romans holiday

Come on PPT... still waiting for 850

Forget tupperware parties! We have gold parties [though with a twist] now for the suburban housewives! http://www.cnbc.com/id/15840232?video=1047978201&play=1 Trust the Americans to put a positive spin on what is in reality wealth destruction. I could imagine, viewers in India being appalled at such scenes.

Bingo. Am having techical difficulties posting the obligatory virtual gold coin. Here is the tune instead. Enjoy!

Means a guess where I come from... not sure I want to know what it means over there.

When to buy.... when to buy.... As a diversion here is a little quiz question: from which 1980's pop song comes the following lyrics? "I can't stand this indecision married with a lack of vision" Any punts?

Hoping for 850.

Yes, but 2 U-turns = 360 degrees.

Does he ever consider gold as a currency rather than an inflation hedge? How can he explain the latest advance? Seems to me he has bought into the conventional wisdom that gold will not perform in a deflation.

What I find helpful about trading a smaller percentage of my bullion is that I do not care which way the price goes short term. I find it takes the emotion out of the gold moves whether they are up or down. If it goes up jolly good, confirmation of my investment strategy and time to sell a little. If it goes down jolly good also, can add to my position with the little previously sold. That's the theory anyway... have yet to realise it in practice. I am watching this dip carefully with itchy fingers. This trade is strictly speaking not trading gold but trading US dollars; I must be convinced that gold is eventually going higher [and the dollar lower] and I must look to take profits in ounces and I should use a smaller percentage of my holding. The other bonus to this trade is my wages can go elsewhere to hedge against the possibility my convictions are wrong.............................. like silver.

900 would be nice. But not sure if we are going to get it. Given the recent strength and demand I may buy soon.

Itchy fingers anyone? Maybe some music to chill to instead. http://www.youtube.com/watch?v=lSP6pfB4tyo

In practice, I think the debt burdened economies of the west will have the lion's share of depreciation; wealth destroyed doubly in lower asset prices and a devalued currency. imo what we see in the unravelling of western finance is a power shift from developed economies to emerging economies whose currencies will remain relatively strong. I imagine those economies will eventually bring the world out of a depression. China at some point surely has to "cut the rope" and allow its currency to appreciate unless it too wants to be dragged down with the west. I suspect it is a bit nervous to cut the perceived apron strings for the moment. I am assuming the US dollar will also start to depreciate at some date.

Great article. The gist of which is all paper currencies can depreciate.

Yep, I wouldn't bet the house on silver. Gold will remain my core position with silver being a more 'peripheral" investment. If the future is characterized by wealth destruction and if currencies also depreciate, I think silver should do well as a store of value.

James Turk on silver related to gold towards the end of vid; silver/gold 20:1 http://www.cnbc.com/id/15840232?video=1043145353&play=1

Excellent chart. Though the I think the commentary is a little inconsistent: Firstly, the author makes the correct point that investors are going into gold as currencies depreciate. However, we have not even started to see currency depreciation in the US dollar yet. If it depreciates something like 50% we should see gold at around $2000 and the Dow remaining around these prices maybe a little lower [loss of real value due to currency depreciation though nominal price could remain roughly the same]. If the gold/Dow ratio went lower gold would most probably go a little higher with the Dow coming down below 6000.

Still could be.

http://www.greenenergyinvestors.com/index....amp;#entry97722 I have for some time now been starting to think all stocks everywhere, all financial assets will suffer in this economic implosion [previously, I had been considering buying into mining/energy stocks]. Reading the above thread helps to confirm it for me that the only place money may survive is in monetary metal. Whereas the past was characterized by growth the future looks likely to be characterized by wealth destruction. Also, the primary way to destroy this illusory wealth will be depreciation of currencies which may of course reflect in nominal gains but will represent nothing real.

James Turk made some interesting points about the gold/silver thing on FSN today. The main point being gold is inelastic [constant] as opposed to silver's elasticity [in regard to demand]. If deflation does set in, the conventional wisdom is gold will perform best. Yet, I am thinking that silver will also perform well as demand for it as "poor man's gold" should increase due to most currencies depreciating this time round.

Good post. Welcome to the dark side.

I'd just add that 1] above could hold true in a deflationary environment where fiat along with all paper assets depreciates in real terms.

Marvellously and bullishly painted Steve. I see the shift from the late plunge below the blue line to the latest break out above it as marking a shift in the markets perception of gold; from a commodity to a currency [store of value].

Ratio looks to be consistently coming down. Silver looks like the one to buy at the moment... considering of course how much gold compared to silver you already hold. http://howestreet.com/audiovideo/index.php...ediaplayer/1111

music to chill to.