Posted on 06/30/2011 10:09:26 PM PDT by OneLoyalAmerican
The problem with this headline is that “the storm” is what has caused gold to essentially quadruple since 9/11.
The storm passing would see gold prices come back down to earth. It’s a safe haven investment in times of turmoil and uncertainty.
To believe otherwise is to eventually experience a big loss somewhere down the line.
Excellent contribution, my FReeper FRiend. Conditions are different today, but Barry 0bozo is attempting a Jimmy Carter redux.
In 1980, the prime lending rate was approaching 22%, democRats owned Congress and did what they always do: tax, regulate, and spend. This sent stocks into a tail spin. Given US private citizens could not own gold, silver was the only hedge for inflation.
The upward gold climb was also partially in response to the Soviet invasion of Afghanistan, the Iranian hostage situation, a tumbling stock market, and the Hunt brothers along with some wealthy Arabs attempting to corner the silver market. They had amassed about half the worlds deliverable supply: 200 million ounces of silver.
The downward spike in silver and gold was driven in part by COMEX changing metals trading rules and Federal Reserve intervention.
Cheers,
OLA
It reminds me of the NASDAQ climb to the sky in 1999.
Do ALL markets that rise inherently crash? Or do you have some insight to share?
Looks nothing like current charts.
The chart is from the 1980 spike and crash in gold prices. It was posted as an example.
Do ALL markets that rise inherently crash? Or do you have some insight to share?
IMO- the vast majority do. Down cycles are required to maintain a healthy market.
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