold,

Silver is going to be the best play going forward. I started buying in 98 and bought last Sept at 19. I am one of the few that actually dig the corrections as my view is more buying opportunities. Buying precious metals is a long term investment strategy and requires a bottle of Tums to play as the moves up and down can be large as indicated by the last 10 years. Have I ever sold the metals I have purchased (Physical) absolutely. My last large unloading of Gold was in Dec 09 when gold went through $1200. Why, profit, but more importantly I needed cash to fund another long term investment I was working. I also wanted a larger position in SILVER. Hope this helps, I personally do not like paper of any kind, I only use it as a means of transactions, but I do not hold the dollar, it is a loser.

You cant use the last 10 years as a Guide going forward.