Striking gold?

Discussion in 'Economy' started by DavidS, Dec 27, 2008.

  1. DavidS
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    DavidS Anti-Tea Party Member

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    Why do all of these commercials look so freakin cheezy with used car salesmen predicting $5000/oz. gold? I was just reading an old article today, written in late 2004, that oil could reach $80/barrel in the next 5 years and if it does that, gold will reach $3000/oz. What lunacy.

    Gold had a good day today. Up $23 to $870/oz. If India and Pakistan go to war, I may have to re-invest. What do you guys think?
     
  2. roomy
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    roomy The Natural

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    I think you should invest in property and then sit back and wait, it always bounces back.
     
  3. mash107
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    mash107 Active Member

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    I don't think it will bounce back. Think of it in a practical sense. Why should property or homes go up in price once bought? Everything else in the world goes down with value once bought and used. I think the housing bubble is nearing its end, and will not reflate. Homes will be priced at the 2001 level, and for good.
     
  4. roomy
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    roomy The Natural

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    We will see, people will always need somewhere to live, house builders are profit based organisations, skilled workers require decent wages, cost of materials continue to rise it all equals more expensive to build.Once the recession is over builders will try to recoup their losses and this in turn makes the older property market more viable to buyers which pushes up the prices making me happy again.In the meantime, the properties I own are earning rent.You can save a pretty penny by buying now and renting out until the market recovers.
     
  5. Toro
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    Toro Diamond Member

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    I think gold very well could reach $3000 an ounce. I don't think it will, but it could.

    I am also looking at investing in oil, though I am waiting to pick my spots.

    A bet on gold and oil is a bet that the economy will eventually reflate. If you think there is still massive deflation from here, don't invest in either as they will continue to fall in price. However, if you think the economy will eventually reflate, I think they could go a long way up, especially oil.
     
  6. DavidS
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    DavidS Anti-Tea Party Member

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    Oil is probably the most volatile commodity in history. It's going to be back up at $100 within a year, guaranteed. Wait for it to hit the $20's.
     
  7. Toro
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    Toro Diamond Member

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    Well, I learned a long time ago that nothing is guaranteed when investing. However, I think oil will be substantially higher than $35 some time in the future.
     
  8. editec
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    editec Mr. Forgot-it-All

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    What IS interesting is that AU hasn't seen its value DEFLATE like most other commodities.

    I suspect fear of a massive inflationary reaction to what the central banks worldwide are currently doing is keeping that price in the $800-900 neighborhood.

    PLUS, since there doesn't appear to be any kind of investment vehicle to invest inm right now, and since people who still have money are simply seeking someplace safe to park it, at least until the dust settles, AU is probably one of the places people are parking it.


    Christ! people are buying Treasuries with ZERO interest, so the fear factor in the monied classes is palatable.

    And Gold, even if it loses market value, is still likely to keep its purchasing power even if DEFLATION continues and starts to effect the price of AU, too.

    I suspect that is what is keep the price of gold up in comparison to other commodities.
     
  9. Truthmatters
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    Truthmatters BANNED

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    They will stay at the 2001 price forever?

    Wow you really dont know much about any economy do you?
     
  10. alan1
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    alan1 USMB Mod Staff Member Supporting Member

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    I say invest in spam and twinkies. They both have a shelf life almost as long as gold, and if all hell breaks loose you can eat spam and twinkies but not gold.
     

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