I heard Glenn Beck lost his genitalia in an unfortunate schmelting accident in 1990.

In hindsight, gold would have been a good investment at the beginning of the year. Along the same lines, Apple would have been a good investment back in the dark days of 2001 when even the Mac-zealots were preparing elegies for the company's death.

But that's the past, and investment doesn't work backward in time. All you've got is the present and the future to work on. And right now, there's an obvious bubble: for crying out loud, we've even seen this very thing happen before. Right now, the right play for gold is to get out before it bursts and either look for the next wave to ride or play it safe until gold rebalances and starts going up again. In a years' time it might turn out not to have been the best move, but right now it's the right move. The difference between the two is important.

I think the rise in price of gold bullion is in a bit of a rest right now, but will continue its upward path soon enough. Central banks are buying like crazy. Central Bank (new window) gold purchases in 2011 Q3 were double 2011 Q2, and was seven times Q3 of 2010. And all of the factors that made gold prices rise so much in the last year are still occurring. Real interest rates are still negative. There is still monetary turmoil in the US and around the world, and it seems to be getting worse as the months go by. There's still a lot of room to grow. When the price crested $1,900 a couple months back, that was just the warm-up.

/sold my bullion months ago
//purchased gold junior mining/exploration stocks

Look at the amount of debt in the world. Now look at the amount of production in the world. Look at the debt again, and back to the productive work being done. One of these numbers is much larger than the other.

Now look at what can be done about the difference. Either we can admit that much of the debt cannot be repaid and is worthless. This ends the banks that run that casino. Or we can print lots of money to cover the debt and ruin both everyone that produces more than they consume and the money itself. The banks control the politics (just look at who is taking over Greece and Italy, or at the employment histories of top bank and government officials) and so it's obvious what will be done.

The inevitable value of paper money is zero. Many paper moneys throughout history have already failed. It will take a while longer to get there but the destination is certain. Ten years ago Gold was "overpriced" at $400. Today it's "overpriced" at $1800. In an eventual future people are going to wonder how anyone could have been so stupid as to trade away gold for any amount of mere paper.

If the current gold price represents where we're currently at, then we're well and truly farked.

Gold, like Housing, always goes up right? Right?

Millennium: In hindsight, gold would have been a good investment at the beginning of the year. Along the same lines, Apple would have been a good investment back in the dark days of 2001 when even the Mac-zealots were preparing elegies for the company's death.

But that's the past, and investment doesn't work backward in time. All you've got is the present and the future to work on. And right now, there's an obvious bubble: for crying out loud, we've even seen this very thing happen before. Right now, the right play for gold is to get out before it bursts and either look for the next wave to ride or play it safe until gold rebalances and starts going up again. In a years' time it might turn out not to have been the best move, but right now it's the right move. The difference between the two is important.



Whole lot of fail in that post. Gold has the China Put: every time gold dips in price, China steps in and buys the dip. That as well as most other central banks are buying it up as soon as possible. Mind you that China produces by far more gold than any other country in the world and not only are they not selling any of it, they are importing everything they can get their hands on.

Pair that with QE-Infinity upon us, and the fundamentals are still very strong.

impaler: They don' t have the same units. It would be like trying to compare distance and speed.

What's that saying... "It takes an awful long time to get across the Atlantic in a rowboat."

Also, debt is an agreement to pay back a certain amount of money within a specified payment schedule.
Production is a process in which lower order capital goods are transformed into higher-order goods over a period of time.