M
morganist
Gold and aggregate demand.
http://morganisteconomics.blogspot.com/2011/06/precious-metals-and-macroeconomic.html
http://morganisteconomics.blogspot.com/2011/06/precious-metals-and-macroeconomic.html
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Gold is a bubble. It will much more likely see 500 before it sees 2500.
The over issuance of dollars have increased the real value of gold somewhat.
However, during these bad times many investors have protected their dollars in gold.
When the economy gets better and other investment opportunities arise the real value of gold will decrease somewhat.
I believe gold is overpriced due to the present temporary economic conditions
However, during these bad times many investors have protected their dollars in gold.
When the economy gets better and other investment opportunities arise the real value of gold will decrease somewhat.
I believe gold is overpriced due to the present temporary economic conditions
M
morganist
Quote from jueco2005:
The over issuance of dollars have increased the real value of gold somewhat.
However, during these bad times many investors have protected their dollars in gold.
When the economy gets better and other investment opportunities arise the real value of gold will decrease somewhat.
I believe gold is overpriced due to the present temporary economic conditions
It's not temporary. Currency collapse is inevitable.
"You could take all the gold that's ever been mined, and it would fill a cube 67 feet in each direction. For what that's worth at current gold prices, you could buy all -- not some -- all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?"
Warren Buffett
Warren Buffett
Quote from veritas007:
"You could take all the gold that's ever been mined, and it would fill a cube 67 feet in each direction. For what that's worth at current gold prices, you could buy all -- not some -- all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?"
Warren Buffett
The problem with this analysis is gold becomes a currency in times like these. It is currently being valued in relation to increasingly worthless fiat currency. Restore confidence in those currencies and gold will fall. What are the odds of this occurring in the foreseeable future? I do not understand why these posts are continually harped on as monetary conditions deteriorate.
Quote from Larson:
The problem with analysis such as this is gold becomes a currency in times like these. It is currently being valued in relation to increasing worthless fiat currency. Restore confidence in those currencies and gold will fall. What are the odds of this occurring in the foreseeable future?
No , what Buffet is saying is that Gold is way overvalued in relation to other physical assets such as land and the stock market. Why aren't gold bugs buying land? "because it is different this time..." "real estate prices have never gone down." It is a classic bubble.