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As The Gold Price Plummets


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... in the latest edition of Commodity Watch Radio.

The programme also features interviews with HPC favourite, Dr Bubb, as he outlines five rules of investing ; and the CEOs of three mining companies: Gold Resource Corporation, Wits Gold and Kazakh Gold.

http://www.minesite.com/webcasts/commodity_watch_radio.html .

Or you can try right clicking Gold Commodity Watch Radio

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And houses are a bubble? At least they have a use - you can live in them.

So pay £1000s for a lump of fairly useless metal because someone else will pay more for it in the future?

A big fat golden bubble in my opinion. Gold doesn't have much relation to money any more. Coins were once made of the stuff.

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And houses are a bubble? At least they have a use - you can live in them.

So pay £1000s for a lump of fairly useless metal because someone else will pay more for it in the future?

A big fat golden bubble in my opinion. Gold doesn't have much relation to money any more. Coins were once made of the stuff.

I think the point is that a lump of useless gold today will buy the same amount of goods/services in the future as it does now, but a pretty sheet of paper will buy you a whole lot less than it does now.

Edited by Minos
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I think the point is that a lump of useless gold today will buy the same amount of goods/services in the future as it does now, but a pretty sheet of paper will buy you a whole lot less than it does now.

Trouble is, when you invest your dollars today in that "useless" piece of metal, you generally eventually have to exchange it back into "useless" sheets of pretty paper to the same value, which you then have to exchange for goods/services priced at the current value of that "useless paper, leaving you no better off.

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Trouble is, when you invest your dollars today in that "useless" piece of metal, you generally eventually have to exchange it back into "useless" sheets of pretty paper to the same value, which you then have to exchange for goods/services priced at the current value of that "useless paper, leaving you no better off.

That assumes that the price of gold relative to paper doesn't move up. Which I'm "betting" it will.

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It's mine...my precious! :lol:

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The history of gold busts and booms underscores its status as a fiat metal. It is worth what people agree it is worth--much like paper currency which is backed by the consensus view as to health of the nation behind it.

GOLD 01/04/2007 08:48 626.90

Down 1400 or more basis points in 2 days?

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The history of gold busts and booms underscores its status as a fiat metal. It is worth what people agree it is worth--much like paper currency which is backed by the consensus view as to health of the nation behind it.

GOLD 01/04/2007 08:48 626.90

Down 1400 or more basis points in 2 days?

...But up over 20% on the year.

Wake me up when it dips below $500

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Websites start up saying it's going to crash, and then 3 years later it's still going up?

I don't think you will find that websites have the power to move markets.

However, if I had bought something at a low point in a cycle, gold, houses, oil etc it would be in my interest to talk the market up and keep talking it up while I was getting out and moving on to make my next killing.

If every investment was so certain there would be no market as we would horde everything and keep quiet UNTIL WE WANTED TO EITHER FORCE THE PRICE UP, OR SELL to the next mug in the chain. Remember pass the parcel?

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I don't think you will find that websites have the power to move markets.

However, if I had bought something at a low point in a cycle, gold, houses, oil etc it would be in my interest to talk the market up and keep talking it up while I was getting out and moving on to make my next killing.

If every investment was so certain there would be no market as we would horde everything and keep quiet UNTIL WE WANTED TO EITHER FORCE THE PRICE UP, OR SELL to the next mug in the chain. Remember pass the parcel?

I like it because you don't. When you like it and want some let me know because that's when I'll sell. :D

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I don't think you will find that websites have the power to move markets.

However, if I had bought something at a low point in a cycle, gold, houses, oil etc it would be in my interest to talk the market up and keep talking it up while I was getting out and moving on to make my next killing.

If every investment was so certain there would be no market as we would horde everything and keep quiet UNTIL WE WANTED TO EITHER FORCE THE PRICE UP, OR SELL to the next mug in the chain. Remember pass the parcel?

I think what I'm trying to say is that bubbles can go on for longer and rise to larger proportions than anyone can imagine, just look at houses.

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I like it because you don't. When you like it and want some let me know because that's when I'll sell. :D

I'm not saying I don't like it. What I am saying, and you are re-inforcing, it that it is merely something that is TRADED, just like oil, stocks, commodities, in fact anything that can turn a profit if bought at the right time. A 20% rise in a year is no better than anything else that has risen by similar amounts and more over the past year.

If you are buying to trade then fine. If you believe gold has some magic properties that will beat every other asset class then buy it and horde it until it reaches $8000,$9000,$10,000....etc etc

but never sell it because, by all accounts, it should keep going up as it would have lost its relative value.

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And houses are a bubble? At least they have a use - you can live in them.

So pay £1000s for a lump of fairly useless metal because someone else will pay more for it in the future?

A big fat golden bubble in my opinion. Gold doesn't have much relation to money any more. Coins were once made of the stuff.

The point is it's relatively hard to change the supply of gold (although the central banks do manipulate the supply) so the price is reflective of how much fiat money is flying about.

Some property has become as useless as gold in a vault: 50% new builds in Leeds empty because an empty property has a greater resale value?

http://firstrung.co.uk/articles.asp?pageid...6&cat=1-0-0

It exists just to make speculative profits out of other people committing to financial suicide, helped into it by the banks.

It just shows how the whole bubble market has detached and is floating further away from the reality of the real value ie what it is worth to an ordinary person as a home and their ability to afford it.

I've wondered before, given enough money by the banks inflating the supply; the entire country could become homeless as houses are left empty used purely for capital growth, sounds crazy but it appears to be happening. How far can it go????

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I think what I'm trying to say is that bubbles can go on for longer and rise to larger proportions than anyone can imagine, just look at houses.

Of course.. But markets are created and destroyed to make money. Traders go long and short according to market conditions and houses are no different. When people start to cash in, either by selling up or going insolvent, the market will slowly be destroyed. Once there is money to be made again the market will carry on the same old cycle.

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The history of gold busts and booms underscores its status as a fiat metal. It is worth what people agree it is worth--much like paper currency which is backed by the consensus view as to health of the nation behind it.

Gold cannot currently be described as a fiat metal. From wikipedia: "In economics, fiat currency or fiat money is money that enjoys legal tender status derived from a declaratory fiat or an authoritative order of the government." Gold could possibly be described as a fiat metal under a gold standard, when a government issues a 'declaratory fiat or an authoritative order' linking their currency to gold.

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