Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Philosophical Porch -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (5100)	12/4/2009 5:50:50 AM
From: Real Man	Read Replies (1) \| Respond to of 26251

No. Gold has gone parabolic now, but it will go much higher. It could even take off to 2K-3K in 2010. Even then, so far it's rather mildly parabolic for the gold market. If RSI goes to 90, the bull could be ruined for months. I expect 5-10K for POG, eventually, provided that the FEd does not completely blow up the currency. If they do, then both gold and stocks start adding zeroes. Geez, Westie. Gold reacts to printing first. It's not a bubble. Like these talking heads on CNBC who never knew about housing bubble before it blew up now know gold is a bubble, or know anything about gold.

To: westpacific who wrote (5100)	12/4/2009 7:40:48 AM
From: Real Man	Read Replies (2) \| Respond to of 26251

Westy, I don't know if Mish screwed your brain, but this is not a deflationary picture, and gold will go to between 5K and 10K to reach parity with 1980 high, depending on what monetary aggregate you choose. The recession of the early 90-s was far more deflationary than this one. Even then M2 just flattened. Now it keeps growing rapidly. During bad times gold assumes monetary role and catches up with the monetary expansion that took place in the past. No, it does not do so smoothly. The gold market hates riders and frequently crashes 10-20% from overbought contitions to shake them off. You can't put a price tag on gold easily, since it is an asset that does not produce income. However, it is also an asset that can be easily hoarded and can't be printed. Since most can't put a fair price tag on gold, nobody can really say if it is in a bubble or not. Many claimed oil was in a bubble last year, and they got their pom poms out when it finally crashed on global depression. Now it is back to 80, which is up 700% from 10, where it was in the 90-s. If and when oil exceeds 150 and goes to 300, these knuckleheads who called it a bubble will scratch their collective heads. Never say never.