Let's put this to BED once and for all!
Gold has no value except for that which is called preception. You precieve it to have value, and so do others. It can not suffer from inflation of deflation. Monetary economics can be set up to mitigate the price differences of GOLD. OR if you preferr, M2 growth can be controlled to make the price of gold trade within a preset range. Only monetary extremes cause gold prices to change. This is why Gold went down. Yes gold can be used as collateral, and you can have your capital widowed away.
Consider this:
Take $10,000 and buy gold, use it for a $9,900 loan.
Now buy $9,900 of gold, use it for a $9,800 loan.
Now buy $9,800 of gold, use it for a $9,700 loan.... Etc
Welcome to LTCM.... You still only own $10,000 of a none producing investment. Gold stocks come, and go. How many loose money on BRE-X's before finding a Barrick? When you gamble on Gold, you are gambling on Monetary failure, not economic growth. As growth is Golds biggest failure.
How many ounces did you get at $300/ounce from the above?
And I assume that you think ABX making 25% of earnings from future selling is ok. Right?
BUT HEY! The XAU should go up tomorrow! Since the TWO of the XAU is in the TSE 60 index: #reply-6634975
PS: Richard I did say that I'm a monetarist {say it daily here}, but YES There are times to buy, sell, trade gold. And when the next time to buy occurs, I'll be happy to post it. I only post the bearish comments for those whom are looking at preservation of capital. And if/when gold goes down, they can only have themselfs to blame. Noone can critize me for promoting a stock, or my website here. I am the utmost unbiased. I'm just aint buying conspiracies, or gold bullishness at this time. And I will proclaim that those whom read the press reporting, and think that they validate their thinkings, should go back to school and relearn economics.
I am happy if I manage to SAVE one person one dollar. By being a bear, I am not costing people money. Shall I promote?
PS: reading websites, and following Guru's will only get you into trouble. What do you do when they change, after they had all day to sell. Thus I look forward... And if you don't like what you read here, don't go to the Dutch CB thread.... yikes |
