$2500 Gold? Perhaps this year

Personally I believe Silver is a better bet, but $2500 for one ounce of Gold tells you which way the value of the Dollar is going.
www.bestmetalresearch.com...

hmm, hard to tell. Ive been trading for a while now. But since Feb 2011 I gota bad bad feeling about the markets. Personally im not going to invest, yes if i would it would be in basic commodities. Everyone is saying Silver > Gold right now, I still think diamonds are gonna explode again.

reply to post by DannyboyUK


Russia has a diamond bourse ready to blow.

I wouldn't count on it doing much of anything but bringing the price of diamonds down.
If you're looking into precious stone investment Tourmaline and Sapphire/Ruby(high grade corundum)
is the best way to go.


RESEARCH YOUR STONES.

Silver, as far as precious metals go, has technically been a better performer than gold. I'd go for silver.

As much as I'd like to see $2500 Gold/$62.50 Silver (1:40 Ratio) I think this kind of increase would not be good if it happened that fast. I am long on both metals, heavier on silver. If this kind of increase happened so rapidly it is likely the USD would collapse. While I believe the USD collapse is inevitable using our FIAT/Central Bank model, I personally don't want it to happen so soon. A third Quantitative Easing (QE3) by the Fed is going to put upward pressure on all precious metals. I do believe Silver will yeild the highest gains in the next decade. We are on the brink of seeing a nice "short squeeze" with Silver. Here, in Los Angeles, it is tough to find Silver on the secondary market. The premiums are quite stiff, if you can find Silver at all.

I think the most patriotic act you can do for your country right now is buy at least 10oz. of Silver.

reply to post by DannyboyUK


I believe diamonds are far too over valued. For example, go to a Jeweler and haggle a great deal over a diamond with him. Leave the Jeweler with your new diamond, that you got a great deal on, now go to a different Jeweler and try to sell it. Let me know how good you did. I bet you don't even get 50% of what you origanally paid. Try the same with Gold or Silver.

I will say the nice thing about gems is the amount of wealth vs. weight is nice and the space they take up is minimal.

reply to post by QuantumDisciple


agree, I bought another 20 oz on the dip of the whole japan thing going on. I cant find the stuff anywhere! some venders are asking $6 over spot for silver eagles! screw that!

Let me tell you something. when the pinch comes on JPM the $$$ will fall at the same time. I fell JPM and the Feds are super tide to the hip and when one falls i think the other will to and so goes the $$$

its only a matter of time. heck they cant find blanks to stamp silver eagles on! you know we have problems when that is happening!

reply to post by camaro68ss


I agree we are seeing a shortage, it explains the backwardization of Silver on the COMEX. I do believe we will see the sparks fly at the 39USD Silver mark. Bank calls on the short positions will happen and start a giant snowball up to $50 possibly. My fear is the QE3 by the Fed. They can come in and give JPM the cash to keep silver down. Keep in mind the entire Silver market is only some 30 Billion USD. The charade can only go on so long though as the industrial use for Silver keeps growing. More of the investment demand for Silver is taking physical delivery. You can only hide a true shortage for so long. There is no motivation for the mining companies to supply more, they will sit on their suppy and wait for higher rates, much like Oil.

reply to post by QuantumDisciple


I really cant wait for that day to come. These scum need to know what its like to lose everything like us common folk have. I cant wait for the day! When the day comes it will make life harder for all but at least the elite will be cut down

reply to post by camaro68ss


Im just tired of working 100 hours a week to barely get by. No kids, no house, no ex wife...money just doesn't go very far. I'm tired of being sucked dry. I almost wish I didn't have pride or Id just go on Welfare and sit around while other saps like myself pay for it all. Our dollar has slowly been destroyed.

GOLD: The 1980 High ($850) adjusted for inflation (govt stats) is $2100-2200 (higher on shadow stats). But that 1980 high was a spike high where it doubled in less than 2 months and imploded back down to those levels in quick fashion. That high benefited from the short squeeze in Silver (which went to $50) when the Hunt Bros were trying to corner the market and caught the COMEX traders short who sold into the rally. They changed the rules (liquidation only) and silver collapsed back to $5 in rapid order. That time frame also was accompanied by double digit inflation and the Russian invasion of Afghanistan. The LT Cycle in gold was due in 1981 but it came a year early (a lower high of $625~ came in 1981). That same LT Cycle High is due this year, 2011. Time (especially after 11 yrs up) favors a top. Price, however, when compared to the gold rise from 1974 to 1980 (6 yrs up) a move of ~8.5x suggests a move in the area of the "inflation adjusted high" [(850/103) x 256].

SILVER is tighter than Gold right now but it is more of an industrial metal than a monetary metal so it is more susceptible to an economic slow down. About a 1/3 of this year's rally has been the result of the Fed's QE and 2/3s due to the short squeeze of the JPM short position. JPM has supposedly spun off that trading desk and it has covered more than half of their shorts. Will they cover them all or do they now have some dry powder in which to put some more back on to try to knock the market down again? I dont think that they will go out on a limb again unless the stock market continues down and then they will smell blood in the water and hit it hard - to force out weak longs and cover some more shorts at lower levels. I posted this previously but despite that comex silver is not at record highs dealers are paying more for silver at $36 (ie 90% coins) than they were when it hit $50 (they factored in the weeks long period to get metals to the refinery).

Diamonds have an advantage in that you can carry a fortune around in your pocket and you wont set off metal detectors BUT they are not fungible (easily exchanged like a maple leaf for a gold eagle). They have different grades (color, clarity and cut) and sizes which creates a highly variable price/stone matrix. In addition (as already noted) there is a big spread between the bid and the ask so diamonds are not liquid (readily converted to cash without a drop in price from what you just paid for them). Also, the market supply is controlled by the DeBeers syndicate (altho the Russians are making some inroads into their market share). Finally, the future for synthetic diamonds is good and one day the market could be flooded with synthetic D-flawless diamonds that would drive diamond prices down.

Rare gold coins have some potential (never would be called in) but they need to be coins that were meant for circulation (ie, pre-1933 gold coins) and not contemporary bullion coins. In addition there are big spreads in the coin market also....caveat emptor.

IF you have a lot of money then gold gives you the greatest concentration of wealth (except for rare coins, diamonds and precious colored stones) as the current value is ~40x silver and gold is considerably denser (heavier) than silver.
Silver has the greatest potential as the gold silver ratio could go back to the 1930s when it was ~(20) x .97 / (1) x .77 altho it could be engineered with a big move to remonetize gold to the 50:1 level where it was in 1986 when the treasury first issued Gold and Silver Eagles with $50 and $1 denominations, respectively. Silver, however, has had a more linear rise over the last year and thus is theoretically more vulnerable to greater percentage losses should the markets go into a prolonged correction before the final blow off. Given that gold in the 1445 area has reached its Long Term Projections generated by the drop from 850~ to 255~ back up again it is vulnerable to another correction of the magnitude of the 2008 mini bear market. But we will not go below $1000 again. How high we go is a function of how low the dollar goes and that is hard to guage before the next Bretton Woods or Plaza Accord that intervenes and sets up some sort of new world reserve currency trade unit (basket of currencies nominally backed by gold [like a 10% reserve ratio]).

Originally posted by QuantumDisciple
reply to post by DannyboyUK

 

I believe diamonds are far too over valued. For example, go to a Jeweler and haggle a great deal over a diamond with him. Leave the Jeweler with your new diamond, that you got a great deal on, now go to a different Jeweler and try to sell it. Let me know how good you did. I bet you don't even get 50% of what you origanally paid. Try the same with Gold or Silver.

I will say the nice thing about gems is the amount of wealth vs. weight is nice and the space they take up is minimal.

Talk to any big pawn shop owner and they'll tell you... when they buy jewelry, if they don't display it outright, they normally strip the diamonds and other gems out, because the gold setting is where the real money is at right now. The stones tend to be pretty worthless.