Faber: Gold won't drop below $1000 per ounce again, ever

[Debaser82]

Quote from makloda:



So what is it? [/B]

He changed his mind.

Quote from observer67:

My Prediction is that within next 2 years there will be World War III. Today gold reached $1140 per ounce.

Well, as long as this is a Faber topic we might as well include his view on the growing political tensions globally and he shares your view basically all crises at some point result in war and that's the final catalyst for the cleansing of the system.

However, when one talks about war we think about soldiers storming up the beach at Normandy but Faber envisions it more as bio weapon attacks, internet strikes shutting down cities from power etc rather than open warfare but then again who knows.

 

[bwolinsky]

Quote from OldTrader:

Let's say you're right...we expanded 64% from 1/1/2008. That's basically 32% annual growth in the monetary base. That's huge.

What I'm looking at though is $800 Billion to $1,900 Billion. I can't tell the start date. But it's clearly well more than a double.

Whatever the rate of growth is, it's huge. What do you suppose that translates into in terms of inflation somewhere down the road? I don't have the answer. But it is what gold is trying to discount now.

OldTrader

Historically, I agree it has been inflationary, but I believe there will be a sharp contraction in that figure bringing the figure more in line with what we see. It would be more inflationary if rates were higher. When rates are essentially zero, the expansion and multiplier of money through private sources is not as great.

 

[zdreg]

that is a static analysis.

Quote from bwolinsky:

Historically, I agree it has been inflationary, but I believe there will be a sharp contraction in that figure bringing the figure more in line with what we see. It would be more inflationary if rates were higher. When rates are essentially zero, the expansion and multiplier of money through private sources is not as great.

 

[kaciara]

never say never

 

[MarketOwl]

Quote from makloda:

I'm trading rule-based. I'll go short when my rules say to go short. I never short anything that is going up without first starting to retrace, regardless of how much it feels it went up "too high" (whatever that is).

Conviction has nothing to do with it. My position size is based on historical volatility, not how convinced I feel. To me a trade is a statistical probability, not a feeling of how sure I am.

You will never become a great trader this way. You will just be some rule based robot who will not know why markets are moving or why your systems are losing money. And there are tons of rule based robots that do what you are doing, probably stepping in front of you. You are throwing away all these good trading opportunities just so you can follow your "rules" and be a trader that doesn't think for himself, but just follows rules really well.

 

[makloda]

I happily leave all these amazing opportunities to pick up pennies in front of a steamroller to great traders like yourself. Good luck.

 

[psychonin]

Quote from MarketOwl:

You will never become a great trader this way. You will just be some rule based robot who will not know why markets are moving or why your systems are losing money. And there are tons of rule based robots that do what you are doing, probably stepping in front of you. You are throwing away all these good trading opportunities just so you can follow your "rules" and be a trader that doesn't think for himself, but just follows rules really well.

If this wasn't sarcasm, I'll just say - LOL

 

[TraderZones]

Quote from DrPepper:

I do not see any evidence that this a speculative bubble in gold being caused by small traders alone. It is smart money trying to protect their country's financial stability in the face of American economic insanity. In fact, until we see large numbers of Americans who are non-traders starting to buy gold and silver,

I think that the rise in gold and silver is still in it's infancy. When the common man starts to buy gold and silver, it may even become difficult to find. That is when things may get very interesting.

The drums of gold bulls has been beating for decades.

 

[athlonmank8]

Quote from MarketOwl:

You will never become a great trader this way. You will just be some rule based robot who will not know why markets are moving or why your systems are losing money. And there are tons of rule based robots that do what you are doing, probably stepping in front of you. You are throwing away all these good trading opportunities just so you can follow your "rules" and be a trader that doesn't think for himself, but just follows rules really well.

Get real. That isn't some rookie you're talking to.

You don't know how to trade. There isn't a doubt in my mind.

 

[MarketOwl]

Quote from athlonmank8:

Get real. That isn't some rookie you're talking to.

You don't know how to trade. There isn't a doubt in my mind.

Athlon, are you a great trader? Do you know what it takes to become a great trader? If a trader doesn't follow a system or a strict set of rules, does that make that person unable to trade well?

I've seen more than my share of traders blindly following systems die from a death by a 1000 cuts and blame the market for it. Maybe they should blame themselves.