April 17, 2007

FLASH: Gold approaching $700, Dollar now $2 to one GBP

Man, the dollar is getting more worthless even faster than I thought possible..

The pound hit the two US dollars mark for the first time since September 1992 today.

The prospect of higher interest rates in UK, following today's stronger than expected inflation figures, caused the spike.

Sterling, which has strengthened in the face of weaker growth expectations in the United States, was last at the two dollars level just before it was ejected from the European Exchange Rate Mechanism in 1992.

The dollar is currently trading at a 27-month low against the euro and is only marginally above the lowest point since the Eurozone came into being in 1999.

91 comments:

Dow Near All Time High said...

yeah baby

Anonymous said...

Gold peaked at $725 in May 2006. So gold is down 3.5% from its peak. Hmm kinda like housing. Yet you are celebrating gold.

Odd.

Anonymous said...

Keith - it's about time you got off the Gold bandwagon and jumped on the Dow bandwagon......

Anonymous said...

Well, for you dumb SOBs who mocked me when I kept saying "buy gold and silver on dips" over the last several months...you can all kiss my big fat white @$$.

Anonymous said...

Anonymous said...
Gold peaked at $725 in May 2006. So gold is down 3.5% from its peak. Hmm kinda like housing. Yet you are celebrating gold.

Odd.

~
I'll tell you what's odd -- people who think like you.

One of the many differences between gold and housing is that you can quickly and easily acquire gold when it takes its occasional dips, or you can buy at the top if you want to (like the many dolts who bought houses in 2005), and you can quickly liquidate gold AT ANY TIME, with no hassles, VERY UNLIKE HOUSES.

You are clearly a complete fool.

Anonymous said...

This is classis Keith, trying to whip up excitement when gold is way up.

BUY BUY BUY, all you sheeple and Keith-parrot-heads!!!

Where was the excitement when gold was lower? No-minds like Keith were panic-selling during those times.

Guys like me were calmly buying, and now guys like me are unsurprised that we are seeing new dollar lows and new gold highs.

I'm not selling my gold and silver, yet. But one day I will. Oh......I most certainly will.

And you fools can all kiss my ring.

Sanjaya Malakar said...

Let the MotherF****** dollar tank, then the Sheeple in the US will wake up....I doubt it...American Idol is on tonight...note to self..vote for Sanjaya....where's my pork rinds?

Anonymous said...

Dear Dimwits,

Gold will surely dip again, and all of you who bought on this spike will be crying in your beer.

DO NOT CHASE HIGHS, you lumpen fools.

You should have acquired some gold below $600 last time it was down there. Now you could be selling for a 16% profit or more, or better yet, calmly waiting until the next good buying opportunity.

So...wait patiently until the next pullback, and then buy like there's no tomorrow.

Ignore my advice at your own peril. Actually, I'd prefer you all continue going on in idiot mode.

inflationator said...

Anon 3:24.....just go buy some Google and write another check to your mortgage holder...

Everyone knows that houses and google are timeless... new currencies for a new age...

keith said...

Love him or hate him, kiyosaki says get to cash asap. I agree with the guy.

http://finance.yahoo.com/expert/article/richricher/29458


A Fender-Bender or a Train Wreck?


Last month, Alan Greenspan cautioned the world that a U.S. recession is possible in 2007. If the subprime mess continues to spread and credit dries up, his warning could come true. A recession, along with the ongoing Iraq war, the national debt, and baby boomers retiring in massive numbers, would deliver a severe blow to the U.S. and world economies.


So I recommend that you get into a cash position, and save as much as you can as quickly as possible. The good news is that there will be bargains galore. If you have cash you'll be able to purchase real assets and fancy liabilities such as jewelry, artwork, nice cars, and big homes at cut-rate prices.


Unfortunately, in a recession the people who suffer the most aren't the rich, but the wanna-be rich and the poor. The poor will find it harder than ever to get additional credit, even if they're hard-working, have a decent credit score, and have some cash. The wanna-be rich -- those who are rich in credit only -- will be the ones donating their homes and their bling to bankruptcy auctions, second-hand stores, garage sales, and swap meets.


Many experts and commentators say that the subprime debacle is just a fender-bender in the economic parking lot; others say it's the headlight of an oncoming train. Regardless of which one it is, it represents a great time for bargain hunters to become genuinely richer.

keith said...

And that anon who was trolling that gold was down 3% from the peak wins the HP award for stupidest post I've ever seen on this board

Congrats!

Anonymous said...

Gold up 8% on the year, 143% since 2000, 1082% since 1972.

Dow up 4% on the year, 14% since 2000, 1174% since 1972.

Nasdaq: 4%, -39%, 1793%.
Silver: 10%, 166%, 613%.

Anonymous said...

Is gold not down 3% from peak? Is housing not down 3% from peak? In HPland gold is the greatest investment ever while housing will crash.

That's what I love about you bubble morons, you're consistently inconsistent.

Anonymous said...

forget 3% down actually. adjusted for inflation gold is down 50% from it's 1980s peak. Wonder how many of you bought then convinced the world was ending.

Anonymous said...

Love him or hate him, kiyosaki says get to cash asap. I agree with the guy.
~
Dumb dumb dumb.

Buy what China is buying.

Sell what China is selling.

Now everyone mail me $1M for that priceless advice.

Anonymous said...

Anonymous said...
Is gold not down 3% from peak? Is housing not down 3% from peak? In HPland gold is the greatest investment ever while housing will crash.
~
No, housing is much much more than 3% down from its peak, you poor ramen-eating real estate clerk.

What part of "you can quickly and easily acquire gold ...and you can quickly liquidate gold AT ANY TIME, with no hassles, VERY UNLIKE HOUSES..." does your feeble mind not comprehend?

Anonymous said...

Gold up 8% on the year, 143% since 2000, 1082% since 1972.

So let me see if I get this straight HPers:

Housing up 100% 2000 to 2006 = HOUSING BUBBLE and oncoming HOUSING CRASH (that was supposed to have started 12 months ago but always just around the corner). Do not buy housing says HP.

Gold up 143% 2000-2007 = NO BUBBLE, NO CRASH, buy as much of it as you can says HP.

Makes sense to me.

Anonymous said...

adjusted for inflation gold is down 50% from it's 1980s peak.
~
Right, something like that.

Mark my word one more time, and mock it all you want (I like it).

Gold will be going MUCH, MUCH higher.

Not a little bit higher.

Vastly higher.

Anyone who compares houses to gold is utterly brain-dead.

Anonymous said...

keith said...
And that anon who was trolling that gold was down 3% from the peak wins the HP award for stupidest post I've ever seen on this board
~
Right on, Keith. He's way off on the gold 3% remark, and way off on the housing 3% remark. Clearly on a little disinformation campaign of his own -- albeit a very feeble one.

If he believes what he's saying, he's unbelievably stupid.

Barach said...

Yes, the Dow is near it's all-time high, but anyone who thinks it will continue to go up is as foolish as the REIC members who say "real estate ONLY goes UP".

You know, a smart investor doesn't only go with one asset/investment to the exclusion of all others! As the saying goes, a foolish consistency is the hobgobblin of small minds. You've got to examine market conditions today, and react appropriately. Is that news to anyone?

I know people who are currently housing uber-bears, yet they made a small fortune flipping real estate a few years ago! Sure, they're out of the market NOW, having liquidated in time, but the point is you either need to be diversified for the long-haul, or follow market conditions to change assets at the proper time.

So all you gold is great, or housing is great types, give it a rest. It ain't an 'either/or' situation!

Anonymous said...

Makes sense to me.
~
No, it doesn't, because you are incapable of thinking for yourself.

Anonymous said...

This Amerika is so unfair to me!

Anonymous said...

House prices may stay high simply because of the devaluation of the US Dollar.

Gold too.

Damn near everything else.

Think, people, think.

Anonymous said...

I know people who are currently housing uber-bears, yet they made a small fortune flipping real estate a few years ago!
~
For these people, bubbles are very very good.

What's wrong with a bubble if you know how to smell one early, get in early, and get out with a tidy profit?

It's the lumpen who get screwed.

Fools and their money are soon parted. It's always been that way, it's that way now, it always will be that way.

You know what I say to the liberal "redistribute the wealth" people?

I say, "Go ahead. Redistribute the wealth. The fools will quickly lose the money that was given to them, and the shrewd people will quickly get back the money that was taken from them."

Liberals tend to believe in macroevolution, so the above should make perfect sense.

It's Darwinian.

Anonymous said...

Gold was $725 an ounce in May 2006. Gold is $700 an ounce today.
That is a 3% drop from peak.

Replace real estate with the world gold and the gold bug comments are indistinguishable from a realtor's comments 2 years ago...r/e (gold) never falls, r/e(gold) is a can't miss buy, if you don't buy r/e(gold) you'll be priced out forever, they don't make anymore land(gold), prices have to go up and on and on

It's funny to read people comment on the housing bubble while at the same time buying into a gold bubble.

Anonymous said...

So let me see if I get this straight HPers........

___________

Hey dipstick.

Ever look at a 5-year gold chart?

What should you have been buying in 2005?

Houses, or gold?

Anonymous said...

keith, you assume that the US dollar is in the weak position. Japan used to have real estate that was so valuable that one palace was supposed to be worth the entire value of Los Angeles. sooner or later, the market will ask, "what makes the pound so valuable and worth its premium?"

WaitingToBuy said...

My parents went to spain for vacation. Their flight back is through Heathrow today. Two weeks ago my dad said my mom was all excited about the trip back because they would have a two hour layover at Heathrow and she plans on doing some serious shopping. What a day to do that shopping!

Anonymous said...

You guys are a bunch of idiot losers!. There will be no crash. the houses are still going for a high price and they are not coming down. big deal idf they go down 10-20% that is only 20 or 30 thousand doallrs. and you tin foil hat wearing losers still won't be able to afford it. Idiots losers! you missed your chance now shut up and stop crying!!!

Batman said...

Remember trolls, Gold isn't for making money, it is for holding value. How about compare average housing prices in ounces of gold.

If you want to cash in on this, you have to stick your neck out and buy the miners who leverage the ups and downs, if you have a stomach for it.

DX chart now perilously close to all time low. Below 81.5: so support, just a big black inky void. Keep your eyes on this:
http://quotes.ino.com/chart/?s=NYBOT_DX

Concerned said...

Deflation is the key....

Gold (Even though I love the stuff....nothing like it....real money), will suffer with housing......give or take 6 months.

The FED can't/(will not) inflate.....to much credit out there already. How much more are we going to put on plastic ?

And Bernanke cannot just throw money out of a plane or forgive debt.....it ain't possible.

Cash up people. And for those who are predicting a USD crash....think again. Whe deflation hits it will even out with the Euro.....

When others run, you should walk.....when other walk, run like hell.

Anonymous said...

Gold's getting up near last year's high so investors are backing off,'' said Marty McNeill, a trader at R.F. Lafferty Inc. in New York.

Gold's seven-day relative strength index reached 71 today, a signal to traders that prices are poised to fall.

``The volatility is going to continue,'' Integrated's McGhee said. ``What you're going go see on these breaks is that they are extremely well-bid.''

Silver Market

Silver pared losses after dropping as much as 27 cents during the session.

Silver for May delivery fell a penny to $14.08 an ounce on the Comex in New York. Prices have climbed 8.9 percent this year.

``Silver's going to go back and forth as investors become more comfortable with the price at $14,'' McCleod said.

I sold Gold today... and am in cash positions across the board.

Anonymous said...

Gold is extended here. It could crack $700 on this run but I doubt it. Plus that would cause more Cramer-tards to jump in, which we can do without. Look for a correction to around $630 over the course of two or three days, then load up.

concerned said...

By the way.....you guys do realise that Casey Serin was pumping gold on his blog a few days ago.

If that ain't a sign to get out....then I don't know what is.

Anonymous said...

BUY GOLD they're not making any more of the stuff.

It's different this time.

Every other investment will tank, but not gold, gold's special.

You sound like David Lereahgold.

Anonymous said...

I think that there will be a correction in the price of gold.

I'll buy a little more on the dip most likely.

Do I plan on getting "rich" off of it.

Hardly.

Do I plan on keeping it a long long long time?

Yup.

Anonymous said...

when you all say buy gold do you mean physically buying gold or buying gold futures?

Anonymous said...

Batman said...
Remember trolls, Gold isn't for making money, it is for holding value.
______
It's good for holding value, but can also be used as a lovely, money-making trading instrument. But I do prefer currency pairs for the latter purpose.

Anonymous said...

Anonymous said...
Gold is extended here. It could crack $700 on this run but I doubt it. Plus that would cause more Cramer-tards to jump in, which we can do without. Look for a correction to around $630 over the course of two or three days, then load up.
--------
A solid assessment. But I don't know about the two or three day thing...you might be right though and if you are, excellent call.

Markus Arelius said...

Ingenius strategy when a nation has massive debts to pay, but for the regular Joe on the street, it royally sucks, and it is reflected in groceries, gasoline, vehicles, housing - every-ting!

Anonymous said...

Gold hit an all time high of $850 in 1980. Now it's barely approaching $700? 27 years later it hasn't even recovered. What a horrible investment.

Anonymous said...

You guys are a bunch of idiot losers!. There will be no crash. the houses are still going for a high price and they are not coming down. big deal idf they go down 10-20% that is only 20 or 30 thousand doallrs. and you tin foil hat wearing losers still won't be able to afford it. Idiots losers! you missed your chance now shut up and stop crying!!!

-----------------------------------
Hard to tell if he's serious or just being sarcastic. By the lack in logic and faulty math, I'm going to say he wrote it real fast and was just being sarcastic. In that case, hahaha funny post :)

deflation? what are you smoking? said...

Who said something about deflation hitting when prices are skyrocketing already? The CPI is a crock. What type of real inflation barometer would exclude food and energy?

As for the person who asked what makes the pound worth such a premium - the simplest supply and demand rule accounts for that. Look at the amount of USD we have been flooding the market with recently. Other countries have not been nearly as irresponsible with their currencies.

http://www.nowandfutures.com/images/slides/m3b_long_term.html

Devaluation or skyrocketing interest rates are the only two options, fool. Oh, and can anyone perchance tell me what happens to the value of gold in an inflationary scenario as the Fed will be too scared of political backlash to raise rates in the near term?

Anonymous said...

anonymous

Anonymous said...

"A solid assessment. But I don't know about the two or three day thing...you might be right though and if you are, excellent call."

That's typically how they shank it after it gets overbought - two or three $10-$20 down days close together. The exception was last May, when it had been going parabolic and a larger shank was needed.

Anonymous said...

Aside from guys stuck in the 70s with gold chains, where is the market for gold? Wedding rings are all platinum these days as are rings with stones on them.

Aside from wearing it, what else is gold used for? If people are buying gold just for the sake of buying gold it's nothing more than speculation.

Hmm where have I seen that before?

keith said...

Gold is the historical store of value. Period.

Aside from that, gold is desired for its physical beauty, therefore is popular in jewelry

Gold should not be day-traded. It should be owned as a hedge against a dollar meltdown (underway) and inflation

Anonymous said...

Gold should not be day-traded. It should be owned as a hedge against a dollar meltdown (underway) and inflation.
_______
Keith, you're no trader, best to keep your comments on this topic to yourself.

Anonymous said...

Aside from wearing it, what else is gold used for?
______
You're ignorant of the many industrial uses for gold?

Obviously, you are.

Anonymous said...

Anonymous said...
Gold hit an all time high of $850 in 1980. Now it's barely approaching $700? 27 years later it hasn't even recovered. What a horrible investment.
_______
More moronic thinking.

Whether it's a good or bad investment depends entirely on the prices at which you buy.

If you bought most of your gold below $400 per ounce, is it still a "horrible investment"?

Do you even bother trying to think for yourself?

Anonymous said...

Anonymous said...
when you all say buy gold do you mean physically buying gold or buying gold futures?
======

You can do either of the above, or you can hold gold in a pool account.

Anonymous said...

concerned said...
By the way.....you guys do realise that Casey Serin was pumping gold on his blog a few days ago.

If that ain't a sign to get out....then I don't know what is.

+++++

Oh really? A 23-year-old kid has a long history of being a reliable indicator of market tops and bottoms, does he?

Why are there so many retarded people on this blog?

keith said...

HP's been talking about gold for over a year. Remember the trolls when it dipped back from 700 to 600? they're gone now

I don't love gold, but I do like it as a hedge against the dollar meltdown

But at the end of the day, cash will be king as people rush to cash and sell any illiquid investment they own

It hath been foretold (manias, panics and crashes)

Euros, Yen and Pounds are cash too folks, not just dollars. And gold is cash in a way.

Cash is king. Get ready. In some ways it's almost too late.

Anonymous said...

Your all idiots!

Gold will go up!

Gold will go down!

Gold will .......?

Buy it! Sell it! Hold it!
Whatever!

Anonymous said...

Gold: $1570 by june 1st!

Anonymous said...

keith said...
Gold is the historical store of value. Period.

Aside from that, gold is desired for its physical beauty, therefore is popular in jewelry


Yeah in the 60s and 70s. Nobody wears gold today, well nobody with any sense wears gold.

Haley said...

You know it hasn't even started yet. The only thing keeping this economic cob job together is that the price of oil hasn't spiked yet (and my guess is GWB's buddies are waiting for him to leave office to let that beast out of the cellar.)

seismometer said...

Hey, al-keefrooni
What is with the Europeans teeth.
I know I’m off subject
But don’t they have dentists in Europe?

Anonymous said...

Talk about teeth.
I’m thinking GOLD

Anonymous said...

THE WEAKER THE WINE

The weaker the wine,
The easier it is to drink two cups.
The thinner the robe,
The easier it is to wear it double.
Ugliness and beauty are opposites,
But when you’re drunk, one is as good as the other.
Ugly wives and quarrelsome concubines,
The older they grow, the more they’re alike.
Live unknown if you would realize your end.
Follow the advice of your common sense.
Avoid the Imperial Audience
Chamber, the Eastern Flowery Hall.
The dust of the times and the wind of the Northern Pass.
One hundred years is a long time,
But at last it comes to an end.
Meanwhile it is no greater accomplishment
To be a rich corpse or a poor one.
Jewels of jade and pearl are put in the mouths
Of the illustrious dead
To conserve their bodies.
They do them no good, but after a thousand years,
They feed the robbers of their tombs.
As for literature, it is its own reward.
Fortunately fools pay little attention to it.
A chance for graft
Makes them blush with joy.
Good men are their own worst enemies.
Wine is the best reward of merit.
In all the world, good and evil,
Joy and sorrow, are in fact
Only aspects of the Void.

SU TUNG P’O (China, AD 1036-1101)

na said...

"Aside from wearing it, what else is gold used for?"

My gold grillz are pretty nice!

Anonymous said...

Gold hit an all time high of $850 in 1980. Now it's barely approaching $700? 27 years later it hasn't even recovered. What a horrible investment.
_______
More moronic thinking.

Whether it's a good or bad investment depends entirely on the prices at which you buy.

If you bought most of your gold below $400 per ounce, is it still a "horrible investment"?

Do you even bother trying to think for yourself?

April 17, 2007 11:07 PM

-----------------------------------
Okay genius, when do you think gold will dip below $400 again? In 20 years? Would you buy now or wait? Because if you wait, back to my first question. When do you think it will dip below $400? I guess my kid will have the perfect opportunity to buy gold in the future. Gold is to store value, not an investment. You can grow old playing dips in gold. What a waste. Sucker.

Anonymous said...

WSJ: Problems May be Spreading to Prime Home Loans

From the WSJ: Regional Banks Report Profit Declines

Earnings reports at some regional banks suggested subprime credit problems may be spreading to certain types of prime home loans.
...
John McDonald, an analyst with Banc of America Securities LLC, says prime home-equity loans may become the next problem-loan category given rapid growth and "looser" underwriting.
These appear to be minor problems right now, but as housing prices fall, more problems will most likely emerge.

Don;t you love to be right? I am an expat but I am not screwed! I get paid in Aussies and has appreciated 13% against the dollar in 3 months! I am no genius, just lucky! If you are an expat beign paid in greenbacks--you are hosed.

Note to Keith said...

Dollar index is below 82. Most traders/economists hold that once below 82--the official start of a meltdown. You read it here first--go below 82 and the screwing without the kissing will begin.....

Anonymous said...

US Bancorp Q1 EPS Misses Estimate, Profit Slips 2% on tighter interest margin

The nation's seventh-largest financial institution said it earned $1.13 billion, or 63 cents per share, in the January-March period, down from $1.15 billion, or 63 cents per share, during the same period last year.

U.S. Bancorp reported $397 million in loans overdue by 90 days or more, up from $349 million in the fourth quarter and $251 million during last year's first quarter. And it reported $411 million in restructured loans, up from $405 million in the fourth quarter and $371 million during last year's first quarter.

http://www.wctrib.com/ap/
index.cfm?page=view&id=D8OIIAPO4

Anonymous said...

KeyCorp Shares Drop on Profit Miss, Cut to Forecast

Shares of KeyCorp., Ohio's third- largest bank, fell by the most in more than four years after first-quarter profit missed some analysts' estimates and it said earnings in 2007 will be less than previously forecast.

The company also reported that nonperforming assets, or those not accruing interest, rose 10 percent to $353 million from $320 million a year earlier.

``The increase in nonperforming assets is causing some alarm,'' said McEvoy, who's based in Portsmouth, New Hampshire.

KeyCorp sold $2.5 billion of mortgages to HSBC Holdings Plc in December. An affiliate of Fortress Investment Group LLC bought the part of Champion Mortgage that makes new loans. UBS AG bought McDonald for $280 million, completing the purchase in February.

http://www.bloomberg.com/apps/
news?pid=20601103&sid=
az8BCTMAgYs4&refer=news

kitchenstove said...

I noticed while shopping online that Canadian and Australian money is basically worth the same amount as ours. As little as three years ago this was not the case. As little as three years ago a US dollar was worth nearly twice as much as Australian and Canadian dollars or at least a US dollar was worth a dollar and a half of these monies. If you shop online or at auction sites you know what I'm talking about.

stuckinthecity said...

Anonymous said...
House prices may stay high simply because of the devaluation of the US Dollar.


Housing is subjective. A house is only worth what you can sell it for. Gold is Gold.

Concerned said...

When there is asset deflation, it happens across ALL asset classes....housing, land, commodities, and GOLD.

I love gold.......but am not buying right now. I have my stash (for true shtf scenarios), but would not be buying now.

Gold will follow housing.......don't doubt it for a second.

As I said earlier....gold has become speculative for a while now.....When Kiyosaki and Casey Serin are pushing it.....it's time to get out.

Repeat after me Deflation.

cool hand luke said...

Hold cash as in US dollars? Deflation? Do you mean price deflation or deflation of the monetary base? How about we both walk over to the window and take a look outside. I see the dollar crashing because it is. Open you eyes and look. I suggest you all start paying attention to this and those other silly questions will answer themselves. You might then figure out why thing priced in dollars like gold are going up. See how this works. Easy.

Anonymous said...

gold..........gold is long......it is what you call.....buy it , stash it and forget it.......it is a hedge.....and it will never go down again, imho.....

but silver, gold's little brother......oh my........watch little unreported, disrespected silver.......silver my friends......the poor man's gold......watch silver.....buy silver now (90 pecent junk silver bags)... while you still can and stash it.....please...whatever you do, get rid of all the paper dollars you can......

Anonymous said...

Anyone think that Greenspan's departure after 30 years may be an indication of something? Like, oh sh*t, this thing is outta control.

Kenduffelsniffenspotzen said...

Hmmmm. Sounds like a dollar rally may be coming up. Cash is a most undervalued asset.

Anonymous said...

"anyone think that Greenspan's departure after 30 years may be an indication of something? Like, oh sh*t, this thing is outta control"

who knows...he was getting kind of long in the tooth though....heck now he goes around making speeches for large sums of federal reserve notes...

his wife...Andrea Mitchell...loves it..

Anonymous said...

Kenduffelsniffenspotzen said...
Hmmmm. Sounds like a dollar rally may be coming up. Cash is a most undervalued asset.
___
Could be. Some respected analysts are saying the dollar could stage a big rally by virtue of having struck major technical support levels. One of the things that will provide steam to a bounce will be the profit-taking on the part of many who have been shorting the dollar.

Anonymous said...

Anonymous said...
Yeah in the 60s and 70s. Nobody wears gold today, well nobody with any sense wears gold.
________
Oh really? I see gold on people all over the place.

Gold is huge in India.

And you are still ignoring the industrial uses of it, the fact that only so much exists, only so much can be mined, and the fact that gold has been regarded as the ONLY TRUE MONEY by most civilizations for THOUSANDS OF YEARS.

Those of you who don't "get" gold are either ignorant of history, ignorant of modern-day reality, ignorant of economics, or all of the above.

Anonymous said...

Keith, holding US Dollars as your investment plan is pretty stupid. I don't care what "Rich Dad Poor Dad" says.

If you haven't noticed, US Dollars are NOT going up in relation to THINGS, like uranium, copper, silver, gold, lead...

Even houses, Keith.

Even houses.

In Keith's worst dreams, given all the time and energy he's put into this blog, maybe he wonders if this housing market thing wasn't fundamentally just a symptom of a massive ongoing fall in the US Dollar...

He doesn't quite seem to be connecting the obvious dots.

Anonymous said...

Concerned said...
When there is asset deflation, it happens across ALL asset classes....housing, land, commodities, and GOLD.
________
I don't believe we are going the direction of deflation. We are in the early stages of hyper-inflation.

Your argument for us going toward deflation is...?

Anonymous said...

cool hand luke said...
Hold cash as in US dollars? Deflation? Do you mean price deflation or deflation of the monetary base? How about we both walk over to the window and take a look outside. I see the dollar crashing because it is. Open you[r] eyes and look. I suggest you all start paying attention to this and those other silly questions will answer themselves. You might then figure out why thing priced in dollars like gold are going up. See how this works. Easy.
~~~~~~
Ah, at least one other clear-eyed, clear-thinking human on board...

I was starting to think everyone here was retarded.

keith said...

"cash is king" does NOT mean US$. Only a fool would put all of his holdings in one basket.

Euros, Pounds, Yen, ... Lots of cash alternatives to the US$ to consider. Even Gold or Oil in many ways are cash alternatives to the US$, but the risk there is that people sell their commodities during the Great Liquidation as they rush to cash.

You'll see...

Anonymous said...

Okay genius, when do you think gold will dip below $400 again? In 20 years? Would you buy now or wait? Because if you wait, back to my first question. When do you think it will dip below $400? I guess my kid will have the perfect opportunity to buy gold in the future. Gold is to store value, not an investment. You can grow old playing dips in gold. What a waste. Sucker.
_________
Not one thing you said makes any sense.

I never said it's going below $400 again. Never ever said it.

You contradict yourself by saying "gold is to store value..." then "you can grow old playing dips in gold"...what the F does that even mean? If gold is to store value, then why would you NOT happily grow old buying on dips? By "dip" I simply mean a slow stochastic drop below, say, 20 on the weekly charts...have a look, you will have done very very well if you had done that. But I think I'm already speaking way over your head.

Are you implying that at some point you would not sell your gold for currency, so that you can spend the money, or finance your retirement? I think you could, and should.

Of COURSE gold can store value, THAT'S PRECISELY WHY IT'S A GREAT INVESTMENT, you farking bozo.

You can also trade it short term. There are many many ways to do that electronically these days, even with fully automated (computerized) tools. Again, I'm sure I'm way over your head.

Value store, investment, trading instrument, all are viable approaches with gold, as long as you know what you're doing.

But jerks like you have no clue about ANY OF THE ABOVE. You just want to strut around, shooting from the hip, acting like you know something, when you could invest or trade your way out of a paper bag.

Anonymous said...

Euros, Pounds, Yen, ... Lots of cash alternatives to the US$ to consider. Even Gold or Oil in many ways are cash alternatives to the US$, but the risk there is that people sell their commodities during the Great Liquidation as they rush to cash.
_________
Not buyin' it, Keith. The truly wealthy do not think in terms of desperately rushing to cash. That's how poor people think.

You have so very much to learn.

Anonymous said...

A "basket of currencies" is useless when THINGS are going UP in relation to ALL OF THEM.

[ shakin' my head ]

Anonymous said...

http://tinyurl.com/2ycvq4

Still think gold is a horrible investment?

Get real. Start doing some independent research and thinking.

concerned said...


Gold is huge in India.

And you are still ignoring the industrial uses of it, the fact that only so much exists, only so much can be mined, and the fact that gold has been regarded as the ONLY TRUE MONEY by most civilizations for THOUSANDS OF YEARS.

Those of you who don't "get" gold are either ignorant of history, ignorant of modern-day reality, ignorant of economics, or all of the above.


Oh I get gold....don't worry about that. I love the stuff.....I take out my 50+ sovereigns and look at them evey now and again.

However, it's not it's time.

If you were the FED or the ECB would you inflate your dollars out of value ? You basically have a license to print money......would you risk that power.

No.....Ben is bluffing.

India and asia love gold, but nthey still haven't got enough balls to sell the dollar and buy gold.

Anonymous said...

But jerks like you have no clue about ANY OF THE ABOVE. You just want to strut around, shooting from the hip, acting like you know something, when you could invest or trade your way out of a paper bag.


---------------------------------

"when you could invest or trade your way out of a paper bag"

Thanks for the compliment.

Let's set the record straight, I have been in the equities industry for 8 years trading equities and currency, while learning from and working with some of the best traders around. We utilize mostly technical RSI, SMA, Bollinger..... I better stop because I'm sure this is way over YOUR head. Don't try to talk and act like a trader retard. You must be one of those guys that talks big on how much you know about trading, but somehow never makes a profit. Then to top things off you trade GOLD! What a loser. Equities and currency are great for short term trading but not gold. Sorry to burst your inexperienced bubble. When you're ready to make real money and trade with the big boys, you'll understand. Until then, go back to washing cars, grooming dogs, or whatever unskilled labor it is you do. Oh wait, grooming dogs does take some degree of skill. My apologies.

American Comprador said...

This is great news for those of us with the foresight to sell off U.S. assets.

I'm making a killing (pardon the pun) selling surplus military hardware overseas. And there is a HUUUGE market for concrete in West African countries. I'm making lot's of money as a middleman.

Importing was king, and it still is... but the real profits are in exporting surplus products, and also in exporting natural resources. That's the other market I'm starting to look at. Major producers like China have huge appetites for raw materials.

Anonymous said...

Gold is the short to mid term investment. The Fed and the bankers would rather have Inflation rather than Deflation.

from wikipedia:

Deflation is generally regarded negatively, as it is a tax on borrowers and on holders of illiquid assets, which accrues to the benefit of savers and of holders of liquid assets and currency. In this sense it is the opposite of inflation (or in the extreme, hyperinflation), which is a tax on currency holders and lenders (savers) in favor of borrowers and short term consumption. In modern economies, deflation is caused by a collapse in demand (usually brought on by high interest rates), and is associated with recessiongold. and (more rarely) long term economic depressions.

The bankers want spenders to spend. Inflation will continue.

Buy gold.

Anonymous said...

Gold and other metals are used in catalytic converters.

Just read they may make catalytic converters for small engines mandatory (lawn mowers and such).

Anonymous said...

Real Estate sucks as investment. The proof is, the government has to give you a big tax break to get you to buy a house.

Duh.

This bubble will end up with a net loss overall for all the people involved in buying or selling houses since 1995.

Sure, some smart flippers wil have made big money but averaged out amongst the people who will be LOSING money as prices tank it's going to be a loss.

Anonymous said...

I think most people are confused on what gold is best suited for. Confusing gold as an investment instead of a hedge is the problem. I'll put it in easy to understand terms. You will not be able to retire comfortably by investing in gold alone. You will not see average annual 10-12% returns from gold. But gold is great in times of uncertain economic conditions where there may be a declining currency and a vehicle to preserve value is needed. Trading gold for profit just doesn't make sense. There is better alternatives out there. I think some people fall in love with their gold, the way some fall in love with a stock they own. You can't do that.