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SPDR S&P 500 ETF Message Board

  • golfrattt53 golfrattt53 Jun 28, 2013 12:12 AM Flag

    Why can't Gold got to 700....??

    CB's have spent TRILLIONS to inflate economies. In the past it worked with an incredibly smaller amount vested...

    Yet, despite the injections, economies are deflating (duh, i majored in drafting in HS and can figure this out) and there's one reason that everyone without a high school education will agree with...

    And that's the DEBT. When the Public is in DEBT, their wages/salaries have shrunk AND will continue to, in a Part-time job world, household will never drop, rather increase, until they default on it. BK, Chptr 7/13, whatever. No room to spend, no growth, no NOTHING...

    WHY can't the Fed see this..?? How do you show a bunch of guys who've grown up in a walnut and granite paneled board room that the pub;lic is still HEAVILY vested in debt...??

    Combine that with wages/salaries that are declining with ZERO upside any time soon. And i'm talking 10-20 years...

    So WHY own Gold if we're heading towards Deflation, ala circa early 90's Japan...??

    ZERO reason to own it. ZERO. It looks great on your girlfriends wrist, or around her neck, but that's about it...

    Actually, the retail public finally made out on top for a change. They got dragged in to selling their private gold stash by every Gold dealer in the world, and at higher prices. Turns out the guys who bought it from them and are still HOLDING it are the bagholders for a change,

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    • If I watch new channels, I'm constantly bombarded with ads to BUY GOLD. I'm not entirely sure who the bagholders are.

    • It can and it will. Hey czarina you hear that? ZERO.

    • Turns out the guys who bought it from them and are still HOLDING it are the bagholders for a change, "

      those guys don't hold it. it's sent to the refinery for instant profit . then circulated back into the market...

      • 1 Reply to es_50000
      • yeah, you're right. However, i know a couple guys who ran the gold parties, did extremely well, melted down all their 10/14/18k gold and held on to their 22/24k gold expecting the big hyperinflationery event.

        Those are the guys i was referring to...but you're right, although i guarantee you that a LOT of gold buyers were holding the good stuff in anticipation of it appreciating big along as our debt grew...

    • Well, ratty, the way I see it, we're getting signs that QE benefits have maxed.

      It was great when it started, but the strain on the consumer has reached a point where a negative feedback loop kicks in. Just like 2008.

      Why aren't prices of goods going parabolic in spite of 85 billion a month injections?

      Because peoples financial resources are not infinite. There comes a price where more and more do without this and that.

      And for some, it means drastic spending cuts.

      So, ease further all you want, inflation has a ceiling.

      and of course you can't eat metal, and even if you could it's more expensive than Mac-n-cheese.

      • 2 Replies to silversplode
      • Yeah, i like Ratty.

        Agreed. Once CB's have lost the power to inflate, they've lost ALL their power, imo. All gone..

        Perhaps they even had a reasonable path of inflation at some point. And it was very likely the palm-pressing, baby-kissing politicians that F'd it all up by continually asking the Fed for more dollars to grow their state's economies...

        A moment in time i'll never forget is when Sandy was heading towards the northeast coastline, i was at a family event, all of who are completely clueless to anything financial, more prone to gossip about everyone's shortcomings...

        And i remember saying that New Jersey is broke, they can't pay for any of the damage...

        And about a week after it hit, The Gov't announced that they'd be picking up the tab for the damage..

        Yet, they continue to spend. Noone wants top talk about cuts on their beat, they just want to pass it on to the next to assume the position....

      • Of course, I rambled on without answering the question. LOL.

        The truth is we could see 700 dollar gold again, but I think adjusted for newly printed money, 1000 to 1100 is a fair target to start with.

        And as soon as the big banks are clear of their nightmarish carry trades involving the leasing of metals, and selling futures against the leased physical's time to get long.

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