India’s decision to exchange $6.7bn for gold equivalent to 8 per cent of world annual mine production sent the strongest signal yet that Asian countries were moving away from the US currency.
He contrasted India’s strength with weakness elsewhere: “Europe collapsed and North America collapsed.”
Pranab Mukherjee, India’s finance minister, said the acquisition reflected the power of an economy that laid claim to the fifth-largest global foreign reserves: “We have money to buy gold. We have enough foreign exchange reserves.”
New Delhi’s acquisition came months after China revealed it had almost doubled its gold reserves in the past six years.
wow, a 2.6% jump in gold in one day. Silver jumped even more. I'd like to have more gold, but I've been concentrating on silver.
Moving at least a good percentage of your assets out of dollars is a smart move nowadays.
> India’s decision to exchange $6.7bn for gold equivalent to 8 per > cent > of world annual mine production sent the strongest signal yet that > Asian countries were moving away from the US currency.
> He contrasted India’s strength with weakness elsewhere: “Europe > collapsed and North America collapsed.”
> Pranab Mukherjee, India’s finance minister, said the acquisition > reflected the power of an economy that laid claim to the > fifth-largest > global foreign reserves: “We have money to buy gold. We have enough > foreign exchange reserves.”
> New Delhi’s acquisition came months after China revealed it had > almost > doubled its gold reserves in the past six years.
> wow, a 2.6% jump in gold in one day. Silver jumped even more. > I'd like to have more gold, but I've been concentrating on silver.
> Moving at least a good percentage of your assets out of dollars is a > smart move nowadays.
People and governments were hoarding gold in 1979 too - right before it crashed. I'm not saying that is going to happen again. It hasn't hit anywhere near the dizzying heights it hit then. I'm just saying buying assets on the basis of herd mentality is, historically, a very dangerous game. I am generally inclined to buy assets at historical lows relative to other assets. Gold is at a 25 year inflation adjusted high right now, so, personally, I'd be more than a little wary.
> > India’s decision to exchange $6.7bn for gold equivalent to 8 per > > cent > > of world annual mine production sent the strongest signal yet that > > Asian countries were moving away from the US currency.
> > He contrasted India’s strength with weakness elsewhere: “Europe > > collapsed and North America collapsed.”
> > Pranab Mukherjee, India’s finance minister, said the acquisition > > reflected the power of an economy that laid claim to the > > fifth-largest > > global foreign reserves: “We have money to buy gold. We have enough > > foreign exchange reserves.”
> > New Delhi’s acquisition came months after China revealed it had > > almost > > doubled its gold reserves in the past six years.
> > wow, a 2.6% jump in gold in one day. Silver jumped even more. > > I'd like to have more gold, but I've been concentrating on silver.
> > Moving at least a good percentage of your assets out of dollars is a > > smart move nowadays.
> People and governments were hoarding gold in 1979 too - right before > it crashed. I'm not saying that is going to happen again. It hasn't > hit anywhere near the dizzying heights it hit then. I'm just saying > buying assets on the basis of herd mentality is, historically, a very > dangerous game. I am generally inclined to buy assets at historical > lows relative to other assets. Gold is at a 25 year inflation adjusted > high right now, so, personally, I'd be more than a little wary.- Hide quoted text -
> - Show quoted text -
Generally I would agree with you. But the massive increase in the money supply in the last couple of years leads me and many others to believe gold still has a way to go.
> > India’s decision to exchange $6.7bn for gold equivalent to 8 per > > cent > > of world annual mine production sent the strongest signal yet that > > Asian countries were moving away from the US currency.
> > He contrasted India’s strength with weakness elsewhere: “Europe > > collapsed and North America collapsed.”
> > Pranab Mukherjee, India’s finance minister, said the acquisition > > reflected the power of an economy that laid claim to the > > fifth-largest > > global foreign reserves: “We have money to buy gold. We have enough > > foreign exchange reserves.”
> > New Delhi’s acquisition came months after China revealed it had > > almost > > doubled its gold reserves in the past six years.
> > wow, a 2.6% jump in gold in one day. Silver jumped even more. > > I'd like to have more gold, but I've been concentrating on silver.
> > Moving at least a good percentage of your assets out of dollars is a > > smart move nowadays.
> People and governments were hoarding gold in 1979 too - right before > it crashed. I'm not saying that is going to happen again. It hasn't > hit anywhere near the dizzying heights it hit then. I'm just saying > buying assets on the basis of herd mentality is, historically, a very > dangerous game. I am generally inclined to buy assets at historical > lows relative to other assets. Gold is at a 25 year inflation adjusted > high right now, so, personally, I'd be more than a little wary.- Hide > quoted text -
> - Show quoted text -
Generally I would agree with you. But the massive increase in the money supply in the last couple of years leads me and many others to believe gold still has a way to go. *** And you're the idiots bidding the price up
> > India’s decision to exchange $6.7bn for gold equivalent to 8 per > > cent > > of world annual mine production sent the strongest signal yet that > > Asian countries were moving away from the US currency.
> > He contrasted India’s strength with weakness elsewhere: “Europe > > collapsed and North America collapsed.”
> > Pranab Mukherjee, India’s finance minister, said the acquisition > > reflected the power of an economy that laid claim to the > > fifth-largest > > global foreign reserves: “We have money to buy gold. We have enough > > foreign exchange reserves.”
> > New Delhi’s acquisition came months after China revealed it had > > almost > > doubled its gold reserves in the past six years.
> > wow, a 2.6% jump in gold in one day. Silver jumped even more. > > I'd like to have more gold, but I've been concentrating on silver.
> > Moving at least a good percentage of your assets out of dollars is a > > smart move nowadays.
> People and governments were hoarding gold in 1979 too - right before > it crashed. I'm not saying that is going to happen again. It hasn't > hit anywhere near the dizzying heights it hit then. I'm just saying > buying assets on the basis of herd mentality is, historically, a very > dangerous game. I am generally inclined to buy assets at historical > lows relative to other assets. Gold is at a 25 year inflation adjusted > high right now, so, personally, I'd be more than a little wary.- Hide quoted text -
> - Show quoted text -
And another thing, gold is still about half of it's all time inflation adjusted price. In 1980 the inflation adjusted price was $2189 an ounce.
> India’s decision to exchange $6.7bn for gold equivalent to 8 per cent > of world annual mine production sent the strongest signal yet that > Asian countries were moving away from the US currency.
> He contrasted India’s strength with weakness elsewhere: “Europe > collapsed and North America collapsed.”
> Pranab Mukherjee, India’s finance minister, said the acquisition > reflected the power of an economy that laid claim to the fifth-largest > global foreign reserves: “We have money to buy gold. We have enough > foreign exchange reserves.”
> New Delhi’s acquisition came months after China revealed it had almost > doubled its gold reserves in the past six years.
> wow, a 2.6% jump in gold in one day. Silver jumped even more. > I'd like to have more gold, but I've been concentrating on silver.
> Moving at least a good percentage of your assets out of dollars is a > smart move nowadays.
governments always make wise investments.
mo_charles
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> Generally I would agree with you. But the massive increase in the > money supply in the last couple of years leads me and many others to > believe gold still has a way to go.
Again, I'm making no prediction whatsoever on short term movements in the price of gold. That said, I'm pretty sure the biggest players in the world market have already taken into account massive increases in the money supply in the last couple of years (your words, not mine) as well as projected future increases, and all other known information, and all that would therefore be reflected in the current price. Now, if you are saying you think you know something the market doesn't, that's a different story.
Also, keep in mind that there is a strong historical relationship between money supply and inflation, so seeing gold at 25 year *inflation adjusted highs* takes into account previous movements in money supply. As far as gold being only half its all-time inflation adjusted high, that was a very brief, peak and crash, once in several generations type event. Investing on the basis of that happening again anytime soon, and expecting to be able to time that peak and get out whole, is in my estimation a very dubious proposition.
Another thing to keep in mind, is that inflation will drive up the price of all hard assets, and the idea is to hold assets that increase in value *relative to other assets*. Nothing you have said, as far as I can tell, is rationale for believing gold will for some reason outperform other assets. Sounds to me like you are investing for economic Armageddon, and if that's the case, I'm more than a little confident that you're going to be disappointed.
> > Generally I would agree with you. But the massive increase in the > > money supply in the last couple of years leads me and many others to > > believe gold still has a way to go.
> Again, I'm making no prediction whatsoever on short term movements in > the price of gold. That said, I'm pretty sure the biggest players in > the world market have already taken into account massive increases in > the money supply in the last couple of years (your words, not mine) as > well as projected future increases, and all other known information, > and all that would therefore be reflected in the current price. Now, > if you are saying you think you know something the market doesn't, > that's a different story.
> Also, keep in mind that there is a strong historical relationship > between money supply and inflation, so seeing gold at 25 year > *inflation adjusted highs* takes into account previous movements in > money supply. As far as gold being only half its all-time inflation > adjusted high, that was a very brief, peak and crash, once in several > generations type event. Investing on the basis of that happening again > anytime soon, and expecting to be able to time that peak and get out > whole, is in my estimation a very dubious proposition.
> Another thing to keep in mind, is that inflation will drive up the > price of all hard assets, and the idea is to hold assets that increase > in value *relative to other assets*. Nothing you have said, as far as > I can tell, is rationale for believing gold will for some reason > outperform other assets. Sounds to me like you are investing for > economic Armageddon, and if that's the case, I'm more than a little > confident that you're going to be disappointed.
Precious metals are about 25-30% of my portfolio. I am diversified enough to be ok in most scenarios. I agree that tangible assets are all going to increase dramatically. I think fuel and food commodities will probabably be hit the hardest by inflation, followed by metals. I think the warning signs for a severe economic downturn are more pervasive than most people realize.
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