Gold - The RWNJ currency

[mawilson 2,133]

So its too scary for me and when you see the political shove of Glenn Beck and the 'hate government' crowd, I detect that it is a bubble.

Unless, of course, dollar price stability is a bubble.

Have you covered your shorts yet?

[Dakine10 5,452]

The oil company SHELL started off as a trader in sea shells as they were regarded as a currency.

I suppose anything will do as a currency, but when the graph does what gold's graph (oops chart) has done, there has to be a great worry because for gold to go up say 300%, the other currency would have to have been depreciated by the inverse of that - and they haven't, and are not likely to be

I could accept even George Washington's wooden teeth as a currency if it appreciated at the same rate as paper money went down, (or is likely to go down), but gold isn't doing that; its leaving everything miles behind and that is red flag just as house prices (another hard asset), did

So its too scary for me and when you see the political shove of Glenn Beck and the 'hate government' crowd, I detect that it is a bubble. If a right winger were to win the election, presumable the RWNJ's would feel safe and gold would fall like a stone.

Therefore

Anyone who thinks Obama will lose should get out of gold.

I'm not disagreeing with you. I wouldn't recommend buying gold right now. I haven't bought physical gold in almost ten years. It's no different than anything else.

I am glad that people are buying though. Works out for me. Once in a while I like to sell a little. Like I said, I wouldn't buy now, but I don't feel a big need to rush out and sell either. Unless one needs cash, I see more value in holding on to gold if you already have it.

[Captain Oates 911]

As a currency, it is doing well against other currencies. Probably because it's hard to print more gold.

It would be less useful if it wasn't for the global epidemic of monetary inflation.

What inflation ? I bought my 3.5 liter Camry in Florida in 2007 and I could buy another brand new one today for the same price !

I bought my house in May 2008, and I could buy an identical one for a fraction the price

How does that square with inflation ? Where do gold freaks get their info ? Glenn Beck ? aaargghhh !

[Dakine10 5,452]

What inflation ? I bought my 3.5 liter Camry in Florida in 2007 and I could buy another brand new one today for the same price !

I bought my house in May 2008, and I could buy an identical one for a fraction the price

How does that square with inflation ? Where do gold freaks get their info ? Glenn Beck ? aaargghhh !

As I said before, we are not seeing inflation in markets that are traditionally credit based. A lot of that is because it's much harder to get credit now - thus there has been a credit deflation if you will.

Now if you happen to buy groceries, compare your receipt to 2007. Mine is a lot higher.

What we have really seen is that easy credit led to overinflated house and automobile prices in the first place.

[Captain Oates 911]

As I said before, we are not seeing inflation in markets that are traditionally credit based. A lot of that is because it's much harder to get credit now - thus there has been a credit deflation if you will.

Now if you happen to buy groceries, compare your receipt to 2007. Mine is a lot higher.

What we have really seen is that easy credit led to overinflated house and automobile prices in the first place.

The future is disinflation - Europe may enter a slump next year - printing money is not inflationary if wealth (money) is being destroyed

But even if the future was inflation, say 15% - say 30%, it still would not account for gold going up hundreds of percentage points

If houses were a bubble in 2007, gold is a bubble now - because any other asset it might be used to buy, has not gone up 300%, and many have come down in real terms

Food is a small percentage of total spending and is coming down at the moment - and if the right wing get their way with food stamps, it will come down even more

The whole history of gold is a slow but impressive climb and then BANG - it falls off a cliff

With a history like that, it isn't an investment I want.

Toilet rolls, sugar, rice, any dry stored goods are a great inflation hedge. I bought a 12 month supply in 1974 when inflation was 15% and saved a good percentage

I see no inflation in the world - only disinflation and an increase in the value of cash.

[Dakine10 5,452]

The future is disinflation - Europe may enter a slump next year - printing money is not inflationary if wealth (money) is being destroyed

But even if the future was inflation, say 15% - say 30%, it still would not account for gold going up hundreds of percentage points

If houses were a bubble in 2007, gold is a bubble now - because any other asset it might be used to buy, has not gone up 300%, and many have come down in real terms

Food is a small percentage of total spending and is coming down at the moment - and if the right wing get their way with food stamps, it will come down even more

The whole history of gold is a slow but impressive climb and then BANG - it falls off a cliff

With a history like that, it isn't an investment I want.

Toilet rolls, sugar, rice, any dry stored goods are a great inflation hedge. I bought a 12 month supply in 1974 when inflation was 15% and saved a good percentage

I see no inflation in the world - only disinflation and an increase in the value of cash.

I get a birthday card every year from Allstate insurance. I like it because it show prices of various things the year I was born compared to now. If you pick two random years in the last hundred to start looking at monetary inflation, you won't find many years where there has been a decrease.

Actually thats why toilet rolls, sugar, rice, any dry stored goods are a great inflation hedge. We know they are going to cost more in six months. That is inflation.

[mawilson 2,133]

What inflation ? I bought my 3.5 liter Camry in Florida in 2007 and I could buy another brand new one today for the same price !

I bought my house in May 2008, and I could buy an identical one for a fraction the price

And you don't think that's odd? A.k.a "a bubble"?

[Captain Oates 911]

I hope people got out of gold when I told them to !

[Captain Oates 911]

Gold ETF GLD

High this year $185.85

last week $166

Today 153.37

Down today so far at 12.11pm eastern ....3.14%

Looks like Glenn Beck has sold the Republicans a pup

[Dakine10 5,452]

Gold ETF GLD

High this year $185.85

last week $166

Today 153.37

Down today so far at 12.11pm eastern ....3.14%

Looks like Glenn Beck has sold the Republicans a pup

Still OK for now. $1500 an ounce is a natural resistance point. Dropping below $1600 an ounce was a strong indication of panic selling by speculators. The dollar has hit an 11 month high - they know gold is not going up any higher in the short run. I don't mind seeing gold drop if it's because the dollar is getting stronger.

As you can see, the lowest gold has traded at in the last year is $1314.90. It's got a way to go yet before it gets there. That said, anyone getting their investment advice from Glenn Beck is asking for trouble.

[mawilson 2,133]

Gold ETF GLD

High this year $185.85

last week $166

Today 153.37

Down today so far at 12.11pm eastern ....3.14%

Seems like a good buy.

[Captain Oates 911]

I have a lot of oil/miners and foreign stocks - so I would like to see the USD lower

Once the euro is sorted, I reckon the USD will take a header

The US is coming out of recession first (as usual) then the others will catch up

US political paralysis will take the dollar down in 2012

..unless Nude Richgrinch becomes the candidate, in which case the chances of him winning are close to zero because Obama is beating him 51% to 41% now with an improving economy and 3.5% growth. By polling day it would be really easy to win against Nude and that means stability in politics which is always good for any currency

However, I think the money men/conservatives will sink Nude Richgrinch with some sneaky revelation because they need to conservatives to win

Man goes into a pub with a small newt on his shoulder

Barman says "Do you know you have a newt on your shoulder"

Guy says, "yes its my pet - I call it Tiny"

barman says - " Why do you call it Tiny ?"

Guy says - "Because its my newt"

.

[mawilson 2,133]

I have a lot of oil/miners and foreign stocks - so I would like to see the USD lower

Once the euro is sorted, I reckon the USD will take a header

The US is coming out of recession first (as usual) then the others will catch up

US political paralysis will take the dollar down in 2012

The euro will not be sorted in any way that would allow it to go higher - "fixing" the problem virtually requires the ECB to print trillions of euros.

[Captain Oates 911]

The euro will not be sorted in any way that would allow it to go higher - "fixing" the problem virtually requires the ECB to print trillions of euros.

I own German exporters and my theory is that a lower euro will give them really big profits - bigger in proportion than the devaluation of their bottom line in USD terms

So by 'sorted' I guess I mean stable. If the governments 'guarantee' the bonds in the same way as the US and UK did (even though they were broke) then stability can return pretty quickly

That rise in the DOW of 490 points in one day last week is an indication of the pent up demand for stocks that will be unleashed once its safe to go back in the water

AS my pal Warren says - "When the market gets greedy, I get scared. When the markets get scared, I get greedy"

But GOLD is a non earning currency with zero interest rate and zero dividends and no government to help it. It's an orphan. It has as much intrinsic value as Elvis' underpants. Probably less.

I sold a call on it and the sold call is doing well.

I think the Political push behind it, where people buy it in order to affirm their conservative credentials, is bound to cause over valuations. If Barry wins in 2012 then I reckon it will happen again.

At the last election, all the conservatives round here bought assault rifles and the gun shops boomed. (no pun intended). The folks were scared of the black people in the white house and what they might do to Ethel.

The gun shops are empty now coz everyone has more guns than the tribesmen of the Khyber - and the biggest shop is going out of business in January

Five gun shops in one small town - and the muslim, world order leader, communist, atheist, foreign, Kenyan, secret abortionist, anti-Christ, black man who they feared so much, has only introduced a bit of health care law - so now their armories are sufficient.

It will be the same with gold. I short the peaks and I get a double buzz - first from the profit and then the political buzz of knowing what kind of people I am impoverishing (Glenn's fans)

[웃 910]

..unless Nude Richgrinch becomes the candidate, in which case the chances of him winning are close to zero because Obama is beating him 51% to 41% now with an improving economy and 3.5% growth. By polling day it would be really easy to win against Nude and that means stability in politics which is always good for any currency

A gold plated HDMI cord could beat Newt