I really liked those knee burns.
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 ...
Silver is a much better conductor for electricity. In fact it’s the best. Great bar bet factoid.
Gold has all kinds of practical uses but not at 1500 bucks, that’s the problem. Silver is interesting because it has unique properties that don’t allow for substitution with less costly materials. Aerospace applications, plastics production, water purification, certain burn creams, etc.
The fiscal insanity in Europe and Asia is helping out as well, along with the typical turmoil in the Middle East, Africa and South America. The train wreck is coming, it’s just a lot closer than it was a while back.
Gold is rising, because, the dollar is not worth a sh!t. The dollar is tied to the competence of DimBO.
LOL
Silver tarnishes while Gold (the 2nd best conductor) is forever, so any computer chip or such made with silver wouldn't last long, which is why Gold is preferred.
Yes. Next question.
I have been fortunate as well as blessed. Bookstores at gun shows have been warning us about this for well over 25 and I believed it then even though I was labeled a nutcase.
But I am in good company. Ross Perot told the entire country what would happen 20 years ago. What a nutcase!
“but has few other practical uses”
That is a rather short sighted viewpoint. You need to see a bigger picture rather than a nerdy technical one.
Gold, diamonds, and other earthly materials of rare supply are storages of labor as you cannot make these things out of thin air. They must be had through labor intensive efforts. Labor is a storage of wealth as labor is life. Life is time. Labor, time and life cannot be made out of thin air.
Hence, gold is a storage of wealth. Not because it has some nerdy technical usage but because it has the practical value of storing labor, time and life. You can’t cheat it by creating it like a dollar bill or a like a digital database can have zeros added at will. You can hold it, unlike digital dollars. You can trade it, exchange it, and anyone who has more of it earned it as it took great pains to get it out of the ground.
“(God help me) chicken feed into the hems of your clothing.”
lol. Ya just know some smartypants will have an answer to that one when you wrote it!
That’s true - gold doesn’t corrode. Silver is still a better conductor. Jus’ sayin’.
thx...
Spare wealth? What’s that?
On average it costs about $980 to produce an ounce of gold, in today’s market.
With gold at $1500/oz, the world is discounting the future value of the USD by 45% to 50%.
Regarding spare wealth:
One of the few items you’ll want to barter for is cooking oil. Otherwise you have to parboil everything, cook in animal fat which you have to maintain a constant supply of, or grow pretty large sunflower crops and store the oil without contaminating it each winter.
Some how you will be compelled to produce small surpluses for trade to buy that oil.
For things like that, a medium of exchange will be what you’ll want some shiny metal stored.
The short answer is yes. We love to print money and the piper has to be paid...
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.
Better 25 years early than one week late.
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