Gold As An Investment
California gold nugget
So, now gold is trading at prices that are closer to what they “should” be (based on official inflation figures). I guess my question is: will the gold price become more stable (and more in-line with inflation) now (in which case, it should be expected to go up “long-term” at the same rate that inflation does)? Or will it be incredibly volatile over the “long-term”…as it has been in the past.
Spot Gold … Buy The Dip?
crystalline gold
This may be the last time to buy a dip this low in price for spot gold. Much larger premiums on gold coins and bullion are building. The trend is for higher priced gold and under priced derivatives. The dollar based gold derivative markets have grown so large and have become so integrated into hedging dollar assets, that central banks will band together to crush any sizable delivery demand – forcing cash outs only.
Gold & Inflation
gold gram scale
Inflation is going to happen, no ifs, ands or buts.
The government can’t just artificially inject mega-billions into the economy and not expect any adverse ramifications. Countries have tried this in the past (think post-WWI era Europe) and have encountered economic disaster. Bush and Obama have done the exact same thing (albeit on a grander scale) and are hoping it won’t happen here.
Any investors with an understanding of economics have seen this inflation coming and are turning to gold to protect their wealth.
gold gram scales
Gold Investments – Global Equities Collapse
gold detector
For what it’s worth, I think global equities may collapse again 1) within the next 12 months and 2) before the real economy begins to recover and this will cause another flight to U.S. Treasuries. Sometime after the next equity collapse, the real stagflation will begin in the U.S. economy and USD and that will be the time to take a long position in gold and silver.
Gold is a long term holding, and may be one way the way to play the coming collapse in U.S. Treasuries and the USD.
gold metal detector
10 Months To Real Change
Australian gold nuggetThe banking bailouts: A majority of voters are not in favor.
Bailouts of GM and Chrysler: Majority unfavorable.
First Obama Stimulus Plan: Generally found inadequate or worse and not favored by the majority.
Current Health Care legislation: Majority of voters are against it.
Cap and Trade: Businesses and individuals believe it will be an economic disaster.
All of the above are disliked by the American public, yet the current administration persists in trying to push its agenda. If real reform is not soon forthcoming from those currently in office, the first chance we will have at real change will be in 10 months. Let’s not waste it. Australian gold prospecting
