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Post by graybeard on Jan 28, 2010 8:30:58 GMT -6
from the Telegraph, via Bloomberg:
Mr Soros, arguably the most famous hedge fund manager in history, warned that with interest rates low around the world, policymakers were risking generating new bubbles which could cause crashes in the future. In comments delivered on the fringe of the World Economic Forum, Mr Soros said: "When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold." ...
I wonder..
GB
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Post by nomad43 on Jan 28, 2010 9:44:20 GMT -6
In the end, if you ignore past performance, what you wind up with is a nice shiny rock. What is it actualy worth? Hmm .. its kind of relative, isnt it?
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Post by waltc on Jan 30, 2010 11:15:13 GMT -6
I seriously doubt it. Gold isn't being played like real-estate or oil. For many who invest in it, it's for preservation of assets. And unlike the USD there is only a fixed amount.
And if you look at our fiat currency that is being debased into oblivion by Bernanke and his magic printing press and the Obama administration that is spending trillions its doesn't have its becomes quite clear that keeping ones wealth primarily in USD is not wise.
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Post by nomad943 on Jan 30, 2010 16:04:14 GMT -6
A Fixed Amount ... This equals all the gold ever mined in world history, plus all the gold currently being mined, and all of the gold yet to be mined. The gold stockpile is indestructable, in that gold has no industrial use other than hoarding so it never goes away, it just keeps accumulating ... Anyone who says this is a sure bet is lying. At least platinum has an industrial use so can never become completly worthless but gold .... Personaly its all a crap shoot. I'll stick with raw land, at least its a supply of firewood and you could grow food on if TSHTF.
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Post by unlawflcombatnt on Jan 30, 2010 16:40:54 GMT -6
The total world gold supply is estimated to be about 158,000 tons. The gold supply increases by about +2,400 tons/per year from mining. Scrap gold salvage accounts for another +1,200 tons/year. Scrap would not contribute anything further, however, to the total world gold supply of 158,000 tons. The total world gold supply is increasing by about 1.6%/year. Gold is getting more difficult and expensive to mine. So for production to continue at this level, prices will need to rise to justify the higher expense of mining. Over the last several years, the demand for gold has greatly outstripped the new gold actually mined, and has even exceeded the total supply if scrap gold is also included. Below is a graphic from the World Gold Council's site showing the supply-demand relationship. In 2008, the $-value of Gold demand increased 33%. The quantity demanded (at the higher prices) increased 7%. This is much greater than the 1.6% supply increase.
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Post by agito on Jan 30, 2010 17:23:40 GMT -6
not like oil no. But I'm noticing that instead of seeing commercials for di-tech, i'm now seeing commercials for goldline.
...no industrial use?
the gold bubble will last as long as it takes before the people with their savings in it have to cash out to answer their material needs. Examining the demographics of who is buying gold (i.e. how many buyers are of an older age), would be prudent.
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Post by graybeard on Jan 30, 2010 18:48:57 GMT -6
Ads by crooks are no indication of the future price of gold. They're just taking advantage of the attention given gold by the price rise.
Yes, land is good, when the price is right. Farmland in some places makes sense, but not for growing corn or soy as the seed companies strangle the farmers with frankenseeds that farmers have to buy from them every year.
GB
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Post by graybeard on Feb 17, 2010 9:19:15 GMT -6
It's on Bloomberg today that Soros doubled his holdings in gold ETFs in the 4th quarter 2009. There's no idea what he did before his pronouncement at Davos. Was he bluffing to get a price break before buying more, or did he sell?
60' did a segment on Davos this week. Interesting.
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Post by fredorbob on Mar 5, 2010 10:29:06 GMT -6
If, ever, probably never, a better rocket propulsion is invented which allows mankind to colonize and start mining asteroids/planets then precious metals will drop to almost zero.
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