Striking gold?

[DavidS]

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?

 

[roomy]

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

 

[mash107]

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

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.

 

[roomy]

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.

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.

 

[Toro]

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.

 

[DavidS]

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.

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.

 

[Toro]

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.

 

[editec]

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.

 

[Truthmatters]

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.

They will stay at the 2001 price forever?

Wow you really dont know much about any economy do you?

 

[alan1]

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.

 

[editec]

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.

A very sensible survivalist's plan, BB.

Unlike gold, spam and twinkies actually have intrensic value.

Oh, that's isn't entirely fair, because Gold does have real uses, so it too does have some intrensic value, too.

But for the average person trying to survive in an end of the world scenario, your twinkies and spam are worth more than gold.

I knew a German who lived through the end of WWII. At the time he was a young teenager, so he was a witness to an end of the world kind of event.

I asked him what he would save to prepare for that kind of economic breakdown knowing what he knew,

Cigarettes was his reply.

Cigarettes became the currency in Germany after the bombing and even in the early days of the occupation, too.

He said that he used to get currency to help feed his family by hanging out around where American GIs were, and rushing to gather up the butts they threw away.

He took them home and he and his family used those butts with tobacco in them as currency to buy what little food was available.

 

[mash107]

They will stay at the 2001 price forever?

Wow you really dont know much about any economy do you?

Homes are just like cars. True, the nature of Supply and Demand come into play, but at the moment we have waaay more supply than there is demand. Give me a good reason why the home prices will go up?

 

[Toro]

Houses go up in value over time for several reasons.

First, there is a fixed supply or conveniently accessible land but the population is always growing.

Second, inflation causes the real value of assets to rise.

 

[editec]

FYI, I am informed that the average price of homes sold in Maine in November dropped 8%.

Now given that we didn't really have the enormous inflation in home prices that places like California and Las Vegas had, I find this MONTHLY DECREASE somewhat alarming.

 

[roomy]

FYI, I am informed that the average price of homes sold in Maine in November dropped 8%.

Now given that we didn't really have the enormous inflation in home prices that places like California and Las Vegas had, I find this MONTHLY DECREASE somewhat alarming.

I forecast a 50 percent rise in house prices over the next 10/15 years.

 

[Paulie]

A very sensible survivalist's plan, BB.

Unlike gold, spam and twinkies actually have intrensic value.

Oh, that's isn't entirely fair, because Gold does have real uses, so it too does have some intrensic value, too.

But for the average person trying to survive in an end of the world scenario, your twinkies and spam are worth more than gold.

I knew a German who lived through the end of WWII. At the time he was a young teenager, so he was a witness to an end of the world kind of event.

I asked him what he would save to prepare for that kind of economic breakdown knowing what he knew,

Cigarettes was his reply.

Cigarettes became the currency in Germany after the bombing and even in the early days of the occupation, too.

He said that he used to get currency to help feed his family by hanging out around where American GIs were, and rushing to gather up the butts they threw away.

He took them home and he and his family used those butts with tobacco in them as currency to buy what little food was available.

Yes cigarettes will definitely be a valued commodity. Also liquor. And twinkies, and spam, and any other food. Guns and ammo. Water, etc.

And GOLD. Because there will ALWAYS be a universal medium for exchange. Bartering alone, is not efficient enough for a prosperous society. But hopefully, what we would learn, is that mere paper will never be efficient.

Societies have been through countless "end of the world" scenarios. I'm sure it probably at least seemed that way to them, anyway. Times have been pretty fucking tough for centuries. Gold has always remained a constant, though. It hasn't been abandoned as a valuable medium of exchange yet, and there's no reason to think it ever will.