John; The problem with that guys thinking is he doesn't consider
that the cost of getting gold out of the ground is much less labor
intensive than it was.
There are just to many proven un-mined
reserves now that if the gold price were to pop to even $400,
there would be a flood of new gold hitting the market in short
order.
Silver bounced on the Buffet news, hell the news was old stuff
before it was released. Any body with a drop of sense who could
short silver when it went above $7 made out like a bandit.
Man there was a rush to dump silver , the reported reserves are
nothing compared to the unreported reserves, held by both
mines and millions and millions of small speculators.
The same with Gold, look at all the TONS of gold just the Korean
citizens turned in to help out their government ( the saps ).
And that is not even a drop in the bucket to the amount the
Japanese or American citizens hold. Take the cold coins that
are minted by Africa, and Canada and add up the sales just over
the last 3 years. Well all that is reserves that are sitting in
safety deposit boxes, and hidden under mattresses all over the
world , and is not calculated as "known" reserves. Add that to
what the mining companies would do if gold were to pop, and
you can see this guy with his $3000 price an ounce is out of
his ever loving mind.
Privet ownership of gold has reached such levels that banks and
Governments that think they can leverage up using gold will get
creamed. They may scalp a few points at times but what he suggests
is really wild.
He is likely a seller just trying to appeal to
the greed of some people that they will get rich off of gold.
Holding some gold is like having some insurance, but keep in
mind insurance is not free.
I was a silver buyer years ago when it dropped to it's lows
at about $3.75 , in holding it all those years if I compare the investment to what I would have made in simple CDs with compound
interest I lost money. But I did have insurance during that time
and if the U.S, would have crumbled I would have in that respect
made money
BUT as I explained to my wife and close friends
I hoped I would not see it go way up The reason for that
is IF gold or silver were to rocket up..you can bet every thing
else will take a big hit. What would run it up ( inflation ),
would at the same time kill the buying power of every thing else
you have, and all your basic needs would cost so much more that
what ever you made off the gold or silver would be eaten up.
It's just insurance , hoping to get rich off it is like shooting
yourself in the foot. I still play gold a little but now like most
others I just try to scalp a few points from time to time.
I have since decided the best insurance is having good friends,
and owning some ( paid for ) local real estate in a low tax
area.
I dumped all my silver not long ago. You might say I made a profit , but not if you look at what it cost me to hold it.
Jim
PS.
Money be dammed, "you are never any more secure than your closest
friend " --- dig up Caesar and ask him if I'm not right.
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