The Facts About Gold

[Paulie]

...If that were true then we'd all be seeing more inflation now than we saw when the price of gold was lower. We don't so it isn't...

Maybe you didn't notice the price of gas and food lately....

In June 2008 oil was $134/bl. Now it's $83. Of course when it comes to money I like to talk numbers, while most posters on these threads ramble on about how they're so smart they never have to even think of numbers.

Sure, there's a bit of a discrepancy between oil/gold then and oil/gold now, but gasoline is around the same pace as in 2008 while gold continues up.

In 2008 when gold lost a couple hundred during the crash, oil and gas lost too. Then when the Fed started pumping in liquidity, gold and oil went up. They didn't keep the same pace as before but that's not indicative of no inflation.

I don't need charts and numbers when I can see prices going up with my own two eyes.

 

[ShackledNation]

Gold is rather hard to eat too...

You eat paper dollars?

 

[ShackledNation]

It also demonstrates it is a normal commodity, and it would be very unhealthy to base an economy on a commodity that has hysterical price swings

The price of gold swings because government creates more money. Of course the price of gold is not only affected by the condition of a currency. But that is a huge part of it.

 

[expat_panama]

...The price of gold swings because government creates more money. Of course the price of gold is not only affected by the condition of a currency. But that is a huge part of it.

The price of gold swings more times than others, same with money creation. Given the fact that the swings and creation don't happen together we'll have to say it's just not a very "huge part of it" compared to a lot of other factors.

 

[uscitizen]

Gold is rather hard to eat too...

Actually some people eat it.

 

[Paulie]

...The price of gold swings because government creates more money. Of course the price of gold is not only affected by the condition of a currency. But that is a huge part of it.

The price of gold swings more times than others, same with money creation. Given the fact that the swings and creation don't happen together we'll have to say it's just not a very "huge part of it" compared to a lot of other factors.

When do you ever see the price of gold go up extremely high in the absence of inflationary monetary policy?

How do you not see this? The Fed has been increasing the monetary base through asset purchases since 9/2008 without offsetting asset sales to sterilize their operations. All of that new money being created has the potential for being multiplied via loans and institutional investing. Because of this, gold has been increasing.

And it's not just the Fed. Countries around the world have been debasing their currencies.

What else would you expect gold to do in this situation other than increase?

The last time gold went down significantly was in 2008 when it came from 1000 to 700 during the economic crash. This makes perfect monetary sense because the crash was deflationary in that trillions of dollars in wealth was extinguished from balance sheets around the world.

 

[KissMy]

Gold is rather hard to eat too...

Actually some people eat it.

I have drink golden flake cocktails. They still sell Goldschlager, but with the high price of gold I doubt those flakes are real any longer.

 

[B. Kidd]

Got my boots shined last week.
The shoeshine boy told me gold is a good investment.
By the time the shoeshine boy knows, it isn't!

 

[ShackledNation]

Gold and precious metals are and have been for the past several years a better investment than any stock. That is irrefutable.

 

[KissMy]

Gold and precious metals are and have been for the past several years a better investment than any stock. That is irrefutable.

Yes Sir! 11 years & counting & yet only 5% of Americans own Gold. Shoe shine boys may be talking about gold but they sure ain't buying it yet. With the Fed pledging to print money to keep interest rates low through 2013 it is still bullish for Gold.

 

[B. Kidd]

Gold is rather hard to eat too...

Actually some people eat it.

So. What do you wash it down with?
But knowing what you bought in for (900 and change), you might break even; and in your case, even is winning.