Gold collapsing. Bitcoin UP.

[Transisto]

Thanks to keep reminding me why I got you ignored Cypherdoc.

Hint : No sense of scale.

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[tvbcof]

Gold collapsing? I don't follow the metal prices. Link?

ya i agree gold is due for a Major correction.

Gold Line keeps calling me telling me its not a bubble ...

I have had to sit tight on my PM supply and wait it out for a year now and then while things consolidate.  Thankfully I have had zero difficulty doing so and ignoring all of the people calling a top.  Maybe this will be the time that the PM "bubble" finally pops, but I can think of no plausible change in the mechanisms which have been responsible for the increased value over the last decade.  There are things about PM's which concern me quite a lot and caused me to diversify, but a popping bubble is not really one of them.

I project that Bitcoin will either increase in value by several (if not many) orders of magnitude, or it will go to zero.  I think that the latter is much more likely than the former and always have, but I do hold enough BTC as a long-shot bet that if it takes hold I'll do much better than I possibly could with PM's.

[adamstgBit]

either increase in value by several (if not many) orders of magnitude, or it will go to zero

why?

[bitcool]

I have had to sit tight on my PM supply and wait it out for a year now and then while things consolidate.  Thankfully I have had zero difficulty doing so and ignoring all of the people calling a top.  Maybe this will be the time that the PM "bubble" finally pops, but I can think of no plausible change in the mechanisms which have been responsible for the increased value over the last decade.  There are things about PM's which concern me quite a lot and caused me to diversify, but a popping bubble is not really one of them.

I agree 100% with you in regarding to the yellow metal.  However,

I project that Bitcoin will either increase in value by several (if not many) orders of magnitude, or it will go to zero. 

I heard and repeated similar statement made by someone last year predicting the year-end BTC price, I was wrong.

It's now my belief that bitcoin is here to stay, users come and go, but there will always be believers, and its value will not go to zero.

[tvbcof]

either increase in value by several (if not many) orders of magnitude, or it will go to zero

why?

Bitcoin could have a giant increase in value because that is what BTC is worth thanks to the supply constraints and usability built in by the designer(s).

Bitcoin could go to zero if it never really 'catches' either because there is never a real need for the solution or because it is attacked effectively by those it threatens (and the resources at the disposal of such entities are vast.)

A third option which I did not really try to bring up in that entry is that Bitcoin could become a victim of it's own success and fail in the face of issues involving a combination of scaling problems + exploitation of the attack vectors that these problems open up.  I suspect that BTC values will approach zero in this instance though having control of elements of the block chain will not.

That is my current philosophy on the issue.  I have no idea which way things will go, but it is my nature to be prepared for failure and be pleasantly surprised if good results transpire.

[bitcoinBull]

does this look like inflation?

It looks like we could be at the bottom of the deflationary cycle (which has been ongoing for over 10 years now, according to your chart).  Not to say that we are, but could be.

OR, you think $DXY is going to see new highs?

[cypherdoc]

Thanks to keep reminding me why I got you ignored Cypherdoc.

Hint : No sense of scale.

linear thinkers like you should be buying gold right now.  are you?  how about silver?

edit:  how about pm mining stocks?

[cypherdoc]

does this look like inflation?

It looks like we could be at the bottom of the deflationary cycle (which has been ongoing for over 10 years now, according to your chart).  Not to say that we are, but could be.

OR, you think $DXY is going to see new highs?

$DXY up.  USD/JPY up.  USD/CHF up.  EUR/USD down.

[silverbox]

Thanks to keep reminding me why I got you ignored Cypherdoc.

Hint : No sense of scale.

linear thinkers like you should be buying gold right now.  are you?  how about silver?

edit:  how about pm mining stocks?

Yup buying all 3 atm (silver,gold, miners)

The fed is still printing.  They can't stop printing or the "recovery" will collapse.. They have no choice..

[dopamine]

You need to point out that the market is rigged and even if TPTB try to push the prices of Precious metals lower to discourage people from investing in PM. You can't possible say that Gold is in a bubble. They have this game rigged for a very long time. You have countries demanding delivery of the PM. With the war drums beating you have countries going off the US dollar and receiving payment in gold instead of the worlds reserve currency the US dollar. This is just the beginning of this bull run in gold. Gold should be over 2000 by now and Silver over 100. When you have counties like Switzerland where the Swiss parliament are demanding the Federal Reserve return their gold reserves in a statement they released called the “Gold Initiative.” and other countries like Venezuela Germany. Something big is about to happen or people that understand the fundamentals will be in good shape for this depression we are heading. You can't have governments printing more money, then whats the point of working.

There is a difference in paper market game and the physical, You need to own physical and bitcoins.

Bitcoins will be worth more than 35US dollars because its the first free market that is not rigged, only manipulated by people with the most capital. But we are playing this game to increase capital or increase bitcoin holding. If I could move the price of bitcoins on buying or selling, then clearly I'm winning at this game called capitalism.

[conspirosphere.tk]

Gold is a no-brainer, until the debt bubble keeps inflating:


Source: http://www.theburningplatform.com/?p=31430

[cypherdoc]

[silverbox]

[piotr_n]

Here is some interesting explanation of why gold price has dropped so much recently.

http://www.zerohedge.com/news/another-record-ecb-margin-call-impairing-gold-again

ECB has increased its margin calls on European banks by EUR162 million this week to another record high of over EUR17.3 billion. The side-effect of this appears to be that Gold is being sold to cover these margin calls just as it was in September 2011

But it's not collapsing - I don't think so. It will be right up back soon.

[tvbcof]

Here is some interesting explanation of why gold price has dropped so much recently.

http://www.zerohedge.com/news/another-record-ecb-margin-call-impairing-gold-again

ECB has increased its margin calls on European banks by EUR162 million this week to another record high of over EUR17.3 billion. The side-effect of this appears to be that Gold is being sold to cover these margin calls just as it was in September 2011

But it's not collapsing - I don't think so. It will be right up back soon.

That explanation (liquidation of performing assets) has been used in the past and as far as I can tell it's held water, or held water on par with other theories.  I'm waiting for some clarity on the CDS situation, and even more so on similar CDS issues with other countries besides Greece in hopes of some really significant liquidations.  If such a thing filters down into the physical markets in a significant way, I'll back up the truck (again.)

[cypherdoc]

do not be wedded to investment theories.  go with what the market is telling you.

its telling you deflation is about to take over.

[cypherdoc]

get out of stocks now.

[labestiol]

I agree with you that a deflationary event is coming. But do you think central banks won't react ?

[piotr_n]

deflation would cause a huge public unrest; bankruptcies, unemployment, foreclosures, wiping out of all the pension funds...

I see inflation as the only way to go from here.
this, or a war.
but in any case, gold is a good place to store the savings.
and I mean physical gold - toilette paper is cheaper than the future contracts

[cypherdoc]

I agree with you that a deflationary event is coming. But do you think central banks won't react ?

the deflation will overwhelm them.