Where are all the gold investors?

avatar33

avatar33

e-Hustler
Dec 5, 2009
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Calgary, AB


I think gold in the mid term will very much depend on how India and China's economy go. As far as I know, they are the largest group who buy gold and take physical possession.

The bankers will continue to hammer it down with paper trading; I believe they would like to see it go way further down so they can eventually buy more of it up at a huge discount. The counter to that is in those who take possession.

In the end, gold can go either way, since it is only a side concern to those in power. The main concern is energy, resources, weapons and strategic Geo-political positioning. The games they play will determine the fate of gold.

I think it will likely go south though, as interest rates go up, and the next big recession comes, people will exit gold even more. Even after that, when we enter a long secular bull, stocks will attract most investors, and gold will be left hanging. IMO gold has had it's run. The next big thing is generally what everyone thinks is dying, just as what is dying is exactly what everything thinks is going to take off further.
 
[ame=http://www.youtube.com/watch?v=bURaU_pDpe8]Gold Price 2014 Prediction & Outlook - Peter Schiff - YouTube[/ame]

Obviously he is in the gold selling business, but at least he makes that clear.
 
My view on gold has always been as insurance and not an investment. Gold doesn't cashflow and is hard to call an investment. Gold is a way to insure yourself against financial uncertainties. Gold is a way for me to sleep safe at night knowing that no matter what the dipshits in office do I at least have something that is real, outside of their control. So when I convert fiat to gold or bitcoin I am removing myself from a controlled economy and entering the free market. I'm not looking to make money, I'm just not looking to play their stupid ass game.

There are two markets to gold, the physical and the paper. Gold is priced in paper supply and demand and not in physical supply and demand. Call any dealer and they are selling 9 ounces for every ounce they buy. Sure, there may be more volume happening in the paper market but is that real supply and demand? So it's pretty tough to price what the real value of gold is. It's almost worthless to hold physical gold on the basis or price of the paper market.

The fundamentals have not changed. Is the economy getting better? Are we in less debt? Is it even possible for our money to have less debt? The whole algorithm of money is a ticking time bomb. None of that has changed. So long term these problems will need to be addressed in a very real and painful way, which is where gold or some form of value outside of government money comes in.

The short term price of gold is dependent on people like Bernanke who control the economy. So it's up to them what happens in the short term. But when imaginary currencies begin to collapse gold will serve its role once again.

In my view the big crash is still yet to come and when this happens the price of gold will hit an all-time high, not that the price matters. What matters is that you don't get fleeced when the next fleecing comes.

Those are my thoughts.
 
kingofsp said:
Gold Price 2014 Prediction & Outlook - Peter Schiff - YouTube

Obviously he is in the gold selling business, but at least he makes that clear.
Click to expand...

I knew there would be a Peter Shill video in here, lol.

His video was from March 13th. Only down -20% since then based on his "gold is going to the moon" theories ;)

His argument on real estate collapsing again because of rising interest rates is a bit absurd as well. The majority of the hardest hit housing areas that have since recovered were purchased with cash and not financed and easily cash flow.

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If it drops further down to the range of $800-900 per troy ounce I'll bite. It's not supposed to go lower than that, at least not in the next few years.
 
gold and silver are being held artificially low so countrys like china and russia can hoard gold.

BUY BUY BUY
 
You do realize that the value of gold in dollars is just what these crazy sheeple gold traders value their dollar at?

It's like saying my 2003 Civic is worth 1/1000th of a Ferrari. So you're telling me that your Civic is on par with my Ferrari?

If you do thing this then I would consider you insane.
 
~~@~~ said:
You do realize that the value of gold in dollars is just what these crazy sheeple gold traders value their dollar at?

It's like saying my 2003 Civic is worth 1/1000th of a Ferrari. So you're telling me that your Civic is on par with my Ferrari?

If you do thing this then I would consider you insane.
Click to expand...

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avatar33 said:
I believe some people here invested tons of money in gold when it was around $1,700 per troy ounce 2 years ago... Today it's at a scary $1276.92 (3 year low)

Do you guys think gold is going to sink even deeper, or it'll eventually bounce back and go beyond the $2,000 that many analysts and investors predicted?

Gold price sinks to near three-year low - ABC News (Australian Broadcasting Corporation)

Gold Is Unsafe at Any Price: Dicker | Breakout - Yahoo! Finance
Click to expand...

I think gold and silver could easily go lower before going much higher in the long-term.

It's the long-term that's key. Precious metals are insurance against uncertainty, not investments per se.

If you don't see uncertainty in our current system, then you must not be paying attention, or know anything about the history of fiat monetary systems. And, you must not realize how PMs behave during fiat meltdowns. Or, you think this time is different for some reason.

It's strange that some people seem to think that PMs were in a bubble that's currently deflating. Bubbles are defined by the masses diving into an asset during it's parabolic phase. None of that's happened. Despite what you see on TV or what commentators say, only a tiny fraction of the population of the U.S. holds any physical PMs.

PMs have been hammered recently, no question. I think that's mostly due to paper manipulation, which is completely fucking ridiculous when it comes to PMs. And, sentiment has been quite negative. When the negativity peaks, it's time to think about buying, I think.

I'm basing this mostly on stuff I read by people who seem to have a pretty good track record. But, we might see a bottom this summer sometime, followed by a new uptrend. We shall see. Personally, I'd be waiting to buy if I had some spare cash lying around.
 
Miners look really beat up.
There might be an opportunity or ten there but I don't really know the industry that well.
 
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