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  #1  
Old 02-23-2012, 03:02 PM
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blue edwards blue edwards is offline
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Default gold - the last bubble

when people say this, they imply that there is a point where you should sell gold. some of the people saying this are the same ones saying the dollar is toast and paper currencies are a joke. the question then becomes (at least to me) why would i ever sell the gold, unless i needed something? even if the price in dollars runs up to $10,000...if the dollar is toast and paper currencies are a joke, why would i trade the gold for paper?

gold for land at some point? maybe

gold for stocks at some point? maybe

gold for paper? never
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  #2  
Old 02-23-2012, 03:14 PM
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motocat motocat is offline
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I agree, in the current climate, with inflation and low interest rates. However, if policy was to change, and the federal reserve raised interest rates to match inflation, then there would be greater reason to have more paper -- just as with what happened in the early 80's. Still, it's always good to have some gold as a back up and for diversification, but let's not be such purist as to believe the situation can not change; things can change to make the reasons for having so much in gold less; stay aware of events and be ready to act.
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  #3  
Old 02-23-2012, 03:15 PM
coindog coindog is offline
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Default for fun

I'll sell some. it's fun to play with but hot bikes and hot women are more fun to play with. plus buy some place for a home base/bat cave.
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Old 02-23-2012, 03:17 PM
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Quote:
Originally Posted by motocat View Post
I agree, in the current climate, with inflation and low interest rates. However, if policy was to change, and the federal reserve raised interest rates to match inflation, then there would be greater reason to have more paper -- just as with what happened in the early 80's. Still, it's always good to have some gold as a back up and for diversification, but let's not be such purist as to believe the situation can not change; things can change to make the reasons for having so much in gold less; stay aware of events and be ready to act.
imo, the only way rates rise is if the market forces them to rise. the fed will not raise rates...they cant.
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Old 02-23-2012, 03:22 PM
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Originally Posted by blue edwards View Post
imo, the only way rates rise is if the market forces them to rise. the fed will not raise rates...they cant.
Wrong, the fed can, and has raised rates, they have the power to create and destroy money supply, and do, to artificially influence rates. The time may come that market conditions overpower, and they are forced to follow, but given their current control, it is not now. If the market did set rates, interest rates would now be high, especially given the lack of savings. It is a myth that we have a free market, as rules of supply and demand do not currently set interest rates; thus the booms and busts created by the central bankers of the federal reserve.

Last edited by motocat : 02-23-2012 at 03:35 PM.
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  #6  
Old 02-23-2012, 03:29 PM
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If gold-mania hits (I think it will) where the price increases too much too quickly, and people become overcome with "irrational exuberance" (as Alan Greenspan once famously commented about the stock market some years back), then it may be a good idea to sell some gold for cash until you see another reentry point in gold. When a lot of everyday people start to comment about how gold will never decrease in value, and the same people are bragging about how they're financial geniuses because they bought gold, that may be a good time to sell bullion for cash, and use that as a "placeholder" until the gold price crashes. And if it rises too high too quickly, a crash is almost guaranteed to happen at some point.

If you were following the financial markets during the late 90s, you may recall that this is what happened to tech stocks. Same thing happened with the housing market several years ago. Anyone who buys an asset near it's peak and rides the price as it falls off a cliff is a fool.

People here love to deride paper, but for now, it's a necessary tool for commerce. If you think paper currencies are a joke, please feel free to send me all of your paper currency, because I'll put it to good use.
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  #7  
Old 02-23-2012, 03:34 PM
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blue edwards blue edwards is offline
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Quote:
Originally Posted by motocat View Post
Wrong, the fed can, and has raised rates, they have the power to create and destroy money supply, and do, to artificially influence rates. The time may come that market conditions overpower, and they are forces to follow, but given their current control, it is not now. If the market did set rates, interest rates would now be high, especially given the lack of savings. It is a myth that we have a free market, as rules of supply and demand do not currently set interest rates; thus the booms and busts created by the central bankers of the federal reserve.
the fed has raised rates in the past, that's true. but, they cant raise them now (imo) because we have $15 trillion in debt, 101% debt/gdp and a political system which cannot/will not reduce entitlements or raise taxes.
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  #8  
Old 02-23-2012, 03:38 PM
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Default Blue

Quote:
Originally Posted by blue edwards View Post
when people say this, they imply that there is a point where you should sell gold. some of the people saying this are the same ones saying the dollar is toast and paper currencies are a joke. the question then becomes (at least to me) why would i ever sell the gold, unless i needed something? even if the price in dollars runs up to $10,000...if the dollar is toast and paper currencies are a joke, why would i trade the gold for paper?

gold for land at some point? maybe

gold for stocks at some point? maybe

gold for paper? never
I am with you Blue.
Until the Central Banks quit what they are doing
Until governments do not create mountains of debt.
Until manufacturing returns to the U.S.
Until Americans stop being lazy and stupid

I guess i am not selling even if gold polls back to $1000 and silver goes to $7. It is only a matter of time until the fiat collapse thesis is realized.
__________________
"A paper currency whether backed by gold or promise-will always be at the mercy of a government entity or proxy which can cause emissions of paper sufficient to render it useless."
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  #9  
Old 02-23-2012, 03:42 PM
HighInBC HighInBC is offline
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There will be a time when I will trade my gold for income generating properties/businesses but not for some fiat currency.
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  #10  
Old 02-23-2012, 03:44 PM
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Quote:
Originally Posted by Major Miner View Post
If gold-mania hits (I think it will) where the price increases too much too quickly, and people become overcome with "irrational exuberance" (as Alan Greenspan once famously commented about the stock market some years back), then it may be a good idea to sell some gold for cash until you see another reentry point in gold. When a lot of everyday people start to comment about how gold will never decrease in value, and the same people are bragging about how they're financial geniuses because they bought gold, that may be a good time to sell bullion for cash, and use that as a "placeholder" until the gold price crashes. And if it rises too high too quickly, a crash is almost guaranteed to happen at some point.
i know what you mean and it sounds good but, i'm done trying to trade gold. i did it before and got burned. i'm not good enough to time the markets...
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