For the Love of Gold: Metal Will Double in 5 Years, Frank Holmes Says

But what does John Holmes say about it? That's what matters...

Be careful what you wish for...sure all gold bugs would love gold to double, triple...but at what expense?

Gold doesnt rise in good times and certainly not to levels of doubling. So basically your hoping for more economic calamity, more job losses, the dollar falling more, higher inflation, higher prices...etc just to make a buck in thier GLD ETF.

I just love the mentality of the gold bug...let the world go to hell while I cash in. Gold lovers must have been former CDO salesmen.

It takes a multibillion dollar reactor to make nanograms of gold or platinum. The natural abundance on earth is probably the same as on the moon or anywhere in the universe. On the other hand, diamonds can be made in the lab cheaper than natural diamonds. Gold was discovered to be useful as a catalyst in nano-particulate form, manufactured by 3M. If gold catalysts turn out to be key to turning carbon dioxide to liquid fuel, then gold prices will be justified.

Income in China and India is rising at 8% a year. Great news. The only PROBLEM withis this line of reasoning is that the average per capita income in China roughly $7,000 per year. In India, the per capita income is only $3,000 per year.

Are we to expect that people that are earing $3,000 in a full year are going to be spending money on a shiney metal that costs almost $1,500 per ounce?

Some observations here.

Firs, I once had the gold bug myself. Was buying it at $400 an oz and then sold it at $600. Obviously got out of it too early.

But, as Warren Buffett points out - what real value does gold have for common people? If there were people on Mars and they could watch thru a telescope as people on Earth traded in gold, they would be amazed. It goes from one safe to another - without anything really be "produced" that benefits society.

Here is a quaint thought to ponder. You know how scientists are always discovering new things that totally surprises everyone. Sometimes they find an animal that they thought was long ago extinct. Or find marine life in flourishing near underwater volcanos in Antarctica. I am just waiting for thday when someone or some company makes a HUGE discovery of gold. Like maybe they find the largest gold deposits on the globe, sitting in an ancient mountain in Antartica - or Africa - or on the slopes of an underwater volcano. A gold discovery that is so big that it will double or possibly triple that amount of gold in circulation within a few years time. What then? Where do you think gold prices would go at that point? I know it's a piece of fiction on my part, but a lot of invented ideas become a reality in our lives too.

Finally. To make my point. Do some research on what was used as the capstone atop the Washington Monument when it was dedicated in the late 1800s. It was aluminum - the most expensive metal of that time. Now you know where I am coming from with my wild fiction.

This fellow Frank is a big shot lover of Gold with other people's money since he is running a mutual fund with billions in assets. I wonder how much "love" money is he spending of his own on Gold. I am sure his wife was a "Gold Digger" so he has experience being around people who smell money. I wonder how much salary this major hoople helps himself too! I don't think we have to give it much thought. I smell slime and greed.

cant wait till all the naysayers lose big time money on this gold speculation, until then I am saving my pennies to buy it up when gold again hits $300.

If you have any you would like to sell me now at 600, I will gladly buy it from you.

Currently (January 2011) the spot market price of gold is about $1365 per troy ounce. As soon as the spot price reaches the point at which value of the Fed’s stock of gold is equal to the Fed’s liabilities, the Federal Reserve System can and should be liquidated. This would be around $1730 per ounce of gold. Then, all Federal Reserve Notes should be called in, and new currency issued in the form of redeemable paper currency at the rate of $3.60 per grain of gold. All bank demand deposits with the Fed would be exchanged for gold bullion at the same rate of $3.60. This means that your bank would receive an amount of gold to be kept in its vault equal to the depositors demand accounts. You would be entitled, by contract with the bank, to receive on your demand an amount of gold equal to the value of your deposit. Thus, the Federal Reserve System is abolished, and United States citizens and their banks are on the gold standard. All of these banks could be electronically monitored by the government to assure that there is no possibility of balking at redemption.

A fool is born about every three seconds.