I'm not talking about the buying of gold from central banks, I'm talking about the deliberate devaluation of fiat.

Central banks possibly now see they need gold for when the fiat ponzi schemes collapse.

You act as if the actions of central banks mean nothing. Trust me it bloody well does.

Also there is latency between monetary inflation and price inflation. The full effects of previous money creation still needs time to set in. With interest rates forced low and where governments attempt to get banks to lend out as much as possible more and more the effects should show more quickly.

Or dear looking t the graphs again. One bust and then a greater one proves deflation will happen somehow, when in reality is that central banks will continue to flood economies with more and more money.

Has anyone even mentioned that silver futures are in backwardation? You'd be silly to miss it.

Before the recent sharp inclines in the gold price the trend was pointing to $1600 by now. If gold goes down to $1600 it's a very good buying opportunity but I don't think it's going to go down to $1600 because of all the recent factors which is pushing more longer term investors to go into gold. It's only the short-term speculators that will be selling.


I read that you think there is going to be price deflation which is ludicrous.

Gold has risen quickly recently and so if you were to say it is overbought, it is so on the recent price moves. There is no reason to suggest the long term trend for gold is dead.

Let's say someone invents a new power source which uses silver. Investors begin to go into silver upon the announcement, later the producers of this new power source make large orders and silver goes up and up. The technical peculators will say "Wow, look at this, bubble! It will crash to $10 again obviously, let's short it.". In reality, of-course, it seems a lot of uses for silver are constantly being found. Shame it's relatively rare.

I never called you silly or stupid. You made that up and then you continued with your own ad hominem attack. I don't know if you misunderstood or you were getting defensive over your position.

Shame I don't have any account which I can do put options because I did think of that.

But anyway, I'll be coming back to this thread when gold reaches $2000.

Looks like it's going back to $1800 for now could go further but be warned that gold is sensitive to small irrelevant things like Bernanke announcing QE3 even though the federal reserve will create money regardless and the ponzi scheme wont end until it comes crashing down.

What appears to happen in markets like gold:

1. Genuine demand from investors and producers pushes price up.
2. Silly speculators see the price doing up and they start buying.
3. Price goes up too high. Speculative bubble.
4. Silly speculators now think the market is "overbought" (Thanks to themselves no doubt) and so they sell. Or they profit-take at certain points.
5. Price comes down.
6. Certain people get annoyed at this. Certain speculators lose out and others win. Investors get annoyed because the price isn't being stabilised by smart short to medium term speculation.

I think technical analysis is only good int he short term. Using it for medium or longer terms is not any good. Technical analysis says something is overbought when it's simply just increasing demand.

I was thinking about selling today but I knew it was too risky to make short term bets. I definitely just want to hold on to gold as central banks kill fiat and more and more people see the benefit to gold.

I agree if you want to short gold in the short term, if you are prepared to do more regular trades but shorting gold for the long term is stupid in my opinion.

Once again...

Do you disagree with the quantity theory of money? Does the trillions being poured into the money supply of dollars not matter? Dollars are a better investment than gold which has a stable supply? The US debt ponzi scheme, completely irrelevant? Forced low interest rates, really doesn't matter? Buy more dollars with borrowed gold? Dollars are really great?


He's good with understanding the fundamentals behind everything. It's not as if he can predict sudden events in advance like the exact changes in fiscal policies and the illogically of speculators so the timing can be wrong with predictions. Of-course he was warning about the housing bubble well in advance and was saying that there was too much credit and not enough savings.

Gold could "correct" in the short term because of speculators being stupid by buying loads and then "profit taking" which they do all the time and they don't realise it's a bit stupid. I should avoid trying to take advantage of short term price changes especially when there is so much uncertainty. I prefer to hold onto gold for the long trend upward.

What did he say about PM mining stocks? Quite a few have held back against gold and silver rises so they can be seen as undervalued.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/22_Schiff_-_When_Silver_Breaks_$50_Shorts_to_Propel_it_to_$75-$100.html

The fact the people like you lot are shorting gold makes me think gold we rocket upwards as it breaks through these shorts. Silver too.

Actually no. I think I have 0.21btc. Not worth the effort.

I'd bet a million bitcoins silver wont go below $20 in the next two years but I don't have a million bitcoins.

I don't know why people say the fundamentals are bearish for silver. Seems to me that silver is too cheap and their are some supply issues as a result. There is backwardation in the futures markets which suggests that those who would purchase silver futures contracts are now being hesitant because of worries about defaults. Too many futures contracts, too little silver?

Silver has industrial use in high tech applications which show promise on the industrial demand side. Many uses are in the growing high tech markets like such as with solar panels. It's a very useful metal and I'm sure there are many new uses for it to come.

And investors see silver as a hedge against inflation, similar to gold.

Where are the issues with the fundamentals?

QE means nothing much. It's a label central banks put on a particular package of purchases using new money. When their QE packages end it doesn't mean they stop with the purchases. They just continue doing the same thing. I don't think people understand this.

These funds are completely idiotic. I don't know if there would be any data for this but I bet the federal reserve increased it's purchases of treasuries to prevent yields increasing after the downgrade. You surely can't put this all down to funds and idiotic scared investors?

Indeed, I included this.

I think you are doing quite well since you have only been around shortly.

1. That was an estimate based on if everyone used the 0.56% commissions and ignoring any income from deposits and withdrawals if they take any (Wont be a lot I'm sure) etc.

2. I don't know what their costs are (Running servers can't be too much? I don't know how many employees they have but I thought it was a small operation and the marketing costs will certainly be small) but mtgox is doing about 10 times more (So roughly $1.5mil in revenue) showing there is potential out there and bitcoin should hopefully grow especially as problems with fiat escalate.

3. They clearly want to grow into different areas which should bring new revenue streams.