we'll never again see $1500 an oz for gold

[Vantagepoint34]

You guys ever hear the myth of what happened to those that mined Gold and Silver. Quite scary boys.

 

[PlayHer Man]

Playher,

Don't you know that there are cycles in investing?

Nothing goes straight to the moon. Including gold. The S&P will be topping in the next 4-5 months at most.....and you will see gold and silver return.

They are sitting BELOW their cost curve. That is exactly when you buy.

I told you months ago, this bull market is not done yet for commodities. Patience grasshopper.

Patience indeed.

Gold will return the next time we have a recession and not before. Definitely not going to start another argument though.

Much respect Danger.

 

[Vantagepoint34]

It's cursed.

 

[taiyuu_otoko]

The gold market is rigged in ways that folks in the know don't even agree.

There's some funky business going on behind the scenes.

The BIGGEST net buyers of gold last year was Chinese central bank.

They are also trying to to coordinate an overthrow of the U.S. dollar.

So gold might indeed to well north of several thousand dollars, but not because of any huge demand for gold.

Because the value of the dollar is sinking like a stone.

China's "silent partner" in their long con attempted overthrow of the dollar is Russia.

They want to convince certain nations to accept gold for oil instead of petro dollars. (Incidentally, those same nations that agree to accept gold for oil instead of petro dollars keep getting destroyed by U.S. Military).

As I write this, there's been a second bombing in Russia, no doubt backed by the Saudis, who were angry for Russia stopping the Saudis from getting their oil pipeline.

Things could get interesting.

Then there's this:

Permanent Gold Backwardation

 

[taiyuu_otoko]

The suppression of the price of gold in the market, unnaturally shifts the supply curve, thus creating even more demand than would other wise exist.

Outside of that, I agree with your entire post.

Yes, and there's more to it. There's the OFFICIAL gold price (the spot price) and then there's the "on the street" gold price. individual sellers who buy and sell coins, etc. The first price is the one that's reported, and what you'd pay if you bought futures, etc.

The second price, is what you'll pay out of your pocket for an actual coin, which is generally higher, and reflects the unnatural shift in the supply / demand EQ point which you correctly pointed out.

However, the guys digging the gold out of the ground ONLY get the first price, (which is the one being manipulated) not the second.

And many goals miners are dangerously close to losing money, as it takes more money to get the gold out of the ground as they get on the "open" market.

Gold Miners Face High Hurdle As Production Costs Top Spot Prices For Many

It's as if the Central Bankers are conspiring to corner the international gold market.

Who knows if they've got long con plans to "nationalize" all of the existing gold mines.

In the Depression, FDR outlawed the owning of gold. Perhaps world governments are conspiring to "outlaw" the mining of gold, or at least stop it, in a roundabout way.

 

[thatfeel]

I chuckle when people talk about gold and silver currencies or standards coming back.

 

[Bokanovsky]

Historical price of gold, adjusted for inflation:

http://www.goldmadesimple.com/images/uploaded/news/Image/GoldInflationAdjusted.jpg

I'm sure there was someone like goundra in 1980 saying that gold was NEVER going below $1,800.00.

 

[taiyuu_otoko]

I chuckle when people talk about gold and silver currencies or standards coming back.

They'll be back all right. Maybe not for a while, likely not in this generation, but they'll eventually be back. You can't wipe out 5000 of economic history with a 40 year experiment in global fiat currency.

 

[Vantagepoint34]

I chuckle when people talk about gold and silver currencies or standards coming back.

Right. We should bring back popcorn and barter with fine fur or leather goods.