Gold jumped to a new record high of $1,697 an ounce on increased demand...

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    Aug 08, 2011 3:52 PM GMT
    Gold standard

    Fears of renewed global slowdown were reflected in the price of gold and oil.

    Gold, which is seen as a safe investment in times of economic uncertainty, jumped to a new record high of $1,697 an ounce on increased demand.

    Meanwhile the price of oil slipped further, reflecting concerns that weak global growth could lead to a fall in demand. US light crude fell 3% to $84.23 a barrel, while Brent crude lost 2.6% to $106.54.

    "There are few places you can obviously hide," said Greg Gibbs of RBS in Sydney. "And the ones that you can hide in are doing very well. Gold is the beneficiary because there is no central bank to sell it."


    How reliable a hedge do you think gold is? Not just in the SR, but the very LR in 10-20 years? Do you think it's a hype of the recent years or is there real value and safety in gold given currency woes?
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    Aug 08, 2011 4:46 PM GMT
    oh btw i'm not that much of a financial whiz at all, so if you speak your mind and it happens to be ungrounded/wrong i won't be able to tell haha!
  • SomeSiciliano...

    Posts: 543

    Aug 08, 2011 5:26 PM GMT

    If you ask five 'experts' you will get five opinions. I think the run up over the past few weeks is based more on emotional hysteria than fundamentals. My two cents is that using a gold ETF as a hedge is good over the long term...but right now is not the time to buy as the market is too volatile. ASSUMING that certain central banks and politicos get their head out of their asses, get on the same page and start dealing with reality, the short term price of gold should come back down a bit.

    I personally think that the days of being able to parlay 10,000 into 100K through smart investment trades are over. Over for individuals, institutions and governments. We are all going to have to learn how to live with modest returns and stop spending money before we make it.
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    Aug 08, 2011 5:47 PM GMT
    Demand for gold is actually down. Jewellery sales are way down and electronics aren't moving terribly fast. Investment in gold is up though.
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    Aug 08, 2011 5:55 PM GMT
    Gold is NOT a safe haven. To reach the inflation adjusted level it had reached in 1980, it would need to be above $2,000 an ounce. Even if it managed to reach that level, you would have endured 30 years where it often traded between $350 and $450 an ounce -- also you would have passed up all dividends!

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    Aug 08, 2011 5:56 PM GMT
    TheChrisGuy: Gold standard. Fears of renewed global slowdown were reflected in the price of gold and oil...

    jockfever: Gold was around $900 an ounce when the Statists took control in Washington in 2008 promising Hope and Change.

    Using a credit card, you could order U.S. gold coins directly from the U.S. Mint web site back then. Congress at one time wanted every citizen to have this option, but the opportunity ended quickly.

    Many experts forecast that gold will hit $2000 this year and then $3000 relatively soon.

    The price of gold reflects fiscal and monetary mismanagement, especially in Washington DC, more than it reflects "fears of renewed global slowdown."

    Statists like Obama, Pelosi, Reid, and Bernanke (who should have been removed long ago) make our dollars more worthless and expect us to thank them for it. They are clueless about creating wealth but adept at destroying it. Their pensions are indexed to the inflation they create. The price of gold reflects the Fed making the dollar more worthless.

    While federal government spending, borrowing, debt, printing, and regulating are out-of-control, gold and other precious metals should be part of every investment portfolio.

    Hopefully this country will do the right thing and remove Statists from power in 2012. Then maybe we can get back to doing what's good for the country as a whole -- investing in the stock market.

    P.S. Milton Friedman's idea of replacing Fed counterfeiting with a formula to increase money supply based on things like GDP and population growth would be a major improvement.







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    Aug 08, 2011 6:13 PM GMT
    Gold is just as much a fiat currency as the dollar or the peso. It has no more intrinsic value than those.
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    Aug 08, 2011 6:30 PM GMT
    this is awesome! im selling my gold reserve
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    Aug 09, 2011 6:30 PM GMT
    Christian73: Gold is just as much a fiat currency as the dollar or the peso. It has no more intrinsic value than those.

    jockfever: We have to chose between the Lib view above or an observation attributed to Voltaire: “Paper money eventually returns to its intrinsic value – zero” Bernanke, Obama and their accomplices are doing their best to make the dollar worthless.

    Throughout history no paper currency has survived in its original form. Paper currencies are normally inflated away until they are worthless. The purchasing power of the US dollar has declined by 90% since 1950. The situation is the same for most currencies. When governments come under financial pressure they can never resist printing money to pay for debts, be they war debts or just excessive spending.

    Gold is the only currency which has no liability attached to it.

    So far no paper currency has survived intact over a longer period whilst gold has represented real money for several thousand years.

    An unparalleled combination of chemical and physical properties make gold invaluable to a wide range of everyday applications.

    Throughout history gold has been a store of value.


    gold-maple-leaf-coin-back.jpg

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    Aug 09, 2011 6:35 PM GMT
    jockfever saidChristian73: Gold is just as much a fiat currency as the dollar or the peso. It has no more intrinsic value than those.

    jockfever: We have to chose between the Lib view above or an observation attributed to Voltaire: “Paper money eventually returns to its intrinsic value – zero” Bernanke, Obama and their accomplices are doing their best to make the dollar worthless.

    Throughout history no paper currency has survived in its original form. Paper currencies are normally inflated away until they are worthless. The purchasing power of the US dollar has declined by 90% since 1950. The situation is the same for most currencies. When governments come under financial pressure they can never resist printing money to pay for debts, be they war debts or just excessive spending.

    Gold is the only currency which has no liability attached to it.

    So far no paper currency has survived intact over a longer period whilst gold has represented real money for several thousand years.

    An unparalleled combination of chemical and physical properties make gold invaluable to a wide range of everyday applications.

    Throughout history gold has been a store of value.





    And the value of Gold is based on?
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    Aug 09, 2011 9:07 PM GMT
    Christian73 saidAnd the value of Gold is based on?


    Now now, Christian, don't mess with the pschyo/batshit/fascist kid :-)
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    Aug 09, 2011 9:23 PM GMT
    Yeah so invest in the electronic commodity of gold. That's a good idea. Hopefully the lights stay on long enough when then country collapses for them to mail you those gold coins..

    Sure, in the short term you may have more value to your gold than the dollar but what is the point of holding your funds in an ETF unless you think the economy is never going to get better? So you can say you have more assets? You'll never really sell it unless you think the economy is getting better and then most of you will get stuck with depressed gold prices and your ETFs.
  • conservativej...

    Posts: 2465

    Aug 10, 2011 12:39 AM GMT
    It is a truly an awesome thing and an unreal blessing.
  • conservativej...

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    Aug 10, 2011 12:43 AM GMT
    adam228 saidYeah so invest in the electronic commodity of gold. That's a good idea. Hopefully the lights stay on long enough when then country collapses for them to mail you those gold coins..

    Sure, in the short term you may have more value to your gold than the dollar but what is the point of holding your funds in an ETF unless you think the economy is never going to get better? So you can say you have more assets? You'll never really sell it unless you think the economy is getting better and then most of you will get stuck with depressed gold prices and your ETFs.


    There are actually ways to use those reserves.
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    Aug 11, 2011 10:28 AM GMT
    Christian73: And the value of Gold is based on?

    TigerTim: Now now, Christian, don't mess with the pschyo/batshit/fascist kid :-)


    jockfever: You earn your standing as a poster boi for "Liberalism is a Mental Disorder" about as well as Bernanke prints fiat money.
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    Aug 11, 2011 10:49 AM GMT
    jockfever saidChristian73: And the value of Gold is based on?

    TigerTim: Now now, Christian, don't mess with the pschyo/batshit/fascist kid :-)


    jockfever: You earn your standing as a poster boi for "Liberalism is a Mental Disorder" about as well as Bernanke prints fiat money.


    You're the one with the mental disorder!
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    Aug 13, 2011 6:47 PM GMT
    TigerTim: You're the one with the mental disorder!

    jockfever: Very original. You repeatedly taint discussions with worthless personal attacks much the same way your hero, King Merdas, turns things to crap, like the the dollar, with failed policies.

    Repeating failed policies while fancying oneself smarter than everyone else. Very Lib.


    The%2BMerdas%2BTouch.jpg