Gold is the New Bubble Market

Gold is the new bubble market.

Ever since the housing collapse, financial institutions and TPTB have been pushing it up and up and up through market manipulation, millions of retarded commercials beating it into Americans' heads that they have been screwed by the financial institutions and they can't trust anyone or anything, but they can trust gold!!!

Who's pushing that they can trust gold? Same people that create one false market bubble after another in order to profit off the destruction of the common man.

I just read a thread by another poster which shows a negative rate of return on short term gold leasing. That is an obvious indicator of a manipulated and unstable gold market that has been propped up by stick man reasoning, mass marketing and the same kinds of credit swaps that plagued housing.

Gold leasing negative rate of return

Don't listen to what they tell you. Gold DOES NOT have intrinsic value beyond what its opportunity cost is, which is as a commodity for electronics applications. That's it. If you want something with real intrinsic value in case of a crash, go with land you can grow crops on.

They tell us that gold is so much better than paper money... So answer this, how much is an ounce of gold worth today?
......
......
......
.....

Answer: X dollars (or whatever currency)

Notice the value one is buying is fiat currency value. Intrinsic value of gold beyond the opportunity cost is myth.

The gold bubble will eventually burst and the collapse will continue.

Gold is not in a bubble if they are printing like mad as they are doing and unless you want to end up lossing all your cash then gold offers some protection.

Down the road they want a 100% digital amero so silver coins will come in handy.

No two way the paper price of silver/gold is fixed and these effect the price of the real stuff but this can always become un done and then both will go to the moon.

I would not touch paper gold/silver with a barge poll.

Allowing for inflation you could argue that PM's are under priced and i take your point about the lease rate but i'm going to stick it out at all costs beacuse i'm not going to except cents on the $ when the system crashes



[edit on 30-6-2010 by LieBuster]

I'll throw the BS flag on this.

Who really cares about a "short" term value.

Look at the trend over the past 10 years! Low of $255.30 & a high of $1256.50.

I'd take that investment all day long.

Even if it were to go down some, I would continue buying gold & silver.

Show me anything else that has held a value long as gold....

Gold and silver will only head south or dip when people feel like Armageddon is not going to happen. I don't think that will happen for a while.

Gold is not in a bubble.

US Money Supply:

[atsimg]http://files.abovetopsecret.com/images/member/41807d00f7cf.gif[/atsimg]

Metal would take a kicking if we come out the depression but then TPTB will pump up oil prices and this will effect the exstraction costs so in a way gold/silver is a store of energy.

I favoiur silver coins at melt vaule because the bankers are doing all they can to get people on to digital money and i had real trouble getting my own money out of the isle of man bank a month ago and they went on about laundering money and that crap and i was OK with them reporting me to the inland revenue or the serious fraud office if they wanted to but they point blank refused to give me my cash and it was well under £10k.

inflation is running well ahead of saving rates and thats without tax so PM's seem safe for now and it's nice to give the bankers two fingers.

If you want the opinion of a real economist on gold and why you should be hoarding it right now, look no further.

Marc Faber unloads in this epic hour long presentation.

Over 100,000 views, which is insane for a lecture on economics.




Dr. Faber's PowerPoint file is available for download via the following link:
media.mises.org...

[edit on 30-6-2010 by mnemeth1]

I agree with the OP here . Anything that has a exchange value is only worth the value we place on it . The problems we have today began with the housing market . A house that was worth 125 k yesterday became worth 475k nearly overnight .
Based on what ? Spin ! The people who made captial gain overnight helped create a urban legend that there is money in real estate . This was created by the well rewarded talking heads , the media , real estate agents and economist's paid to appear .This was created by the Goverment offering things such as subsides in conjunction with banks giving easy loans .
This was a deliberate TRAP . To bring us to where we are now in the economy . I REPEAT DELIBERATE TRAP . To take every last penny, pound , dollar , cent from your pocket . So what did these people get for their 475k , a house worth a 125 k Duh .

I first awoke to this scam back in 2002-2003 , when my wife and I applied for a housing loan and we were rejected . At first we were frustrated, yet in a few weeks releaved when we woke up !

Woke upto what ? Well here is the story . Back then you only needed 5% deposit . We had 30% in savings, a 10k rebate from the developer and a 10k gift from family . We were both in management and had both been with the same employers for close to a decade . With our wages we could afford to pay three times the mortage with ease .Just the kind of customer banks would love right ?

WRONG !!!!!!! The strange thing was that several young kids around 18 yrs of age that worked under me and who earned half as much got their loans with ease ! ODD ?

Well that is when the penny dropped ! The system did not want people who could afford to service their loans ! This was deliberate , the whole economy crash ! I have said for many years this was comming and have watched it unfold ! Being rejected was the best thing that has ever happened for us .

Sorry OP , needed this for background . Now back to gold . Gold like anything is only worth what someone is prepared to pay . While gold may have some value , the only advantage really is that it will transfer across any currency or currency change .Now as for it's value well that is decided on the day you exchange it and that's the bottom line .

WARNING TO THOSE BUYING GOLD BONDS YOU ARE WALKING A DANGEROUS LINE . IF THINGS CRASH YOU WILL BE LEFT WITH WORTHLESS PAPER ! YOU KNOW THE WORTHLESS PAPER YOU BOUGHT IT WITH . YOU ARE SWAPPING PAPER FOR PAPER .IF YOU INSIST IN BUYING GOLD TAKE IT IN THE HAND NOT BONDS .

Might we see South Africa come into play here perhaps?
Given the significance of Gold?

Holy bejesus!


I just hope people wake up to the fact that only gold, and silver, is currency.

Paper-bugs...aiyahh...in 2018...the hip term will be to label the underclass, lazy, uneducated...basically as paper-crack-whores.

The pied-piper-paper-paupers. C.

Cooper is ready to go up now for sure. The army is getting a change in ammo the new ammo is cooper it replaces the lead ammo used now.
"Small arms training accounts for about 2,000 metric tons of lead going into the environment every year, Army officials say." Mow thats a lot of cooper.

Gold market is in a bubble. Not really the gold but the market around it. There is a lot of scams involed in the gold market just look at Glenn Becks favorite compnay. When they go down gold will to then it will bounce back but will end up at lower price then it is at now.

reply to post by JBA2848


Thanks for the heads up, Gold is such a dastardly and annoying thing!

reply to post by JBA2848


Beware the Cooper...thanks for the tip dude

I don't agree.
Gold has intrinsic value, despite what the OP says.

I own physical gold.

I do feel gold is a bit over valued, But then again we have no way of knowing exactly how much money is being dumped into the systems daily also since we cant audit the fed...

However SILVER is very very undervalued.. the gold to silver ratio is insainly high.. this could be because gold is too high but if it dropped down to 1 k a oz the silver to gold ratio would still be pretty high. And in actuality silver should be more valued than gold since its used allot more in industry than gold due to its higher price..

But thats OK I'll just sit and buy up all the cheap silver I can and wait it out.. it will correct eventually.

reply to post by E-ville

Yes i'm with you on Silver and i'm told that above ground there is less silver then gold but having said that silver comes free of change most the time and is a by product of mining other metals.

Silver is making a come back from being used in photo processing and has some medical property that works now all the drugs are becomeing less effective.

i'm not into rare coins and stick with the melt value and i like the fact that coins like silver eagles are not worth forging.

here in the UK we have to pay 17.5% vat on top of the US price and thats going up to 20% so the street value is higher but a lot is smuggled in where each side splits the vat profit and takes the risk with customs.

we have next to no coin shops or banks where you can buy silver but other parts of europe like germany do because they have seen what can happen to fiat paper systems.

I only hold physical gold & silver, never any paper stocks in gold & silver.

I have wondered about the suppression of silver prices...

My advice is to not buy gold or silver if you don't like it. I personally like it. I buy it as a protection against a paper issued government currency.

Show me a historic government currency that hasn't collapsed.

Show me a government currency that hasn't been corrupted.

I guess the real question is why aren't you buying gold and silver. I feel there are many more flags being raised about the distress of the US dollar.

[edit on 30-6-2010 by jeh2324]

reply to post by mnemeth1


In response to mnemeth1:
That guy is one of the people making a killing off pushing a gold bubble.

It's not like I'm without qualifications. I have a degree in Finance from a major university and was in the top of my class in the Finance program.


And in response to the poster who said that gold has gone up (about 600%): That actually helps prove my point of gold being pushed into a bubble. I'm not saying gold will have zero value. NO. I'm saying that the value will pop and drop down to the level of opportunity cost eventually. And also that gold obviously doesn't have the most intrinsic value because if it did, we would value everything in units of gold. But we have is value in units of fiat money, which is value based upon economic production.

reply to post by pirhanna


Here's the difference.

Faber and all the other Austrian economists that are pushing gold aren't pushing gold because they WANT to be holding gold.

They are pushing gold because they are being backed into a corner by our criminal federal reserve and government.

Do you understand the difference?

Holding gold does not grant you a profit.

Holding gold is a hedge.

They are saying to hold gold as a hedge because the Fed is about to debase the currency.

Gold is not a productive entity. Gold does not produce things. Gold does not make the world a better place. Gold does not provide dividend returns. Buying gold gives you nothing.

So saying they are pushing gold and making a killing off it is ridiculous on its face because gold provides no real returns. Real returns come from stock holdings that give dividends on profits. Real returns come from the stock of profitable corporations (real profits from productive activity). That's where real growth comes from.

However they are saying those real returns will not out pace the rate of government debasing the currency. Thus, one must hedge against the actions of our criminal government.


And so far - they have been right.

Gold is the real measure of the dollars value - not some basket of fake fiat currencies.

Holding gold is holding real money, but that real money provides no profits, only a hedge on purchasing power.



[edit on 30-6-2010 by mnemeth1]

reply to post by mnemeth1


Exactly. Well said.

As stated by others, but very worth restating, if you hold gold or silver or any metal for that matter , make it physically holding it, if its not in your possession then you DO NOT OWN IT.

I also have a feeling copper would be good to get into its a common comodity.. and very usefull.. and its at a low now.. however the bad part is it doesn't make sense to make bullion since if you want to make bullion from copper after minting costs you end up with very inflated prices.. scrap copper may be something to look into ..

However any metal like silver, gold or copper will hedge inflation.. if your have savings that you plan to keep long term.. get it out of dollars and into something that will float with inflation..

One curious investment in metals is old pennies (pre 1982) and any nickels..
pre 1982 pennies are worth 2x there face value since there 95% copper.. you can't melt them legally but if things inflated allot the pennies would most likely disappear and not be legal tender any longer.. same goes for nickels.. nickels are 75% copper and 25% nickel and are worth $5 in the melt value.. if inflation goes up they will quickly be worth more than there face value and if inflation goes really high may be scrapped as legal tender and become melt-able..

So pre 1982 pennies you can buy copper for half metal value in a minted form.. (you just need to sort the pre 1982s from the newer ones ) And any nickel you can buy at metal value with no minting fee.. If your into saving legal tender.. I'd say do it all in nickels or pre 1982 pennies. Not as convenient as paper but is actually worth something in physical form.

Now these are long term speculative investments.. however at least with pennies and nickles they will always be worth the face value.. and inflation would just make that go up

But the point is if your going to invest in metals then do it in physical metals, even buying bullion and paying that mint markup overtime will always be a better bet than in fiat currency.

Mos paper "metal investments" have a clause that says they can pay you in regular dollars, instead of actually taking delivery.. if you thinking that the dollar is going to inflate.. and thats why your holding metals .. Imagine inflation starts like Germany or Zimbabwe.. by the time you sell your paper metals and get the check in the mail its could be virtually useless.. with physical metals in a environment like that .. like in Zimbabwe . the currency looses so much faith many people resort to bartering or trading metals or goods.. metals or goods always hold real value.

1 oz of silver will always buy me about 7 gallons of fuel or 16-18 loafs of bread.. even if gasoline get so $35 a gallon or bread goes to $10 a loaf.. the metals will float with the inflation..