Gold and Silver: watching the USD go tits-up

[sillyperson]

Gold spot price over $900, silver flirting with $13

Today's headlines:
http://www.bloomberg.com/apps/news?pid=20601081&sid=aD3IX705Vy1Q

(Bloomberg) -- Gold and silver advanced on rising demand for a store of value after the International Monetary Fund projected the global economy to contract this year.

http://www.marketwatch.com/news/story/Gold-rises-above-900-copper/story.aspx?guid={9889212C-BA50-405C-9AEC-6DF745F48395}

NEW YORK (MarketWatch) -- Gold rose Thursday above $900 for the first time in nearly three weeks after data showed a big increase in claims for U.S. unemployment benefits, raising economic worries and increasing the precious metal's value as a safe asset.

I am sure this is just a temporary thing, gold will be back down to $820 or so in the next few weeks. But still.... it's a clear indication, the markets are jittery.

[NHArticleTen]

Gold over $3K, Silver to $200, Dow falls past 2,900, Homeless Starving People Everywhere...

http://www.campaignforliberty.com/blog.php?view=16184

here is the snippet from the bottom of that page:

To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down.

[TimeLady Victorious]

Gold over $3K, Silver to $200, Dow falls past 2,900, Homeless Starving People Everywhere...

http://www.campaignforliberty.com/blog.php?view=16184

here is the snippet from the bottom of that page:

To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down.

Silver to gold ratio 16:1?

That sounds sort of familiar . . .

sort of . . .

sort of almost like

[Bill Brasky]

Gold over $3K, Silver to $200, Dow falls past 2,900, Homeless Starving People Everywhere...

http://www.campaignforliberty.com/blog.php?view=16184

here is the snippet from the bottom of that page:

To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down.

Who the fuck is this douche trying to flim-flam with fuzzy numbers, besides you?

You can't run a trend of gold from 1900 til now and then a 'stock' chart from 2003 til now, and expect the numbers to be valid.

Fact is, if you bought $1000 worth of gold in 1900, when it was $20.67 per oz (look it up), that woulda bought you roughly 50 oz of gold.  Today, your $1,000 investment 109 years later would be worth a grand total of $44,500.  Which, by the way, is approximately what I'd expect a thousand bucks of buying power in 1900 to be worth.  A model T car was about $300, today an average Ford is about $15k.  Do the math.  That shows it follows inflation almost exactly to the penny.  It is a hedge.  Its like putting your money in a time capsule, and when you wake up a hundred years later, you can still buy ten loaves of bread with the $20 in your pocket.  It is *NOT* an investment. 

If you invested $1,000 wisely in 1900, meaning you knew what you were doing, and used some creativity through the Great Depression, you'd be a fuckin zillionaire right now. 

Now, when gold rises 400%, in ten years, you know what I'll say?  Whoop-de-frickin-doo.  If I'm struggling along at 400% ROI ten years from now, I'll just join a fucking circus or something. 

[Harry Tuttle]

Agreed. I see gold and silver as better store of value than, say, a savings account. Some gold/silver coins put away for my young-un will be welcome when cashed-in 20 years from now.

I think NHA10 is betting on the US monetary system completely crashing and humans having to survive on barter. If that were to happen then he would be right.

[NHArticleTen]

Agreed. I see gold and silver as better store of value than, say, a savings account. Some gold/silver coins put away for my young-un will be welcome when cashed-in 20 years from now.

I think NHA10 is betting on the US monetary system completely crashing and humans having to survive on barter. If that were to happen then he would be right.

at this point I don't think it's a "bet"...

ever tried to re-inflate a balloon after it's fallen into a fire?

hmmm....

[sillyperson]

targeting at least $3,130.00

This is where Denis' BS detector goes off so loud it hurts his frickin' ears.

That's a pretty precise number: $3,130.00? Why not $3,140? Too many significant figures. Some jackball flamboozler is taking the RP sheelpe for a ride.

That said, the silver/gold ratio is so out of whack, when things do correct and the USD goes tits-up, it's gonna be silver that makes the real money.

As for the long-term trend mentioned by Brasky: well, you're right, but I would expect a daytrader understands that the money is made in the fluctuations, not the averages. For a short while -- weeks, months, or a very few years -- the USD is going to be worth bupkiss, no mire than the IMF SDO's that will be used to prop it up (which are themselves based in part on USD's). It is during that transitional period that the physical metal will have insane purchasing power. That is when you sell (or more likely, barter) the metal for apartment complexes, land, stocks, etc. Stuff that will have great value and provide passive income once a functioning economy reasserts itself. As it always does.

[NHArticleTen]

"tits"

lol

[Alex Libman]

Investing in metals results in a funny psychological phenomenon for someone like me: even if they go up, you still feel bad about it.  C'mon, gold is for old people who've saved enough money and value stability above all else.  Most of us here are young and productive, we can take a little risk!

Betting on the long-term stupidity of the entire human race just feels wrong, and that's exactly what this is.  You're betting that the human race won't produce a more stable currency, won't do anything productive enough to outpace the difference between inflation and gold production, and/or won't be able to dig out more metals at a faster pace.  (That last one isn't relevant if you invest in mining companies as well.)  What a bleak future it is if gold and silver are the best investments out there!  And you're also betting that the government won't just take your gold through violence, as they have in the past, which is a total contradiction!

[TimeLady Victorious]

Investing in metals results in a funny psychological phenomenon for someone like me: even if they go up, you still feel bad about it.  C'mon, gold is for old people who've saved enough money and value stability above all else.  Most of us here are young and productive, we can take a little risk!

Betting on the long-term stupidity of the entire human race just feels wrong, and that's exactly what this is.  You're betting that the human race won't produce a more stable currency, won't do anything productive enough to outpace the difference between inflation and gold production, and/or won't be able to dig out more metals at a faster pace.  (That last one isn't relevant if you invest in mining companies as well.)  What a bleak future it is if gold and silver are the best investments out there!  And you're also betting that the government won't just take your gold through violence, as they have in the past, which is a total contradiction!

the best long-term investment is freeze-dried food and shotguns

[Alex Libman]

No, humanity keeps getting better at making those, thus reducing their value.

Reasonable self-sufficiency is one thing, but betting on civilization to collapse is ridiculous.  (And this is coming from someone who sees a huge coming demographic crisis, see the "Childless Tax" thread.)  Another good investment is mobility: being able to up and move to whatever part of the world is doing the best, which requires marketable career skills, knowledge of languages, cultures, and so on.  (But for now USA is still #1.)

[NHArticleTen]

Investing in metals results in a funny psychological phenomenon for someone like me: even if they go up, you still feel bad about it.  C'mon, gold is for old people who've saved enough money and value stability above all else.  Most of us here are young and productive, we can take a little risk!

Betting on the long-term stupidity of the entire human race just feels wrong, and that's exactly what this is.  You're betting that the human race won't produce a more stable currency, won't do anything productive enough to outpace the difference between inflation and gold production, and/or won't be able to dig out more metals at a faster pace.  (That last one isn't relevant if you invest in mining companies as well.)  What a bleak future it is if gold and silver are the best investments out there!  And you're also betting that the government won't just take your gold through violence, as they have in the past, which is a total contradiction!

I'm betting that those fuckers will put their dirty fingers into everyone's pies...

they will suck blood til there's absolutely none left...

cause there's always more willing victims...

take your pick of six billion today...

tomorrow=6B minus one...

day after=6B-two...

and so on...

so forth...

hmm...

njy

[Alex Libman]

I appreciate the triangularity of your logic there.  But not its substance.

Yes, we are all slaves, but the economy will continue to grow.

[NHArticleTen]

I appreciate the triangularity of your logic there.  But not its substance.

Yes, we are all slaves, but the economy will continue to grow.

what "economy"?

"grow"?

[Alex Libman]

Economy = total productivity of the human civilization

Grow = increase over time