# $1400/ troy ounce.. heading towards a bubble?



## AuMINIMayhem (Feb 21, 2011)

Just wondering what everyone's opinion is.. I personally think this latest surge is directly related to the unrest over-seas (Middle East), but can the world's markets support $1400-$1500/ ounce for gold?.. or are we looking at a bubble getting ready to pop?.. :?: 

Thoughts?..


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## 4metals (Feb 21, 2011)

I think it will rise more because it is such a stable commodity and with going on in the Middle East investors are seeking it as a safe haven. 

Long term I see gold settling out in the 900-1000 dollar range in the next few years. Maybe then the jewelry markets will come back. 

I think silver is a better bet as an investment.

But then I'm usually wrong about this stuff. I can concentrate it, refine it, assay it, but I can't seem to predict it.


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## patnor1011 (Feb 21, 2011)

It looks that bubble is going to burst ugly.

No, it is not a bubble of price. We are going to see burst of all those investment funds which offer you to own gold on paper and claim you have that in their vault. They are shaking right now and we will see them go. It is unrest in world but frantic searching for silver to fulfill contracts which are going to expire and holders demanding physical delivery. That is going to put few funds, banks and individuals to history.


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## mlgdave (Feb 21, 2011)

it would all be opinion and speculation. I have been in the gold biz for about 11 years and my motto is turn it quick, over and over and over and over and yes the % is nicer at 1400.00 than at 800.00 but I think the game players will take it over 1500.00 this year. This is typically the time of year when gold is stagnant or goes lower but this year thats not happening

mlgdave


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## AuMINIMayhem (Feb 21, 2011)

yeah, that's kind of what I was thinking. Historically though, I don't believe I've ever seen gold really trend downward, even after a spike it still tends to settle out higher than prior to the surge.


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## 4metals (Feb 21, 2011)

You weren't in the business for the boom of the seventies and the period ending about 4 years ago. gold went from highs approaching $1000 to $250. It costs a fixed amount to refine an ounce of gold so the rates moved accordingly.


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## patnor1011 (Feb 21, 2011)

But we have billion more souls than in 70ties and bet that some of them wants to have gold, silver be it in jewellry or electronics :mrgreen:


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## Drewbie (Feb 21, 2011)

This is not a bubble, this is a spiralling death of the fiat money system, propped up by fraud on a global scale.

Gold and silver, priced in dollars or euros are going to go higher and higher. They are a true store of wealth.

If you had buried US$10,000 in bank notes and US$10,000 in gold and US$10,000 in silver side by side in 1910, what would they all be worth now in 2010, inflation corrected?


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## Harold_V (Feb 21, 2011)

4metals said:


> You weren't in the business for the boom of the seventies and the period ending about 4 years ago. gold went from highs approaching $1000 to $250. It costs a fixed amount to refine an ounce of gold so the rates moved accordingly.


Chuckle!

Yep! I have some not too fond memories of holding out for that magic $1,000/ounce, then being forced to sell when it went under $300. Gold hit its high in '80, then it was down hill for many years, with short excursions to the $500 area.

I truly feel the price we see now (for all metals) reflects more on the valueless dollar than anything. 

Harold


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## AuMINIMayhem (Feb 23, 2011)

Harold_V said:


> I truly feel the price we see now (for all metals) reflects more on the valueless dollar than anything.
> 
> Harold



yeah, the (US) dollar is becoming obsolete. Right now, almost all the countries use the US dollar as their baseline to trade on. Example if you lived in Ukraine and wanted to buy oil from Saudi Arabia, the price per barrel given to you would be in USD. China, Russia and a few others are wanting to move away from that. It's a bit scary when you start looking into it. :shock:


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## AuMINIMayhem (Mar 2, 2011)

$1438 this morning..  :mrgreen: :mrgreen: :mrgreen: :mrgreen: :mrgreen: :mrgreen:


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## Drewbie (Mar 2, 2011)

There was an interesting post at zerohedge.net today (my #1 destination for financial reality).

It pointed out that if gold and silver were really in a bubble, every huckster in the nation (including CNBC) would be pumping it for all they were worth.

Right now the media hucksters are still pumping stocks for all they worth (or not worth, in this case). The infomercials are mainly trying to convince the sheeple to SELL their gold.

The mainstream media barely even mention the historical highs being reached recently.

Result: GOLD IS NOT IN A BUBBLE. Hoard it with every muscle in your body. The value of the fiat currencies are crumbling in front of our eyes.


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## nickvc (Mar 3, 2011)

Don't forget that all the movements in price are related to money and those that have made a paper fortune in the rising prices will also make money as it falls by selling short. All the gold been purchased, refined and mined at present is virtually all destined to sit in bank vaults as a store of wealth, it has no other use, and if and when the world economy stabilises opportunities to make more money from stocks and shares and a myriad of other sources will drain interest away from gold. Personally I'm a great believer in buying and selling, ie trading, not speculating. Gold price in a years time $1600 or $800 an ounce your call and on this side of the pond the movement in the value of fiat currencies has almost as much to do with golds value as does it's price in dollars. Short term movements fairly predictable long term....toss a coin heads it's going up tails it's falling.


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## sebastionay (Mar 3, 2011)

Gold is not the bubble its the US dollar. price of gold is inversely proportional to money, ie it rises during inflationary periods. As long as the Fed is printing almost free money gold is gonna rise, and its gonna continue to jump on news of each stimulus package.

Another thing is paper gold, that can quite easily bubble and burst, there have been times in the past were gold ETF's dropped big amounts and physical prices didn't change much.

JP Morgan and Goldman had really huge short positions in silver over the past months, and its failed. I think price is totally safe at these levels.


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## jimdoc (Mar 3, 2011)

I think this guy could do a better job at the Fed;

http://www.youtube.com/watch?v=oC1rq32uGBI

Jim


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## gold4mike (Mar 4, 2011)

Here's my favorite place to check on the relationship of physical gold/silver versus the paper trading. 

http://harveyorgan.blogspot.com/


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## Hephaestus (Mar 4, 2011)

China wants copper for infrastructure. So, shortage in copper (>100k tonnes if i remember correctly). And ...copper price increases.  

China and India also want gold as they get richer. And they are huge markets. So, price might increase even more.


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## qst42know (Mar 8, 2011)

jimdoc said:


> I think this guy could do a better job at the Fed;
> 
> http://www.youtube.com/watch?v=oC1rq32uGBI
> 
> Jim



So... according to the cat in the hat, buy paradeium OK. :mrgreen:

Investment advice from the cat in the hat , how can you go wrong. :lol:


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## goldenchild (Mar 8, 2011)

qst42know said:


> jimdoc said:
> 
> 
> > I think this guy could do a better job at the Fed;
> ...



Paradium lol. The best part was at 3:12.


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## joem (Mar 8, 2011)

I've got one:
A/P solution
"learn it, live it, put﻿ it on your toast"
but don't worry there is a mineral to clear your body
it's called lead
And when you get to the alternate universe - it's called afterlife
where you will wear a hat.

:shock: 
This guy is hilarious


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## patnor1011 (Mar 8, 2011)

What is he smoking? :twisted: :twisted: :twisted:


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## Drewbie (Mar 8, 2011)

Nut. Case.


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## qst42know (Mar 8, 2011)

patnor1011 said:


> What is he smoking? :twisted: :twisted: :twisted:



Cobalt toast. Don't worry he's sane in the alternate universe.


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## Drewbie (Mar 10, 2011)

http://www.scrapmonster.com/news/china-imports-200-tons-of-gold-in-2011/6/974


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## AuMINIMayhem (Mar 10, 2011)

"when it go down, I lose a hundred precent, hundred precent, hundred precent, I go back to the bank I get more money and I lose hundred precent again.. this do not matter to me and I tell you why... this called opportunity _gainnnn_.. "

LMFAO!.. I'm dying over here! GREAT POST! :lol: :lol: :lol: :lol: :lol:


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## DarkspARCS (Mar 15, 2011)

Hey guys... here's something to seriously consider !!

Japan is the 2nd largest holder of American treasuries, next to China. Japan's economy is toast, with no recovery or relief in sight. Japan also (Just Now reported) has evacuated the 50 workers fighting to stablize the 6 critical nuke reactors at Fukushima... :shock: 

That means a 6 reactor meltdown is emnant.

that also means that Japan is going to dump u.s. treasuries...

buy now! food, water, ammo, camping gear, and a good supply of kelp from the local healthfood store.


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## Oz (Mar 16, 2011)

Japan has a printing press too, they just made 2 trillion yen out of thin air to stimulate the economy and rebuilding efforts, just like the US did for our banking crisis. The rest of the world followed with their printing presses in order to maintain the status quo. It is all just a global devaluation game. Yes they may sell some US treasuries to cover costs but I do not foresee them panic selling, so there is no reason to panic buy things. The greatest impact economically outside of Japan is that others will have the opportunity to reclaim some of their manufacturing and production base that they have lost to Japan, while Japan is rebuilding their infrastructure.

I would agree that depending where you live it would be wise to have some potassium iodide tablets on hand.


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## DarkspARCS (Mar 17, 2011)

Oz said:


> Japan has a printing press too, they just made 2 trillion yen out of thin air to stimulate the economy and rebuilding efforts, just like the US did for our banking crisis. The rest of the world followed with their printing presses in order to maintain the status quo. It is all just a global devaluation game. Yes they may sell some US treasuries to cover costs but I do not foresee them panic selling, so there is no reason to panic buy things. The greatest impact economically outside of Japan is that others will have the opportunity to reclaim some of their manufacturing and production base that they have lost to Japan, while Japan is rebuilding their infrastructure.
> 
> I would agree that depending where you live it would be wise to have some potassium iodide tablets on hand.



Well, if the precious metals ticker at the bottom of the page is indicative of what I've stated in my post, something is seriously devaluing the pm markets...

We might not have to worry about empty super market shelves this week... but it's a comming developement. This isn't 'panick buying', it's called self preservation - I seriously recommend stocking up on roughly two to three months of durable food and water supplies...

even if all turns out well, at least you acted to insure you won't go hungy.


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