Silver to $250 an oz...

[andycrazn]

Originally Posted by FrankMatthews

Originally Posted by cguy610

Originally Posted by FrankMatthews


Both oil and PM prices are a result of speculators searching for profit.  There is no supply/demand mechanism supporting these prices outside of people demanding yield.  If it was as easy to enter commodity markets as it is gold markets or say oil markets through the use of ETFs and derivatives you would see speculators running those prices up as well.  Cotton, for example, may have looked like a bubble to some but there were concrete supply/demand constraints that caused that although institutional investors did a little speculating which no doubt amplified the price increase.  As financial instruments evolve you will see more bubbles across all asset classes. 

Are you aware of the country's budget deficits and increasing debt, and how this will impact the real value of the dollar?

You say housing was a bubble.  In some areas it was, in my area is wasn't and home prices are down between 5-10%.  That has more to do with the economy than a real bubble. 

Putting all of your money into any single asset class is very risky, whether it is stocks, your house, precious metals, etc.  A house is still an asset, you still need a place to live, how much you decide to pay for it is your own responsibility. 

What does budget deficits have to do with buying silver? srs

When was the last time home prices were down 5-10%?  Prices are relative to the supply and demand, in most cases there is much more supply than demand for houses especially considering how hard it is to get a loan these days.  How anyone can say housing wasn't/isn't a bubble is beyond me.

Difference is a house, as you pointed out, has a practical use.  It is not strictly for turning a profit or storing your cash.  Houses can also be an income generating investment.  Metals have neither of those qualities which make it that much worse than investing in housing.


I still am waiting for a rational investment strategy for PMs.  How about some technical or fundamental analysis or some valuation models?  None of you have a clue what you are doing.  You are just sinking money in this investment in the hope it will payoff.  No one has a feasible entry or exit strategy.  No one can even give me a target price that they didn't pull out of their butt.  Everyone is just following the crowd, things will not end well for you all. 

im gonna assume you follow keynesian economics cause gold and silver is the same thing. they are both real money. gold is real wealth while silver will mostly be used for everyday purchases. silver is also a commodity and is consumed in a lot of places not just in jewelry. theres "peak" silver and this could be from EROI.

 

[andycrazn]

Originally Posted by FrankMatthews

Originally Posted by cguy610

Originally Posted by FrankMatthews


Both oil and PM prices are a result of speculators searching for profit.  There is no supply/demand mechanism supporting these prices outside of people demanding yield.  If it was as easy to enter commodity markets as it is gold markets or say oil markets through the use of ETFs and derivatives you would see speculators running those prices up as well.  Cotton, for example, may have looked like a bubble to some but there were concrete supply/demand constraints that caused that although institutional investors did a little speculating which no doubt amplified the price increase.  As financial instruments evolve you will see more bubbles across all asset classes. 

Are you aware of the country's budget deficits and increasing debt, and how this will impact the real value of the dollar?

You say housing was a bubble.  In some areas it was, in my area is wasn't and home prices are down between 5-10%.  That has more to do with the economy than a real bubble. 

Putting all of your money into any single asset class is very risky, whether it is stocks, your house, precious metals, etc.  A house is still an asset, you still need a place to live, how much you decide to pay for it is your own responsibility. 

What does budget deficits have to do with buying silver? srs

When was the last time home prices were down 5-10%?  Prices are relative to the supply and demand, in most cases there is much more supply than demand for houses especially considering how hard it is to get a loan these days.  How anyone can say housing wasn't/isn't a bubble is beyond me.

Difference is a house, as you pointed out, has a practical use.  It is not strictly for turning a profit or storing your cash.  Houses can also be an income generating investment.  Metals have neither of those qualities which make it that much worse than investing in housing.


I still am waiting for a rational investment strategy for PMs.  How about some technical or fundamental analysis or some valuation models?  None of you have a clue what you are doing.  You are just sinking money in this investment in the hope it will payoff.  No one has a feasible entry or exit strategy.  No one can even give me a target price that they didn't pull out of their butt.  Everyone is just following the crowd, things will not end well for you all. 

im gonna assume you follow keynesian economics cause gold and silver is the same thing. they are both real money. gold is real wealth while silver will mostly be used for everyday purchases. silver is also a commodity and is consumed in a lot of places not just in jewelry. theres "peak" silver and this could be from EROI.

 

[andycrazn]

oh and frank my price target for silver is $5000 an oz and 81000 for gold. but they can also hit 2 other targets and that is 0 in that case it BECAME MONEY and it doesnt have to be valued in dollars anymore. the other is INFINITE when its still priced in dollars and we get hit with hyperinflationary depression.

 

[andycrazn]

oh and frank my price target for silver is $5000 an oz and 81000 for gold. but they can also hit 2 other targets and that is 0 in that case it BECAME MONEY and it doesnt have to be valued in dollars anymore. the other is INFINITE when its still priced in dollars and we get hit with hyperinflationary depression.

 

[Betonblck]

Originally Posted by FrankMatthews


What does budget deficits have to do with buying silver? srs

When was the last time home prices were down 5-10%?  Prices are relative to the supply and demand, in most cases there is much more supply than demand for houses especially considering how hard it is to get a loan these days.  How anyone can say housing wasn't/isn't a bubble is beyond me.

Difference is a house, as you pointed out, has a practical use.  It is not strictly for turning a profit or storing your cash.  Houses can also be an income generating investment.  Metals have neither of those qualities which make it that much worse than investing in housing.


I still am waiting for a rational investment strategy for PMs.  How about some technical or fundamental analysis or some valuation models?  None of you have a clue what you are doing.  You are just sinking money in this investment in the hope it will payoff.  No one has a feasible entry or exit strategy.  No one can even give me a target price that they didn't pull out of their butt.  Everyone is just following the crowd, things will not end well for you all. 

You talk all this stuff about speculators but if these markets are so controlled by speculators, where is the volatility?  If the reason for these prices are speculators, we should be seeing wild price swings in oil and precious metals.  We had a few crazy weeks in gold when it went to $1900 but its stable again and settled around the $1650 for the past couple weeks. 

 

[Betonblck]

Originally Posted by FrankMatthews


What does budget deficits have to do with buying silver? srs

When was the last time home prices were down 5-10%?  Prices are relative to the supply and demand, in most cases there is much more supply than demand for houses especially considering how hard it is to get a loan these days.  How anyone can say housing wasn't/isn't a bubble is beyond me.

Difference is a house, as you pointed out, has a practical use.  It is not strictly for turning a profit or storing your cash.  Houses can also be an income generating investment.  Metals have neither of those qualities which make it that much worse than investing in housing.


I still am waiting for a rational investment strategy for PMs.  How about some technical or fundamental analysis or some valuation models?  None of you have a clue what you are doing.  You are just sinking money in this investment in the hope it will payoff.  No one has a feasible entry or exit strategy.  No one can even give me a target price that they didn't pull out of their butt.  Everyone is just following the crowd, things will not end well for you all. 

You talk all this stuff about speculators but if these markets are so controlled by speculators, where is the volatility?  If the reason for these prices are speculators, we should be seeing wild price swings in oil and precious metals.  We had a few crazy weeks in gold when it went to $1900 but its stable again and settled around the $1650 for the past couple weeks. 

 

[hankmoody]

Originally Posted by andycrazn

oh and frank my price target for silver is $5000 an oz and 81000 for gold.

5 THOUSAND? 81 THOUSAND?

I'd love to see any analysis or commentary on these price points.

 

[hankmoody]

Originally Posted by andycrazn

oh and frank my price target for silver is $5000 an oz and 81000 for gold.

5 THOUSAND? 81 THOUSAND?

I'd love to see any analysis or commentary on these price points.

 

[biggie62]

Originally Posted by HankMoody

Originally Posted by andycrazn

oh and frank my price target for silver is $5000 an oz and 81000 for gold.

5 THOUSAND? 81 THOUSAND?

I'd love to see any analysis or commentary on these price points.

 

[biggie62]

Originally Posted by HankMoody

Originally Posted by andycrazn

oh and frank my price target for silver is $5000 an oz and 81000 for gold.

5 THOUSAND? 81 THOUSAND?

I'd love to see any analysis or commentary on these price points.

 

[seniosoul]

Originally Posted by Biggie62

Originally Posted by HankMoody

Originally Posted by andycrazn

oh and frank my price target for silver is $5000 an oz and 81000 for gold.

5 THOUSAND? 81 THOUSAND?

I'd love to see any analysis or commentary on these price points.

whats the stock symbol for silver and gold.
and how do you get your money back once you buy the scottdale silver and gold....

 

[seniosoul]

Originally Posted by Biggie62

Originally Posted by HankMoody

Originally Posted by andycrazn

oh and frank my price target for silver is $5000 an oz and 81000 for gold.

5 THOUSAND? 81 THOUSAND?

I'd love to see any analysis or commentary on these price points.

whats the stock symbol for silver and gold.
and how do you get your money back once you buy the scottdale silver and gold....

 

[rightguard]

gld is a good stock

 

[rightguard]

gld is a good stock

 

[andycrazn]

Originally Posted by Biggie62

Originally Posted by HankMoody

Originally Posted by andycrazn

oh and frank my price target for silver is $5000 an oz and 81000 for gold.

5 THOUSAND? 81 THOUSAND?

I'd love to see any analysis or commentary on these price points.

this guys info is similar to my info that i got. my numbers came from GATA and thats how i reached the conclusion of 81,000. he got a different number which was 53,000. then the historical ratio of gold to silver was 16 to 1.



From Egon von Greyerz of Gold Switzerland

Too Late To Jump On The Goldwagon?
[h3]The Stealth Market in Gold[/h3]
Gold has gone up for 12 straight years in a stealth market. In the last ten years gold has had a compound annual growth of 20.5%.  This is an absolutely outstanding return but investors should not look at gold as an investment but as money. Gold reflects governments’ deceitful actions in totally destroying the value of paper money by printing unlimited amounts of it. With gold up 7 times since the bottom in 1999, is it too late to jump on the Goldwagon?



The answer to the above question is a categorical NO. Virtually no major investor group has participated in gold’s spectacular rise. In spite of a seven fold increase in the gold price, only circa 1% of world financial assets are invested in gold. Whenever I talk to major institutional investors, not only do they not own gold, but they don’t understand gold either. I was speaking at a conference for Family Offices recently where there were circa 250 family office managers present representing substantial funds. Not only did no one own gold, but they had no understanding of gold’s role as an investment class or the fact that measured in real money, i.e. in gold, their investments were declining precipitously. It must be unprecedented that an important asset class can go up for such a long period with so few investors participating. In my view this is the most bullish sign ever for gold. The mess the world is in will lead to unprecedented money printing in the US, EU, the UK and many more regions. And gold will continue to reflect the destruction of paper money. In addition, investors will increasingly mistrust paper gold and invest in physical gold only. Due to the very limited availability of physical gold, the increase in demand can only be satisfied at substantially higher prices.

[h3]Gold price projection[/h3]
There are many ways to project how high the gold price can reach. Adjusting gold for real (not the published, manipulated) inflation the price would be circa $7,500. At the recent GATA conference, Adrian Douglas put forward a target of $53,000 an oz based on M3. He said that that out of every 33 oz of gold traded 32 oz are paper gold, which would lead to a price projection of $53,000 also, if all trading were backed by physical gold.
The following chart shows where gold would be if the US gold reserves were at the same percentage (52%) of us debt as in 1913 when the Fed was founded. Gold would then be $27,000 today and going up to $33,000 in 2015 with a projected increase in debt of $ 6.5 trillion (6.5T).



All of the above projections are subjective and therefore somewhat arbitrary. However, whatever method is used, gold is undervalued on any measure.  We are not just talking about a substantial undervaluation but more importantly that paper money is likely to be totally destroyed in the next few years with the gold price reflecting this obliteration. It is absolutely impossible to forecast how much money will be printed but the flood of paper could lead to many zeroes being added to the gold price just like in any hyperinflationary economy. For example, in 1923 in the Weimar Republic gold reached 100 trillion marks. Gold (and silver) is a critical asset to hold in order to preserve wealth against such a hyperinflationary destruction of paper money.
[h3]Physical versus Paper Gold[/h3]
Circa 96% of all gold trading is paper. For anyone who demands delivery, there will be no gold to deliver. At the GATA conference in London Jim Rickards stated that currency wars will lead to the US government taking back (confiscating) whatever gold it has lent to bullion banks as well as gold it holds for other nations (most of Germany’s gold is said to be held in New York). He also mentioned a potential 90% windfall tax on gold. In a subsequent King World interview (click to listen), Eric King discussed with Rickards that the US government has keys to Via Mat’s US vaults.

It is of course not possible to predict what desperate governments will do, nor is it possible to protect yourself against every eventuality. What is very clear is that simple action can and will give investors a better chance of preserving wealth:

• Only buy  physical allocated gold/silver bars or coins
• Store the gold outside the country where you are resident.
• Store the gold in a country with a stable political system (like Switzerland)
• Store the gold outside the banking system in vaults with no US connection.
• Make sure you have personal access to your gold and/or silver

[h3]Gold Making New Highs[/h3]
Gold has recently made new highs against most currencies. In addition, after longer consolidations, the Dow is breaking down against gold (down 85% in 12 years), and gold is breaking up against both Oil and the Swiss Francs.







These break outs are potentially very significant and will most probably lead to a strong up-move in the gold price in the next few months.

[h3]Kicking the Can[/h3]
The world is in an absolute mess, economically, financially, politically and morally. And let me be very clear; this has been evident for at least 10-15 years. The only thing that has not been clear is how long governments and central banks could deceive the people by kicking the can down the road in an endless creation of worthless pieces of paper that they call money. The lone voices of some market analysts, forecasting that the manipulation and mismanagement of the people’s wealth would end in disaster, have for long been silenced by the establishment in order to betray the gullible masses.

Intellectually dishonest and corrupt politicians and bankers have devised a system which has created perceived, debt-based wealth for the people whilst buying votes and generating massive wealth for the bankers.

But this Ponzi scheme is now coming to an end. When printed money can only be repaid with more printed money and when there are no buyers for the worthless debt instruments created by governments except for the government itself, then we have reached the end of the road with a “can too big to kick

 

[andycrazn]

Originally Posted by Biggie62

Originally Posted by HankMoody

Originally Posted by andycrazn

oh and frank my price target for silver is $5000 an oz and 81000 for gold.

5 THOUSAND? 81 THOUSAND?

I'd love to see any analysis or commentary on these price points.

this guys info is similar to my info that i got. my numbers came from GATA and thats how i reached the conclusion of 81,000. he got a different number which was 53,000. then the historical ratio of gold to silver was 16 to 1.



From Egon von Greyerz of Gold Switzerland

Too Late To Jump On The Goldwagon?
[h3]The Stealth Market in Gold[/h3]
Gold has gone up for 12 straight years in a stealth market. In the last ten years gold has had a compound annual growth of 20.5%.  This is an absolutely outstanding return but investors should not look at gold as an investment but as money. Gold reflects governments’ deceitful actions in totally destroying the value of paper money by printing unlimited amounts of it. With gold up 7 times since the bottom in 1999, is it too late to jump on the Goldwagon?



The answer to the above question is a categorical NO. Virtually no major investor group has participated in gold’s spectacular rise. In spite of a seven fold increase in the gold price, only circa 1% of world financial assets are invested in gold. Whenever I talk to major institutional investors, not only do they not own gold, but they don’t understand gold either. I was speaking at a conference for Family Offices recently where there were circa 250 family office managers present representing substantial funds. Not only did no one own gold, but they had no understanding of gold’s role as an investment class or the fact that measured in real money, i.e. in gold, their investments were declining precipitously. It must be unprecedented that an important asset class can go up for such a long period with so few investors participating. In my view this is the most bullish sign ever for gold. The mess the world is in will lead to unprecedented money printing in the US, EU, the UK and many more regions. And gold will continue to reflect the destruction of paper money. In addition, investors will increasingly mistrust paper gold and invest in physical gold only. Due to the very limited availability of physical gold, the increase in demand can only be satisfied at substantially higher prices.

[h3]Gold price projection[/h3]
There are many ways to project how high the gold price can reach. Adjusting gold for real (not the published, manipulated) inflation the price would be circa $7,500. At the recent GATA conference, Adrian Douglas put forward a target of $53,000 an oz based on M3. He said that that out of every 33 oz of gold traded 32 oz are paper gold, which would lead to a price projection of $53,000 also, if all trading were backed by physical gold.
The following chart shows where gold would be if the US gold reserves were at the same percentage (52%) of us debt as in 1913 when the Fed was founded. Gold would then be $27,000 today and going up to $33,000 in 2015 with a projected increase in debt of $ 6.5 trillion (6.5T).



All of the above projections are subjective and therefore somewhat arbitrary. However, whatever method is used, gold is undervalued on any measure.  We are not just talking about a substantial undervaluation but more importantly that paper money is likely to be totally destroyed in the next few years with the gold price reflecting this obliteration. It is absolutely impossible to forecast how much money will be printed but the flood of paper could lead to many zeroes being added to the gold price just like in any hyperinflationary economy. For example, in 1923 in the Weimar Republic gold reached 100 trillion marks. Gold (and silver) is a critical asset to hold in order to preserve wealth against such a hyperinflationary destruction of paper money.
[h3]Physical versus Paper Gold[/h3]
Circa 96% of all gold trading is paper. For anyone who demands delivery, there will be no gold to deliver. At the GATA conference in London Jim Rickards stated that currency wars will lead to the US government taking back (confiscating) whatever gold it has lent to bullion banks as well as gold it holds for other nations (most of Germany’s gold is said to be held in New York). He also mentioned a potential 90% windfall tax on gold. In a subsequent King World interview (click to listen), Eric King discussed with Rickards that the US government has keys to Via Mat’s US vaults.

It is of course not possible to predict what desperate governments will do, nor is it possible to protect yourself against every eventuality. What is very clear is that simple action can and will give investors a better chance of preserving wealth:

• Only buy  physical allocated gold/silver bars or coins
• Store the gold outside the country where you are resident.
• Store the gold in a country with a stable political system (like Switzerland)
• Store the gold outside the banking system in vaults with no US connection.
• Make sure you have personal access to your gold and/or silver

[h3]Gold Making New Highs[/h3]
Gold has recently made new highs against most currencies. In addition, after longer consolidations, the Dow is breaking down against gold (down 85% in 12 years), and gold is breaking up against both Oil and the Swiss Francs.







These break outs are potentially very significant and will most probably lead to a strong up-move in the gold price in the next few months.

[h3]Kicking the Can[/h3]
The world is in an absolute mess, economically, financially, politically and morally. And let me be very clear; this has been evident for at least 10-15 years. The only thing that has not been clear is how long governments and central banks could deceive the people by kicking the can down the road in an endless creation of worthless pieces of paper that they call money. The lone voices of some market analysts, forecasting that the manipulation and mismanagement of the people’s wealth would end in disaster, have for long been silenced by the establishment in order to betray the gullible masses.

Intellectually dishonest and corrupt politicians and bankers have devised a system which has created perceived, debt-based wealth for the people whilst buying votes and generating massive wealth for the bankers.

But this Ponzi scheme is now coming to an end. When printed money can only be repaid with more printed money and when there are no buyers for the worthless debt instruments created by governments except for the government itself, then we have reached the end of the road with a “can too big to kick

 

[Moheezy]

Originally Posted by DJMano34

All your questions and thoughts

 this is eyeopening. Thanks for sharing.

 

[Moheezy]

Originally Posted by DJMano34

All your questions and thoughts

 this is eyeopening. Thanks for sharing.

 

[devildog1776]

once the flood gates are opened, all possibilities are on the table...

5000 and 81000 is a little far fetch but cannot be taken off the table because of the massive derivative markets ready to collapse.. when that occurs ah man, i dont want to even think about it...


the titanic is sinking and what politicians and their capitalist bosses do is move the chairs around and continue the music when they should be looking for life rafts and life vests....

250 and 5000 is still on the table as of today, and those numbers look so small compared to the paper being funneled around this black market.....

Im bout to cop some more silver and gold when i come from my central american trip next week... El SALVADOR here i come!!!!!

 

[devildog1776]

once the flood gates are opened, all possibilities are on the table...

5000 and 81000 is a little far fetch but cannot be taken off the table because of the massive derivative markets ready to collapse.. when that occurs ah man, i dont want to even think about it...


the titanic is sinking and what politicians and their capitalist bosses do is move the chairs around and continue the music when they should be looking for life rafts and life vests....

250 and 5000 is still on the table as of today, and those numbers look so small compared to the paper being funneled around this black market.....

Im bout to cop some more silver and gold when i come from my central american trip next week... El SALVADOR here i come!!!!!

 

[frankmatthews]

Originally Posted by cguy610

You talk all this stuff about speculators but if these markets are so controlled by speculators, where is the volatility?  If the reason for these prices are speculators, we should be seeing wild price swings in oil and precious metals.  We had a few crazy weeks in gold when it went to $1900 but its stable again and settled around the $1650 for the past couple weeks. 

Uhh where you been at, we have seen plenty of volatility and wild price swings in both oil and gold.  It's not gonna happen everyday.  Industrial and cosmetic uses of gold certainly isn't driving the price. 

Rightguard wrote:

---

gld is a good stock

GLD is not a stock it is an ETF and tracks the spot price through the use of derivatives.  It is not real gold and you cannot actually get any gold by owning GLD.

andycrazn wrote:

---

I can see how your copy/paste job may seem logical and even enticing to someone without a background in finance or financial markets but that article is ridiculous.  It even tells you that their valuations are subjective and arbitrary.  What does 1913 fed debt/reserve ratios have to do with anything in this present day?  They are valuing it in terms of real inflation? A figure I suppose they calculated themselves and conveniently forgot to mention, hyperinflation i'm assuming?  And it is dependent on all trading being backed by physical?  What kind of fairy tale is this?  A person can project literally any price they would like if they fabricate enough variables.

 

[frankmatthews]

Originally Posted by cguy610

You talk all this stuff about speculators but if these markets are so controlled by speculators, where is the volatility?  If the reason for these prices are speculators, we should be seeing wild price swings in oil and precious metals.  We had a few crazy weeks in gold when it went to $1900 but its stable again and settled around the $1650 for the past couple weeks. 

Uhh where you been at, we have seen plenty of volatility and wild price swings in both oil and gold.  It's not gonna happen everyday.  Industrial and cosmetic uses of gold certainly isn't driving the price. 

Rightguard wrote:

---

gld is a good stock

GLD is not a stock it is an ETF and tracks the spot price through the use of derivatives.  It is not real gold and you cannot actually get any gold by owning GLD.

andycrazn wrote:

---

I can see how your copy/paste job may seem logical and even enticing to someone without a background in finance or financial markets but that article is ridiculous.  It even tells you that their valuations are subjective and arbitrary.  What does 1913 fed debt/reserve ratios have to do with anything in this present day?  They are valuing it in terms of real inflation? A figure I suppose they calculated themselves and conveniently forgot to mention, hyperinflation i'm assuming?  And it is dependent on all trading being backed by physical?  What kind of fairy tale is this?  A person can project literally any price they would like if they fabricate enough variables.

 

[jannydung]

if the economy collapses and we have a crap load of silver and gold, what intrinsic values do these metals have?

 

[jannydung]

if the economy collapses and we have a crap load of silver and gold, what intrinsic values do these metals have?

 

[frankmatthews]

From what I am hearing there are two trains of thought here on investing in PMs.  None of which involve any real, statistically significant analysis or valuation but I guess it's all you guys have to offer up. 

So the first is that as the dollar looses value and we go into hyperinflation(which is not a given and no one here has a probability % of that happening) gold will increase in terms of a weaker dollar?  Is that correct? 

What some of you may not realize is that in this scenario, EVERYTHING increases in price.  Bread, milk, Mcdonalds, everything.  You are not making a profit in this scenario.  The $81,000 you are expecting to get for your gold will not buy you what $81,000 will buy you today.  It will buy you exactly the same amount of stuff as $1600 will today, if the price increase is due to inflation and all else is held constant.  And good luck finding anyone to purchase your gold if the situation deteriorates to that extent. 


The second scenario seems to be that PMs or gold are "real money" and that when the system deteriorates people will start circulating bullion as dollars are circulated today and that demand for money is what causes the price to increase. 

First off, tell me how gold is anymore of a "real" currency than paper or any other commodity?  We could just as easily be talking about diamonds or plastic for that matter.  It has value because people perceive it to have value.  You can't get anymore out of a gold coin than you can out of a dollar bill except for the fact that people have assigned it a value and believe and mutually agree that it is worth a defined amount.  Sounds very similar to fiat albeit not govt. backed.

The following is a list of reasons why it is impossible to have PMs as circulated currency:

-There is not enough gold or silver in the world to account for the amount of currency in the global system. 

-The yearly growth of the worldwide economy could not exceed the amount of new PMs taken from the ground yearly. 

-No wage increases, no profit increases for companies.  You have what you have unless you can get your hands on some of the below ground PMs.

-If gold ever becomes a currency the price will be set, no more trading markets and spot pricing,  and it certainly won't be set anywhere near $5000 an ounce or even $1000.  You gonna take a pebble of gold to the store to buy a loaf of bread?

-Of course setting the price of gold requires that there still be paper currency circulating to set the price in.  How are you gonna set prices of all goods and services globally or even nationally in terms of gold with no currency or a hyper inflated currency as a reference point?

-You think all the other countries are going to go along with this set pricing?  You think they will contribute their gold reserves to the new money supply at a rate set by the US? 

-The country with the largest gold reserve immediately becomes the most powerful.  Can you imagine the international turmoil, there would be wars.

-Google "coin clipping".  PMs as currency doesn't work.

-The format of gold as a currency would have to be standardized.  There will not just be random bars and various types of coins circulating.  You may be forced to hand in your gold at a rate of the govt's choosing or face not being able to redeem your various forms of gold at all. It happened not so long ago.  You know physical gold was illegal to own up until the 1970s?

-How long before the circulated coins purity starts to decrease?  90%, 80%, 70%......hyper-inflation!

-For all you conspiracy nuts, this is that NWO, one-world currency you all are afraid of.  How nice is it that they are broadcasting non-stop about the benefits of owning gold so mom and pop will be well prepared for the impending NWO takeover.

  NT usually knows a trap when it sees it.


I can go on and on but i think you get the picture.  I have given up on any reasonable discussion of valuation or trading strategy.  You ask any professional investor and they will tell you that you need an entry price, a stop loss price, an exit price(profit) and a reason for each before you commit any money to a trade.  You all don't seem to be doing any of that.  Hopefully you may all learn something here.  I know it is nice to see your assets appreciate and I know it is tempting to buy into gold even at these levels when you hear some of these totally baseless predictions but I am telling you all that you need to devise an exit strategy.  You guys don't realize how much risk you are taking.  Find another way to make money or preserve your capital.  Maybe I can't talk you out of buying gold but at least maybe you will consider some other asset classes or other ways to prepare your self in the event of economic collapse.  I wouldn't even waste my time writing all this if i wasn't seriously concerned about the amount of people falling for this trap.  I don't have money long or short in gold so what you guys do won't affect me.  Understand i'm just trying to look out for those without investment experience and/or well rounded knowledge of financial markets.

Please tell me why i'm wrong.