Are you still thinking gold at $2000?

[golfguru]

I am talking from within couple of years. Eventually gold will reach $100,000. But none of us will be alive then.


http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x89283

[rurallib]

1. I have no idea and don't care to look - how much is it?

[golfguru]

2. Down $96 change today

now at $1642. Silver dropped 20% today!

[Warpy]

3. Oh well, so much for unloading the sterling dinnerware I never use.

My mother came close to selling when Bunky Hunt tried to corner the market in the 70s and always kicked herself for not doing it.

The deflation of multiple commodities bubbles is what happened in the summer of 2008 as banks and brokerages noticed how much red ink all those exotic "investments" on their books represented and tried to raise cash as quickly as possible. We know what happened to stock shortly after that.

Unless Congress miraculously is converted to reinstituting the progressive income tax system with a confiscatory rate at the top, the bottoming out in the stock market isn't likely to last too long. There are only so many places investment dollars can go if people want their money to work for them.

[whosinpower]

4. The money changers have decided

That gold needs to be reigned in.....not really. Gold is often used as protection against inflation.....but everyone is more afraid of DEFLATION - and in that case - cash is king.

[dkf]

5. It's just a matter of when.

[DCBob]

6. gold is dropping like a rock..

down more than $200 in 3 weeks. The demand seems to revolve around the strength of dollar so as Euro sinks, gold sinks with it.

[customerserviceguy]

7. Gold has been rising as inflation fears took over

Right now, the current economic fear is double-dip. Time to sell precious metals, I need to find that silver that I left in the nightstand drawer...

[golfguru]

9. I flushed out all the silver coins pre-1965 and sold them

3 months ago. Did I sell at the highest price? Nope!
But I learned from Baron Rothschild who said, "I got
rich by taking profits early". No one has ever lost
money by cashing in profits early, but a lot of people
have lost money by waiting too long to sell.

[PassingFair]

16. My aunt always said: Sell when they're buying.

Buy when they're selling.

Simple and fool proof.

[golfguru]

20. She is a wise woman n/m

[Art_from_Ark]

31. Hardly foolproof

Going by that logic, I should have sold when "they" started buying at $300/ounce, and bought when "they" started selling at $1900.

[Riftaxe]

8. I'm starting to think i wasted a lot of years

trying to turn gold into lead :(

[golfguru]

10. I have a secret formula for turning lead into gold...

just kidding! Here is what I think about gold or any other
investment for that matter. Gold, houses, land, oil, etc etc
will always have value and in the long run will always go up
because the supply is not infinite.

However all investments go parabolic once in a while. And the
price gets ahead of itself. Any time you are lucky to have your
holdings go parabolic, you must realize that parabola's have a
historical tendency to crash, at least for a short time.

[DCBob]

11. gold has little intrinsic value.. its primary value is as a bet against stability of the dollar..

... and that bet was, and still is, way over bid.

[westerebus]

12. Yes.

The plunge was front running by insiders that got a heads up the CME was doing another margin rate hike come Monday.

The question is why raise the margin and maintenance requirements when the commodity is falling in price?

Good old fashion beat down by TPTB. Ties in well with operation twist. Stocks good, metals bad.

I thank the TPTB for this opportunity to add PMs at these discounted prices.

[Po_d Mainiac]

13. U ever notice the address for the CME?

"South Wacker Drive".....u can't make shit like that up!

[westerebus]

15. Never noticed, that's very fitting. Look it's the wankers on so wacker.

Then I do cash and carry.

Margins are for them there sophisticated investors.

.

[dixiegrrrrl]

14. Great minds.

:thumbsup:

[westerebus]

17. And peaceful warriors.

:toast:

[AnneD]

28. I think the same....

I don't have everything in PM but I tend to look on this as a fire sale.

[Yavin4]

18. Greece Is On The Verge of Default. So, Everyone Wants to Hold Dollars.

Recall that when Lehman declared BK, the credit markets seized up. This time around folks want to hold onto dollars when Greece collapses.

That coupled with the margin hikes by the Comex has lead to a good buying opportunity.

Moreover, the market for the physical metals, not the paper is not down as much as the paper for PMs is down.

[golfguru]

19. But the goldbugs keep saying gold is more reliable than paper dollars?

I actually agree with the goldbugs. My only concern about gold
is that it has risen too fast. I have observed for many decades
that anything parabolic suffers temporary but significant setbacks.

[Yavin4]

22. At Present, You Cannot Pay Bills with Gold

You need dollars to keep your operations going.

[golfguru]

21. Let me emphasize, I think GOLD has solid value

I just do not like parabolic rises, which almost always
suffer a significant correction.

[DCBob]

23. some would disagree with that..

“Truth is no one else knows where else to put their money, but as soon as a Soros-like figure exits his massive gold position, there will be a huge panic sell-off,” a trader tells CNBC.

“Just in terms of simple mean reversion, it looks like we could easily snap back to the $1,550-$1,600 level at the blink of an eye.”

http://www.moneynews.com/StreetTalk/goldprice-GLD-goldspotmarket-U-S-dollar/2011/09/23/id/412126

[westerebus]

24. If you can't stand the heat,

stay out of the kitchen.

It is not the place you want to go, if your are risk adverse. That's the impersonal generalized "you".

Swings in the metals market come with the territory.

It is just one more place available to park money.

[DCBob]

25. I thought gold is thought of as a "risk adverse" investment?

[westerebus]

27. It's adverse to fiat banker's..

It's adverse to monetizing national debt.

It's adverse to stock market crashes.

But, it is a risk on bet.

It's if all else fails or looks like it may fail bet.

Biggest problem is it can and is subject to price manipulation by the central banks.

People can get crushed playing margins in commodities' markets.

I would venture to say most here are physical holder's of PM's than there are traders in the paper market. IMO.

One in the hand being better than two in the bush.

[Art_from_Ark]

32. The margin game is a losing game

The house always wins, especially when it can change the rules whenever it wants to.

Never, ever make a margin investment.

[OllieLotte]

26. Looks like it's taking a big nose dive today.

Looking at charts. $1450 looks to be a really strong support level. If it gets to that level, I'll have to buy more.

[Art_from_Ark]

33. Gold's back up to $1660

Charts are pretty useless for predicting the gold price.

[golfguru]

29. Gold at $1605 today, down $32.

[bemildred]

30. Bubbles pop. Big bubbles make big pops.

Gold is a perfectly fine investment, but you have to be realistic.