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TechGromit
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2010 Apr 15, 11:44pm
And Real estate too, after all they are not making more land. But they are still mining Gold. Hmm. Somehow I doubt that gold always goes up.
Gold does not go up or down, paper money does. The "price" of gold is actually a representation of how many dollars it takes to buy an ounce of gold. Example: Eight years ago it took 300 US dollars to purchase 1 ounce of gold. Today it takes 1150 US dollars to purchase the same 1 ounce of gold. Gold did not go up, the dollar went down. It appears that this decline will continue and perhaps accelerate due to additional factors today such as the printing of dollars (more dollars = less value of each), the raising of the debt ceiling, more borrowing and more spending. Hang on, it's going to be a rough ride. Douglas Hess
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I've been hearing a number of news stories that gold is in a bubble and sooner or later the price will collapse. I believe this really all depends on how stable you believe your currency is. If you have faith in your Dollar, Euro, Yen or Peso, than I say sell your gold now and reap your profits before the market goes bust. But if you have less faith in your money, than I say it better to hold onto your gold, and perhaps obtain some more.
Personally I believe the dollar is way overvalued, the slick guys in Washington are printing money fast as they can and are trying to claim there are buyers for the treasury bonds that are suppose to back up the issue of new money. I highly doubt the Chinese are increasing there portfolios in U.S. Treasuries, were just lucky they are holding on to what they have already. They want to keep the dollar some what stable so they can sell us more imports. My concern is what happens when the real estate bubble that's growing in China busts? If it leads to high unemployment and business failure like here in the U.S. I'm betting that China will start to sell those U.S. treasure securities to raise capital to stabilize there economy which will sink the dollar like the Titanic striking an Iceberg.
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