inflation was running at 20% that time, loooong gas lines at the pump
(I remember at one point I had to wait 4 hours in line to get 5gal of petrol)... so...
if your argument were to be hypothesis tested... it would fail .. because "gold would not have sold
off BELOW 1220 and GLD below 120.... there is NO real voluminous demand for gold.. because
nations are scrambling for cash.... China has a 4 tr problem, Saudis have a 100 Bn ++ deficit,
and all other countries are throttling at full deficit ... where is the money to buy gold ?? convince
the board... who has the actual liquidity to buy gold vs save their sinking economies...??
anything in demand... even show tickets will sell at a PREMIUM... NOT at
"bargain basement prices".... u know what sells at "bargain basement prices"??
discontinued items, expired food, things no one wants (garage sale??)... etc..
gold as Warren Buffett says is "a USELESS piece of metal - nothing more"..
I would rather buy iron or copper... atleast they can be used somewhere...
even my 3 year old grand son knows the world has a "multi trillion dollar" problem, every one on this
board knows it and unanimously agrees that the world is floating in paper money.... what puzzles
me is that DESPITE knowing all this why is gold still at 1,200 ?? shouldn't it ALREADY be
in the stratosphere ??? I mean ICPT on one fine Friday closed at $40.xx .... on Monday morning
they announced success in their Liver disease trials.... guess what ? stock was halted most of the
morning and opened at $ 500 per share mid-morning......
So... if there was ANY potency in this "paper money" hype... Gold would ALREADY be trading
in 5 digits...... this "paper money" story is a leg-less humbug ..... gold is headed to
850 then to 550 and eventually to 275
Pilford, tell me something... if an investor has a lot of money ... he may want a little gold as a diversification of portfolio, however, he would be better off investing in say a third world country building profit centered businesses ... hospitals / school / roads and all that... take for eg India, so many of them have a lot of money but no where to spend.. they would happily pay $$$ for a world class school, or world class healthcare or world class highways... this would put a lot of
people to work, and spend as well, this is a no loss no brainer plan... everyone comes out a winner, the investor , the poor, the rich and the suppliers.... I think Warren Buffett has a very wise point.. when he says.. built factories and industries... not buy gold and stash it away for it is a useless piece of metal and stashed gold / silver helps no one.... I gave this theory a lot of thought over the past decade.. and I am now a believer in it.... think... in the end all that matters is consumption... imagine for a moment that tomorrow the human race is extinct... what mattered retrospectively is consumption... all surplus wealth is Phantom... just like stock prices...
It is not about the $ move... % move matters.... so.. gold is down 7 % ($ 80) and DUST is up
50% ( 12 t0 18 or 1.20 t0 1.80).... ibtw it is related to GDX not GLD.... but yes is looks very
exciting... if at the same rate GLD drops to 850... (30%)... DUST will be in triple digits
discouraging sellers, usually portends lack of genuine demand, and COULD lead
to falling price towards end of trading session.... these type of etfs when selling
at a discount is usually a bad signal for the longs
are u familiar with "dollar cost averaging" ?? looks like u are not.. pulling out numbers
from the wazzooo .... u see if u have a strategy to buy 10% of the lot at say $100
and then keep on doubling down every time a ETF like this makes a 25 - 30 % move
then by the time it hits say $ 12 (down from 100)... your ACTUAL dollar cost average
comes down to $ 2.50 (or $ 25 after the 1:10 split)... I am sure this high level stuff
probably wont get into someone's thickly shielded brain.. but hey if it makes u happy
sure.. even at 100 I am excited.. because when GDX goes to $ 5.xx in a few
months this baby will be playing with $ 490++ yeah ?