Comments on: Gold $2,000… Anything Could Happen http://www.dailyreckoning.com.au/gold-20/2008/08/15/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Luke http://www.dailyreckoning.com.au/gold-20/2008/08/15/comment-page-1/#comment-35693 Luke Sun, 17 Aug 2008 11:43:44 +0000 http://www.dailyreckoning.com.au/?p=3332#comment-35693 Hi Dan One thing to note is the volatility in gold is a US thing not a rest of the world issue. If you take gold from it's peak in march to today the following drops have occured (approx) :- US 20% CNY 21% EURO 15% JPY 13% Aud 13% CHF 14% CAD 13% As you can see Gold has two stories to tell and none of it looks good for the US. It's too late at night to work out the % difference between log curves but I am guessing the inflation (increase in money as opposed to CPI) in the US is around 6%-12% more a year than the 4 countries at the bottom. Hi Dan

One thing to note is the volatility in gold is a US thing not a rest of the world issue. If you take gold from it's peak in march to today the following drops have occured (approx) :-
US 20%
CNY 21%
EURO 15%
JPY 13%
Aud 13%
CHF 14%
CAD 13%

As you can see Gold has two stories to tell and none of it looks good for the US. It's too late at night to work out the % difference between log curves but I am guessing the inflation (increase in money as opposed to CPI) in the US is around 6%-12% more a year than the 4 countries at the bottom.

]]> By: Jason, Bondi http://www.dailyreckoning.com.au/gold-20/2008/08/15/comment-page-1/#comment-35490 Jason, Bondi Sat, 16 Aug 2008 10:10:04 +0000 http://www.dailyreckoning.com.au/?p=3332#comment-35490 I have heard many myths to date. Saddam with WMD, the free world being free, despite more rules and goverenment than most other nations, US troops in 2020 being issued laser guns and laser swords...the list goes on. There are also economic myths as bloated as any "warie" to date. The global economy is in trouble! And smart people buy gold. In the past it was considered that the only people who hoarded gold were drug dealers and right wing nationalists.Now the smarter investors are taking up gold as it holds value, instead of the toilet paper debt notes everyone calls "the dollar". The latest press releases on economics all appear to water down the serious debt crisis, housing crisis and oil declines as "temporary" issues. Of course, I cannot see Aramani-suited yuppies in glass towers considering the impact of stagflation/debt crisis on the rest of the population.I know because I worked with many such people. The economy is just numbers and stats, bullshit statistics every bit as ficticious as the demographic projections that ignore things like "resource avaliability". The investors who are weary of the dollar's value and who opt for gold are probably more clued onto the whole socio-economic issues of the current economic climate. They know that the current surge in the dollar's value and oil price drops are temporary, just like what happened in september to november 2006. Back then the dollar rose and oil fell from $80 to$60 and many overpaid skyscraper dwellers declared "good times until 5000AD" and "Globalisation will last a million years." But, oil went up and the dollar again showed itself to be as worthless as used toilet paper. The fact that the Americans borrow so much money dosen't help, especially when its economy is full of people who produce absolutly nothing. No economy like that can survive. Listen to the Gold Bugs, because very soon gold will go to $2000 and more...and oil production will fall off the supply cliff at the same time. I have heard many myths to date. Saddam with WMD, the free world being free, despite more rules and goverenment than most other nations, US troops in 2020 being issued laser guns and laser swords...the list goes on. There are also economic myths as bloated as any "warie" to date.

The global economy is in trouble! And smart people buy gold. In the past it was considered that the only people who hoarded gold were drug dealers and right wing nationalists.Now the smarter investors are taking up gold as it holds value, instead of the toilet paper debt notes everyone calls "the dollar".

The latest press releases on economics all appear to water down the serious debt crisis, housing crisis and oil declines as "temporary" issues. Of course, I cannot see Aramani-suited yuppies in glass towers considering the impact of stagflation/debt crisis on the rest of the population.I know because I worked with many such people. The economy is just numbers and stats, bullshit statistics every bit as ficticious as the demographic projections that ignore things like "resource avaliability".

The investors who are weary of the dollar's value and who opt for gold are probably more clued onto the whole socio-economic issues of the current economic climate. They know that the current surge in the dollar's value and oil price drops are temporary, just like what happened in september to november 2006. Back then the dollar rose and oil fell from $80 to$60 and many overpaid skyscraper dwellers declared "good times until 5000AD" and "Globalisation will last a million years." But, oil went up and the dollar again showed itself to be as worthless as used toilet paper. The fact that the Americans borrow so much money dosen't help, especially when its economy is full of people who produce absolutly nothing. No economy like that can survive.

Listen to the Gold Bugs, because very soon gold will go to $2000 and more...and oil production will fall off the supply cliff at the same time.

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