Ed Huntress wrote:
"cavelamb" wrote in message
m...
F. George McDuffee wrote:
On Thu, 08 Oct 2009 12:20:42 -0500, cavelamb
wrote:

Yepper!

Dollar Woes + Gold Spike = Political Opportunity
========
also see
http://www.politico.com/news/stories/1009/28091.html


Unka' George [George McDuffee]

It worries me, George, that people would buy gold at the
highest price it has ever been - as a hedge against dollars
losing value.

Isn't that kind of a cause/effect/cause loop?


It makes no sense.


Richard

Yup, but even more important -- when people buy gold when its price is
increasing at panic rates, they typically have to hold on to it for a decade
or two just to recover what they invested.

As they say, buy high, sell low...and you'll be in the tank before you know
it. d8-)



If it looks like a bubble, sounds like a bubble, smells like a bubble,
it will likely pop like a bubble...

Quote me on that on.

Richard

F. George McDuffee wrote:
On Thu, 08 Oct 2009 18:23:42 -0500, cavelamb
wrote:
snip
It worries me, George, that people would buy gold at the
highest price it has ever been - as a hedge against dollars
losing value.

Isn't that kind of a cause/effect/cause loop?


It makes no sense.


Richard
========
It makes perfect sense when you consider the gfold buyers [not
investors] are looking at this from a capital preservation
perspective rather than as a capital investment, which is
expected to increase in real value.

The gold buyer in physical possession of the metal [not
"investor"] may indeed lose a percent of their investment, but
never 100%, and substantial price declines do not seem likely,
given current economic/fiscal conditions. Gold also has the
added advantages of not being [currently] registered, legal to
own, it is small and compact, thus easily hidden and significant
amounts of wealth can be easily carried on the person. It also
cannot be created and its value does not depend on the current
credit rating of the country of issue/coinage but only on the
actual metal content.

For all its fluctuations in price the value of gold has never
gone to zero, totally wiping out the people holding it as
occurred with "investments" [stocks and/or bonds] in Lehman
Brothers, Texaco, GMC, Washington Mutual, World Com, Enron,
Global Crossing, Conseco, etc. etc. [soon to include CIT and
quite possibly GE Capital]
http://money.cnn.com/galleries/2009/...une/index.html


Unka' George [George McDuffee]


If makes no sense at all, because it looks like the latest in a
long line of expensive bubbles!

One week?
Two?

cavelamb wrote:

The New York Index spiked over $1010 per ounce today - twice.

Closing price was about $1005.



Gee, everybody rush in now! If you missed the buying into the top of
the: Stock market, realestate, .com, etc... BUBBLES!!! You won't want
to miss this!

cavelamb wrote in rec.crafts.metalworking:

Institutionalized poverty.

I'd hate to live there.


Get ready for it: this Administration is heading that way at hypersonic
speed...

--

I used to be an anarchist but had to give it up: _far_ too many rules.

Eregon wrote:
cavelamb wrote in rec.crafts.metalworking:

Institutionalized poverty.

I'd hate to live there.


Get ready for it: this Administration is heading that way at hypersonic
speed...



I don't believe in the Kobiashi Maru game.

I have no debts.
The boat is paid for!

Looks like a good time for the US to open up Cuba!

"cavelamb" wrote in message
...
F. George McDuffee wrote:
On Thu, 08 Oct 2009 18:23:42 -0500, cavelamb
wrote:
snip
It worries me, George, that people would buy gold at the
highest price it has ever been - as a hedge against dollars
losing value.

Isn't that kind of a cause/effect/cause loop?


It makes no sense.


Richard
========
It makes perfect sense when you consider the gfold buyers [not
investors] are looking at this from a capital preservation
perspective rather than as a capital investment, which is
expected to increase in real value.

The gold buyer in physical possession of the metal [not
"investor"] may indeed lose a percent of their investment, but
never 100%, and substantial price declines do not seem likely,
given current economic/fiscal conditions. Gold also has the
added advantages of not being [currently] registered, legal to
own, it is small and compact, thus easily hidden and significant
amounts of wealth can be easily carried on the person. It also
cannot be created and its value does not depend on the current
credit rating of the country of issue/coinage but only on the
actual metal content.

For all its fluctuations in price the value of gold has never
gone to zero, totally wiping out the people holding it as
occurred with "investments" [stocks and/or bonds] in Lehman
Brothers, Texaco, GMC, Washington Mutual, World Com, Enron,
Global Crossing, Conseco, etc. etc. [soon to include CIT and
quite possibly GE Capital]
http://money.cnn.com/galleries/2009/...une/index.html


Unka' George [George McDuffee]


If makes no sense at all, because it looks like the latest in a
long line of expensive bubbles!

One week?
Two?

Probably not a bubble. People are worried about inflation and there will be
inflation with the overspending and printing paper to cover the excess
spending. Most of the price rise of gold over the last 20 years is
inflation driven.