Gold Price Discussion

[richo966]

people have always been hurt buying at the top of the market best to buy things after crash shares gold houses all go up and down manipulated of course never buy in to hype it is all a game of musical chairs last one standing is going to go broke that is how it has always worked

 

[Heatho]

BumbleB, totally agree there also.

 

[thedigger]

Here is Alan Greenspan comments
The gold price suppression scheme was a matter of public record in July 1998, six months before GATA was formed, when Federal Reserve Chairman Alan Greenspan told Congress: "Central banks stand ready to lease gold in increasing quantities should the price rise." That is, Greenspan himself, supposedly the greatest among the central bankers, contradicted the usual central bank explanation for leasing gold -- which was supposedly to earn a little interest on a dead asset -- and admitted that gold leasing is all about suppressing the price. Greenspan's admission is still posted at the Fed's Internet site

Germany asked for some of its gold back from the US last year the answer was you will have wait 7years?.That tells me that they no longer have the gold.This game has been going on for some time,we have to remember why the banks do not like gold,and that reason is it puts restriction on the amount of money they can lend,no lending means no interest on money out of fresh air,just look at the fractional banking system,it is a giant ponzi scheme.The world will a new financial system some time in the future because this one is going to fall apart,the western world is broke.
For those who think gold is finished think again,the Chinese are not silly,they have faced paper currency before and they have all failed.
This game is near the end.

 

[BumbleB]

Right on Digger!
The World definitely needs a new, more stable, & better controlled financial system. Some have even suggested that there maybe a new World Currency once again backed by Gold- this will be a very difficult thing to pull off, as it would require EVERY Country to agree to the terms & conditions & be happy with the exchange they get for their current Currency. There is also the problem of those Countries having to buy Gold to backup the new Currency that they will hold- even at today's Gold price (US$1240) that would instantly create massive debts for those Countries even before the new system started. This is also one of the main reasons that China has been purchasing soooo much yellow, & telling their people to buy whatever they can.
China will almost certainly create a new Currency, irrespective of the rest of the World- I understand that they are already planning this- the Chinese Yuan is seen as an old/out dated Currency & not worthy of their new found global dominance. Aside of this, they too (like the US) have been slowly devaluing their Currency through the printing of money on a grand scale, this is how they have been able to finance their massive growth & overseas purchases (mines, farming land & major Corporations etc) over the past 10+yrs.
The difference with the US is that they have used their printed money (Monopoly-money) to buy their own Gov't Bonds (which is really their own debt) & to artificially prop up their Stock Exchange, not purchase real assets for the future, or build new Industries for the US worker. This is why the US is doomed to fall & all but the Criminals at the top & their crony Banking mates, will have lost everything. Middle-class in the US is already dead; by contrast it is the rise of the Middle-class in China that is actually giving backbone to their growing Economy- their Economy will go from being a purely manufacturing Economy, to a Consumer driven Economy, & with well over a Billion people, it is going to be a gargantuan Economy, with 70+% of the Worlds Gold in their vaults. They are now unstoppable!
So it is easy to see how, irrespective of how things playout with the World Economy, Gold WILL dominate & WILL skyrocket to untold value at some point.

 

[thedigger]

China like the US has issued a lot paper,and that is going to be problem for them,look at all the cities built and no one living in them.Cast your mind back to the eighties when Japan was buying everything in sight,that will last till reality strikes.When GFC hit, China started up the presses to keep things going,so how this plays out no body really knows.
If a gold standard is introduced counties will have to go along with it,but then again we are only guessing,but something new is coming.

 

[BumbleB]

Too true mate!

 

[BumbleB]

Just to follow on from the recent discussion, many of you may find this link interesting & scary.

http://www.kingworldnews.com/kingwo...The_Most_Frightening_Prediction_For_2014.html

 

[thedigger]

Hi BumbleB
Go to USA watchdog and listen to Paul Craig Roberts,he talks to Greg Hunter a really good interview,he tells really what is going on.

 

[TenOunce Tone]

MONGOLIA... and the region!! LOTS of gold is still in the ground there..

 

[BumbleB]

Hi BumbleB
Go to USA watchdog and listen to Paul Craig Roberts,he talks to Greg Hunter a really good interview,he tells really what is going on.

Thanks Digger, I will check it out.

 

[BumbleB]

Hi BumbleB
Go to USA watchdog and listen to Paul Craig Roberts,he talks to Greg Hunter a really good interview,he tells really what is going on.

Thanks Digger, I will check it out.

Hey Digger, mate that is EXACTLY what I have been saying to anyone that will listen for the past 12 months- it is so obvious that all of what was talked about is heading the Worlds way very soon.
Anyone else that wishes to get an in a nut-shell version of the US & World economy should watch this link. It goes for 40mins, so make yourself a cuppa & strap yourself in for a real wakeup call.

http://www.youtube.com/watch?feature=player_embedded&v=_ojASipDzVY

 

[Keen Ken]

Have a good look at who are the promoters of these high gold price forecasts.

It's usually those who stand to gain something by suggesting the price will rise (say to $5000 per oz), to create an illusion that gold will go up, hoping we think to ourselves, "if I don't get in now I'll miss out".

If the price goes up I think it is more likely to be the decline in value of the AU$ and US$.

Watch the gold price in relation the Chinese currency/ economy, very interesting.

 

[BumbleB]

Have a good look at who are the promoters of these high gold price forecasts.

It's usually those who stand to gain something by suggesting the price will rise (say to $5000 per oz), to create an illusion that gold will go up, hoping we think to ourselves, "if I don't get in now I'll miss out".

If the price goes up I think it is more likely to be the decline in value of the AU$ and US$.

Watch the gold price in relation the Chinese currency/ economy, very interesting.

Personally I disagree.
You could say exactly the same 'reverse psychology' about those that say everything will be ok & just keep buying US dollars or Stocks. Forget the spin, look at the economic fundamentals behind both sides, & it is very clear (to me anyway) which way the tree will fall.
If you watch the interview- http://www.youtube.com/watch?feature=player_embedded&v=_ojASipDzVY it is spelled out really well & that guy is not selling Gold or anything for that matter. Anyway, time will tell- don't get me wrong, there is a huge chuck of me that hopes I'm wrong.......but there really is zero fundamentals to back that up- it really is just plain old 'hope'.

 

[thedigger]

Hi Ken
One thing people have got understand is the Chinese economy is not all it cracked up to be.

Here is a piece from zero hedge today

As Michael Pettis, Jim Chanos, Zero Hedge (numerous times), and now George Soros have explained. Simply put -

"There is an unresolved self-contradiction in Chinas current policies: restarting the furnaces also reignites exponential debt growth, which cannot be sustained for much longer than a couple of years."

The "eerie resemblances" - as Soros previously noted - to the US in 2008 have profound consequences for China and the world - nowhere is that more dangerously exposed (just as in the US) than in the Chinese shadow banking sector as explained below

The people warning today where also warning back in 2008,I took the warning and saved our savings from being lost.

 

[loamer]

More analysis:

There are now only two outcomes for the current fiscal, monetary and economic conditions; and they are both bullish for gold.

The Unlikely Scenario
The Fed will stop buying $85 billion per month of bank debt and will be completely out of the bond-buying business by the fall of 2014. Nevertheless, this will have an inconsequential effect on bank lending, money supply growth and economic growth. The continued condition of negative short and long-term interest rates will lead to a rapid expanse of the fractional reserve lending system and inflation. The fear on the part of gold investors about the Feds taper will then quickly fade away, as rising inflation sends bullion prices higher, just as it did in the middle of the last decade.

The Realistic Scenario

On the other hand, the Feds taper leads to spiking longer-term interest rates, falling asset prices and a faltering economy. Those rising interest rates cause the economy to slip back into a recession and deficits to once again spiral out of control. This will force the Fed to adopt a more substantial and protracted QE program than at any other time before, as it desperately seeks to keep long-term rates low in the context of soaring debt and deficits. Money supply growth in this case would be significant because the Fed would yet again be back in the business of monetizing trillion dollar deficits.

In either case the secular bull market in gold will re-emerge in 2014. I believe the yellow metal will approach $1,600 per ounce by the end of next year. I further contend that mining shares have already bottomed in anticipation of a failed Fed exit and will offer investors significant returns in the year ahead.

 

[BumbleB]

More analysis:

There are now only two outcomes for the current fiscal, monetary and economic conditions; and they are both bullish for gold.

The Unlikely Scenario
The Fed will stop buying $85 billion per month of bank debt and will be completely out of the bond-buying business by the fall of 2014. Nevertheless, this will have an inconsequential effect on bank lending, money supply growth and economic growth. The continued condition of negative short and long-term interest rates will lead to a rapid expanse of the fractional reserve lending system and inflation. The fear on the part of gold investors about the Feds taper will then quickly fade away, as rising inflation sends bullion prices higher, just as it did in the middle of the last decade.

The Realistic Scenario

On the other hand, the Feds taper leads to spiking longer-term interest rates, falling asset prices and a faltering economy. Those rising interest rates cause the economy to slip back into a recession and deficits to once again spiral out of control. This will force the Fed to adopt a more substantial and protracted QE program than at any other time before, as it desperately seeks to keep long-term rates low in the context of soaring debt and deficits. Money supply growth in this case would be significant because the Fed would yet again be back in the business of monetizing trillion dollar deficits.

In either case the secular bull market in gold will re-emerge in 2014. I believe the yellow metal will approach $1,600 per ounce by the end of next year. I further contend that mining shares have already bottomed in anticipation of a failed Fed exit and will offer investors significant returns in the year ahead.

Yep. I just worry about all Stocks, including Gold Stock. On face value when thing fall apart & Gold goes way up one would think that all Gold Stocks will follow, but companies (even gold companies) go broke for many different reasons & I'm just wary full-stop about the whole Stock Market. I think I prefer something I can pick up & polish or cuddle- paper certificates just don't feel the same.
The truth is no one (not even the people that created this mess) really know how or when the poo will hit the fan, or where all the splatter will land. The endless layers of manipulation & spin have created such a dire situation that the end result could be anything. But as you point out Loamer, Gold & Silver will be the Big Bulls in the china shop (pardon the pun...).
If it wasn't so catastrophically scary, it would be fascinating to watch it all unfold.

 

[loamer]

I want the A$ to fall - US$ to rise - gold hits US$1,500 - then its sell, sell, sell.

 

[BumbleB]

I want the A$ to fall - US$ to rise - gold hits US$1,500 - then its sell, sell, sell.

Really, at $1500?? With an old top of US$1900+ I recon it is going to go past that with its eyes closed.
I know alot of people speculate about $5000 or even $10,000- I don't know where it will finally go to, but I would see the old top ($1900) as the potentially the new bottom.
If things really come apart in a bad way, my feeling is $2500 would be easily achievable. If it hits $5000 or $10,000 then the World economies will be in tatters, so as much as it would be good, that would be really bad generally speaking, for us all & our Grand-childrens' children! Like I said, if it wasn't so scary,it would be fascinating....

 

[BumbleB]

Hey everyone, just to add to the whole conversation, checkout this link.
http://shar.es/9ETF8

 

[thedigger]

Hi BumbleB
They were told 7 years to get back 300 tons from US gov that tells you they have not got much gold left.

If you want a laugh look up Peter Schiff at Bankers convention in Los Vegas,he told them that they will all be looking for a new job and they laughed,how spot on he was,that was 2004.