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Gold makes a new all time high today

By iwog   Follow   Tue, 14 Sep 2010, 11:04am   8,515 views   146 comments
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$1275 before dropping back to $1270ish. Silver is getting very close to its all time high as well.

In honor of the occasion I'm linking a Patrick thread from June 2006 where is was proposed that a gold price of $675 might be a bubble. ;)

http://patrick.net/forum/?p=222

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1. MarkInSF Follow Befriend 14 threads 1,118 comments

   67   9:28pm Thu 23 Sep 2010   Share   Quote   Permalink   Like (1)   Dislike   iwog says That’s true. The bias on this board has always been towards a deflationary collapse which according to classic economics should crash the gold price. The fact that gold is doing exactly the opposite should be an indication that the entire premise of a deflationary collapse is flawed. Huge amounts of money are being bet (by a relatively small number of people) that we’re headed towards something very different. Gold is a global commodity, so that's only true only if there is a global deflationary collapse. In any event, I don't know why you're bringing up a "classical economics". Many people, myself included, don't think classical economics is correct in a fiat/credit currency system, and anticipated rising gold prices even as deflation takes hold. We look at rising gold and bond prices and see no conflict at all.

2. Vaticanus Follow Befriend (1) 77 threads 1,120 comments

   68   10:41pm Thu 23 Sep 2010   Share   Quote   Permalink   Like   Dislike   Nomograph says it’s the inevitable end of unregulated free markets. No it is the inevitable end of the centralization of political/economic power (FED, corporations, Federal Government all have too much power). Permit me to issue and control the money of the nation and I care not who makes its laws. — Mayer Amsched Rothchild

3. marcus Follow Befriend (5) 168 threads 5,098 comments

   69   10:45pm Thu 23 Sep 2010   Share   Quote   Permalink   Like (1)   Dislike (1)   MarkInSF says We look at rising gold and bond prices and see no conflict at all This happening in a so called "flight to quality" crisis situation might not be a conflict, or unusual. But I find it to be quite strange, and very contradictory.

4. iwog Follow Befriend (48) 274 threads 12,572 comments 47 male Lafayette, CA Premium

   70   10:49pm Thu 23 Sep 2010   Share   Quote   Permalink   Like   Dislike   Vicente says You know I hate saying this Iwog. It galls me. I am 100% anti-goldbug. You were right. It also scares me a bit that you nor anyone else really know what exactly is going on. Where is it all going? I wish this stuff was tracked so you could find out if J. GotRocks is trying to corner the market or something. It's not all bad. I think that double eagle I talked you into buying is worth about $1600 now. ;)

5. iwog Follow Befriend (48) 274 threads 12,572 comments 47 male Lafayette, CA Premium

   71   10:51pm Thu 23 Sep 2010   Share   Quote   Permalink   Like   Dislike   MarkInSF says Gold is a global commodity, so that’s only true only if there is a global deflationary collapse. In any event, I don’t know why you’re bringing up a “classical economics”. Many people, myself included, don’t think classical economics is correct in a fiat/credit currency system, and anticipated rising gold prices even as deflation takes hold. We look at rising gold and bond prices and see no conflict at all. I'm sure you're right, however I don't think anyone is claiming that the credit market collapse was anything less than global. Corpses include Greece, Iceland, and now perhaps Ireland along with countless other nations trying to hang on.

6. MarkInSF Follow Befriend 14 threads 1,118 comments

   72   11:39pm Thu 23 Sep 2010   Share   Quote   Permalink   Like   Dislike (1)   marcus says MarkInSF says We look at rising gold and bond prices and see no conflict at all This happening in a so called “flight to quality” crisis situation might not be a conflict, or unusual. But I find it to be quite strange, and very contradictory. It is a move to quality, but it's just not a panic. Just preference for preserving wealth as opposed to risking it for further gain. More importantly there is also the commodity aspect, which is fairly independent of USD deflationary forces. Almost all commodities have gotten dearer in the last 10 years as booming economies like China consume more of them with little new supplies. Gold? BFD. Copper and oil, which are generally not hoarded for speculative purposes, are around 4X what they were ten years ago, much like gold. Agricultural commodities up 2X.

7. schmitz_kris Follow Befriend 36 threads 178 comments

   73   5:03am Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike   Just a few more pennies now! This should make for a nice weekend!

8. marcus Follow Befriend (5) 168 threads 5,098 comments

   74   6:14am Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike   MarkInSF says just preference for preserving wealth as opposed to risking it for further gain. Maybe you don't understand bonds. They are long term, and there is a huge risk of loss if and when interest rates go up (and or when much inflation occurs).

9. tatupu70 Follow Befriend (3) 15 threads 5,645 comments

   75   6:39am Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike   marcus says Maybe you don’t understand bonds. They are long term, and there is a huge risk of loss if and when interest rates go up (and or when much inflation occurs). Yes and no. You only lose if you try to sell on the secondary market. You're guaranteed the stated return on the bond.

10. marcus Follow Befriend (5) 168 threads 5,098 comments

    76   6:47am Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike (1)   tatupu70 says Yes and no. You only lose if you try to sell on the secondary market. You’re guaranteed the stated return on the bond. Say it's five years down the road, inflation is kicking in and long term rates are up to 8%. You either sell at a massive loss, or yes, you hold on to the bonds in the current environment willing to continue receiving your 3.73% for the next 25 years. This is a loss either way.

11. marcus Follow Befriend (5) 168 threads 5,098 comments

    77   6:58am Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike (1)   You can quibble about semantics, and argue that it's only an opportunity loss. I say it's a real loss. Referring to my last comment, if you had been in cash instead of bonds, you would then be able to lock in an additional 4.25% for those 25 years. If you think of the difference in present value terms at that time, it is a huge loss. Again, bonds and gold are saying two different things about the dollar. A good point was made about desirability of gold in Asia, maybe independent of the value of the dollar against other currencies. Seems like a lot of that value is factored in at this point. Counting on a bubble ? Okay. I do think bonds are probably overvalued ( and may become more overvalued before a big downtrend ), and I understand the premise about gold. IT probably should be a part of everyones portfolio. Maybe that fact is enough to cause a bubble. I just don't know. I guess I can see that at some time it will happen. Maybe a decent chance it does in my life time.

12. tatupu70 Follow Befriend (3) 15 threads 5,645 comments

    78   7:05am Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike (1)   I agree with Mark--bonds are saying something about global uncertainty. People want a safe place to put their money. And I agree with you that most aren't going to keep them for 30 years. Probably they will sell them at a slight discount as things improve everywhere.

13. Nomograph Follow Befriend (1) 104 threads 2,851 comments

    79   7:09am Fri 24 Sep 2010   Share   Quote   Permalink   Like (1)   Dislike   AdHominem says No it is the inevitable end of the centralization of political/economic power (FED, corporations, Federal Government all have too much power). They are one and the same. Unregulated free markets lead to rapid concentration of wealth, which is the same as rapid concentration of power. Unregulated free markets generally last one round.

14. MarkInSF Follow Befriend 14 threads 1,118 comments

    80   4:07pm Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike   tatupu70 says marcus says Maybe you don’t understand bonds. They are long term, and there is a huge risk of loss if and when interest rates go up (and or when much inflation occurs). Yes and no. You only lose if you try to sell on the secondary market. You’re guaranteed the stated return on the bond. Also, not if you invest in bonds through an intermediary (like a bank or MM fund) that buys the bonds and assumes the interest rate risk, giving you a "cash balance". There is still a lot of demand for cash.

15. marcus Follow Befriend (5) 168 threads 5,098 comments

    81   4:30pm Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike   MarkInSF says not if you invest in bonds through an intermediary (like a bank or MM fund) that buys the bonds and assumes the interest rate risk Money market funds do not invest in bonds (AT ALL), they only invest in the shortest term securities such as 90 day treasury bills, or possibly commercial paper and other short term securities, but not bonds. There are bond funds, but they have a very significant risk of loss of principal, just like bonds. Maybe some people don't get this because the trend in interest rates has been down (in rates) and up in bond prices for so long.

16. schmitz_kris Follow Befriend 36 threads 178 comments

    82   4:52pm Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike   Things keep going the way they are, and there is going to be a genuine mini wealth effect from rising PM prices in the alternative/fringe/gloom and doom investment crowd. The one thing all of these anti-orthodoxy/mainstream economic gurus have in common is a love for the yellow and silver precious. I can just imagine a mini economic boom in places like New Hampshire as a result, lol. The "nutjobs" have done far better with their investments than indoctrinated mainstreamers for several years now - I'm glad I listened to what they had to say. How many of you bugs on this thread follow Max Keiser, Gerald Celente, VisionVictory (Daniel on his Youtube channel), Marc Faber, Peter Schiff, Jim Willie, etc.? Anybody have any additional "nutjobs" that would be good recommendations for me? Thanks in advance.

17. theoakman Follow Befriend 2 threads 645 comments

    83   6:49pm Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike   schmitz_kris says Things keep going the way they are, and there is going to be a genuine mini wealth effect from rising PM prices in the alternative/fringe/gloom and doom investment crowd. The one thing all of these anti-orthodoxy/mainstream economic gurus have in common is a love for the yellow and silver precious. I can just imagine a mini economic boom in places like New Hampshire as a result, lol. The “nutjobs” have done far better with their investments than indoctrinated mainstreamers for several years now - I’m glad I listened to what they had to say. How many of you bugs on this thread follow Max Keiser, Gerald Celente, VisionVictory (Daniel on his Youtube channel), Marc Faber, Peter Schiff, Jim Willie, etc.? Anybody have any additional “nutjobs” that would be good recommendations for me? Thanks in advance. Keiser and Celente are entertainers. Marc Faber is no nut job. Marc Faber is probably the greatest economist living today. Schiff is pretty smart but a lot of his arguments are rhetoric rather than describing the actual process. That being said, I owe Peter a big one since he recommended to me to pick up Skyworth Digital 2 years back.

18. theoakman Follow Befriend 2 threads 645 comments

    84   6:53pm Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike   tatupu70 says marcus says Maybe you don’t understand bonds. They are long term, and there is a huge risk of loss if and when interest rates go up (and or when much inflation occurs). Yes and no. You only lose if you try to sell on the secondary market. You’re guaranteed the stated return on the bond. With the interest rates being doled out by the bond market now, you are pretty much guaranteed a return damn close to 0.1% annually. When inflation comes alive, those returns become -1% or -5% annually in real terms. Buying a long term bond earning under 6% with the plan of holding it to maturity is suicide today. People piling into the bond market are nothing but your modern day condo flippers looking to unload their garbage on the foolish masses. In 4 years time, we'll have all kinds of experts on TV trying to explain why no one understood that a 10 year bond that earns 1% with no risk of default is not a good or safe investment.

19. MarkInSF Follow Befriend 14 threads 1,118 comments

    85   11:20pm Fri 24 Sep 2010   Share   Quote   Permalink   Like   Dislike   marcus says Money market funds do not invest in bonds (AT ALL), they only invest in the shortest term securities such as 90 day treasury bills, or possibly commercial paper and other short term securities, but not bonds. Money markets in fact do invest in long term debt, just not directly. You have to follow the chain to the ultimate debtor. Just take a look at VMMXX. #2, #3, #4 holdings are short term mortgage securities. OK, short term.....but what are those securities backed by? Long term mortgage debt. The GSE is just another intermediary. Your "money market" cash is backed by a short term GSE security, which is backed by a 30 year mortgage. Much of the rest is finance companies like GE, Toyota, and banks. What are their holdings in? Multi-year debt. Money market funds provide a huge demand to the the bond market.

20. marcus Follow Befriend (5) 168 threads 5,098 comments

    86   6:22am Sat 25 Sep 2010   Share   Quote   Permalink   Like (1)   Dislike (1)   MarkInSF says Money markets in fact do invest in long term debt, just not directly When there is only six months left on a 20 or 30 year bond, then it is a short term security, that could be part of a money market fund. That is the one and only sense in which you are correct. http://en.wikipedia.org/wiki/Money_market http://en.wikipedia.org/wiki/Money_market_fund MarkInSF says Money market funds provide a huge demand to the the bond market You're a smart guy, so sometimes when you make something up, it's going to be correct. But not in this case. Your VMMX: Characteristics as of 08/31/2010 Number of holdings 303 Average maturity 58.0 days Weighted average life 116.0 days Fund total net assets $107.8 billion Portfolio composition Distribution by issuer (% of fund) as of 08/31/2010 Prime Money Mkt Fund Bankers Acceptances 0.0% Certificates of Deposit 17.2% Commercial Paper 17.7% Other 0.0% Repurchase Agreements 5.3% U.S. Govt. Obligations 23.4% U.S. Treasury Bills 16.8% Yankee/Foreign 19.7% Total 100.0% I don't see the mortgages here, but a short term mortgages, say a mortgage with 9 months left on it is not really related (in price) to mortgages with over 20 years till maturity. And buyers of such short term mortgage securities are not putting a dent in the supply of long term mortgage securities that need to be sold. The backing has to do with how secure they are, not the price (the interest rate). Assuming low risk, the price is determined by comparison to other securities of similar risk and duration.

21. MarkInSF Follow Befriend 14 threads 1,118 comments

    87   8:23am Sat 25 Sep 2010   Share   Quote   Permalink   Like (1)   Dislike   marcus says I don’t see the mortgages here I think you're missing my point. No, I'm not saying money market funds own mortgages, but they do buy short term securities, which ultimately go to fund mortgages. I'm not making anything up. https://personal.vanguard.com/pdf/hold0030.pdf?cbdForceDomain=false #2 "Federal Home Loan Mortgage Corporation" $11 Billion Freddie Mac, borrows funds short term, and lends them long term, much like any other other financial entity. Holders of VMMXX, a money market fund, are providing funds ultimately to long term mortgages. The money market fund is not buying mortgages that have 9 months left, it's buying short term notes issued by Freddie Mac (about 1/3 of Freddie Mac's debt is short term), and Freddie Mac is turning around and lending long term to homeowners.

22. B.A.C.A.H. Follow Befriend (6) 5 threads 2,359 comments

    88   12:28pm Sat 25 Sep 2010   Share   Quote   Permalink   Like   Dislike   Probably time to have an exit plan in place for gold.

23. MarkInSF Follow Befriend 14 threads 1,118 comments

    89   1:10pm Sat 25 Sep 2010   Share   Quote   Permalink   Like   Dislike   MarkInSF says More importantly there is also the commodity aspect, which is fairly independent of USD deflationary forces. Just to elaborate this point, here is a comparison of gold and oil prices (I took the liberty of modifiying the chart to reflect present prices. Chart was from 2006, and noted that oil was rising faster than gold. Since them they are right about the same again) Note that the chart is inflation adjusted so the spikes have nothing to do with inflation. Gold price is mostly just a function of increased demand from BRIC countries for commodities. China now buys more oil from Saudi Arabia than the US. It has not much to do with anticipating inflation, sovereign default, etc.

24. B.A.C.A.H. Follow Befriend (6) 5 threads 2,359 comments

    90   1:18pm Sat 25 Sep 2010   Share   Quote   Permalink   Like   Dislike   Mark, Cool graph. Inflation is a monetary thingee, not exactly the same thing as "rising prices" though it can (and often does) lead to higher prices. But not necessarily so. We can have deflation and rising prices and I think it is happening.

25. Nomograph Follow Befriend (1) 104 threads 2,851 comments

    91   1:53pm Sat 25 Sep 2010   Share   Quote   Permalink   Like (2)   Dislike (1)   sybrib says Probably time to have an exit plan in place for gold. Gold bugs are like house flippers; it's always different this time.

26. marcus Follow Befriend (5) 168 threads 5,098 comments

    92   2:07pm Sat 25 Sep 2010   Share   Quote   Permalink   Like   Dislike   MarkInSF says it’s buying short term notes issued by Freddie Mac (about 1/3 of Freddie Mac’s debt is short term), and Freddie Mac is turning around and lending long term to homeowners Okay. That's interesting. Freddie Mac ends up with a huge yield curve position, which they could hedge in the regulated derivatives markets (exchange traded financial futures and or options). So you were right after all about demand to long term securities (sort of, because the hedge undoes some of that- but let's not go there). But weren't we talking about investors in Money Markets Funds ? All they are really getting, in terms of risk reward is an investment in short term securities. They are not taking on any of the price risk associated with investing in long term bonds. Which at least from my perspective was what we were talking about.

27. MarkInSF Follow Befriend 14 threads 1,118 comments

    93   3:38pm Sat 25 Sep 2010   Share   Quote   Permalink   Like   Dislike   marcus says But weren’t we talking about investors in Money Markets Funds ? Got kind of off on a tangent, but my main point was to challenge statements like these: iwog says The fact that gold is doing exactly the opposite should be an indication that the entire premise of a deflationary collapse is flawed. Huge amounts of money are being bet (by a relatively small number of people) that we’re headed towards something very different. marcus says MarkInSF says We look at rising gold and bond prices and see no conflict at all This happening in a so called “flight to quality” crisis situation might not be a conflict, or unusual. But I find it to be quite strange, and very contradictory. There are a lot of people putting words in the gold market's mouth, claiming it is "saying" something. Like inflation is on the horizon. Or governments are running too much debt, and sovereign default, or mass money printing is neigh. I say nonsense. The gold market is saying no such thing. It's mostly just saying the supply and demand positions of commodities have changed.

28. marcus Follow Befriend (5) 168 threads 5,098 comments

    94   4:05pm Sat 25 Sep 2010   Share   Quote   Permalink   Like   Dislike   MarkInSF says I say nonsense And I would still say that gold is saying something. IT turns out that strength in the economy usually goes hand in hand with increased inflationary expectations. That is the reason why gold often goes up in tandem with industrial commodities. Gold is bought in prosperous times as gifts and in jewelry and so on. But it is also a substitute for money. One that does not have monetary inflation risk. So certainly part of gold's appeal is as an inflationary hedge, and more singularly as a possible BIG winner in the event of some sort of dollar crash, or inflationary crisis. And I still say, my opinion is that gold and bonds are contradicting each other. Maybe that has to do with government involvement in the bond and mortgage markets. Or maybe it has to do with hedging, or people paying a premium for perceived safety. But if and when gold gets bubblishious (sp?), there will be inflationary inferences associated with that phenomenon. The last really big precious metal bubble(1980) peaked at a time of unprecedented inflationary expectations, along with the manipulation of the Hunt brothers.

29. MarkInSF Follow Befriend 14 threads 1,118 comments

    95   4:39pm Sat 25 Sep 2010   Share   Quote   Permalink   Like   Dislike   marcus says So certainly part of gold’s appeal is as an inflationary hedge, and more singularly as a possible BIG winner in the event of some sort of dollar crash, or inflationary crisis. Real estate is a MUCH better deal if you expect inflation. Gold will just hold it's real value (sort of... it's very volatile). If you buy commercial RE leveraged 3:1, you likely triple your investment in real terms, as the dollars you pay off the loan will drop to nothing in real terms. So....If you think people are buying gold as inflation hedge, where are the people buying RE as an inflation hedge? Even Iwog, who's as certain of inflation in the future as anybody I know, bought properties because he thought the return was good, even without inflation. If he really thinks high inflation is coming, I have to wonder why he hesitates buying more properties at all, since he seems to have the means to do so. Who cares if it's running a negative cash flow now, if in 5 years the rents will be double, but the debt service and taxes the same? When gold peaked in the 1980 there had been strong inflation for a long time, and there was every reason to expect it to continue. That is the complete opposite of what we have today.

30. marcus Follow Befriend (5) 168 threads 5,098 comments

    96   5:34pm Sat 25 Sep 2010   Share   Quote   Permalink   Like   Dislike (1)   MarkInSF says So….If you think people are buying gold as inflation hedge, where are the people buying RE as an inflation hedge? I have been talking about gold price increases being contradictory to what is happening in bonds. Okay, yes, it's also contradictory to what is happening in real estate. And yes there is leverage with real estate, as well as other aspects to the debt/credit component. I don't claim to understand why gold is as high as it is. In fact, I see it as at least 50% chance that it will be lower in price one year from now.

31. marcus Follow Befriend (5) 168 threads 5,098 comments

    97   5:43pm Sat 25 Sep 2010   Share   Quote   Permalink   Like   Dislike   MarkInSF says Real estate is a MUCH better deal if you expect inflation Real Estate, tied at least in part to wages, and to its utility, does well from actual long term inflation, although eventually I guess everyone starts to believe it only goes up. That shouldn't happen again for a while. Gold on the other hand, can have a relatively rapid price spike based on expectations alone. That is, expectations of currency devaluation or inflation, or possibly other global crises.

32. iwog Follow Befriend (48) 274 threads 12,572 comments 47 male Lafayette, CA Premium

    98   9:41pm Sat 25 Sep 2010   Share   Quote   Permalink   Like   Dislike   MarkInSF says Even Iwog, who’s as certain of inflation in the future as anybody I know, bought properties because he thought the return was good, even without inflation. If he really thinks high inflation is coming, I have to wonder why he hesitates buying more properties at all, since he seems to have the means to do so. Who cares if it’s running a negative cash flow now, if in 5 years the rents will be double, but the debt service and taxes the same? I'll buy one more property this winter during the annual market lull. Otherwise I'm fully invested. Freddie and Fannie rules say I'm strictly limited to 4 mortgages and I'm maxed now. Getting my hands on additional money would be at a higher rate and the return wouldn't be nearly as good. Anyway even if I was 99% sure of my inflation scenario, I still wouldn't go all in on any one investment vehicle. Putting your eggs in one basket will always be a mistake so I diversify as much as possible. You're probably right that real estate is a better pick for an inflationary future but I'm looking for a bubble future with gold.

33. B.A.C.A.H. Follow Befriend (6) 5 threads 2,359 comments

    99   8:23pm Sun 26 Sep 2010   Share   Quote   Permalink   Like   Dislike   Ambrose Evans Pritchard wrote about gold: http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8026324/Gold-is-the-final-refuge-against-universal-currency-debasement.html

34. schmitz_kris Follow Befriend 36 threads 178 comments

    100   6:48am Wed 29 Sep 2010   Share   Quote   Permalink   Like   Dislike   Yet again. 1314.90 and 22.04 for ag! Two words...gor-geous!

35. joshuatrio Follow Befriend 41 threads 703 comments Monterey, CA

    101   8:10am Wed 29 Sep 2010   Share   Quote   Permalink   Like   Dislike   Parabolic?

36. schmitz_kris Follow Befriend 36 threads 178 comments

    102   1:01pm Wed 29 Sep 2010   Share   Quote   Permalink   Like   Dislike (1)   It's simple - interest rates are far too low. When a government shows that it does not value its own currency, there is nothing "bubbleicious" about a move towards precious metals. We've seen trillions of dollars borrowed and printed in the name of bailouts and handouts with near-constant reminders that the Fed will attempt even more of said to ameliorate today's pathetic economic situation. Question for you: Where do you think the gold price would've gone had Volker not increased interest rates to 21%+? ANOTHER question for you: When do you think Bernanke/the Fed will be able to raise rates to even a paltry 5-6%? HINT: Once you go ZIRP it's EXTREMELY difficult to go back up without imploding the entire system.

37. marcus Follow Befriend (5) 168 threads 5,098 comments

    103   7:45pm Wed 29 Sep 2010   Share   Quote   Permalink   Like   Dislike   schmitz_kris says Question for you: Where do you think the gold price would’ve gone had Volker not increased interest rates to 21%+? ANOTHER question for you: When do you think Bernanke/the Fed will be able to raise rates to even a paltry 5-6%? HINT: Once you go ZIRP it’s EXTREMELY difficult to go back up without imploding the entire system. So I guess you are saying that Japanese did great buying gold, right after their central bank tried to inflate their way out of a very similar situation.

38. marcus Follow Befriend (5) 168 threads 5,098 comments

    104   7:50pm Wed 29 Sep 2010   Share   Quote   Permalink   Like   Dislike   schmitz_kris says When do you think Bernanke/the Fed will be able to raise rates to even a paltry 5-6% IT seems like you are arguing that if we are going to have a gold situation similar to '79-'80, it is many years off, that is after inflation very slowly builds and interest rates follow. Maybe I'll write my post for 10 years from now. I'm going to title it "2020 hindsight."

39. schmitz_kris Follow Befriend 36 threads 178 comments

    105   8:03pm Wed 29 Sep 2010   Share   Quote   Permalink   Like   Dislike   Well, in those days it was Japan going down, not the entire world. They (the Japanese) had their pick of the USD, GBP, AUD, other Euro currencies, etc. which were being respected at the time (relatively decent interest rates). Paper is far more convenient and mainstream than gold. These days the whole world seems to be in a race to the bottom with currency debasement and trashing. I guess you could argue the tiny ozzie buck is an exception, but guess what commodity that currency is intimately tied to? Yep, gold.

40. iwog Follow Befriend (48) 274 threads 12,572 comments 47 male Lafayette, CA Premium

    106   7:52am Fri 1 Oct 2010   Share   Quote   Permalink   Like   Dislike (1)   Another new high for gold and the dollar index seems to be on the verge of losing containment. http://quotes.ino.com/chart/index.html?s=NYBOT_DX&t=&a=&w=&v=d3

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