romans holiday

Excellent point. It could get nasty if the IRS remain blinkered to depreciation and insist on capital gains tax. I believe In NZ there is no tax when selling gold. Also here in Korea, when I enquired out of curiosity at the gold bank, there was no tax to be paid. He was so keen to swap his worthless won for my precious but I was thinking "only out of my cold dead hands".

A sudden dollar devaluation [with the threat of continued devaluation] may be the catalyst by which hoarded money once again becomes liquid. All this money rushing out in search of a home is likely to push asset prices up again. So we would have pressure on prices from not only a devalued dollar but also an over-supply of money competing for assets. If we do not have a hyper-inflation we would surely see chronic inflation at this time. Agree that the poor STR chap with his fund could find himself priced out.

Speaking of reality, many people are going to gold not because of a "get rich quick" metality as you put it but because of an "avoid poverty" mentality. POG does not surprise me. It will "take off" when the US dollar does a Krona. Also, consider what a "take off" in POG might really mean. Say the dollar collapses and POG goes to $8000. Keep in mind that this is 8000 devalued dollars and is in reality just a preservation of purchasing power. The real power of gold will be found in its ability to buy the basic necessities of life such as shelter. Asset prices will have also come rightly down and the owner of gold will be able to afford something such as a house and no longer need a life time of debt just to have a roof over his/her head. This is not a get rich scheme.... just the just and natural desire to afford the basics of life which have been commodified and ridiculously priced in an unsound society.

DOW sliding again.... 9345.

We often saw POG move higher against a weak US dollar. Now we see gold moving up against an incredibly strong dollar. This is huge and I think the market is here recognising finally that gold is the king of currencies.

Not me! I will sell gold to buy a house.

POG will hold its own in this deflationary environment and maybe even rise a little.... IMO it will only rocket when the weaker currencies get into trouble in some currency crisis. This crisis IMO will also be the catalyst whereby building inflationary pressures will have a sudden and massive impact on all prices as they are released into the wider economy.

"inflationary pressures have started to moderate". http://kr.youtube.com/watch?v=DlkdtS8OFlA

Depends if you believe in the commodity bull market. If POP goes to 400/500, I will buy some. Edit: IMO we will see continued deflation and deleveraging. This will lead to a continued decline in commodity prices. Once the emerging economies bounce back and reassert themselves we will only then see a reassertion of the commodity bull. If this scenario plays out, think of the opportunities as the market capitulates.

Yes, I remember people talking about the great interest rates on offer in Iceland quite a while back. That should always be a warning. Edit: also there were plenty of informed posters intelligently discussing the reasons why people should hedge in various currencies [preferably the natural ones]. I think a combination of prejudice and ideology hindered some from seeing the prudence of doing this.

Will it help? Could be quite an anti-climax as the vortex sucks it up and the market continues to sink.

Hi AJC- Must say it was nice to get home from work and see gold at 910. As for your question, I think it depends on how much of your net worth is already in PMs. Personally, i have basically all my net worth in gold now... so feel I can afford to wait for a dip which may come before buying again. Also, I might sell a tiny bit on a spike in the hope of rebuying on a dip [once again, I only consider this as I am already all in and suspect we will still see some volatility. If a fishing line fails to develop... no skin of my nose and some decent cash in the bank with profit.... need a bit right]. But that is my personal situation. If you do not have much in PM now, I would say go for it and build a decent base there. Edit: Was quite shocked to see the Aussie at 67! It was near parity with the US dollar just a few months ago. This reflects the hammering the commodities is taking at the moment. Good to see POG has decoupled from commodities. I think the commodities will recover once the US dollar starts to tank in a few months time. Before the dollar tanks might be a great time to invest in them.

What does that mean?

Reminds me of a quote, "to see through everything is to see nothing". How long before the people see through fiat.

Redeem yourself by joining the dark [deflationary] side. Edit: No proselytizing intended.

Or again, to use another analogy, paper currencies will be caught up and swept aside in the whirlwind while gold remains standing.

With deleveraging and repatriation, a lot of money is going into the dollar at the moment. Think of the dollar being bought as other things are sold off. This makes the dollar strong. But this strength is due more to a momentary surge than to any substantial value to be found in the US dollar. The dollar is fundamentally flawed because it is based on a hopelessly indebted economy and a fully tapped out consumer. Accordingly, expect capitulation by Christmas.

Bob Hoye's latest. Good for gold. http://howestreet.com/audiovideo/index.php...mediaplayer/979

The way I put it; the dollar will do a titanic and go straight up in the air before finally sinking.

POG out of the gates ealier today. Could push through 900 and beyond.

Chaos on the currency markets. The aussie down 7% and the kiwi 4% against the "worth a continental" dollar.

Yep, it seems to be about systemic failure now. The market is being crushed and gold continues to climb, which is impressive considering the market is freaking out over deflation. Today may break the previous record decline of 777 points. Already has dropped 519.

9944. Going down like a lead balloon. I wonder where the DOW and POG will meet. Maybe 5000?

I do not often call for rockets... but could anyone do the honours?

bummer.