When Will the Price of Gold Really Take Off?

I'm posting this question here to get everyone's opinion about when do you think gold will really start taking off in a steep price climb? I'm not debating if it will happen for there is plenty of basis for it to occur with all this infinitely large debt the U.S. government is making. I've read quite a few financial reports which all agree that inflation (and probably hyperinflation) will takeover eventually. In other words at some point the bill come due. In one report I read it indicated that it could take up to two years before any of the inflation and the resulting gold price increase could take place. Some of the short term gold price forecasting says it will reach $2,000 per troy ounce by the end of the year but so far the price isn't going that way in a hurry. What do you think? I don't know myself. I'm tempted to do some research to see what all was going on with inflation and gold prices back in the late 1970's, early 1980's when this occured before. Who says history doesn't repeat itself!!!!!!!! Regards, Chris.

Silver usually follows gold, as it's doing right now. In 1980, gold followed silver, when silver was artificially inflated.

Gold will do what ever the world bankers want it to do. They have all the money and most of the gold. They make 100% of the rules. We live in this phony democracy (which is supposed to be a republic - the founding fathers hated the concept of a democracy) and just think that we have a say in anything that goes on. Gold might go up and it might go down.

goldsilverpro said:

and just think that we have a say in anything that goes on.

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Yep!

Harold

goldsilverpro said:

Gold might go up and it might go down.

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I have to agree, but I also think that the Fed's printing presses working overtime will have to result in inflation. The Chinese have been expressing concern, with good reason IMHO, about their holdings in US dollars.

For that reason, It seems logical that in the battle of gold vs the US dollar, gold wins :!: But, maybe not. :?

Regards.
John

I was reading an article on another forum yesterday about how the Gulf States have had enough of the Dollar too.

They've just voted in a new currency, a bit like Europe did when they brought in the Euro.

This new currency apparently won't be ready till 2011 but when it does arrive, it will be the currency they expect to be paid in for the oil. It will be backed by oil and not a pretend currency like the Dollar (Fiat)
This will have a large impact on the US Dollar demand and at that point, the Chinese will have to do something about their substantial holdings in US Dollars.

The price of Gold usually goes the opposite way to the Dollar, so if what I was reading comes to pass, expect fireworks in a couple of years and the price of Gold to be up there with them.

Regards
Buzz

Interesting replies!!!!!!!!!!! Another thing I have read is that one reason the dollar is staying up in the currency markets is because all the other currencies are in such bad shape, even worse than us. They are really deflating worse than the dollar or to be more precise, should be deflating. The countries are fighting it tooth and nail but are losing ground. As a result their citizens are buying dollars and dumping their own currency. Running to the higher ground so to speak while it is still higher. If and when the other countries start to recover then they will go back to their currency and dump dollars like mad, then the real problem starts for us. There goes our dollar!
I hear and read a lot of things like gold can be continually manipulated in price by the government, banks and so on or the same concerning the dollar and other financial markets but if you go back and study basic economics what comes out hard is that at some point you start to pay for the mistakes, debts and so on. In other words at some point the bill comes due. You can put it off using a lot of tricks like printing bales of paper currency but it will still come around and bite you in your butt eventually. All of this current financial mess can be correctly explained by studying basic economics. If a big speculative markets takes place then it will burst like a bubble eventually. That's what happened. The most disturbing thing about all this is that all those people in position to control and govern financial markets and so on didn't have clue this would happen, not even Warren Buffet. Warren himself said the evidence was there all along but even he chose to ignore it.

Enough said, regards, Chris.

then the real problem starts for us. There goes our dollar!

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I think the writing has been on the wall for some time.

It seems to me, that realistically, the Federal government is bankrupt, and has been for some time. The Federal budgets currently proposed are sort of a joke. (And the Chinese aren't laughing.)

But, look at the bright side. While it may wipe out the savings of millions of people, it will also wipe out debts. There's a lot of negative, but also some positive.

I was reading an article on another forum yesterday about how the Gulf States have had enough of the Dollar too.

They've just voted in a new currency, a bit like Europe did when they brought in the Euro.

This new currency apparently won't be ready till 2011 but when it does arrive, it will be the currency they expect to be paid in for the oil.

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Scary. Very scary. They would probably take gold though. :wink: The US doesn't get that much oil from the gulf, do we?

Regards.
John

Spoken like true conservatives....Keep refining so we can buy our family's food in the future........

Just my 2 cents worth of gold,

Thats not very much at all today. Gold like all commodities is subject to many factors of the market. Obvious to any first year buisness student would be Supply and Demand. What are current demands, electronics industry = down, currency = slightly above average, automotive industry = way down. etc. As of late the biggest inflation of the gold commodity prices can be attributed to speculation of a bad economy.

I am a fan of Dave Ramsey, and would agree that gold by no means is a substitute for money. I believe the destruction of the gold standard decades ago took care of that. It is very hard to speculate what the price of any commodity will be in the long term, lets just say hypothetically that the moon turned out to have 70% gold for it's core, and a major gold mining company purchased the rights to it and developed it. This would greatly increase the supply without doing much for the demand end. I feel this is what has been going on for much of the past 12-14 years, with increased production, but about average demand.

If I had to speculate, I would guess that the price of gold would probably hit 600 within the next 8 to 10 months. From there I would buy it on a long investment venture. I hate to say it, however I really feel the bubble is about to burst.

Again just my two cents, I have a lot invested in gold as well, so no death threats, LOL.

Ask for speculation and receive,
Nick

gold is always viewed as a safe haven in a financial crisis, political events and outbreaks or threats of war have in the past caused a surge in its value. Predicting its future price is far from easy but seeing the amount that is passing through the refining houses at present surely points to a dramatic drop in value at some point, perhaps when and if all the other world markets stabilise, until then make hay while the sun shines i really cant see it lasting for ever. For those of you that process voumes of bullion i trust your selling at the same time as your buying otherwise you are becoming speculators and while large profits can be made, huge losses can also accrue when and if the price starts to fall. The one sure thing that has been proved by all this is that there really is loads more gold out there than official figures would suggest. My view is that at present its really important to realise all values that you have in low grade and waste products these all to often take a long time to process and in a falling market you really can get a beating, if you dont need the money(lucky you) take it in a form you can trade quickly and easily. Good luck to all of you i hope you all win on this upswing in the bullion prices.

An update on my comments, Rio mine in Mongolia will produce 330,000 ozs from 2013 in 5 years,Goldfields in Greece will be proucing 420,000 ozs a year from 2012.....2 reports on the same day from mining companies and demand from industry is dropping, which way will you bet the gold price will go?????

UP 10.30 for the day. You have links to those reports? Did they come out this morning, or this afternoon?

So, actually the deal was just signed. Not in production yet, so still just speculation at this point.

http://www.upi.com/Science_News/Resource-Wars/2009/10/07/5-billion-Mongolian-copper-gold-mine-deal/UPI-38991254939195/

I like the story about a man during the Weimar Republic in Germany who went to buy a loaf of bread with a wheelbarrow full of Marks. He left it outside when going in the Bakery. When he came out, the money was still there, but someone had stolen the wheelbarrow.

You can see what an advantage you had if you owned gold or silver.

Dont get me wrong i love the look and feel of gold, especially fine gold, but i just think this price level is in the long term unsustainable . Everyone and their brother is buying gold scrap here in the uk. TV , radio and the papers all have adverts, shops with A boards, god alone knows how much has been returned to the market from old jewellery and every refinery is flat out trying to cope with the volume. Mines that were closed due to the low returns have re opened, new mines are opening and every source of gold from industry is been scoured for any values that can be found but actual usage is flat if not falling. Unlike oil it isnt a vanishing commodity, what we do consume is virtually all reclaimable ( as we all know) .....

Gols and silver marketsare manipulatedby western central banks and governments. They( Au and Ag) are money) and the government can make ( print) all notes( money) that they want to cover theirs debts.
See this site to know more informations:

http://www.gata.org/node/6873

The price of resources (not only gold) heavily depends on one thing in reality and only. Demand. Since gold is theoretically finite on Earth as oil etc. less than 6 billion posess amounts of physical gold. Others own notes which are based on the value of a state's posessions too. Now in our modern times, West, which is more prosperous and progressive affects inflations and deflations in order to regulate wealth. We saw that recently Some other psychological factors especially during times of war also play a role on that. With more "space" added, since in 50 years from now we could actually mine minerals and resources from closeby planets, the demand may actually drop and hence the value. But what about the population by then? Personally I see gold dropping soon. I might be wrong, but there is this gut feeling.

We have a hard time getting minerals from this planet under our feet, how much more trouble would we have trying to mine moon dust?

price of gold may rise or fall but the amount of groceries we can buy with it stays more in line, we cannot confuse the price of paper money and the price of gold, they do not follow each other, as paper moneys value can change without reason, their is nothing backing it except the word of whoever prints it, metals are important to our survival and as such are valuable, look at iron through history, how would man survive without this valuable metal? iron has been recycled all through history, so my truck may be made from parts of Roman swords, now for as mining the moon this may drive up the gold price as NASA needs lots of gold and precious metals to get there, and do not forget they left a lot of gold there the last time they went, so space mining may deplete our planet of minerals:?:

@butcher

Don't forget this cloud of thousands of sattelites around us. We need to get rid of this junk too. Who knows, perhaps their might be en inter-Terran ( :!: ) agreement of expeditions to start gathering them.