Posted on 07/27/2011 1:31:27 PM PDT by SeekAndFind
Hey a deflationista! Yeah, I believe that deflation is the name of the game, whichi is why they are going to seek to increase interest payments, not lower them.
Fee, Fie, Foe, Fum...I smell a train wreck for those what’s dumb!
Gold has been at an all time high for the last three years.
I could be wrong but I think your logic is 180 degrees wrong. If the economy "tanks" gold and silver (after a short period of falling) will skyrocket.
You can never go wrong buying Gold. except when it’s really up .. lots of speculators abound.. Diamonds may be a good buy too.. corn and soybeans too.. :-)
Thanks for the graph. The only game in Washington is to spend more than they take in and print money for the balance.
The current players have been doing the ‘print more money’ tango for decades and know no other dance steps.
The graph makes it pretty obvious gold will continue to increase in price since there appears to be no will in America to say enough is enough.
I wonder if, in January, 2009 (when gold was at $900 and silver was at $12.00)people were asking the same question?
I asked the same question when it was at an all time high of 950 and dropped what was left of my 401K. As long as the trend line is up for the past qtr you should expect it to continue.
Pray for America
RE: I wonder if, in January, 2009 (when gold was at $900 and silver was at $12.00)people were asking the same question?
I can attest to the fact that they were. In fact, the Gold ETF, GLD was dropping to $86 ( about 860/oz ) early in 2009 and I was wondering if Gold has already made its top.
I decided to put a small percentage of my portfolio into GLD simply because I saw that Obama and the Fed were hell bent on printing money. I bought at about $880/oz. I am of course, close to doubling my investment already. My only regret is not buying more.
When Nixon was threatening to break the last ties to gold, Milton Friedman predicted that gold would sink like a stone. He was certain its only value was as the backing for the U.S. dollar.
He was wrong. Respectfully, I think you are, too.
When our economy tanks, gold will be driven even higher. Or, more properly said, the dollar will be driven even lower. Gold remains the same.
“I wonder if, in January, 2009 (when gold was at $900 and silver was at $12.00)people were asking the same question?”
I wondered at that time. I sold most of my sinking stocks and bought physical gold at $900/oz. No regrets.
When Nixon was pondering whether or not to break the dollar's last ties to gold, Milton Friedman predicted that gold's price would drop to near zero. He was convinced that its only value was its connection with the almighty dollar.
He was wrong. When Nixon made the move, gold instantly shot up to $50 and tripled by 1972. I think you're wrong, too (respectfully). When the economy tanks, the dollar will along with it.
Gold is the constant -- it only reflects the perceived value of the currencies it's priced in. I'd keep buying.
I wish I’d had your insight (and considerably more fiat:)
In case I wasn’t clear, my question was rhetorical. I’m sure when gold hits $2,000.00 and silver $70.00 people will be asking the same question. Hmmm, precious metals or dollars, what should I buy? Duh.
I believe that deflation is the name of the game...
Gold has been at an all time high for the last three years.
goldbug ping
Thanking FReeper Beelzebubba for the awesome US Debt & Debt Limit vs Gold relationship chart.
One can not know whether gold is at an all time high. We only know that gold has recently reached an unprecedented high.
I use a local coin dealer. His margin is less than that of anyone who sells on line or on the phone.
The worldwide gold market is small. Much smaller than bonds or stocks. Thus money flowing into this market can make it shoot upwards during an inflation or deflation. Just depends on the events and the market psychology
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