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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Bonefish who wrote (27933)	6/1/2012 2:35:09 PM
From: NOW	Read Replies (1) \| Respond to of 29622

as real interest rates fall gold rises?

To: Bonefish who wrote (27933)	6/1/2012 3:04:08 PM
From: Nevada9999	4 Recommendations Respond to of 29622

Perhaps the blowoff end of a thirty year bull in treasuries that has pushed real rates negative, but created very strong gains in the underlying value of bonds in the secondary market. Bonds are not what they seem. Those owning them for yield are losing. Those speculating on price gains or leveraging them for greater yield are winning big, but it's a recipe for disaster in my opinion. Maybe gold is starting a 30 year bull market because of negative real interest rates and insane government financial policy. Who knows, but the reasons for gold and bonds to rise should be opposite. One is going to be wrong. Buffet claims to be a value investor and advocates buying BRK which is up from $20 to $120,000 and selling gold which is up from $20 to $1600. I think his understanding of value is biased by an 80 year bull market that has made him a genius, just like Greenspan once was. I think our economy and our standard of living are a lot more frothy than we realize. Soros said gold is the ultimate bubble. I say it's treasuries in this megacycle, US, German and Japanese. Gold doesn't have bubbles. Its supply is stable. If its price fluctuates wildly it is because there are bubbles or crashes happening elsewhere affecting the gold price by some unstable paper measuring stick.