If gold goes to $700 per ounce I will be over the moon.
I have $1.4m and will buy the physical.
2,000 ounces for me.
Please drop.
Please....
If you can get your hands on it Foxy. At those prices, the machinations are going to be wild. The stock of gold will be winding up in the hands of a few....those who can afford it. Most suburbanites already can't afford it. Too many bills to pay and they're locked into what the govt wants them to buy.
Nope, derivatives are the biggest driver of the gold price. You can argue "fear" has something to do with the movement of derivatives, but that's no different to JPY appreciating. You probably won't believe me, and that's OK. The gold price has emerged as a boogeyman that is used to fiddle with the emotional states of the masses, therefore you're fed nonsense by the media and a parade of dogmatists who rely on the "she'll be right" aura of the monetary system (which is fundamentally broken).
Demand for physical gold for jewelry is a secondary driver of the gold price. It has nothing to do with the critical mass of gold trade.
Derivatives are simply adding length of the lever of price movement, not the driver... fear is one arm that pulls that lever, greed is the other ... you should know that simple fact.
Blaming derivatives are like blaming the longer arm hammer for hitting your own thumb when you use it... a short arm hammer would also have hit it if you were aiming for your thumb and swung it.
At those prices, the machinations are going to be wild. The stock of gold will be winding up in the hands of a few....those who can afford it. Most suburbanites already can't afford it. Too many bills to pay and they're locked into what the govt wants them to buy.
Investing based on the "feel" of it roddy. Not a very original recipe you have there.
If you can get your hands on it Foxy. At those prices, the machinations are going to be wild. The stock of gold will be winding up in the hands of a few....those who can afford it. Most suburbanites already can't afford it. Too many bills to pay and they're locked into what the govt wants them to buy.
Nobody will be selling at that manipulated paper price. Not the Indians brides, not the stackers, not the preppers.
Well, maybe China will offload their 3500 tons at the rate they're bankrupting their country. If $306 per ounce is good enough for Peter Costello, I'm sure $700/ounce will be good enough for the Chiners /s
I'm calling it a cyclical downtrend in the midst of a bull run. I believe Gold is going to increase in value next year, and for the next few years. I don't expect the $5000+ an ounce that some gold bugs are calling for but higher none the less.
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
Derivatives are simply adding length of the lever of price movement, not the driver... fear is one arm that pulls that lever, greed is the other ... you should know that simple fact.
Blaming derivatives are like blaming the longer arm hammer for hitting your own thumb when you use it... a short arm hammer would also have hit it if you were aiming for your thumb and swung it.
OK, fair point, but you're not necessarily correct. Derivatives are an instrument by which people ply their trade on a day-to-day basis within financial institutions. And that includes gold. That is why "fear" is not the biggest driver of the gold price.
Trollie
17 Dec 2016, 06:02 PM
Investing based on the "feel" of it roddy. Not a very original recipe you have there.
Wealthy people have a different approach to what you would consider "investing" Jethro. They're also better positioned to take advantage of situations than the hoi polloi. Wealthy investors like low price-to-value ratios.
Poontang
17 Dec 2016, 07:38 PM
I'm calling it a cyclical downtrend in the midst of a bull run. I believe Gold is going to increase in value next year, and for the next few years. I don't expect the $5000+ an ounce that some gold bugs are calling for but higher none the less.
I would not be surprised if gold falls to $700 or rises to $2000.
Wealthy people have a different approach to what you would consider "investing" Jethro. They're also better positioned to take advantage of situations than the hoi polloi. Wealthy investors like low price-to-value ratios.
You wouldn't know what wealthy people invest in roddy, it's just another one of your gut feelings.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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