Gold is massively overvalued. In 2000 gold averaged about $280 oz and now we are quadruple that. It is getting ridiculious. I mean government debt has doubled but GOLD HAS quadrupled. Gold is going to $600 mark my words. Gold is useless. You can make a neckless out of it but I would not give you any food for it if time were bad, I would keep the food.
Gold is an investment SCAM just like the mortgage market and all the other bubbles. When you see people on TV telling you every day to buy gold because it is safety you have to know its a SCAM. If it was so safe why is everybody selling the crap out of it. It is common sense when you see commercial after commercial saying "give us your DOLLARS, and we will give you gold for them" It tells you gold is worthless.
Our central bank and congress have pushed it too far. Fiscal restraint is absolutely essential when it comes to having a sound currency and prosperous economy. They have absolutely undermined the global economy and commerce will suffer. I expect to see serious hoarding of hard assets. We are still in the early innings of this game. People say buy and hold is dead but I just think they are looking at the wrong assets. That dow/gold chart is really very telling in my opinion.
<<It is common sense when you see commercial after commercial saying "give us your DOLLARS, and we will give you gold for them" It tells you gold is worthless.>>
ALL these ads NEVER ask you to send in your DOLLARS in exchange for gold. but rather the vice versa!... to send in your gold for THEIR dollars. u gotta straighten out your mind/brain.
The Dow/Gold chart is not very useful. You have to think it though very carefully. You can't compare gold to stocks through time. For example, what is the rationale of comparing Microsoft c1985 to an ounce of gold to 2009 Microsofit to ounce of gold. There is no natural mean reversion. WHat is more useful, would be peak and trough and average:
1) ounces gold to median home price through time (both are FIXED assets that do not grow)
2) ounces gold to other commodities through time (copper, silver, platinum)
3) ounces to gains, livestock other things of need
see, when we do think gold looks expensive. i now understand that this dearness is justified. however, there is no big free lunch it seeems.
>>> When you see people on TV telling you every day to buy gold because it is safety you have to know its a SCAM.
The amount of gold that little people buy from TV commercials is nothing compared to the amount of gold that big investment money buys.
You, sir, are a moron.
Gold is worth $2000, dollar is overvalued.
The average consumer debt is underwater, banks are tired of holding it so govt takes away mark-to-market accounting and the govt starts buying a crap load of bad debt. That bad debt fueled Japan, India and China's growth when Americans bought all sorts of things like resources, electronics, cars, fuel, etc.
So, the govt buys that debt from the banks, and sells it back to China, India, and so on, in forms of treasury. So, if you look at the big picture, it appears like these countries actually bought from themselves in the first place!
What happens next? The only thing that counts is having cash flow through the country. Americans are good at that. Those countries think consumer spending can make the USD pick up value over time. We are at a peak in consumer spending, and this is the type of bubble that's going to burst.
If the consumer spending starts slowing down, not a single country in the world will want to carry that useless USD. The Americans and their spending habits is the only motivation to carry USD.
So, when these numbers come out, the foreign countries dump the USD. Companies won't have enough buying power and resources / costs will skyrocket. USD goes down, profits go down, market goes down. What appears to be a USD bubble bursting will also turn into a market bubble bursting, both will go down at the same time and the only thing left alive will be Gold. Because when USD loses value, Gold goes up, and the momentum of a "rush to gold" will make it appear to be going much higher.
A bad GDP can make the USD go up because the markets will go down, but watch the other countries sell that dollar when they don't get the consumer spending they wanted by holding that USD. Any other country can start spending and beat fatty old Americans to that.
Here we go again. Gold down a little and fcking cock roaches coming out of the woodwork. Oooooohhh! We are so scared. Fundamentals have NOT changed and conditions becoming worse for dollar, moron. FYI, value of the dollar is DROPPING, the reason for the increase in gold. Get real.
Gold has not been money for hundreds of years and if anyone thinks we are going back to using gold for money they are a fool. Gold is for chains around gangsta rappers necks and for ugly watches. It aint good for nothing else. In truely bad time you will see NOBODY will give rats ass about gold.