Message 19730088
Who has made the consistent right calls on gold and the dollar?
yes, gold was overdue for a rise, as all commodities were, and the future will probably be favorable to further gains.
China's current and future economic development will ensure this happens.
but...
investing/holding gold is the answer to how people will feed/shelter/have a job in the future ? i do not think so.
gold is a relatively small market that can be manipulated [as most of the gold bugs know very well -g]
a possible reason for worry would be the pricing of the oil trade in "Dinars" (or Euros, as Uncle Saddam tried... ah yes, we already know what happened to Uncle SAD) [The other Uncle uppercut him to the ground and put him out for the count -gg]
and so... what really is the meaning of gold ?
in my eyes, a speculative commodity, with real value up to a certain % of one's portfolio?
but will we go into a panic where the barbarians at the gate will finally brake it, enter the cities and go into an orgy of pilferage where all other assets are worth-less and only stashed away (very secretly I may add) gold bits, nuggets, and coins will be our only means of survival ?
i do not think so.
there is too much at risk, too much technology [that did not exist during the hey days of Attila]. those in charge to watch that the status quo does not change, (or at least the change happens smoothly), will not allow for such collapse...
so yes, gold has been shining again, but it is not the only solution... for one, it produces little, and it actually costs to store it.
besides... China and the entire SE Asia region will become a consumer market in its own right, as other economics blocks will (BRIC's) Brazil, Russia, adding to India and China, as well as the rest of Latin America (in time).
All this means economic activity, thousands of companies creating jobs and wealth for many... does that mean gold is worthless ? no, I am not saying that... but overall... I believe that there are more positives than negatives...
i do realize that the 'jobs' scene in the US does not look bright for the unskilled (and even the skilled in some industries), so some canges are needed there... from better education, to... well... 'adjustments'. some not very nice, but that is the current reality, either one learns to adjust, or else perish... economically speaking.
--short of some idiot terrorist getting his/her hands on some nuclear device capable of changing the course of the economic river--
then all bets are off...
including gold, --unless it has some magic characteristic of NOT becoming radioactive. |
