T Nation

Gold 1800+ An Ounce


#1

Gold flew through 1700 and is now at 1800+.


#2

I think we pretty much all know this is there anything you'd like to add?


#3

JP morgan predicts 2500 by the end of the year.


#4

John,

Congratulations. You've made this call all along. I have not been a believer and gold, and unfortunately still cannot sell myself on it.

You have had a hell of a run. The only thing I would caution you on is that there is quite a divergence between gold and silver happening as we speak. With gold spurting up out of its trend line, this could be a blow off top.

Either way, I hope you have been in all along. Just be careful.


#5

Oh undoubtly in the short term it is going to come down a bit after this run, but when it comes down the rest of the market is going to come down with it so QW3 will push it right back up and even higher, this is what JP morgan is expecting which is why they are saying 2500. I think perhaps even in tomorrow's trading we could see Silver begin it's rally. Also with the French banks begining to look like they are going to need a bailout soon that will cause Gold to rally.

Because of financial situations I have to be in Silver, but let me tell you what, the silver I bought for 15 dollars and ounce a year and half or so ago has been a great investment.

Side note, I finally convinced my mom to invest in Gold, she called me today and told me she wished she would have listened to me back when it was 1100.


#6

I invested in gold a little while ago. I don't see a top blowing off of it so to speak as the fundamentals are still sound at the moment. Silver I think is a better investment at this point in time though as it is lagging behind the historical average and poised for an upward move.


#7

Excellent read Bonesaw!


#8

Gold to hit $5,000/ounce in two months: "So what would be a price target for gold, based on the 1981 intraday high of $873 per ounce if the correlation would hold?

Thatâ??s right, $5,000 per ounce." http://profitimes.com/free-articles/gold-headed-to-5000-per-ounce

LOL! I'm a 'gold bug' and even I laughed at that article.


#9

:slightly_smiling:


#10

Alright, so what's the best way to buy Krugerrands? Is that even a good option?


#11

Either buy through a local coin shop (you can find a good list on the US Mint's Website) or buy from an online retailer. I've had good experiences with Gainesville Coins


#12

Gold is a bubble too guys. Get in while there is still room for growth but don't cash out your whole financial plan to buy just in case you miss the boat when prices start to fall.


#13

Buy the mining stocks, through a good mutual fund. They have not had nearly the run that the metal has had. Don't hold them long though as they may crash with the market, when the Great Collapse hits. We are now leaving 'the eye of the Hurricane' that TARP created; we will now have the collapse. Gold itself should hit anywhere between $10,000 and $18,000 but the gov't will confiscate it. They can't confiscate the stocks, though they'll probably institute a windfall profits tax, in their final desperate grasping at straws. You should get to keep 20 or 30 percent of your wealth; that's better than most, who'll be completely stripped of their wealth.


#14

Following this line of reasoning, wouldn't it just be better to buy foreign currency in deposits abroad and leave the country sooner than later?
You could get a job teaching English in Asia or something similar. I mean 20-30% of your wealth +hyperinflation wouldn't be better than starting over on your career in another country with most of your wealth in tact. That would especially be true if you could reinvest in dividend paying stocks when you get settled abroad.


#15

For what it is worth, I started a 200% short position on gold using the ETF DZZ.

I'm using $1950 as my stop.

In a deflationary environment stocks and commodities will fall.


#16

If you think the Fed will EVER allow deflation before this presidential election, you are in for a rude awakening.
The Fed WILL do QE3, if they're not already doing it and hiding it. IF they get called out on it some how, they will deny it or lie.


#17

"Many deflationists thought gold would drop in deflation. However, my theory, explained years ago is as follows:

1.Gold is money
2.Gold is in the senior currency rises in value in deflation.
3.Gold, as money, would would benefit (rise) in response to Fed actions to defeat deflation by printing fiat money.

It happened in the great depression and it is happening again."


#18

Americans will be TERRIBLY hated, for causing the calamity. Plus, as we pull back our military, foreign governments will feel free to confiscate anything you have w/o protest from Uncle Sam. The only place I'd even consider would be Canada; freedom is pretty intact there.

The order provided by the US military is taken for granted around the world. When we pull back, a lot of the world is going to revert to its more normal state, similar to Darfur, Afghanistan, or Somalia. Far better to stay here -- gonna be bad but not as bad as those hellholes.


#19

I guess it depends on what you mean by deflation and inflation. Gold will rise with the expansion in the monetary base(inflation) and also rise with the contraction in the overall money supply(which could be called deflation) relative to the monetary base.
Eventually the monetary base(through Fed action) will grow to become almost the whole of the money supply. At that point the Dollar has no where left to go but to zero.


#20

Huh? Why would a government(like Japan or Australia for example) confiscate the property of a legal resident in the wake of a booming economy through increased purchasing power.
Also, it's been my impression that Americans are terrible hated as they are right now. Why would the world hate Americans who will be suffering a terrible collapse in living standards while the eastern world(and Canada) see a purchasing power boom?