patrick.net

uomo_senza_nome says

Retail investors = momentum chasing idiots.

I'm afraid that a lot of people getting in the gold market today are chasing momentum as well.

Dan8267 says

I'm afraid that a lot of people getting in the gold market today are chasing momentum as well.

Gold's popular phase is just getting started. The NASDAQ bubble took the index up 60 times between 1975 & 2000. The Housing bubble exploded over 17 times between 1975 and 2005. Gold's last bubble of 1970's took the gold prices up 35 times since late 60's. All these numbers dwarf the current gold bull market, which is only up 6 times in the last 11 years. Also, most people in developed countries still don't own any gold. When these people start to speculate in the gold market, like they did in the NASDAQ and the housing market, gold will see another 5-6 times gain from the current levels.

uomo_senza_nome says

TPB says

Then Gold is over inflated that's no secret.

Is gold over inflated or is the dollar's credibility inflated ?

It's entirely possible that gold is over inflated in relation to the dollar right now, but when the governments needs to start printing lots of money to cover it's inability to live within it's means, let alone pay off the debts from previous years of budget short falls people will look back and kick themselves for not buying at the unbelievably cheap price it's at right now. The recent downgrade on America's AAA rating is only the first sign investors are getting fed up (and starting to fear) the Federal governemnt will never repay there debts.

So yes gold prices could very well collapse in a year, but in 10 years, gold will be ten times what it's at today. The day of hyperinflation is rapidly approaching.

She might not look like much, but I bet she sure could bop on your scmeckle.

TechGromit says

So yes gold prices could very well collapse in a year, but in 10 years, gold will be ten times what it's at today. The day of hyperinflation is rapidly approaching.

That belief is already "priced in."

TechGromit says

The day of hyperinflation is rapidly approaching.

The only FED can decide if this has financial sense for them.

dunnross says

Gold's popular phase is just getting started.

Then it should be damn cheap to get insurance to cover losses on gold speculation. I'm willing to give up 10% of my real profits in gold speculation in exchange for a guarantee that I will take no real loses. Go find me an insurance company that will sign this deal and back it up with adequate cash reserves.

Here, you want a rundown on what the United States is facing:

http://tinyurl.com/3uuvulg

If Patrick doesn't allow you to see it, it's to your own detriment.

You see, this time it's not different. All fiat currencies go to zero. In 1850, $20 was a lot of money, a lot of money. That was a little less than 1 ounce of gold.

You can compare purchasing price of gold with anything: Silver, McMansion, Big Macs or Coffee Beans. Gold is overpriced. Am I buying gold? Hell yeah!

Gold is high because people are worried big time! If, by some divine intervention, economic problems go away overnight, Gold will surely drop like a rock. Until our economic worries go away, I'll dedicate a small part of my savings to gold.

Dan8267 says

Go find me an insurance company that will sign this deal and back it up with adequate cash reserves.

Your insurance is called - "put options". You can buy put options on GLD.

Dan8267,

How many people do you know who own Gold?? How many people owned nasdaq and real estate when we hit bubble levels??

The "Peter Schiff Factor" is already priced into the gold market. People are buying gold based on fear. Want proof? Gold is advertized on right-wing web sites and certain AM radio shows.

Gold will eventually mean-revert.

How we can be so sure that by buying gold certificates is real gold behind? The same people control gold supply as money supply. If money can be created from a thin air so as gold. Nobody really have access to see it or have gold bars shipped to his home.

bgamall4 says

Not so sure. When they get worried, like when stocks tank, gold sells off.

Sometimes it moves opposite of the stock market. Other times, Gold drops when stocks drop. I suppose it depends on the nature of the news that triggers the rise or drop. Worries about the broad economy make people buy gold.

Gold chart for the year 2011.

Dow Jones 2011.

Gold moves opposite of stocks from August to September as the U.S. lost AAA rating. Similar movements in November due to EU drama. At the end of the year, stocks were moving up while gold was moving down. Comparing the beginning of the year to the end, both gold and stocks are up.