# Spot Price of Gold, PAST~PRESENT~FUTURE



## dixie (Jan 2, 2008)

I'm sure that I am not the only one who is watching gold climb and wondering just where to get off of what they are holding so I thought I would throw out this mulit part question so the folks who have ridden the gold train much longer than I, might add their opinions and explainations for them.

Please make comments here and give reasons for the rapid rise in gold 25 years ago.
Why did it drop so drasticaly after the rise?
Reasons for the rise that we are in now.
Predictions as the where gold is going now.
And after gold peeks again will it fall as sharply as it did after it's last big historlcal high?

I'll post my thoughts on the subject in another post and answer my own questions.


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## jimdoc (Jan 2, 2008)

I think 25 years ago it had to do with the
Hunt Brother's silver scam. Now it has to
do with oil prices and our worthless dollar.


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## Noxx (Jan 2, 2008)

Yes, oil price going up, gold is going up.

And also, bad international events like a war, a pandemia, etc, will make it rise. The worse it gets, the better it is for investors (sad to say).


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## dixie (Jan 2, 2008)

To background myself just a little I was born in 1960 in a small farming and woodproducts town in south Georgia. Started working for pay at age 6 in the tobacco feild for $2 a day and had $96 saved up by the time I entered the 2nd grade from that first summer of work.

That year I also started playing chess and the chess coach was the owner on one of the 2 drug stores in town and the one my family traded at. We would gather at his store every day after school and play each other in mini contest. He was a coin collector and he always offered old coins as prizes. The other thing was his store was across the street from the bank and he would have you go and get change and pay you a commision to sort through it for silver and old pennies. (This was 1966 and there was still about 30% silver in the pockets of these backwoods folks) 

It did not take me long to figgure I would rather use my $96 of savings to keep 100% of the silver instead of the 10% that he was paying to work for him. In my town the bank would close at lunch on Sat. and I lived 4 blocks from the bank so I could go through my savings about 4 times by lunch and once every day after school. There was a guy in a town 30 miles away that would pay you 1&1/2 times face for it so my savings was growing by 50% weekly until most of the silver was out of the pockets of the people where I lived.

All the time I kept playing chess, learning about rare dates and mint marks, and watching the drug store man buy and sell coins. He sold out his bounty when silver was in the low 40's and I followed right in his footsteps. 

To get back on track of the question, even though I rellay did not understand everything that was going on playing a kind of educated follow the leader I credit the first major spike in the Gold spot on about a 60/40 split to The Hunt Brothers for pushing silver and gold just followed along with it, and the first president from Georgia. The very first election that I voted in and the very last time that I voted for the welfare party.

I bought my first new auto during this time and paid 21&1/2 intrest for a motorcycle loan and made sure I paid it off early as soon as my income taxes came back.

I still can not belive that a fellow Georgian gave away our Panama canal that American taxpayers paid for and American soldiers died to protect.

My guess is that the Hunt's had the market over valued and this is why the price fell so sharply after the spike.

For the rise in price now.

I think just the thought of having Hillary as president is enough. 
We all know that her agenda will be to>>>
(1) Tax your estate for just as much as she can get away with.
(2) Tax captial gains for just as much as she can get away with.
so I think that people are putting their funds into other investments.
and peolpe are putting their wealth into a nontaxable way to leave it to their children. After all a safe full of gold coins can be liquidated a few at the time for CASH in hand at any coin show every weekend.

My prediction, the closer the election gets and the more it looks like Hillary will be elected the higher gold will go. It would not surprise me to see $1,250 gold by election time. Personaly I am going to jump off somewhere between now and $1,000.

After this Gold peak, will gold fall as quick and as far as it did before?, I don't think so. I think it may fall back to 75-50% of the high.

Facts that may affect the Gold spot.
(1)There are more wealthy folks in the world now than ever who want to own Gold. (gold should go up)
(2) Most of the gold used today is refined and reused + gold is being produced every day. (gold should go down)

Now what do you think, how high, and then how low???????????
Here is my nickle's worth if it is worth that much.

Mike


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## goldsilverpro (Jan 2, 2008)

Can you assume that it's not controlled?

Good book on the Hunt Bros. is, "Beyond Greed."

True story. One time, in Hong Kong, I had lunch with one of the owners of the largest gold trading company in Asia. I asked him what he thought gold was going to do. He said that there were 2 main experts on this subject in the world. One thought it would go down and the other thought it would go up. Learn, Grasshopper.


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## blueduck (Jan 7, 2008)

dixie said:


> My prediction, the closer the election gets and the more it looks like Hillary will be elected the higher gold will go. It would not surprise me to see $1,250 gold by election time. Personally I am going to jump off somewhere between now and $1,000
> Mike



A year ago an investment newsletter predictecated that Au would hit $800 by September last year, they really were not to far off, however they thought that it would hit $1000 by now and as much as $2400 by July to Sept this year...... their reasoning was much the same as yours, with the added more products being used with precious metals and mining/recycling not keeping up with the demand added in.

Lots of folks are waking up to the fact that the united states note [non-interest bearing paper] has not been printed since the Kennedy administration and the the private corporation Federal Reserve Accounting Unit Denomination [fraud] is an obligation of the UNITED STATES corporation [as opposed to the several united States] and that is defined at 12USC 411 and further at 31 USC 5117 which also sets the price of Gold at 42 and two-ninths dollars a fine troy ounce for those certificates [US NOTES] printed. Interesting eh? Since 1973 frauds have been monetized by oil, the price of oil has soared, gold is still valued at $42 2/9 per ounce by the government but it takes over 800 "obligation" notes [frauds] to get an ounce on the street today, closer to 900 soon..... are you getting par at the bank like is set forth in 12 USC 411? nope and neither is anyone else except the banksters, ergo people are buying precious metals and holding it against the future when the bottom goes completely out of the "FRAUD" obligation note similarly as it has done over the years in other nations [look at how trading is accomplished for the folks who have a few gold coins in Brazil for example as opposed to the man on the street who has to deal in daily printed "new inflationary notes"] and there are many countries in similar dire straits. Further many countries around the world to save high inflation in their homeland are "unpegging" their currency from the "FRAUD" making the "FRAUD" worth less on the open market, which if you are China holding nearly 3 trillion FRAUD notes would make you nervous as a cat in roomful of rockin chairs [sorry AFLAC]. So precious metals are in demand world wide not just from the "wealthy" elitists and "power mongers", but also from the everyday ordinary joe [and joe's wife or girlfriend] as a hedge against what they perceive as inflation [if they have anything left after packing wood and toting water all week long to keep beans and rice and maybe a chunk of meat on the table for the next week].... so the price rises and will keep rising for some time to come, until the governments of the world decide the people can no longer have precious metals on their own and make it against "man's law" and do house to house searches for such under a "new world odor" as some call the Globalist movement.

Daily in the several western states it is getting harder to not break a "regulation" when out prospecting for raw precious metals, and miners are getting harder to find in the once plentiful field of "small scale mining" operations and claims...... Washington state has allowed the depart of fish and wildlife to "define" what a small scale miner can use to prospect and when they can do it, and the current proposed revisions are more restrictive than the original from what ive read Washington state prospecting proposed rule changes other of the several states will probably follow suit because they can for few people believe it will impact them, but it does.

So in all I personally believe that the price of precious metals will not go down anytime soon to a large degree from people all around the world using metals in more production, and hoarding, and from environmental restrictions in traditional mineral rich mined areas. But I am just a little fella who has only his own ideas and nothing to actually back up my beliefs more or less. [Ive been called by more than one entity a "conspiracy theorist" and one of those "Constitutionalists" over the years]

Blueduck is one of the last free radicals, but not THE last, nor the most radical.

Have an ORDINANCE day ;-Þ

William
Idaho state, one of the several "nation" states united of North America


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## OMG (Jan 7, 2008)

I don't know why people picked gold to be so valuable. I hope lots of rich people buy lots of gold (from me  ) then try to figure out what they're going to make with it, when people realize its not worth much.


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## Harold_V (Jan 8, 2008)

OMG said:


> when people realize its not worth much.



That's simply not true. From the standpoint of industry, it offers properties that are unique in many ways. Gold has value far beyond the vanity of people. To complicate matters, it, like platinum, is not found in abundance. There's not enough to go around, which helps bolster its value. 

Harold


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## goldsilverpro (Jan 8, 2008)

In a speech that Greenspan gave, when he first became head of the Fed (a British banking cartel?), he said he would control the gold price by the money supply. This either hasn't worked, lately, or the Fed wants it high. I have never believed that gold freely floats, without an influence of some sort. No such things as coincidences and accidents in today's pre one world government era.


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## blueduck (Jan 8, 2008)

From The Daily reckoning newsletter comes this quote from today [08-January-08]



> Our colleague in Buenos Aires sets us straight:
> 
> “Since 2001 the dollar price of oil and gold have run in almost perfect tandem,” writes Chris Lowe. “The gold price has risen 239% since 2001, while the oil price has risen 267%. This means that if the dollar had remained ‘as good as gold’ since 2001, oil today would be selling at about $30 a barrel, not $99. Gold has traditionally been a rough proxy for the price level, so the decline of the dollar against gold and oil suggests a U.S. monetary policy that is supplying too many dollars.”



which is probably the closest answer a person can get to the why it is happening like it is at all right now...... whre it will go is still anyones guess, and remember an "expert" is merely a person who guessed right three time in a row!!!!

William
Idaho


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## Chuck_Revised (Jan 14, 2008)

Gold and PMs are subject to the same laws of supply and demand as wheat and Elmos. Gold is a finite substance with rising costs to extract from mother Earth. As India and China develop middle class income citizens, the demand for PMs increases enormously, not only in jewelry, but in electronics.

I see (but I'm only an average Joe) PMs increasing steadily with downswings when the retail prices for the luxuries exceed the consumer's willingness and ability to pay. Just ask Tiffany's how the price rise affected them this last Christmas season.


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## usaman65 (Jan 15, 2008)

my prediction is that silver will rise to $200 an ounce in my lifetime. 

You know whats funny tho- a large precentage or you pennies in you pocket are worth 3 cents melt.....


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## Harold_V (Jan 15, 2008)

usaman65 said:


> my prediction is that silver will rise to $200 an ounce in my lifetime.



Don't look at that as a good thing. Should you be right, you can expect to pay $50 for a loaf of bread. Higher prices on commodities doesn't bode well for the typical economic system. 

Harold


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## aflacglobal (Jan 15, 2008)

Oil


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## junkelly (Jan 16, 2008)

Harold_V said:


> usaman65 said:
> 
> 
> > my prediction is that silver will rise to $200 an ounce in my lifetime.
> ...



My thoughts exactly. I'd vaguely heard of hyperinflation in Germany after WWI, so I looked it up. It has an interesting picture of a lady heating her stove...

http://en.wikipedia.org/wiki/Hyperinflation

-junkelly


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## dixie (Jan 20, 2008)

junkelly:
What an intresting reference on hyperinflation, 

I noticed in the reading many ways that goverments prop up their positions to keep the citizens unaware of what is really happening.

Think about coin and stamp collecting for a moment. Now I'm not talking trruely rare coins (example 1895 proof Morgan dollar that only 880 was made) but what I call manafactured collectables like (examples gold tone dollars, state quarters, 1776-1976 issue coins, all sorts of stamps)

Question, Is our goverment really printing these things in honest hopes that your will buy them at the bank or post office for full face value and just put them away forever?

I cannot tell you how many times I get an answer to a classified ad for old coins and when I meet them they have several hundered dollars worth of this stuff. I sort all the good from the *spendable* and hand them the *spendable* and tell them to spend it. What do they do? They promptly put it back in the *valuable box* and announce, well I'll just save it for the grandchildren, it will be worth something when they get it.

Mike


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