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 Replies: 22 / Views: 3,083 |
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Pillar of the Community
United States
3670 Posts |
"Once it finally becomes clear that there is no safety in US debt or the dollar we will see a mass exodus from both of those and into PMs and other commodities. When that happens, there will be a HUGE run-up in commodity prices. Will that become a bubble at some point?"
That theory makes much sense and most likely should indeed come to pass....
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Pillar of the Community
Canada
1502 Posts |
movements in price of gold may be similar to 1980s or the tulip crash, but fundamentals are entirely different in all the areas that Ed pointed out. I see the recent dip as caused by the propping up of the failing US dollar by the fall of the failing Euro.
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Rest in Peace
United States
9104 Posts |
I think the biggest difference between US and Yurrupean financial problems is that Yurrup is still a bunch of sovereign nations, despite a common currency. When decisions affecting the dollar are made, the entire country sinks or swims on them.
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Valued Member
United States
264 Posts |
Breaking News: China Clamps Down On Gold Trading. http://www.cnbc.com/id/45794782With the Asian Gold/Silver buying season over and news that China is going to stop all Gold Exchanges in their country, January 2012 will be a good test for the strength of precious metal markets. How strong is the bubble now? |
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Rest in Peace
United States
9104 Posts |
 , rgathright, and Thanks for the heads-up. |
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Rest in Peace
United States
9104 Posts |
Ignore the first link and use the second.
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Valued Member
United States
320 Posts |
The question needs to be more defined.
Are we talking physical gold? No probably not a bubble at this point. But paper gold? I'd say that's a bubble.
The "price of gold" currently tracks both, being that they are supposedly interchangeable. But they're not, when you consider that there's more paper than there is the gold it represents.
I believe the paper bubble will pop and the physical will not. Perhaps it may deflate a little but not pop.
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Pillar of the Community
United States
4008 Posts |
Yes, it is interesting to watch for divergence between the bullion and paper prices. One sign of this is when the physical metal price drops to a level that makes a lot of us want to buy all we can but there is very little out there to be bought. Either the dealers have sold out of it or they still have some and are holding it until a higher price returns.
There is a lot of comment on the net these days about large physical gold buyers by-passing the CME and going straight to the producers for their purchases. They can do this because they buy in multi-ton quantities. This is a pretty big deal as far as the trading markets go. It looks as if at least some of the big boys who want physical metal are not very happy with the CME right now and for good reasons... many of which are tied to the MF Global scandal.
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Pillar of the Community
Canada
1502 Posts |
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Rest in Peace
United States
9104 Posts |
A customer from south africa told me it's almost impossible to buy gold there, becaused all the mine production has been committed to yurrupean buyers.
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Pillar of the Community
United States
4008 Posts |
Quote:
A customer from south africa told me it's almost impossible to buy gold there, becaused all the mine production has been committed to yurrupean buyers. Considering all the lousy financial news coming out of Europe recently, it would not surprise me a bit if this was true. It IS interesting, though, that the people who know the most about the euro are trying to trade it for dollars and gold and probably silver as well. What is it about the euro that they know and that the people taking them in trade do not? A little buying and selling is normal but a huge rush to the exits is not unless something really bad is coming. |
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Rest in Peace
United States
9104 Posts |
Yurros have all the problems of the USD, without being a world reserve currency. Where the US only has to deal with the idiots in DC, the yurro is jerked hither and yon by sovereign nations.
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Pillar of the Community
United States
4008 Posts |
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Yurros have all the problems of the USD, without being a world reserve currency. Where the US only has to deal with the idiots in DC Indeed they do, Fredd. It's difficult for them to do much when any of the countries in the EU have to approve of every step they take. Imagine if Wyoming or Delaware could veto US Federal legislation on monetary policy. OTOH, maybe that would be a good thing!  |
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Valued Member
United States
302 Posts |
Quote:Imagine if Wyoming or Delaware could veto US Federal legislation on monetary policy. OTOH, maybe that would be a good thing! Too bad that the power hungry crooks squash every possible solution that prevents them from grabbing more power. |
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Pillar of the Community
United States
4008 Posts |
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Too bad that the power hungry crooks squash every possible solution that prevents them from grabbing more power. The Colonial era British thought that way as well... and look at what happened to them. The phrase "all enemies, foreign and domestic" was added to the US Constitution and other official documents for a reason! At no other time during my life has that reason been so obvious as it is today.  |
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Replies: 22 / Views: 3,083 |
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Posted 12/26/2011 7:23 pm
