G0ldfinger

Indeed an oracle!

Nice +$50 run-up. Volatility now at spiritual levels. Sorta.

Gold is holding up pretty well, the Dow and houses still look like awful turds in terms of gold. I have always been interested in the fair nominal price of gold given current M3 levels. Most estimates are north of $10,000. Regarding money, they produce arbitrary amounts of it at the moment. So, watch out. I wish you good luck with US Treasuries and Federal Reserve Notes.

It's important that Indians take delivery, but it is even more important that annual gold production is only a small fraction of the global gold stock. This is the characteristic of a commodity used as money: actual production/reduction is marginal. I don't think that it mattered much what India did between 1974 and 1980.

We'll see. Gold is now very volatile. Fundamentally I still see better chances of $3,000 than $300 over the medium term. Markovitz is nice for pension funds and elderly people who have to lose a lot. But Hank's and Ben's commodities deleveraging (as genius as it was) went wrong and now the stock markets do even worse than before. The sheeple get herded into the US-Treasuries slaughterhouse at the moment. Those who can call the point of no return and can get into physical gold in time, I admire them. But where are they? Maybe they have missed the time to get into physical already. As for paper gold, there seems to be more than enough around.

I think I recall that $9-$12/oz is the production cost for some. No, there is no floor for paper silver. Meanwhile, coins still sell for the same prices as 8 months ago.

Was he on margin? Or did gold plunge to zero in his currency?

I fully agree that those who want to see gold as their insurance should continue to accumulate. I will do so too, but I see gold as more than just an insurance. For the TA nerds: how about $666 as a turning point for gold? MUAHAHAHA!

I am happy to buy ALL silver in the world at price zero, and I am even happier to do so at prices below zero, Bring it on!

That's the one on GIM: http://goldismoney.info/forums/showthread.php?t=195370

Anyone who bought before middle of 2005 is still up 100% (in Sterling). Anyone having bought before middle of 2007 should still be up some 30% (exception the peak in 2006). Anyone who has bought recently possibly needs to wait a couple of years in order to get a clearer picture. As Jim Sinclair said, volatility in gold will reach spiritual levels. I think we're still in the beginning of all this. I can see no change in the fundamentals so far. The sell-off in commodities is amazing, but I don't buy into the idea that this is a long term development. If yes, I will be happy, enjoy cheap food, gas and go on overseas holidays all the time. The biggest bubble of all is still inflating, and in fact at higher and higher speed: Western government bonds. Gold will rule when this bubble bursts. We might have a few 'nice' years left before this will happen. But it could come sooner. Until then, I will continue to accumulate unless something changes dramatically in the fundamentals.

I think this here is a new version of it. Made even me laugh.

I know. Time for ...

Problem is that these threads have turned into a short term/trading discussion. I might soon start a new thread where I will discuss longer term issues only, like the one I have on GIM.

The problem is, it could turn anytime. I don't see any reason why it shouldn't go to $2,000 within short. Massive debt taken on by the Western nations (cash gets trashed, only no one seems to care yet). On the other hand, funny as the market is right now, why not $500 soon? I'll buy with both hands.

Interesting to observe this massive sell-off. Also, who knows how long it will last i.e. how long it takes these trillions to hit the markets. Let's say it will take something like one or two years. In this case, these one to two years are the buying opportunity of a lifetime in commodities.

I would like to have this kind of information BEFORE I pay. Other than that, CID has been excellent so far IMO.

My father recently bought 5 of them. Even I thought that he was crazy.

Weighted by volume in gold, the West is stupid*, and the East is clever. *Anyone, read about the 8-times multiple mortgage to some moronic City traders by HBoS?

BUY! BUY!

Given the premiums in the retail markets especially in silver, it only makes sense. James Turk predicted this a long time ago. People want their bullion NOW, not tomorrow, trusting some shady promise of a bank or hedge fund.

Hmm. Maybe the reason is that you can't build catalysts using paper platinum? Strangely enough, many investors are happy with paper gold.

This is the biggest of all bubbles yet to pop. It will be in the form of a currency crisis. We have been seeing pre-cursors of it already with the USD being so low for so long. Gold will be the ultimate crisis currency. I don't know how long they will be able to keep this game going. I don't think much more than a few years. I will become too obvious. In fact, there must be a Minsky moment for the US treasury at some stage, when new debt will just pay interest of the old one.

You want me to say something like "I will sell it all at $599.99". Sorry, but that's not how it works for me. I am a medium to long term investor. I am interested in the fundamental drivers of gold, which is why I am not taking part in the technical discussions very often. The return to a sound monetary policy would make me change my mind. Information on this is on the mentioned GIM thread as well. As long as I can't see any return to such a policy, my orientation posts stay the one outlined in that thread. I think it would be a grave mistake to take this process of deleveraging and outright market manipulation that we're seeing either as a sign that we're back to normal, or as a sign that we're entering a time of money supply or even retail price deflation (while we might see the latter in some cases short term). The US treasuries market is the biggest financial bubble on earth THAT IS STILL INFLATING. Current events are in fact accelerating this inflation. Only when this bubble finally pops, which in my opinion can't be off too long anymore (max 5-10 years), we will see the true face of the fiat system. And it won't be pretty.

That' why some people closely follow certain measures for the value of gold, e.g. here: http://goldismoney.info/forums/showthread.php?t=195370 For instance, it could be a good idea to get out of gold once the price of an average UK home has dropped below 100oz (which doesn't mean it couldn't drop to below 50oz, BTW). EDIT: Not sure why this whole discussion takes place on the gold thread, since these considerations apply to any asset. I have to suspect another motivation behind this discussion.