gold top $1138 or $1300
- Thread starter Wallace
- Start date
bling bling ?
makes no sense
to see people crowding into treasuries
and gold like they have to be there
I remember a few yrs ago
gold could and did drop
mucho in a day or in a week
now its not doing anything
but that
looks like my call was wrong
as new highs were made and
seasonally gold has done well into year end
http://s650.photobucket.com/albums/uu225/cardiganally/hip hop/BlingDollarRingGoldIceLg.jpg
makes no sense
to see people crowding into treasuries
and gold like they have to be there
I remember a few yrs ago
gold could and did drop
mucho in a day or in a week
now its not doing anything
but that
looks like my call was wrong
as new highs were made and
seasonally gold has done well into year end
http://s650.photobucket.com/albums/uu225/cardiganally/hip hop/BlingDollarRingGoldIceLg.jpg
And it takes many more dollars to buy products/services. Yet GC is not at the number the GC/inflation folks think it should be at.
This conversation is me and a colleauge of mine who runs money and is the most succesful investor I personally know. He has been a GC holder for a long time. And was also NET short into the crisis...truly gifted trader. I posed the GC/inflation question after reading this thread :
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me : I truly donât understand the "inflation adjusted price" argument. If gold is priced in USD, how is inflation not reflected directly in its price at all times?
him : $1,000 was the critical resistance. Keep in mind that based on 1980
high of $850, and using
U.S. Government C.P.I. figures, equivalent price is over $2,300.
Alternate inflation figures equate to over $6,000.
Higher interest rates turn everything; very simple. How does that happen? From 1/80 to now, gold has gone from $850 to $1,180, or +39%.
Cumulative inflation per U.S. Government over that period has been +170%.
$850 + (170% x $850) = $2,300
To rephrase it: If the 1980 high price of gold kept up with the C.P.I., it would be $2,300.
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Gold is clearly not reflecting as rapid a debasement of the greenback as many think. And if it hasnt tapped these levels during the deepest recession/financial crisis/multiple wars(decade of hell???) in decades what makes anybody think it has much higher to go?
I know nothing. Move like a jellyfish with the tide.
Not short nor long gold. Just speculating mentally.
You never take the historical high of something as a basis. It reached that height on sheer speculation.
When a trader that stomps the averages for 25 years tells you something, you dont cherry pick. You listen to it all and if you`re lucky you digest it properly and come away better for it.
I wasnt going to tell my friend the previous high was on ferver. He knows that. He also knew that the 2000 bottom was a once in a lifetime oppurtunity.