GOLD WILL NOT MAKE YOU WEALTHY…it will merely preserve your wealth when fiat currencies approach their true value of zero.

I often wonder how those who sold when gold went below 1200 are faring vs, those who bought when it fell below 1200…I, a buyer, am still sleeping well! As long as I have my wealth in something of value, I sleep well. If I sell gold short, I hold dollars…not very comforting!

As anyone who has studied history knows, all fiat currencies will attain their true value, i.e. zero when compared to real money. If you are agile enough to get back in before that, congrats. History is not on your side!

Mike

Treasurys, aka the still far too prefered safe haven.

Still, if you look back to the ‘08 fall you’ll see that gold did better than all else. It didn’t fall as much because apparently it’s not worth getting rid of like everything else that can only value itself in terms of currency. The exception of course are Treasurys because that is future paper money.

Perhaps it’s a simple., “buy the rumor sell the fact” scenario as the gold bull market goes on. The point I want to get at is this… I don’t believe we will ever see gold reach $2000 or $5000 or whatever number you wish to use on FEAR. The only way we’ll see $2000+ gold is through pure GREED, just like every other market bubble or top in history. People have a propensity to sell when fearful and buy when they don’t want to miss out on the big move.

I’d like to hear opinion of why gold goes down every time the market gets edgy.

Without even knowing it, these folks are caught up in the Thomian (Thomas Aquinas philosophy as built on the ideas of Aristotle) notion that there’s a “fair” price for everything and that it can be determined in some sort of objective way. But that’s nonsense, so one is left to look at recent prices (as they did) and conclude that anything that is higher than the recent price is “too high” (“price gouging”) and anything that’s lower than prevailing recent pricing is “too low” (“being dumped”).

As a result, most people are stuck in the 13th century when thinking about price. That’s a good way to be left sitting on the platform watching the train pull away.

Put simply to make it meaningful for trading, just because something is up doesn’t mean it’s coming down and just because something is down doesn’t mean it has to rise. That’s something most of us have probably learned the hard way when we were getting started

Gold not a mainstream market despite late-night razzle dazzle cable ads.

Back in 1930 and 1980 only a small number of people owned either gold or silver, and most on the wrong side of the market, selling when they should have bought, and vice versa.

Gold P&F target now 1090…

http://stockcharts.com/charts/gallery.html?s=%24gold

McClellan Oscillator peaked back in March ahead of stocks in April. Could be some rough sledding down the slope of hope with Big Board Bored stocks pointing a thousand points lower with few exceptions.

http://stockcharts.com/charts/indices/McSumNYSE.html

http://stockcharts.com/charts/gallery.html?$NYA

What’s GLD and ETF? I only know bullion because of all the bad things I’ve read about those two others.

As for the TV ads, I see them every now and then here in the Chiagoland area. I guess things are different in China. But my ultimate and self-styled indicator is how many people use Bullion Vault to buy, own, and trade gold, which isn’t many at all. I think it’s under 30,000 so far. Thing is, if you want it in such a way, you can buy and own a single gram and no more. Anyone can do it and it doesn’t really cost all that much. So when it gets to 30 million people, then I’ll start to think gold has truly gone mainstream

In the U.S., asset value is being created out of nowhere by the currency printing press. The other shoe hasn’t dropped YET on that scenario.

In China, asset value is being created in a much more “realistic way; by good old fashioned appreciation and inflation of various sectors of the economy: mainly price inflation, wage inflation, and real estate inflation, together which has created an unprecedented level of trillions in new wealth in the hands of real citizens to invest, roll, liquidate, spend on the planet.

So I think its possible that the “public” you are referring to is right there like those of us on this board eagerly and carefully waiting for the dips to buy in. I love the idea that gold will go back down below 1100 or whatever key price identifies a long term bottom, because I’ll buy a load. The same for oil, stocks, commodities. There’s a boatload of money on the sidelines, makes for an interesting dynamic. Mind you, I regard myself as clueless at best in terms of really knowing. Follow Rick, follow Nenner, follow Wayalat, etc…that’s about all I can do.

Cheers, Mario

Hello, Andy. I used to wonder those same things, until I thought outside the box. I hate that phrase, but that’s what I did and here’s what I concluded…

Have those negative factors affected the gold price so far? (asked in Feb 09). And since there is so much money in so many other things, why assume that it can’t come out of there and into gold? (asked since I got into this)

Ironically, however, gold price really doesn’t need public support. In fact, that’s the reason that its price is so high to begin with. If the general public were insistant on sound money, it wouldn’t be anything like this at all. Things would be priced in gold, not gold in dollars. But so long as they don’t insist, don’t worry… the banking system will keep on hedging themselves with it.

If it had to matter, though, no, there aren’t enough cheap gold ounces for everyone. Grams and milligrams are a different story, though. Today, you can buy a gram of gold somewhere in the high thirty dollar range, which isn’t terribly expensive even for the poor. It’s even cheaper to buy a milligram. Now, supposed gold did shoot up to 100,000/oz (just saying). How much would a gram cost?

Gram: 100000.00 / 31.103 = 3215.12
Milligram: 3215.12 / 1000 = 3.22
Microgram: 3.22 / 1,000 = 0.00322

And so on, thorugh nanograms to picograms to… whatever comes after pico, and all the way down to chemical atoms, of which there are approximately 150 decillion in the above-ground supply.

So gold is cheap enough for just about everyone to afford, even in these troubled times. To facilitate those kinds of trades, simply use a digital bullion bank like Bullion Vault or Gold Money. There are others out there, but those are the best and most reputable I’ve encountered. And while they quite go that low yet, I suspect they will have to in the future because there is no other answer. Gold and silver need to be money again, and many people need to have access to it.

Anyway, as for the two to three year hiatus… could you elaborate please? I’m always interested in worst case scenarios, but I’ve yet to see that in my bones and runestones.