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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: 87flstc who wrote (37642)	4/26/2011 12:14:18 PM
From: Real Man	2 Recommendations Respond to of 71475

These moves in precious metals are hard to hold on to, yet they may be entirely rational. When a bankrupt company with 100,000,000 shares issues 200,000,000 more shares, it's stock price should drop 66%. When a bankrupt country with 800 billion shares issues 1700 billion shares (see monetary base chart in the thread head), a rational market response would be for gold price to triple? US dollar is a share of USA, Inc. In fact, that's exactly what would happen if we were on gold standard. Then of course... We now have endless QE, so gold might as well take that into consideration. After tripling it's shares on the open market, USA Inc is still bankrupt!

To: 87flstc who wrote (37642)	4/26/2011 12:51:44 PM
From: benwood	Read Replies (3) \| Respond to of 71475

I think $100 silver by the end of the current bull is far too low. I think we'll see $100 by the end of 2014. I think the Fed is going to intervene one day in at a nearly incomprehensible level and then suddenly precious metals won't seem so dumb to so many. Not yet though. I expect the $50 up day in gold, but not until 2012 or 2013. If we get one this year, I'd probably fade it. By the end of the bull, say 2018, I think we'll have at least one $100 up day in gold.