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...
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
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...
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...??
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...
GDX, not gold... GDX has run ahead of itself... fair value is UNDER $7 so is ovr priced by a whopping 200%... at GDX = 7 we may see DUST in the 500s....
Procedure for leaving the EU
The Treaty on European Union provides member states with the right to leave the Union: 'any member state may decide to withdraw from the Union in accordance with its own constitutional requirements'.
Article 50 of the Treaty provides a legal framework for EU member states seeking to leave the Union. Once a Head of State has notified the Council of its intent to leave the EU, a negotiation period begins during which a leaving agreement is to be negotiated outlining the country's future relationship with the Union. The country seeking to leave the Union will be required to secure support from at least 72 percent of the continuing member states representing at least 65 percent of their population, as well as consent from the European Parliament.
Because of the need for a negotiation process, the 2016 referendum does not directly bind the government to specific actions; in this, it is similar to the Scottish independence referendum, 2014. A vote to leave will initiate the negotiation process, but not cause immediate withdrawal.
Paper is keeping the world economies from collapsing. U see, "profits" which are revenues minus cost are "phantom" monies, they CANNOT have a retainable "value", because they simply cannot exist in a closed system. These are "surplus" monies, which practically have NO use
for their holder's consumption, and the holder merely holds to "feel good and powerful"... hence these can be in any form, US dollars, pebbles, art, and so on.. and it matters not how inflated they are... hence, the ultimate test of these instruments that are being held , is its ease of
transaction... and the US Dollar reigns supreme on that front... ALWAYS will... sell gold, buy US dollars and watch the game unfold....
will EVER HAPPEN. hence gold will NEVER override the might greenback. 100+ years of dominance
as the worlds ONLY MAJOR reserve currency (yeah pounds and euros and yen... etc are all mini currencies). You know even the Russians and Chinese in the end will support US dollar dominance.
I was in a remote area of the world - in deep rugged Tibet... and guess what ? US dollar is accepted there
as well... imagine my plight if I had a gold coin instead... they would need an appraiser to value the coin and then CONVERT to US dollar and then allow me to make the transaction.... gold as Warren Buffett
says is useless piece of metal nothing more... gold is headed to 850 then to 550 and will settle just around 250 for jewelries sake....
resuming downtrend CONFIRMED. the 2016 rally was all hot air / short squeeze / bull trap rally
she is headed to 850 and under