Posted on 04/24/2011 5:56:00 AM PDT by Oldeconomybuyer
Gold prices shot up to a new record of $1,512.50 an ounce in New York late on Friday, posting a record weekly gain and maintaining a six-week winning streak.
While a lot of gold investors are laughing all the way to bank the world over, gold's super cycle rally could have ominous meanings for the US economy.
Analysts have pointed out that gold's advance into what is termed as a super cycle does not bode well for the US economy.
A sustained gold and oil boom indicates that the dollar is slipping into grave danger and the economy closer to collapse, according to Daily Markets analyst Michael Snyder.
"... when these commodities go up in price it is a sign that the U.S. dollar is dying and that our country is getting closer to economic collapse," Snyder wrote recently.
He explained that when the gold and silver prices soar, it indicates that investors everywhere in the world are losing trust in the dollar and the U.S. government treasuries. And they seek out something they can trust more.
"The U.S. has been running trillion dollar deficits for several years now, and this has created a lot of new money." And he says the rest of the world is now seriously doubting the sustainability of U.S. government debt.
(Excerpt) Read more at ibtimes.com ...
How much is being produced ?
Global gold production peaked in 1999 at just over 2,600 tonnes, having risen steadily from a 1980 base of about 1300 tonnes. In 2002 global gold production was running at just under 2,600 tonnes per annum, It is considered that lack of exploration expenditure in the 1990s, coupled with the inherent delays between discovery and production mean than the gold supply will remain inelastic and is likely to reduce slowly over the coming few years.
How much is being consumed?
Gold is not really ‘consumed’ in the sense that it doesn’t get used up, but its demand runs at about 3800 tonnes per year - notably faster than it is being mined (2,600 tonnes).
uh, yours are not the reasons gold is going up, these are:
How much is being produced ?
Global gold production peaked in 1999 at just over 2,600 tonnes, having risen steadily from a 1980 base of about 1300 tonnes. In 2002 global gold production was running at just under 2,600 tonnes per annum, It is considered that lack of exploration expenditure in the 1990s, coupled with the inherent delays between discovery and production mean than the gold supply will remain inelastic and is likely to reduce slowly over the coming few years.
How much is being consumed?
Gold is not really ‘consumed’ in the sense that it doesn’t get used up, but its demand runs at about 3800 tonnes per year - notably faster than it is being mined (2,600 tonnes).
I have plenty of ammo and grow my own food, but won't trade either for bling. Your Gold is without value to me. Any “beautiful woman” so shallow as to require shiny metal ornaments probably wouldn't be any good behind the plow, so is also without value to me.
It’s more useful to think of the dollar as being worth only 1/1,500th of an ounce of gold, than the other way around.
” It’s more useful to think of the dollar as being worth only 1/1,500th of an ounce of gold, than the other way around. “
But thinking of it that way won’t let the goldbugs *feel* rich... ;)
Hey, you'll be a multi-billionaire!
But an ounce of gold or siver will be the same as they ever were.
Many people, even here, are simply incapable of learning from history. Their “normalcy bias” is just too strong. Only the school of hard knocks will wake them up. Nothing else.
Leftwingtards are congenitally stupid. They can do no better.
” Will you feel rich when you are paying a billion dollars for an egg?
Hey, you’ll be a multi-billionaire! “
Yep - that’s why I keep chickens... ;)
I can either spend $1500 (assuming I actually had that much to spend) on an ounce of gold now, or I can spend substantially less than $1500 on chicken feed (!) and trade the output for gold later....
The most dangerous words in economics:
“It’s different this time.”
I have plenty of ammo and grow my own food, but won’t trade either for bling.
But I’m curious what you’re doing with your SPARE wealth, which is the question we’re really discussing.
Keep it all in chicken feed. Hey, it lasts forever, can’t rot, can’t be eaten by vermin, and your farm can never be confiscated, and you can never be forced to flee and become a refugee. None of those things could ever happen. And if you did have to flee as a refugee, you could carry a fortune in chicken feed in your pack. Just like gold.
Wait a minute....
Spare wealth? What’s that?
A good way to look at gold is “flight capital.”
The Vietnamese refugees who arrived in 1975 landed on their feet because they had gold sewn into their clothes. You can’t sew a fortune in ammo or (God help me) chicken feed into the hems of your clothing.
If you needed to flee in a Cessna, would you rather all your extra wealth (after food, guns, ammo etc) be stored in the form of crates of ammo, or gold coins?
The “normalcy bias” is so strong in this country, even on Free Republic, that many otherwise-intelligent people simply rule out the chance they might ever have to flee their homes.
History teaches them NOTHING. Only the 2X4 over the head of reality will teach them.
After you have all the food, guns, ammo etc that you need. Do you have the rest in cash in your mattress? CDs in a bank? Gold coins? etc.
The writing is on the wall, for those who can see.
“Is gold rising because America is broke?”
Did Ben run out of ink (not that needs it in the computer age)?
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