THE SKY IS FALLING: Gold At $825--Remember when I wanted to buy 2 months ago at $550?
DriftingByTheStorm
Posts: 8,684
Uh yeah.
This is starting to get REALLY scary.
Most of you (particularly the ones who claim "i don't trust gold") probably won't even comprehend the real disturbing undertones of this announcement.
GOLD IS AT EIGHT HUNDRED AND TWENTY FIVE FUCKING US DOLLARS PER OUNCE.
Gold is supposed to stay at some sort of CONSTANT price.
If gold is GOING THROUGH THE ROOF that simply means that the dollar is falling and that investors ARE SCARED.
REALLY SCARED.
Gold has nearly DOUBLED in value in TWO MONTHS!
The rising price means that the value of the dollar required to purchase it is going down (verifiable by looking at the rising price of OTHER commodities) and also that scared shitless investors are plunking their money in to gold, buying up the available supply ... because they know that gold at least (theoreticaly) HOLDS its value, and doesnt plummit suddenly.
HOLYSHIT.
It will probably be at $1000 by the end of january, OR SOONER ... that is my bet ...
but then again, i didn't even believe myself when i said the same two months ago.
Look where we are now.
The american financial sky is falling ... and falling FAST AND HARD.
WAKE UP WORLD.
:(
This is starting to get REALLY scary.
Most of you (particularly the ones who claim "i don't trust gold") probably won't even comprehend the real disturbing undertones of this announcement.
GOLD IS AT EIGHT HUNDRED AND TWENTY FIVE FUCKING US DOLLARS PER OUNCE.
Gold is supposed to stay at some sort of CONSTANT price.
If gold is GOING THROUGH THE ROOF that simply means that the dollar is falling and that investors ARE SCARED.
REALLY SCARED.
Gold has nearly DOUBLED in value in TWO MONTHS!
The rising price means that the value of the dollar required to purchase it is going down (verifiable by looking at the rising price of OTHER commodities) and also that scared shitless investors are plunking their money in to gold, buying up the available supply ... because they know that gold at least (theoreticaly) HOLDS its value, and doesnt plummit suddenly.
HOLYSHIT.
It will probably be at $1000 by the end of january, OR SOONER ... that is my bet ...
but then again, i didn't even believe myself when i said the same two months ago.
Look where we are now.
The american financial sky is falling ... and falling FAST AND HARD.
WAKE UP WORLD.
:(
If I was to smile and I held out my hand
If I opened it now would you not understand?
If I opened it now would you not understand?
Post edited by Unknown User on
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Comments
i knew shit would get ungly when warren buffet and bill gates said they were moving heavily into gold
The recent rise in the price of gold represents movement in the market towards safer investments following the credit collapse, not some sign of the oncoming apocalypse. Try to relax.
drifting; why do you post what i told you 2 months ago? those that control the american financial sky are there because they are smart. i told you what's going on and you don't listen. gold is going up because those with the gold are not selling it. they know that when the effects of global warming hit the us; the dollar will be useless. the tundra and permafrost need about 1 more degree of warmth to dissapear into tnto the oceans. look around the world and see what's happening. thus far; the us and canada have been the only areas not effected but it's coming.
Well I DID listen.
I just wasn't in a position to cash out my stocks and buy an illiquid commodity.
What i SHOULD have done, looking back, is LEVERAGE every penny i had ...
take out a signature loan or three, and margin my account to buy gold ... then i could have sold it all now, covered the loans and raked in bank. then buy all over again because GOLD WILL CONTINUE TO GO UP.
FFG:
I say gold is supposed to "stay constant", because unlike oil, it is not a depleting asset ... gold sticks around ... you melt it and remelt it ... the supply is fairly constant ... thus, the price should be FAIRLY constant ...
if the price is DOUBLING that is a reflection of inflation driving the price up ... but as other commodities have NOT doubled yet, either gold is the leading indicator of inflation, or, as you say more are buying than selling ...
I would also say that if gold goes up another 25-50% you ARE looking at the middle stages of financial apocalypse ... this being the beginning.
We surely can agree to disagree, no?
but for the price to DOUBLE, A WHOLE LOT OF PEOPLE MUST BE BUYING ...
If I opened it now would you not understand?
i agree to a point. the best stradagy would have been to sell only the gold you needed to pay off the loans. when the economy crashes; money will be worthless and you'll need that gold to buy supplies. gold is a constant in that no matter who; what; or where; gold is the means of exchange. always has been for thousands of years. the price will not continue to rise. for a while yes; but when our coasts are flooded; prices will soar for goods. you could buy an acre of my high land for 2 ozs of gold today. when the coasts are flooded and the demand for dry land is high; you'll need 2 to 3 pounds of gold to buy it.
does that example help?
Yes.
It reaffirms my ambition to get heavily invested in real estate... of the NON-costal variety.
If I opened it now would you not understand?
who has you believing that by gold going up in price will somehow make our economy collapse???
i hope smaller countries read this post
Certainly "gold sticks around", but the active supply of gold on the market and the current demand for gold do not. The same ounce of gold is going to cost a lot more during times of high demand than during times of low demand. Hence, price fluxuations.
You seem to be saying that gold's increase is somehow unique amongst commodities, yet this is not the case. Commodity prices have been increasing greatly over the last few years. If anything, gold is a latecomer to the trend this time around.
Whenever you see the price of gold quickly increasing, you are likely seeing exactly what is happening today: investors seeking a safe haven during times of turmoil. Whenever you see the price of gold steadily increasing, you are likely seeing the affects of value-eroding inflation. We have a bit of both going on right now, and gold's ceiling is probably well above its current levels.
Today's gold behavior closely mirrors the same activity seen in the 80s during the S&L "crisis". This is nothing new. Gold will settle and we'll have some new inflationary pressure in the financial markets 10 years from now that will lead to the same dire predictions of catastrophe.
Admin
Social awareness does not equal political activism!
5/23/2011- An utter embarrassment... ticketing failures too many to list.
don't buy shite. use good judgment. realestate has never been a bad investment if you use common sense. find high ground and look where people are moving to. suburbs always grow. they always have and always will. population growth assures it. find land that's cheap and out in the "boonies" yet able to support life. (hours drive to employment etc). never buy rentals. if you want to make the big money; you have to sit and wait.
i agree with everything but the last statement. 10 years from now; those who survive will be living like we did in the 1800s. everything in life starts over. now it's time for humanity to start over.
Funny that you believe ten years from now we'll all be living like we did in the 1800s while at the same time telling someone to invest in real estate. I believe the Watchtower Society has an opening, if you're interested.
Also funny that he tells Candians this: "just a bit of o'l cowboy advice; the higher something goes; the farther it has to fall. back in the 70's i believe; gold reached about $700 USD and when everyone invested; it dropped to about $250 USD. these are numbers from memory so they're not exact; but they're close.
__________________"
Yet is optimistic about gold's long-term value, when he uses gold as the negative example.
I used a similar example the last time we had this discussion, and talked about a friend of mine losing half his savings because he jumped on the precious metals bandwagon with everything he had. If you are in it for the short term, definitely play the movements (both up and down). If you are an investor, have patience and use reason. We're in a bumpy period now. Why does this particular bumpy period portend a coming apocalypse?
I think we are actualy in agreement, except for my oversimplifications.
The bottom line is that gold does TYPICALY remain at a constant price, UNLESS there is some great fear that is causing a HUGE BUY-UP!
That is what i meant, when i said "stays constant".
If the economy is doing "okay" and the sky IS NOT falling, gold remains fairly stable, and LOW.
When gold starts skyrocketing it is an indicator, as you say ... and not a good indicator.
Your last paragraph has me worried that you are missing the boat though.
Yes, it is nothing new.
It is EXACTLY like the S&L scare.
However here is the difference.
Our economy WAS fundamentaly much more sound than it is right now... the dollar has lost a lot of value since the 80's and THE NUMBERS HERE ARE MUCH BIGGER THAN S&L.
I mean the accounting tricks and bailout necessary to keep this SIV thing afloat are going to make S&L pale in comparison.
IT COST NEARLY TWO TRILLION TO THE CITIZENS OF THIS COUNTRY TO BAIL OUT PRIVATE BANKS AND S&LS DURING THE 80s (and into the 90s)
HOW MUCH IS IT GOING TO COST THIS TIME? MUCH MUCH MORE. IT IS MUCH MUCH WORSE! It is compounded by those same gimmicky bullshit accounting practices that the government thumbs-uped in the 80s. I hear pundits on MSNBC calling for MORE GIMMICKS -- "we need to allow these banks to take these SIVS off balance sheet" ... WHAT? YOU WANT TO DEFRAUD THE PUBLIC? DO WHAT?
THAT IS THE DIFFERENCE.
That, and the FED HAS FLAT OUT STATED THAT THEY CAN NOT CONTINUE TO CUT THE RATE!
That means we are ON THE BRINK.
The system cant save itself anymore.
Cutting the rates at this point is the beginning of a suicidal dollar crash.
That is how I see it.
If you know something i dont, then speak up.
But it seems to me that the Fed is hard up for a solution. ALL there solutions equate INFLATION ... ALWAYS ALL THE TIME 100% OF THEM, PERIOD!
Bailout (in all it's forms) = Inflation
"Adding Liquidity" to the system = Inflation
Cutting Rates = Inflation
AMERICA CAN NOT TAKE MUCH MORE INFLATION.
Where is the disagreement here?
We are about to send our dollar PLUMMETING.
It already is in a free fall ...
Do we want to shoot holes in the wings of the glider on its way down as well?
If I opened it now would you not understand?
then quit whining and pissing yourself in terror here and go out and fucking buy some and shut the fuck up about it. if you're so ABSOLUTELY CERTAIN the apocalypse is upon us, what the fuck are you bothering to get our approval for your decision for? put your money where your mouth is and go scoop up that gold.
you're going to listen to the guy who thinks that if everyone had a semi-automatic attached to the dashboard of their car road rage would stop and no one would ever get hurt? the guy who has admitted he has a stockpile of weapons and is just waiting for the us government to invade his house in arizona to kill them all? this guy is still living in 1880 in tombstone, arizona. you might want to take his advice with a grain of salt.
a. i clicked the exclamation point. sorry. STFU is a bit over the top.
b. i don't need anyones approval.
I use the place as a soundingboard to get feedback.
I use it to gather public sentiment and see what people around the world think about things.
The fact that i "rant and rave" is indicative of the fact that i think things are much more serious than some of you comprehend.
A lot of this stuff is only being talked about by the media in very small soundbytes (SIV in particular) ... although GOLD IS ALL OVER THE NEWS. MSNBC has been talking about it NONSTOP today. THat and dollar "slumping".
This is not fucking fantasy.
This is the new sad reality.
I'm not in "terror" all though i am by no means happy about things.
I do wish some of you would wake up a little as far as what is going on around here.
Things look like SHIT out there right now.
And some of you are saying this is just a "correction".
This is a huge fucking "bubble" bursting, although "bubble" doesnt do it justice, because what we have here is a banking industry that is full of lies and a government that is manipulating the inflation numbers ...
what is really going on is the dollar is slumping because the fed keeps cutting rates to try to save itself, and throwing more money into the system to bail out its rich owners (yes, THE FED IS OWNED BY CITIBANK AND BANK OF AMERICA, AND JP MORGAN, LOOK IT UP!)
SO while the bank fucks america to save itself, we are taking a nose dive.
The banks print more money to buy gold, and then dump the cash on us.
It sucks.
If I opened it now would you not understand?
he's ALREADY living like it's the 1800's. haven't you read him? he admits to gunning down two people in the streets, stockpiling weapons, wrasslin buffaloes.... he's a regular john wayne who's seen too many westerns and lost touch with reality.
I've been trying to get into real estate for the past 5 years. It has taken me a while because my first financial partner flaked out, the second one had a family crisis, and now i've moved to where the market is MUCh cheaper and i can get in by myself.
I said REaffirmed my belief. I don't base my decisions on anyone elses opinion. I just listen and discriminate based on my own internal senses.
I trust him a lot more than i trust your outlook, as off the deep end as his approach may be ... it is still fundamentaly sound. I get the feeling when the shit hits the fan, HE will be doing great. You might be sucking wind though.
sheesh.
If I opened it now would you not understand?
i appreciate your concern, but i can take care of myself, thank you very much. if the economy crashes as you predict, i'll make a fortune litigating bankruptcy claims on behalf of bank of america, citibank, and jp morgan. no sucking wind here, chief.
Good for you.
I hope they pay you in gold.
Because the dollars they shove at you wont by you a fucking twinky.
If I opened it now would you not understand?
eh, they know the hired guns need to make a living to keep cleaning out the poor masses. like i said, i'll be fine.
Gold prices change for many reasons. A "HUGE BUY-UP" is just one of them. Increased demand through simple use is another. Jewelry demand, electronics demand, central bank acquisitions...all these things represent simple increases in demand. Furthermore, supply issues can also affect gold, despite the low ratio between production and inventory. Gold hoarding, something modern states do quite well, significantly impacts the price of gold.
So by saying "it can change", you meant "it stays constant"???
Again, not true. Gold moves in good times and in bad. Certainly economic panic will almost always drive up the price of gold, but that is typically more of a perception issue than an actual indicator of economic health.
Sweet fancy Moses....
There is always an inverse relation between the number of capital letters in a post and the author's understanding of his own words.
The credit bailout this time around will be cheaper than the S&L bailout. Do you want to know why? Because there won't be much of a bailout. What you're forgetting is that the S&L crisis affected small thrifts, not huge multinational banks. The major financial institutions involved in this credit situation are going to be able to withstand the losses and the government is not showing signs of enacting an extensive bailout for the individuals affected. This is wise policy.
The Fed will likely cut rates once or twice more, and that will be it for a while. Investment will dry up a bit overall, but not to any massive degree. 2008 may end up being a recessionary year, and that's going to be the worse of it for the short term.
Your fears of inflation are well-reasoned. But US inflation is not going to hit even the levels of the 70s anytime soon. Yes today's inflation is setting up tomorrow's collapse, but the dollar has to inflate massively to cause such a collapse. That's not going to happen at inflationary levels under 5%.
Fiscal policy right now needs to focus on significantly reducing government spending. We have a generation, at the least, to adjust policies before we need to even fear financial conditions approaching those of a significant depression. The dollar is still the strongest currency in the world and will remain so for the foreseeable future, though with much erosion. Just try to chill out a little.
Okay.
This is the last breath of my gold argument.
Yes, by "gold prices changing" i mean "they stay the same".
What i mean is that gold prices stay RELATIVELY STABLE unless there is a SERIOUS trouble in the economy. We both know that commodity prices are regulated by the market. But unlike oil which is pumped by lots of countries, or corn which is grown ... most of the gold in circulation is already in circulation. There are not huge mines pumping out billions of dollars of gold per day ... there just arent! So the supply is relatively stable. If the US government is buying up gold, that is great. I doubt they are smart enough to do that though. Infact, they are probalby SELLING it to cover loans, if there is even any left (i doubt it. think we sold it long ago) ...
Anyhow.
All that aside.
Yeah, inflation would have to be masive.
More than 5%, okay.
WHAT IS IT NOW?
I just heard a guest on Glenn Beck OUTRIGHT ACCUSE THE GOVERNMENT OF MANIPULATING THE INFLATION NUMBERS.
WHOOPITY WOOH!
So we probably have NO IDEA how bad it really is.
The government is lying to cover its own ass.
On the topic of SIV bailout ... GREAT. You say there wont be a bailout? GREAT.
BUT I DONT BELIEVE IT.
I think its just a matter of time ... MONTHS ... 2 months ...
I say by December there is a plan to bail out these massive banks -- WHICH ARE NOT DOING JUST FINE.
They are writing off BILLIONS AND BILLIONS IN LOANS ... and they HAVE NO RESERVES TO COVER THAT LOSS.
If the banks depositors out, THEY ARE FUCKED.
Do you know how much money the Federal "RESERVE" has on hand to cover depositors? LIKE ONE TO THREE PERCENT OF THE TOTAL LIABILITIES IT CLAIMS IT CAN COVER.
THAT IS WHY THERE WILL BE A BAIL OUT.
Because THE GOVERNMENT ABSOLUTELY CAN NOT COVER FDIC LOSSES.
And THAT is what this is about. That is what the S&L was about. The banks have all their money tied up in loans. That money is SUPPOSED to be held in reserve to cover deposits. INSTEAD THEY LOAN IT OUT!
Those loans are failing and being written off ... the SIVS ARENT EVEN ON BALANCE SHEETS SO WE DONT EVEN KNOW HOW BAD THE SITUATION IS ... but fair to say, if the banks are called by large institutional depositors who have to pull out funds to cover their OWN losses or liabilities, THESE BANKS WILL BE ON THIER KNEES.
I think you may not be too well versed on this, as much as i value your opinion, usualy.
I'll post more at 2am when i get back from working for ... GASP ... THE BANK!
S&L was not "some small institutions", it was THE ENTIRE INDUSTRY! I can explain that much better later too.
Anyhow.
Suffice to say, there will probably HAVE TO BE a bailout, and it is going to FUCK THE AVERAGE AMERICAN ... FUCK THEM REAL REAL HARD!
If I opened it now would you not understand?
I think you've missed the boat completely.
Gold prices soaring is an INDICATION that our economy is in DEEP SHIT.
That is what i'm saying.
If you don't understand that,
you need to forget whatever you learned in economics class and read some REAL books on The Federal Reserve and wreckless american fiscal policy.
Gold is going up as a REFLECTION of serious economic trouble.
If I opened it now would you not understand?
Right. Forget ecomonics. It is much more exciting reading fantastic tales about the end times.
Ugh.
WE agree then we disagree.
Government regulation should be dropped, and banks should be FORCED TO OBEY THE FREE MARKET.
The only insuance depositors should have ... the ONLY guarante they should get on their deposit is that of FREE MARKET PURCHASED INSURANCE BY THE BANK.
Just like bonds have ratings, banks should have ratings.
The insurance they carry for their depositors should be assessed and charged accordingly.
UNFORTUNATELY THE GOVERNMENT GUARNATEES ALL BANKS THE SAME GODDAMN INSURANCE.
So they can ALL be as risky as they want.
No.
No one should force them to hold reserves.
But that is good fiscal policy.
And they AREN'T adhereing to such.
They aren't even adhering to the tennets of fractional reserve lending ... they've gone to FRACTIONAL FRACTIONAL RESERVE LENDING.
Where they receive 1 dollar in deposits then lend out 10 on it. (That is fractional reserve lending)
BUT then they take THAT dollar on deposit and lend out 98 cents of it.
Holding TWO CENTS TO COVER TEN DOLLARS IN LOANED MONEY PLUS THE ORIGINAL DOLLAR ON LOAN.
I think you fail to understand how the banks work and what it means to be insolvent.
All loans come back to the issuing bank for payment.
That is why they are issued as either cash (straigth from the issuing bank) or as checks. So that if the person who gets the loan takes that loan check to ANOTHER bank to cash, that other bank just mails the check right back to the issuing bank and says "dude, you owe US money, because we just paid out the cash on YOUR loan".
If I opened it now would you not understand?
Classical economics is horribly flawed.
Central banks fucked the idea in the face.
You may want to brush up on the truth that lies under the surface.
If I opened it now would you not understand?