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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (76395)	7/15/2011 12:52:17 PM
From: carranza2	3 Recommendations Read Replies (4) \| Respond to of 218083

Keep in mind though that the cult does have its ups and downs. $35 an ounce for much of a century, but then giant leaps to nearly $1000 an ounce in less than a decade. Followed by 20 years of depredations of the cultists who finally capitulated at $280 per ounce, only to see a soaring surge to $1500 over 10 years. The $35 per oz price was a regulated one, imposed upon the free market by fiat. Gold went very much higher when Americans were allowed - finally - to own it and its value was allowed to be set by the markets. Mq, if you recall, gold went to $850 in the 1980s, I believe. Adjust for inflation and that presently becomes a figure slightly north of $2200. My point is that gold has not yet reached its previous inflation-adjusted high. In my estimation, the present circumstances are much worse than they were when it was at $850 back in the day. That is IMO an enormous positive feature of its present undervalued price. Investors' actions are ultimately the result of beliefs about the future. You believed in Q when it was charged in the WSJ no less with violating the laws of nature, but you were correct and were enriched. I was too but was not as early to the party as you. Many would have thought - and many did - that Q's CDMA was barbarous bare-bum voodoo, that Q was a company run by L. Ron Hubbard-like cultists. But they were wrong, and you and I and many others were right and were rewarded. Our beliefs were correct. This is essentially what drives my beliefs about an increasingly higher price of gold: The economic super-cycle is turning into a demand-driven one. It may take a few years for many to appreciate this, but gold, oil, silver, food, water, productive land, etc., are going to go ballistic due to increasing demand. It is a simple function of demographics and wealth creation by and re-distribution to the teeming masses which were at one time shirtless but will be no longer. They are creating massive amounts of wealth which will drive consumption which will drive the demand for commodities. And these countries, India, China, etc., are mad for gold and have been mad for it for centuries. I like gold because there is damned little of it [two swimming pools worth], it has a long history of being used as a store of wealth in the countries which are booming. When their teeming masses obey their culturally-imposed drives and go after this limited amount of gold, the potential for it to go parabolic is substantial. Add to the mix the fact that it is sought after during uncertain times in which policy-makers are making enormous barbarous bare-bum Keynesian mistakes and it is almost a cannot miss investment. There is a perfect storm beckoning gold to go very much higher.......demographics plus wealth creation plus fiscal follies. I am not fudging data, simply interpreting it. Correctly, so far. You'll never admit it but your objections to gold are emotionally-driven. They are in a word, not data-driven nor do they take into account cultural matters. At its essence, I believe you objection to gold is that it is not modern, does not reflect scientific progress, etc. To me those factors are utterly irrelevant; they are trumped by demand, demographics and the incredible fiscal and financial follies we are seeing practically every day. Gold is merely an investment to me. I am too cold-hearted and clinical when it comes to investments to be a member of any cult. Heck, I am not even offended by being charged with being a member of one.