You're insane if you don't own gold, investors told

Ok, guys still tending upwards, did anyone ever look at the 60 times multiple I talked about a few posts back - I have not had time or inclination as I have no paper to invest, but today we have broken $1,500... on to $1,800 by years end?

Anyway for fun: dailymail slams brown, this is the guy that wants to head up the IMF!?!, didnt realise that Britain was in debt when he declared 'an end to boom and bust' and flogged the family silver - well the nations gold reserves - for pennies on the pound in todays market. Gawd help us all - hopefully the French will veto. (interestingly on the subject of the head of the IMF position, David Cameron (UK Prime Minister) is calling for a far eastern head, saying it would be entirely reasonable for an Indian or Chinese person to take the position, what deal is this backing up???? And he called Brown indirectly a washed up old politician.

Anyway back to the main matters gold onwards and upwards Definitely gonna triple in the next nine years and nine months

tell you what.. ill make you a deal.. you own gold.. ill own a 60 day stock pile of food and water (which wont cost me 1200.00 an oz) when the crap finally hits the fan and social , economical and general upheaval hits at least once more.. then well...when your sitting there starving you eat the gold and ill eat my food.. basing monetary wealth on a rock is one of the dumbest ideas ever.

outside of medical and artistic value and some machinery .. golds not worth anything its a colored rock sitting in some one's vault and is only worth something because someone somewhere convinced some other sucker it was..

either were gonna let the rich break the system or were gonna break the rich for some reason their seems to be no middle ground.

Forget Gold as a tangible investment. Better: Buy into strategic mineral MINES, mining equipment, resource extraction suppliers, etc. Look at Silver. The Chines are buying up ALL of the copper sources on the planet - and they seem to be in a big hurry to lock it in.

They are also buying the infrastructure AND the shipping/distribution systems to move the stuff around. The Chinese may 'pretend' to be communists (that's just to control their mass of poor humanity - now at 1.5 billion),, but they in fact are the shrewdest, cleverest, most ruthless capitalists in the world.

They're definitely not stupid and they are racing to the front of the line with investment, finance, and natural resources.

Final thought: The Chinese are so friggen clever, that they are happy to lend us the money (at exorbitant interest rates that we then take to Wal-Mart just so we can spend it on cheap, inferior plastic crap THAT THE CHINES MAKE, knowing the junk is crap and will end up in a landfill, after which we take more borrowed money at the very next over-commercialized "Holiday" so we can do it all again!

Sorry - off -topic a bit - but the point is made: follow the Chinese. If they are buying metals and other resources - you should too...

Originally posted by Outrageo

Sorry - off -topic a bit - but the point is made: follow the Chinese. If they are buying metals and other resources - you should too...

Sort of contrary to your first statement of do not buy gold, because the Chinese are buying tonnes of gold. In essence I agree with what you are saying though: follow the leader.

The nubbin of what you seem to be saying though is that alternative metals and minerals and infrastructure may well be MORE profitable than gold and are a sound investment because we can see the Chinese investing in such. This I could readily accept. Forgive me if I interpreted your words incorrectly.

Seems a little late to buy gold now that it is above $1500 an ounce. These price swings in currencies and precious metals are cyclical eventually. The US dollar index fell hard through my target of 75 down to 73.74 last night so now I'm trying to rethink the Forex traders strategy.

Historically it seems as though it has been the currency moves that drive the other markets but at these record low levels of the US dollar the formula may change. The drop overnight into the 73's yielded a 60 cent a barrel price hop in oil and the early Dow index is up about 50 points. Both those indexes still haven't broken through their recent ceiling.

Could be a situation where they are trying to pump up commodity and stock prices by selling the dollar. The turn around in that case occurs when further currency drops fail to cause a breakout to the upside in commodities and stocks. Its a little like pumping up a bicycle tire that has a leak, might get you home if you are lucky but if hole left by the government spending is too big the pumping becomes obviously futile.

In any event I don't think this Oil and Gold rally is going to be sustainable past the spring oil rally the open interest is already waning in oil.

futures.tradingcharts.com...

reply to post by spacedonk


So you want me to buy -high- at $1,500 an ounce?
I just collect the 1 ounce American Eagles -----Gold & Platinum -----

reply to post by spacedonk


Apologies: the confusion blame falls on me.

What I meant to say was that buying and holding gold as a TANGIBLE is less lucrative than buying into the INFRASTRUCTURE (including research, mining, extraction, shipping, and distribution) of all limited-resource strategic minerals (of which gold is just a small part). Minerals in great demand, great future upside demand, a variety of industrial and strategic applications, but with only limited known reserves -are the best bet, such as Bauxite (Aluminum), Manganese, Silver, etc. - and especially the facilities and other things needed to get them out of ground and process them... (which is what the Chinese are doing).

And, yes I do put my own money where my mouth is: here's a few you may wish to consider (full disclosure; I own (relatively minor) positions in all of these:

TGB, SNP, SCCO, ACH, SLW, CNQ, MFN, ANR, YM, TIE, NEM, RIO, D - to name just a few...

Good luck -and happy investing!

reply to post by Outrageo


You should have bought AAPL or VZ.
I think the price of gold will fall when we start mining the asteroid belt for rare Earth elements.

reply to post by Eurisko2012


Yep - not bad either. But - my guess is that as lucrative the asteroid-mining may sound - it will not happen soon enough in our lifetime to make it a feasible investment today.

Just IMHO...

Originally posted by Outrageo
reply to post by Eurisko2012

 

Yep - not bad either. But - my guess is that as lucrative the asteroid-mining may sound - it will not happen soon enough in our lifetime to make it a feasible investment today.

Just IMHO...

edit on 4/21/2011 by Outrageo because: typo

My guess is that we will start mining the asteroid belt out past Mars around January 2014.
We have the technology. Do you think the guys out at Area 51 are going to sit on the
advanced technology forever?
Just think of the economic - BOOM - that will be created.
I'm sure we can find $14 Trillion worth of rare earth elements out there.
I think it used to be a planet but then exploded millions of years ago and became our asteroid belt.
BTW, the Helium-3 on the moon will also come in handy.

Time will tell if i'm correct.

I found the post below from surrealist other thread on another thread discussing the IMF's prediction that China will overtake the USA in economic output terms in 2016. First thing that struck me is how the hell does a university have assets of $20 billion dollars?!?

Secondly I thought about this thread and the words of an earlier poster who said that in terms of gold trades there is far more traded than available (in existence) and thought hang on a mo, if organisations, governments and corporations start making gold hedges as an anti inflationary move and particularly when gold is at $1,500 an ounce then my tripling in price prediction might just move closer a bit faster. If they all want the yellow stuff physically delivered then the price is going to go mental very quickly.

Also do not just look at the $1 billion going into the gold, think of the cost of looking after $1 billion dollars of gold: storage, security etc. That tells you all you need to know about the future price of gold the only way is up baby!

Originally posted by surrealist
Man is this for real? Just seems I'm reading one article after another. Don't want to hijack anyone else's thread so am updating my own with articles that are appearing on online news sites.

Triumph of gold, the anti-investment

In investing, extreme behavior is becoming more mainstream every day.

How else can we interpret the extraordinary moves by the University of Texas’ endowment fund to not only buy nearly $1 billion of gold, equal to about 5 percent of its assets, but to insist on taking physical delivery of the precious metal.

Things really have come to an interesting juncture when the second-largest academic endowment in the U.S., managed and advised by sober, rational people, decides that what they need is insurance against getting, in essence, robbed, via inflation, by fiscal and monetary policy.

Little wonder that gold futures went above $1,500 per ounce for the first time on Wednesday, driven by a laundry list of concerns starting with a falling dollar and not ending with the growing chance of “debt restructuring” (well, default, if you insist) by Greece.

“The role gold plays in our portfolio is as a hedge against currencies. The concern is that we have excess monetary and fiscal stimulus,” Bruce Zimmerman, chief executive officer of The University of Texas Investment Management Company told CNBC television.

Read more here: blogs.reuters.com...

i started following gold when it was $325 an ounce

and i am telling you this

youre insane if your buying it at 1400 an ounce now

what goes up must come down.

if you already got in good if your not in now forget it.

I think those investing in gold are insane myself.

You cannot eat gold. You cannot use gold as a weapon (it is to soft and too heavy). If the crap hits the fan the farmers around here are not going to give a rats rear about gold for barter but will certainly be in need of work for barter (the fields are too big to guard and tend by themselves).

Only thing gold is good for in large quantities is looking pretty and I am not even that fond of the look of gold I like silver better. Of course gold is used in electrical and medical purposes but if the crap hits the fan it is doubtful you will have access to either of those at least not the quality that uses gold.


Spend all you money on gold if you want. However, I do not want your gold in hard times. I want to survive and gold is not going to aid me in that.

Besides if you have to be on the move gold is way too heavy to be lugging around. at the stupid investor.

Raist

Originally posted by Outrageo


Final thought: The Chinese are so friggen clever, that they are happy to lend us the money (at exorbitant interest rates that we then take to Wal-Mart just so we can spend it on cheap, inferior plastic crap THAT THE CHINES MAKE, knowing the junk is crap and will end up in a landfill, after which we take more borrowed money at the very next over-commercialized "Holiday" so we can do it all again!

Sorry - off -topic a bit - but the point is made: follow the Chinese. If they are buying metals and other resources - you should too...

Actually most of the crap that comes from China are from outside China. The cheap product designs are sent to China, made and brought back to America to be sold. Do you not know this? It is Americans selling Americans these products and it is Americans that look the other way when the manufacturer decides to take shortcuts in production to make more money.

For F***sake learn how the world works.


And on gold, some of you can say all the bad you want about gold. The fact is that gold has been a hard commodity for 10,000+ years. You must be insane to think anything in the last 200+ years of American history can impact it. Gold is most definitely precious and if you think holding worthless digital or physical amounts of USD is more important-it's your grave, keep on diggin.

More adverse for the Dollar:
ATS thread: U.S. gets C credit rating, lower than Mexico


This post seems to corroborate the news:

Originally posted by diddlydo The Wall Street Journal is reporting it too.

But Weiss--which Thursday assigned the U.S. a "C" rating that lands it squarely in the lower rung of its global sovereigns--argued that the ratings of S&P, Moody's Investors Service and Fitch are "unfair to investors who are undercompensated for the risks they are taking." Weiss's "C" rating is the equivalent of the bottom of S&P's investment-grade spectrum.

online.wsj.com...

Good for gold, bad for the dollar and just days after the university bought a billion bucks worth of physical gold. That ladies and gentleman can be considered a good old heads up!

reply to post by spacedonk


It looks like a propaganda tactic to have a high demand on gold and boost the prices, perhaps gold prices and its raise is not what it seems.

No matter what oil is what moves the world since the seventies when took over Gold.

Hedge funds Increase bets dollar will decline

Hedge funds increased their bets against the dollar to a massive $28.6bn (£17.1bn) in advance of Ben Bernanke's historic first press conference as chairman of the Federal Reserve last week.

Not only in pure currency terms is this a strong indicator of a long term position against the dollar, it is also an indicator that more people like the university cited previously will seek gold out as a hedge in the USA, solid positive news for the gold price to continue to rise:

$1553 an ounce right now.