d2thdr, on 20 February 2012 - 12:15 PM, said:
Gold is going to fall back to 200$/oz but then there will be no physical on sale. You will have GLD willing to sell you some shares, some gold backed fund willing to invest your money for returns etc. but you shall never see physical gold sold for 200$/oz though the paper price may fall to that price. Physical gold is too valuable to have 200$/oz price tag.
Fortunately the super rich and the third world nobodies know this. The rest of us are in the middle of the spectrum. Some of us want to trade and invest our way into brighter future, most want to stick to their day jobs and make the excess savings in gold.
Why are you so obsessed with conspiracy theories?
Indeed. Chanelling you-know-who for a second, TPTB can't afford paper gold to decouple so badly with physical otherwise real gold will 'go in to hiding'. This will drive the stock-to-flow ratio of gold to infinity, create dollar hyperinflation and destroy the USD Reserve system there and then. This is why we get the managed ascent of paper gold. I suspect the central banks are targeting the minimum paper POG possible to ensure the ongoing flow of physical.
I think we're going to smash through the 1980-SGS CPI price in physical gold without breaking sweat. 1980 was just a dress-rehearsal for the end of the USD reserve system, with a superspike that I believe was caused by panic buying in size by the Middle East and some central banks (Iran, ironically enough) bidding for gold in the open market. Where is Volcker this time? Who is willing and able to impose mass poverty on the West with 20% interest rates?
malvern hills, on 20 February 2012 - 03:21 PM, said:
Good article from Bob Janjuah, coming to to much the same conclusions as many on GEI.
The big kahuna or the bursting of the latest liquidity driven bubble 'could, be 5 days, 5 weeks, or 5 quarters'. He also says he expects the DOW/Gold ratio to resolve at 7000 in a deflationary credit collapse rather than at 14000 and hyperinflation, because Bernak and Draghi will loose their mandate from the population to print before the public looses faith in the currency.
Hmmmm....- I think I got a new catchphrase.
Let me give you some interesting reading Malvern
Once you understand that hyperinflation is a demand side phenomenon and printing is the supply side response, it becomes somewhat clearer. The question of "how do you get the money into people's hands" is practically irrelevant and misleading.
And folks, please do drop by the golbu.gs
chat room to share your forecasts, charts, pictures of rockets - whatever - as we watch this gold market unfold.