Gold at $500 per ounce
- Thread starter talknet
- Start date
I fail to see why gold is expected to go to $500 when there are so many problems with financials, stock markets & real estate market. Where else would you park your cash when there is so much pessimism present. If some are seeing technical reasons for a drop to $500 then fair enough, but fundamentally, even though I am no expert, why is gold expected to decline by some?
they missed the boat on the way up. this board is like yahoo finance chat. On yahoo there are stocks down 90%. the stocks bounces back a bit.. all the idiots who held on the way down start to scream that the short sellers are going to get murdered.
the bottom line is ET is going down to the level of yahoo finance chat.
why would it be seen as an alternative?
diamonds are never an investment except for people in the trade. even if you buy whole
- sale you will be subject to 25 to 50% haircut when selling.
unlike gold each piece needs to assayed individually.
producing them by the bucketful stories have been around for years. they have not worked out. the above is thereasons not to touch diamonds.
it sound like you were exhaling hot air with your post.
to put HMS Victory find in perspective note that:
1. it is not yet clear whether the find is going to be allowed to be recovered.
2. if it is going to be recovered then not all gold coins will make it to the market. additionally it would make it to the market during several years - not in few months.
3. we are talking about a total of 140k oz maximum, i.e. yearly production of a small junior company or ~2 weeks labor strike / water flood for a senior producer.
4. gold coins and plain gold is quite a different market, e.g. i would suspect coins are doing worse in economic downturn and are therefore worse hedge of value. old coins are sold for multiples of gold value contained.
5. the find is one of the largest ever - so much for an additional supply from scanning seabeds...
1. it is not yet clear whether the find is going to be allowed to be recovered.
2. if it is going to be recovered then not all gold coins will make it to the market. additionally it would make it to the market during several years - not in few months.
3. we are talking about a total of 140k oz maximum, i.e. yearly production of a small junior company or ~2 weeks labor strike / water flood for a senior producer.
4. gold coins and plain gold is quite a different market, e.g. i would suspect coins are doing worse in economic downturn and are therefore worse hedge of value. old coins are sold for multiples of gold value contained.
5. the find is one of the largest ever - so much for an additional supply from scanning seabeds...
They are printing infinite amounts of dollars and pounds at a much faster rate than gold ever was or ever will be found.
My bet is those coins will sell for at least 3 to 5 times the spot price of gold, and will have no effect on the overall price of gold.
Coins have done great the past couple years, BTW, as premiums have rocketed from $20 to $30 a couple years back to $100 to $150 for the same coins today. Add that to the difference in gold price and its been a great place to have had money the past couple years.
My bet is those coins will sell for at least 3 to 5 times the spot price of gold, and will have no effect on the overall price of gold.
Coins have done great the past couple years, BTW, as premiums have rocketed from $20 to $30 a couple years back to $100 to $150 for the same coins today. Add that to the difference in gold price and its been a great place to have had money the past couple years.
