Gold surges to new high above $1,200

[totalnoob]

$1230

http://finance.yahoo.com/news/Gold-...tml?x=0&sec=topStories&pos=main&asset=&ccode=

lol @ the people who claimed it was a "bubble" when it broke $1000 last year.

Silver is also pushing $19. This should be no mystery.. When you print trillions and trillions of new "money", the value of the currency is destroyed. Hard assets are one of the few ways to protect yourself. The endless debt expansion and bailout mentality shows no sign of abating. Keep calling it a bubble folks. We'll see you at $1600 gold and $30 silver next year.

S&P500 10 years

Gold 10 years

Silver 10 years

Current debt (you can add $50-60 billion for the IMF bailout)

Adjusted monetary base (money printing)

 

[StageLeft]

Bubbles don't break overnight, it still very well could be a bubble. The simple fact is that the economy is hard to predict now. It's hard at the best of times, but with unpredictable and huge government intervention at seemingly ever turn the regular forces at play just aren't at play. Gold could hit $2k in two years or go back down to $1000 by the summer. I sure don't know which it is. You literally have a handful of people continually destroying or creating market confidence on a very frequent basis, so how can anybody really invest knowing what the future will hold?

 

[totalnoob]

so how can anybody really invest knowing what the future will hold?

That's just it..We know what the future will hold. Global keynesianism..global welfare states..huge upcoming entitlement shortfalls in the US (social security & medicare)..deficit spending..monetary expansion..the refusal to allow anyone to fail (companies or countries), etc. We will likely see more Greece-esque bailouts for other insolvent EU countries and even state governments in America like California. There is no wealth available to take care of these problems and tax increases won't come close to covering it. Printing is the only answer.

 

[jackschmittusa]

Just the investment banks pushing commodities again. Same thing with oil.

 

[highland145]

Just sold 9oz yesterday at spot-$40 for $1185/oz. Glad it was way higher than I paid. If it skyrockets , oh well. Needed the $$ for the business.

 

[StageLeft]

That's just it..We know what the future will hold. Global keynesianism..global welfare states..huge upcoming entitlement shortfalls in the US (social security & medicare)..deficit spending..monetary expansion..the refusal to allow anyone to fail (companies or countries), etc. We will likely see more Greece-esque bailouts for other insolvent EU countries and even state governments in America like California. There is no wealth available to take care of these problems and tax increases won't come close to covering it. Printing is the only answer.

But you are projecting. You forgot the other alternative which is a possible deflation although if countries literally do print money (as some have), then I'm still not sure how severe deflation is even possible if you can quite honestly mail each household 50 $1000 bills.

BTW if I had to guess right now I'd say a good investment would be shorting the Euro. It's time for it to fall. However, I appear in my own experience to be a good contrarian indicator for stocks, at least. I was looking at my "plays" last year and had an overwhelming ability to pick the wrong move far more than 50%. So perhaps the Euro will rally after all

 

[PingSpike]

They can push up gold all they like, I don't use that to heat my house like I did with the last shit they dumped all their money into.

 

[Blackjack200]

Obvious bubble is obvious. The problem is that very few can figure out when it will burst. I think it was Warren Buffet that had a famous line that went something like 'the market can stay irrational longer than you can stay solvent'

There's a great chapter in "Hedge Hogging" about a hedge fund manager that was famous for making brilliant short bets. Basically, if he shorted your stock it was the kiss of death. 10-15 years ago he investigated this vacation resort company that was issuing an IPO and figured out that it was a total scam. He waited for all the hype and hysteria to drive the price up and then shorted the crap out of it. Well, the scam just kept growing and growing. The company was written up in the NYTimes travel section and people just kept buying the stock and driving it up. The guy stuck to his short position as long as he possibly could, he was losing hair and having all kinds of medical problems because of the stress. Finally, he simply could not hold on any more, and covered his shorts with millions of dollars in losses. The stock crashed a short time later and the company went bankrupt.

The richest guys on Wall Street are the guys that can spot bubbles and take short positions at the top, right before the fall. I wish I could do this because someone is going to make a fortune shorting gold.

 

[OutHouse]

i still want to kick my own ass for not putting 5K in extra money i had 8 years ago into gold instead of stocks.

 

[Pepsei]

it's a bubble. let's think about why people are hording gold.

if it's for the break down of the government and social anarchy... well hell, you can't eat gold.... you should stock up on food and bullets.

 

[Acanthus]

I call it the "Glenn Beck Effect"

 

[Patranus]

LOL - And the "progressive" wants us to believe that the dollar is strong because it is strong against the Euro.

Laughable.

 

[Blackjack200]

Btw, it's incredibly dishonest to show a 10 year graph of any major stock index. This is pretty much the 10 year anniversary of the height of the tech bubble. Wait 1 year and the 10 year graph will look very pretty. Isn't it fun playing with statistics?

 

[Jadow]

woot!

I bought a 1oz gold american eagle and a 1oz krugerrand when gold was about 1090/oz. Glad to see it's gone up.

I bought it sort of half as an investment and half just for fun and to put something cool in my safe.

 

[Acanthus]

By the way the "printing" you are referring to is not currency in circulation.

The fed is lending cheap money to combat deflation. This does NOT affect the price of gold.

 

[PingSpike]

it's a bubble. let's think about why people are hording gold.

if it's for the break down of the government and social anarchy... well hell, you can't eat gold.... you should stock up on food and bullets.

You act tough now, but you'll be singing a different tune when I come rolling up over the horizon, bullets bouncing off my gleaming golden cuirass while I hurl gold bricks at your head and steal your food and bullets.

 

[highland145]

You act tough now, but you'll be singing a different tune when I come rolling up over the horizon, bullets bouncing off my gleaming golden cuirass while I hurl gold bricks at your head and steal your food and bullets.

Let's see. FMJ .223@2400fps vs. your throwing arm. :thumbsdown: for you.

 

[JS80]

I think it's a good time to go sell the bullion I got last year for my son's first birthday.

 

[Skitzer]

i still want to kick my own ass for not putting 5K in extra money i had 8 years ago into gold instead of stocks.

I put 10K into 38oz of gold in June of 2000.
If I sold it today I would realize over 45K. 3.5K a year is not a lot in terms of returns but I think Gold is a very safe investment and that's why I did it.
I think I will hold on to it for a while longer even though I don't think it's going to go up much more unless of course there is a real Crisis and the US economy goes to shit.

 

[DaveSimmons]

You act tough now, but you'll be singing a different tune when I come rolling up over the horizon, bullets bouncing off my gleaming golden cuirass while I hurl gold bricks at your head and steal your food and bullets.

LOL. Exactly!

More seriously, these both seem more likely than gold trending upward for another 10 years:
a) Bubble. Gold is lousy investment.
b) Collapse of Society. Gold is a lousy investment.

We're in the infomercial stage of the bubble where even housewives want to flip houses . . . I mean hoard gold.

 

[Pepsei]

You act tough now, but you'll be singing a different tune when I come rolling up over the horizon, bullets bouncing off my gleaming golden cuirass while I hurl gold bricks at your head and steal your food and bullets.

ah, but my SKS has a +2 enchantment on it. and i also have a can opener.

 

[StageLeft]

I put 10K into 38oz of gold in June of 2000.
If I sold it today I would realize over 45K. 3.5K a year is not a lot in terms of returns but I think Gold is a very safe investment and that's why I did it.
I think I will hold on to it for a while longer even though I don't think it's going to go up much more unless of course there is a real Crisis and the US economy goes to shit.

IIRC gold is in fact a poor investment most of the time. You did well here and more than doubled, but if you go back decades the return on gold is pretty terrible I think.

 

[OutHouse]

I put 10K into 38oz of gold in June of 2000.
If I sold it today I would realize over 45K. 3.5K a year is not a lot in terms of returns but I think Gold is a very safe investment and that's why I did it.
I think I will hold on to it for a while longer even though I don't think it's going to go up much more unless of course there is a real Crisis and the US economy goes to shit.

its a whole lot better return than what i am getting with my company 401k.

 

[DaveSimmons]

its a whole lot better return than what i am getting with my company 401k.

Not true if you get an employer match, and probably not true just from the tax savings.

 

[KlokWyze]

You act tough now, but you'll be singing a different tune when I come rolling up over the horizon, bullets bouncing off my gleaming golden cuirass while I hurl gold bricks at your head and steal your food and bullets.

lmao :awe:

Gold always goes up when everyone is worried about the economy and tanks when business is booming. Is this just another sign that we really haven't seen the end of the "credit crisis". I mean didn't the Treasury basically just fix bad debt with more debt?

Clearly we need to get out of debt or @ least strike the right balance!?!?! :hmm: