The Gold and Silver Thread

[KissMy]

We are not through this financial crisis by a long shot. Ally Bank is the re-branded GMAC General Motors credit division. They are going to need a bail-out soon or go bankrupt. Bankruptcy will kill GM & Chrysler's auto loans. 74% of Ally Bank stock is owned by the U.S. Treasury Department. QE3 may not be that far off.

 

[Douger]

Considering that precious metals are one of the few assets in a bull market and a semi-frequent topic of discussion on this board, I figured gold and silver deserved their own thread.

I bought back much of my gold and silver exposure yesterday and added a bit today. There is a bid underneath gold, and though silver is extended, there is support at ~$25-$26. A few weeks of consolidation for silver would do it a world of good.

How many acres of land do you own with good soil and water ?

 

[percysunshine]

Considering that precious metals are one of the few assets in a bull market and a semi-frequent topic of discussion on this board, I figured gold and silver deserved their own thread.

I bought back much of my gold and silver exposure yesterday and added a bit today. There is a bid underneath gold, and though silver is extended, there is support at ~$25-$26. A few weeks of consolidation for silver would do it a world of good.

How many acres of land do you own with good soil and water ?

All land with good soil and water have been declaired 'wetlands', and thus public property, by executive order.

Some folks are a bit slow on the uptake.

 

[Toro]

Considering that precious metals are one of the few assets in a bull market and a semi-frequent topic of discussion on this board, I figured gold and silver deserved their own thread.

I bought back much of my gold and silver exposure yesterday and added a bit today. There is a bid underneath gold, and though silver is extended, there is support at ~$25-$26. A few weeks of consolidation for silver would do it a world of good.

How many acres of land do you own with good soil and water ?

I own one acre of property of this God's green earth, divided between a large lot in the city and a lot a 30 second stroll from some of the most beautiful beaches on earth.

 

[sparky]

British Gold Sovereign coins are given to the US air force pilots in their survival gear, if they crash in a hostile territory. British Gold Sovereign coins being preferred by the most powerful nation in the world shows the world wide acceptance that these coins have acquired. During World War II, Allied pilots carried British Gold Sovereign in their survival kits as well. Even in Operation ‘Desert Storm’ the American pilots and the British SAS troops carried British Gold Sovereigns in their survival kits as emergency money, in case of getting shot down over Iraq.

while that's interesting hx Jos, it bears the onus of a stable market

i would think most would have something to say about the market of late being somewhat unstable, lotta bubbles that go 'pop' , with the owners of what they thought a sure thing following suit

now i suppose that's all a matter of finding an economic chair when the bubble music stops, but my point of valuation is, it's in the eyes of the beholder when this happens

how is gold any more 'earthly' or 'intrisic' than one's real estate in said respect?

~S~

 

[Paulie]

Time will tell if gold is in a bubble. My economic understanding says that the dollar is through QE, debt/deficit, and gold reactionary. A beer is on me if I'm wrong, but I don't believe I am.

We'll know in a few years or less....

The bottom line is, does the Fed exit from their enormous portfolio before that monetary base starts to multiply?

That will dictate what gold does, whether it's $5,000 or $500.

I don't think that is the bottom line, since gold isn't an especially good inflation hedge.

When I want lip from Paul Krugman I'll scrape it off your nuts.

Thanks

 

[Paulie]

The bottom line is, does the Fed exit from their enormous portfolio before that monetary base starts to multiply?

That will dictate what gold does, whether it's $5,000 or $500.

The plan is to inflate away the debt. Not all at once, but financial repression for some time like after WWII. That's when gold goes up to $5000. Then, they jack up interest rates and gold collapses to below $500.

Can you imagine how much money they have to extinguish to get rates back up and have enough deflationary pressure to bring gold down that far?

I'm admittedly not an expert in the micro sense, but I'm picturing the Volcker era being the good old days compared to this.

 

[DSGE]

The bottom line is, does the Fed exit from their enormous portfolio before that monetary base starts to multiply?

That will dictate what gold does, whether it's $5,000 or $500.

I don't think that is the bottom line, since gold isn't an especially good inflation hedge.

When I want lip from Paul Krugman I'll scrape it off your nuts.

Thanks

Powerful argument, that there.

 

[Paulie]

I don't think that is the bottom line, since gold isn't an especially good inflation hedge.

When I want lip from Paul Krugman I'll scrape it off your nuts.

Thanks

Powerful argument, that there.

How about this...since common belief is that gold IS a good inflation hedge, why don't you prove your case.

 

[Toro]

When I want lip from Paul Krugman I'll scrape it off your nuts.

Thanks

Powerful argument, that there.

How about this...since common belief is that gold IS a good inflation hedge, why don't you prove your case.

Actually, he is correct. There has been little correlation between the consumer price index and the price of gold.

 

[KissMy]

Actually, he is correct. There has been little correlation between the consumer price index and the price of gold.

There has also been little correlation between the consumer price index and reality.

 

[percysunshine]

Actually, he is correct. There has been little correlation between the consumer price index and the price of gold.

There has also been little correlation between the consumer price index and reality.

When food and energy, the things people need, are excluded from the measurement...well....

 

[KissMy]

Actually, he is correct. There has been little correlation between the consumer price index and the price of gold.

There has also been little correlation between the consumer price index and reality.

When food and energy, the things people need, are excluded from the measurement...well....

They leave out way more than that. They exclude housing, water, sewer, trash, gas electric, utilities, property taxes, food, sales taxes, new taxes, etc.

 

[DSGE]

Actually, he is correct. There has been little correlation between the consumer price index and the price of gold.

There has also been little correlation between the consumer price index and reality.

When food and energy, the things people need, are excluded from the measurement...well....

That's an idiotic lie. They're not excluded at all.

 

[DSGE]

There has also been little correlation between the consumer price index and reality.

When food and energy, the things people need, are excluded from the measurement...well....

They leave out way more than that. They exclude housing, water, sewer, trash, gas electric, utilities, food

Here's what's included in the CPI and the relative weights: http://www.bls.gov/cpi/cpiri2011.pdf

property taxes, sales taxes, new taxes, etc.

It's not a standard of living index. It's a Consumer Price Index. It measures the price of consumer goods and services. If those taxes impact the price of consumer goods, then they're absolutely included implicitly. I think the index you're looking for is called "disposable income".

 

[DSGE]

When I want lip from Paul Krugman I'll scrape it off your nuts.

Thanks

Powerful argument, that there.

How about this...since common belief is that gold IS a good inflation hedge, why don't you prove your case.

That's not a common belief at all. Maybe it's common among goldbugs...

It should be easy enough for you to show that the real price of gold is stable.

 

[KissMy]

 

[DSGE]

http://www.bls.gov/cpi/cpiri2011.pdf

Well how about that, in the CPI food and energy are weighted as 24% of urban consumer expenditures. 2% more than your unsourced weight.

 

[editec]

I think there's a signficant difference between buying and selling gold to make money in a going economy, versus holding gold and silver for the end of the economy event.

When you hold gtold and silver for an end of cvilization scenario, you are assuming that your gold and silver will buy you something you actually need....like CHICKENS.


So your Krugerrand might actually not be worth a chicken in truly hard times.


Might I suggest that it might make more sense to store up things that you'll actually need?

Coffee, cigarettes, drugs, food, guns, ammo, those are the KINDS of things you'll and everybody else will be needing.

Gold and silver might you buy you stuff...then too, it might not.

Your starving children aren't going to be clamoring for GOLD, they're going to be crying for FOOD.

Just a thought.

Plan accordingly.

 

[TakeAStepBack]

Monetarists still think they can control the velocity of the monies. Human action is always quantifiable.....somehow.