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This is a question and answer from www.weberglobal.net 15‐July‐2011

.

 

Q: Mr. Weber: This may never happen, but what if governments decided to back their

currencies with gold and established a fixed price for gold as it was before the US went off

the gold standard?

Would the price of gold crash to the new price? Would the price go substantially higher

because of the new demand caused by such actions?

 

Did you see Dom's latest on just this subject? http://www.moneyweek.com/investments/precious-metals-and-gems/gold/how-much-higher-could-gold-go-13001

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I have just tried to post the graph below to the new HPC gold thread and have realised that I cannot post to it anymore. They really are ahead of the curve. laugh.gif

 

20110720-jcc7e72hhm7m2m12ett94iqxe4.jpg

 

 

I just posted it on HPC along with a video explaining my thoughts.

 

"Ahead of the curve" = hilarious

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The final reason for holding gold, because it may be remonetized, is actually a very big draw for me. While the probability of this coming to pass may be low, the rewards would be very high.

 

Here are some numbers: The total amount of 'official gold,' or that held by central banks around the world, is 30,684 tonnes, or 987 million troy ounces (MOz). In 2008 the total amount of money stock in the world was roughly $60 trillion.

 

If the world wanted 100% gold backing of all existing money, then the implied price for an ounce of gold is ($60T/987MOz) = $60,790 per troy ounce.

 

Clearly that's a silly number (or is it?), but even a 10% partial backing of money yields $6,000 per ounce. The point here is not to bandy about outlandish numbers, but merely to point out that unless a great deal of the world's money stock is destroyed somehow, or a lot more official gold is bought from the market and placed into official hands, backing even a fraction of the world's money supply by gold will result in a far higher number than today's ~$1,500/Oz.

Source: Chris Martenson blog

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Yes, I can still log in but nothing I attempt to post actually shows up. I give up on them, bunch of muppets.

 

Looks like your posts have appeared

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Do you really think we are approaching the end game? I don't think this will end until at least 2014, interest rates have gone so far negative now. If you go off the way CPI used to be calculated via John Williams shadow stats figures, the CPI is currently around 10% while base rates in the US are 0.25%.

 

No i hope it didnt sound like that. I dont have a timescale but when/if we reach $3000, then that is the point where i will start to sit up and watch the markets a little more closely.

 

Where i was coming from is that as I have a buy & hold strategy, I am aware that this strategy also breeds inertia. You tend to become acustomed to the volatility of the gold price and the danger is that i will hold through thick and thin when the time has come to get out. When we eventually reach the top in the gold price, the downside will take many of the unwary by surprise, but for now, i am sure we have much further to go

 

 

This bull run is far from over the public still has virtually zero exposure, talk to the average man in the street and they just look at you strangely.

 

The average joe's that i talk to still think that property is the way to go!

 

This week has been a bit of a schadenfreude moment for me seeing gold go through £1000. Back in 2005, a (now ex) friend and I were discussing investing, and despite me taking the contrarian view of the time warning him of the dangers of property investing, he laughed in my face and went ahead and bought a Bulgarian holiday flat. I then told him i had bought a significant investment in gold miners, warned him of the risk of bank/sovereign defaults,(unheard of in 2005), which once again he laughed in my face and publicly humiliated me!

 

Now I dont know about you, but I get a bit hacked off when someone laughs in my face! :angry:

 

So I have been waiting for the day that "gold hits £1000" was splashed across every tabloid newspapers front page....(and even "third bong" on news at ten!)....and this week was the week that I had my schadenfreude moment, returned the gesture and laughed in my ex friends face! B).

 

As for the Bulgarian flat?......thats nicely underwater now and he has never had a single let in the time he has owned it.

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The HPC challenge is on!!

 

Simply try to get the following words into any HPC forum without having your posts deleted and/or being banned and win!!

 

(In increasing order of difficulty..)

 

Goldfinger

Dr Bubb

CGNAO (Considered to be impossible)

 

:D

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No i hope it didnt sound like that. I dont have a timescale but when/if we reach $3000, then that is the point where i will start to sit up and watch the markets a little more closely.

 

Where i was coming from is that as I have a buy & hold strategy, I am aware that this strategy also breeds inertia. You tend to become acustomed to the volatility of the gold price and the danger is that i will hold through thick and thin when the time has come to get out. When we eventually reach the top in the gold price, the downside will take many of the unwary by surprise, but for now, i am sure we have much further to go

I think that us buy & holders on here and other boards stand virtually no chance of missing the top in this, we have discussed the warning indicators ad infinitum and I am sure when the signs start to appear they will be well talked about.

 

I routinely take a bit of profit anyway over the last 4 years and have been feeding it into other investments. Like for instance last year I bought myself a new camera, a hasselblad H4D 50MP, with profits from bullion. That camera is now earning me good money, better than i have been making from bullion.

 

The average joe's that i talk to still think that property is the way to go!

 

This week has been a bit of a schadenfreude moment for me seeing gold go through £1000. Back in 2005, a (now ex) friend and I were discussing investing, and despite me taking the contrarian view of the time warning him of the dangers of property investing, he laughed in my face and went ahead and bought a Bulgarian holiday flat. I then told him i had bought a significant investment in gold miners, warned him of the risk of bank/sovereign defaults,(unheard of in 2005), which once again he laughed in my face and publicly humiliated me!

 

Now I dont know about you, but I get a bit hacked off when someone laughs in my face! :angry:

 

So I have been waiting for the day that "gold hits £1000" was splashed across every tabloid newspapers front page....(and even "third bong" on news at ten!)....and this week was the week that I had my schadenfreude moment, returned the gesture and laughed in my ex friends face! B).

 

As for the Bulgarian flat?......thats nicely underwater now and he has never had a single let in the time he has owned it.

I could tell you three or four stories which are very similar to yours above, property bulls where everywhere and most off them had little understanding of economics. There still appear to be a lot left to me, which is one sign that this is far from over. I have lost a load of so called friends over the last few years due to my stance on property and gold, it seems that it is a common story. It is very good to be proved correct after years of talking about it though. cool.gif

 

 

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I just posted it on HPC along with a video explaining my thoughts.

 

"Ahead of the curve" = hilarious

Cool, thanks. I will check your video later. Which thread was it in?

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Thank you Laura for the frizzers link.

 

 

As time goes by I'm finding myself thinking that as all the major currency's are debased more and more, a tipping point will be reached when the populations see their purchasing power dropping at an alarming rate. People will instinctively start spending savings and income as a matter of urgency, as not to do so is to accept less for it in the near future.

 

All real necessities will spiral in fiat cost, food and energy probably the fastest.

 

We I believe will face inflation that will be very difficult to deal with, even on a day to day basis.

 

Fiat money will be recognised for what it is and all faith in fiat will be lost.

 

Then we will face some panic induced 'new' monetary system....... This system, to be accepted would have to have a real tangible backing.

 

After decades of selling and leasing away their [barbarous] gold reserves, central banks now buying gold again.

 

I think most of us on this site guess why.

 

 

[We may face a little delay in the next QE to set the scene and excuse for the next flood of money creation.]

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The HPC challenge is on!!

 

Simply try to get the following words into any HPC forum without having your posts deleted and/or being banned and win!!

 

(In increasing order of difficulty..)

 

Goldfinger

Dr Bubb

CGNAO (Considered to be impossible)

 

:D

 

:rolleyes: Ahem, I solved this one years ago! As I'm now banned I will reveal the secret.

All you do is add: "& its/their effect on house prices" to your title.

 

This method works because the reactive ones amongst the mods take everything literally. Tongue-in-cheek subtle shades of grey are beyond their comprehension. You only have to look at Banner's garbage on the first page of the pinned gold thread for confirmation of this

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Lots of bubble talk on HPC, especially from those of the leftist persuasion. Don't think I'll be participating in the thread much even if I have permission to post to it!

 

I was in ATS Bullion this lunchtime and it was uncharacteristically quiet. I was the only customer in fact, which is a first. I asked for the price of Sovs and the lady said "if we're got any!" I think I bought their last handful. Apparently they've been "selling them in their 100s". This is 2008 style action in the physical market isn't it?

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:rolleyes: Ahem, I solved this one years ago! As I'm now banned I will reveal the secret.

All you do is add: "& its/their effect on house prices" to your title.

 

This method works because the reactive ones amongst the mods take everything literally. Tongue-in-cheek subtle shades of grey are beyond their comprehension. You only have to look at Banner's garbage on the first page of the pinned gold thread for confirmation of this

 

It didn't take me much to get banned, In fact, I must have committed a crime so heinous, I can no longer even look at the forum!!!!

 

[#1000B] You are not allowed to visit this forum.

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http://www.efinancialnews.com/story/2011-07-21/robin-griffiths-is-a-gold-bull-and-equity-bear

 

Griffiths goes for gold - again

 

Mike Foster

 

21 Jul 2011

 

Back in mid-May, the price of gold, at $1.490 an ounce, was looking soggy. But poor sentiment didn’t put Robin Griffiths of Cazenove Capital off the yellow metal. On the contrary, he decided the traditional summer lull would come to an end early – by June 29, to be precise.

Following a 0.68% rise to $1.510 that day, we waited three weeks to see whether Griffiths had got it right. And the subsequent rise in the price of gold to $1,600 saw him pass the test with flying colours.

 

Griffiths is renowned as a technical analyst, extrapolating probable futures from charts of price trends, while taking account of seasonal factors and key fundamentals. He now thinks gold will track higher during the summer towards $1,650 or $1,700.

 

In the autumn, things will get interesting. He said: “It is my belief that gold will go ballistic at that point. You get that time and again, when you get a breakout.”

 

According to a chart published by advisory firm Institutional Investors, attached, it wouldn’t be hard to get the price to $2,155 in short order. Griffiths wouldn’t be surprised to see it hit $3,000, or $5,000 in inflation adjusted terms, by 2015.

 

But Griffiths goes further – as he often does. He takes the view the market will become increasingly nervous of the debasing of currencies being pushed through by governments desperate to restore sentiment to the debt market.

 

He believes the consumer price index is beloved by politicians because it understates inflation: “A fall in the price of the latest iPad was deemed worthy of inclusion in the index, helping to offset a rise in food prices. But, as far as I am aware, you can’t eat an iPad.” He believes that investors in India and China are increasingly likely to hedge their bets with gold.

 

To underline the case for the safe haven, Griffiths argues the technical position for Western markets is deteriorating fast. The French CAC 40 index is leading the way down with short term sentiment, indicated by the 50-day moving average, deteriorating faster than the 200-day average. Griffiths warns the UK, US and German indices are likely to follow in short order.

 

It's being so happy that keeps him going.

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Let's see how Garth's latest advice works out:

 

I’d exit precious metals. Anyone caught long in gold and silver in the months to come will get a real good lesson in the dangers of avarice. Have you made money in the past three years? Absolutely. So harvest that gain. Once it’s clear even to the sackcloth set that America will never default, never devalue, that minor European countries can keel over largely unnoticed and the global economy is actually expanding, PMs go back to being interesting rocks that impress dentists and werewolfs.

 

http://howestreet.com/2011/07/bet/

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Let's see how Garth's latest advice works out:

 

:D

 

I wondered what he was doing now, he seems to have lost his edge somewhat....

 

2083326_std.jpg

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Let's see how Garth's latest advice works out:

 

 

 

http://howestreet.com/2011/07/bet/

 

The guy seems to only have just realised that property should be sold - 4 years too late to take full advantage of the fact. As for the rest of the advice, well, keeping the house makes more sense as at least you will still have something left as opposed to nothing.

 

ETFs government and corporate bonds - banks and insurers - yeah!

 

He says that America will not default or devalue. Eh? The default will be de facto by devaluing - all the way down to zero.

 

Edit: And when did precious metals become 'rocks'? Why am I reading such drivel when I could be out on my bike!

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The guy seems to only have just realised that property should be sold - 4 years too late to take full advantage of the fact. As for the rest of the advice, well, keeping the house makes more sense as at least you will still have something left as opposed to nothing.

 

ETFs government and corporate bonds - banks and insurers - yeah!

 

He says that America will not default or devalue. Eh? The default will be de facto by devaluing - all the way down to zero.

 

Edit: And when did precious metals become 'rocks'? Why am I reading such drivel when I could be out on my bike!

 

Posted more for entertainment value than anything else. I'm not entirely sure why I continue to read his stuff. I guess mostly as I find him such a risible character. He has/had a pure hate on for the PMs and was flat out wrong. He also had a hate on for Canadian real estate and has been flat out wrong on that one too. At some point these items will fall of course and no doubt he will then crown himself a genius even though prices are still way above where he original said sell.

 

Following this guys advice so far has been a nasty road to the poor house....

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I appear to have been banned on HPC as well. None of my posts are appearing.

The mods are out of control and are hell bent on wreaking whats left of the site. Their banning of anyone who's views they don't agree with is like sticking their fingers in their ears and going la la la in the face of reality.

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The mods are out of control and are hell bent on wreaking whats left of the site. Their banning of anyone who's views they don't agree with is like sticking their fingers in their ears and going la la la in the face of reality.

 

The mods said they would allow a gold thread on the forum.

 

They forgot to mention that they were going to ban anyone who makes a good point in it's favour.

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I think Frizzers, Pixel8r, Dr Bubb, cgnao, and Goldfinger have all now been banned from, or given up posting on HPC.

 

As an aside, if you had to pick five posters on here who have made some great calls in PMs over the years, what would you say?

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... from DrB's Diary ...

 

GOLD - Peak or Jump ?

 

GLD-jul11.gif.jpg

 

All may be revealed next week

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... from DrB's Diary ...

Don't you think the chart's distorted without the use of a log chart? Put the long term on a log chart and there is no peak... just a hum drum steady trend of 20% odd appreciation year on year.

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