- Joined
- Oct 19, 2012
- Messages
- 12,029
- Reaction score
- 3,530
- Gender
- Male
- Political Leaning
- Progressive
http://www.mydesert.com/article/20130701/BUSINESS/307010028/Price-gold-declines-30-1st-half-2013
Another example of Austrian economists and market evangelists getting it totally wrong. With such a track record of failure, why does anybody listen to economists on the right?
It is quite ironic that gold has significantly more market volatility than the US dollar.
I mean really, when's the last time the dollar fell 30% in two quarters? :lol:
Yep, you totally proved Austrian economics completely wrong with a single drop in a massive uptrend. It's only up 1,800% in the past 40 years.
Still up 34% over 5 years. Gold Price
Yep, you totally proved Austrian economics completely wrong with a single drop in a massive uptrend. It's only up 1,800% in the past 40 years.
Two things people have to understand.. Gold ETFs vs Physical Gold. The market is full of ETFs. ETF is paper with the promise of gold backing. So when you have a decline of 30% that's due to ETF shorting gold to cover. JP Morgan has sold 93% of all gold sold from Feb to April.
Jamie Dimon Has Issues (or Meet The Idiot Selling Gold) | Across the Street
So it's not that simple. Something is rotten in Denmark and it's JP Morgan.
USD had a 19% lose against the EURO from Sept 3rd 2003 to Feb 15th 2004 and Sept 2004-December 2004 US dollar lost 15%.. so over 6 quarters US lost 30% against the Euro.
Undoubtedly, gold is not the single best investment. But it has its purposes. Like anything else, you must buy at the right time and be patient. But gold (and PMs in general) are portable wealth while stocks are paper wealth.
We all hope the gold never becomes needed as currency - but if it does, then it's good to have. Keeping 5% of your net worth in PMs is a reasonable strategy.
What economics are you studying? It sure isn't any school I've ever heard of.Quantitative Easing IS inflation, massive inflation. The only reason it hasn't hit us yet is because interest rates are so low. Once interest starts to rise and capital begins to be pulled out of the system, the level of inflation will become painfully clear very quickly.
Ya something's rotten... there are far more ETFs than there is physical gold to cover them. Same with silver. Leave it to the bankers to figure out how to inflate PMs.
I prefer the terms "real wealth" and "fiat wealth".
Someone else mentioned that gold has lost ground because fears of inflation haven't been realized.... yet.
Quantitative Easing IS inflation, massive inflation. The only reason it hasn't hit us yet is because interest rates are so low. Once interest starts to rise and capital begins to be pulled out of the system, the level of inflation will become painfully clear very quickly.
Many balked when predictions held that gold would reach $2000... true it didn't quite make it, but considering it was $900 when those predictions were made, pretty close. The new projections are $3000-$5000 in ten years. That's some hyper inflation.
I agree with enough of that to say it's absolutely correct.Well, I won't make any friends with my POV but here it goes.
At first glance, it would seem obvious that if you print up trillions of dollars that it should cause inflation. But for that to happen, you have to distribute that money around. That has not happened.
Most of that money was shuffled back and forth with a chosen few taking commissions. So yes, billions were "made" but those billions probably reside in the Cayman Islands and serve the purpose of making fabulously wealthy people feel even more fabulous.
In the meantime, wages are getting lower, the real cost of living is rising and robotics make every worker more productive. We manufacture and import plenty of ****. But its a case of fewer people chasing increasing amounts of goods. You need your money just to survive. For all the cries of "class warfare" this President, just like the last one, has made a better world for billionaires. So there is almost no risk of inflation. Since the Fed controls interest rates, and we are so indebted, don't look for interest rates to rise in this decade.
I know, I know. It defies logic. But really, thats the situation. It won't turn around. We'll get by.
So I still am an advocate of owning PMs. They're pretty if nothing else.
Well, I won't make any friends with my POV but here it goes.
At first glance, it would seem obvious that if you print up trillions of dollars that it should cause inflation. But for that to happen, you have to distribute that money around. That has not happened.
Most of that money was shuffled back and forth with a chosen few taking commissions. So yes, billions were "made" but those billions probably reside in the Cayman Islands and serve the purpose of making fabulously wealthy people feel even more fabulous.
In the meantime, wages are getting lower, the real cost of living is rising and robotics make every worker more productive. We manufacture and import plenty of ****. But its a case of fewer people chasing increasing amounts of goods. You need your money just to survive. For all the cries of "class warfare" this President, just like the last one, has made a better world for billionaires. So there is almost no risk of inflation. Since the Fed controls interest rates, and we are so indebted, don't look for interest rates to rise in this decade.
I know, I know. It defies logic. But really, thats the situation. It won't turn around. We'll get by.
So I still am an advocate of owning PMs. They're pretty if nothing else.
I love how gold bugs constantly search for a portion of a histograph to make gold look good.
Dow Jones is up more than that during the same time period.Still up 34% over 5 years. Gold Price
It is quite ironic that gold has significantly more market volatility than the US dollar.
I mean really, when's the last time the dollar fell 30% in two quarters? :lol:
Yet all the gold standard nuts will tell you that we should affix the value of the dollar to the value of gold, claiming that doing so would somehow stablize the purchasing power of the dollar. Ha!
Dow Jones is up more than that during the same time period.
I agree with you, other than the inflation.
Being that inflation is happening, as evidenced by even just the basic costs of groceries, clothing and fuel.
Apples to oranges much? Gold is a commodity and in many ways a currency. The Dow is a collection of stock (ownership) in real companies with cash flow and profit. A better comparison would be comparing gold to the bond market, which it has outperformed over that same time frame.
Stocks are also commodities in a way (every share of a particular company and issue is identical), and in many ways a currency just the same way that gold is. In reality, I can't pay for my electric bill in either gold or stocks, they have to be converted to cash first. Stocks and gold are both very liquid and easily converted to money.
I agree with you, other than the inflation.
Being that inflation is happening, as evidenced by even just the basic costs of groceries, clothing and fuel. Those that like to grab out the charts and graphs, note, large goods have remained stationary or even dropped in price, because no one's buying them. The cost of basic living has inflated, causing additional ripples across the economy, and as those who live hand-to-mouth well know, the dollar has devalued across the board, causing the effects of the initial inflation to be felt even harder among the lower income groups.
Not every share is identical.
Every share of the same issue is identical.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?