Saturday, June 21, 2008

Going for Gold

Gold May Rise to $5,000 on Inflation, Schroder Says (Update1)

``You could easily see for the next several years that prices rise not to $1,000 an ounce, but prices rise to $5,000 an ounce or beyond as inflation psychology becomes more and more embedded and people become desperate to have a source of value,''

Posted by sold out @ 03:22 PM (1070 views)
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11 thoughts on “Going for Gold

  • And the relevance to house prices is what exactly?

    That people have failed to spot the same signs in the gold bubble that were present in the dot.com and property bubbles?

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  • It sounds like this guy just predicted a speculative bubble in Gold.

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  • jonb, get back to school. First, a lot of readers of this site have large savings (due to the sale of a house, for example) that they wish to protect from confiscation by the government via inflation. The investment behaviour of “safe havens”, such as gold, are therefore of great relevance to many on this site. Second, gold lies at the heart of a very interesting power struggle between exponents of fiat money (the present system) and advocates of asset backed money. Many ‘educated’ readers of this sight realise how this issue is connected to the expansion and contraction of credit, the process whereby bubbles, including the housing bubble, are created.

    Conclusion – don’t shout your mouth off about that which you clearly know nothing.

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  • ouch!

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  • What’s quite amusing is reading the article and just for fun replacing the words ‘gold’ and ‘ounce’ with ‘house’ and just testing that you are not being a bit too optimistic..I’m sure gold is set to rise but $5,000 ? its a classic VI article (of the type that has always been ridiculed on here in relation to house prices) based on the quotes of a commodity manager…what else is he going to say?

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  • bidin'matime says:

    Harold – go easy on newcomers – they haven’t seen the full story yet.

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  • harold

    I’m aware of these arguments. They are exactly the same arguments (except for the fiat money bit) that were used to justify the rises in house prices during and after the dot.com bubble.

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  • jonb, I suggest you do some research on the ‘fiat money’ bit, one of the biggest cons of all time. Well said Harold,

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  • jonb

    no they aren’t – anyone who sold at the top of the dot com bubble didn’t have inflation to eat away their capital – times are very different – wake up

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  • landofconfusion says:

    Talking to a friend at work a few days ago brought up something interesting: gold has gone mainstream. I was already having second thoughts and that pretty much sealed it.

    If gold was a share I would be selling right now.

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