Wall street itself is a grand PONZI scheme.

Martinghoul · Aug 29, 2012

Quote from oilfxpro:
I can explain about silver , equal monetary value of silver to gold would incur much more storage costs , and silver is more difficult to store and trade .If silver was same price as gold in 1972 , it would probably have increased about 70 % of gold .

Gold is the orignal currency of the world , platinum and silver do not hold the same status.

There is no demand from central banks for platinum or silver.

http://www.forbes.com/sites/robertlenzner/2012/01/28/gold-is-the-hottest-currency-in-the-world/

OKI-DOKI, but if this is all just about demand for gold by central banks and others like them, based purely on "status", couldn't we say that gold is a bubble?

oilfxpro · Aug 30, 2012

Quote from Martinghoul:

OKI-DOKI, but if this is all just about demand for gold by central banks and others like them, based purely on "status", couldn't we say that gold is a bubble?

No.If interest rates were 2 to 3 % + . why would anyone want to hold gold which may cost 2 to 3 % for storage?If interest rates go up , gold may see a 40 % correction , but Interest rates may have to go up due to hyper inflation , gold will out perform first.

zdreg · Aug 30, 2012

Quote from oilfxpro:

No.If interest rates were 2 to 3 % + . why would anyone want to hold gold which may cost 2 to 3 % for storage?If interest rates go up , gold may see a 40 % correction , but Interest rates may have to go up due to hyper inflation , gold will out perform first.

now is the time to hold gold with short term rates close to zero. if interest rates go up the opportunity cost of holding gold will go up.

if interest rates go up why will go gold outperform in the beginning?

oilfxpro · Aug 30, 2012

Quote from zdreg:

now is the time to hold gold with short term rates close to zero. if interest rates go up the opportunity cost of holding gold will go up.

if interest rates go up why will go gold outperform in the beginning?

With weak growth , there will have to be serious inflation before interest rates are raised , so you have inflation rise before interest rates.Gold rises when inflation rises.

Martinghoul · Aug 30, 2012

Quote from oilfxpro:
No.If interest rates were 2 to 3 % + . why would anyone want to hold gold which may cost 2 to 3 % for storage?If interest rates go up , gold may see a 40 % correction , but Interest rates may have to go up due to hyper inflation , gold will out perform first.

I guess I can imagine this scenario. How confident are you that this is the way things will unfold? Also given your timeline, I'm gonna have to sell my gold right after it outperforms and before the 40% correction. But if everyone tries to do that, isn't it gonna be a case of everyone rushing for the door all at once? And isn't that exactly what happens with bubbles?

oilfxpro · Aug 30, 2012

Quote from Martinghoul:

I guess I can imagine this scenario. How confident are you that this is the way things will unfold? Also given your timeline, I'm gonna have to sell my gold right after it outperforms and before the 40% correction. But if everyone tries to do that, isn't it gonna be a case of everyone rushing for the door all at once? And isn't that exactly what happens with bubbles?

It isn't really a bubble , cause India and china are huge investors .The growth in these countries will support any pull-backs , so I don't really see a 40 % correction , maybe 20 % correction.

Martinghoul · Aug 30, 2012

Quote from oilfxpro:
It isn't really a bubble , cause India and china are huge investors .The growth in these countries will support any pull-backs , so I don't really see a 40 % correction , maybe 20 % correction.

OKI, I understand...

ronblack · Aug 30, 2012

Quote from oilfxpro:

Most of the profits on wall street are not real profits after taking into account money printing inflation , but most profits are from money printing over the last three decades.

This is proof you have never invested money. When you are ready to do that your views will change.

oilfxpro · Aug 30, 2012

Quote from ronblack:

This is proof you have never invested money. When you are ready to do that your views will change.

I got scammed many times by internet bubble and the muppet masters and share rampers.My pep account is halved over last 12 years .

murray t turtle · Aug 31, 2012

Quote from oilfxpro:

Buy new shares from old investors ,on valuations of performance over future years , example dotcom bubble shares ( face book) ......

.The only thing keeping these markets high is the money printing by central banks.

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Sounds like you had several good points

O Pro

But actually QQQ had some great uptrends and crash bear trend.

Any suggestions for the central banks BRO Ben maybe learning today?????

Like em or hate em;
FED has plenty of gold reserves.I would stiil like an audit also