$1300 Gold, and $21.50 Silver....

Discussion in 'Economy' started by Mini 14, Sep 24, 2010.

  1. Mini 14
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    Mini 14 Senior Member

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    I hate Obama, but my metals LOVE his stupid ass!!!
     
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  2. william the wie
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    william the wie Gold Member

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    win some lose some
     
  3. PLYMCO_PILGRIM
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    PLYMCO_PILGRIM Gold Member

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    indeed. Good thing I got in back in 08 when bush started tarp. I just wish I put more than 20% of my savings into it.
     
  4. william the wie
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    william the wie Gold Member

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    I feel your pain my precious metals are in my Roth and I am paying tithe out of my taxable account
     
  5. The Rabbi
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    The Rabbi Diamond Member

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    I think this is the point we start shorting gold.
     
  6. Toro
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    Toro Diamond Member

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    Why?
     
  7. The Rabbi
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    The Rabbi Diamond Member

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    Because the market is basically efficient. If the price of gold is high because "everyone" knows that inflation is coming, then all the news is out. It can only get better and people will get hammered.
    What happens when the Fed actually raises rates after the election because ultra low rates really don't stimulate anything? No one is looking for that, which is why it might easily happen.
     
  8. william the wie
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    william the wie Gold Member

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    Feel free to short. I will stick to the maxim that the bottom is reached when the DJIA = 1 oz. AU.
     
  9. Toro
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    Toro Diamond Member

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    What makes you think gold at $1300 isn't evidence of an efficient market?

    Eventually, gold will get hammered but I doubt it will happen soon. There will be corrections - there have been a few 20%+ declines since this gold market began. But thus far, all the foundations are still for a bull market. I would start looking for an end to the gold bull market if and when a flood of new supply comes into the market and/or monetary conditions get very tight. The Fed raised interest rates from 1% to 5.25% from 2003 to 2007 and gold more than doubled.

    I wouldn't short gold here, except for a near-term overbought trade with tight stops.

    We still haven't reached the euphoric stage of this yet.
     
  10. Toro
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    I don't know if it is going to get to 1. It might, I just don't know. I don't think like that. I think, "What if it tops out at 3?" That would still put gold at $3500, a damn good return from here. I remember "Dow 36,000."
     

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