Seen the commercials looking for your gold?

[hanimmal]

I know there are a ton of Glenn Beck watchers or Fox news in general that are in this section, so thought I would tell you something that I think may happen soonish.

A gold bubble.

Just like 'flipping' houses turned into everyone and their mother getting into it, books being sold about how to do it, tv shows ect, became a huge bubble, I think Gold is going down the same path.

It seems that everyone and their mother is going crazy buying gold because the recession that just hit, and the news constant doom and gloom forecasting.

I just did some searches and it does seem that there are people out there talking about it, so if you have been really putting all your investing into gold you may want to be a little careful.

Especially since Fox news and talk radio (and starting to see it more and more on the other fake news stations) are getting so much money from it that they may be hesitant to lose more sponsors over talking shit about it bursting.

But look at the bubble gold had during the great depression, this could be similar.


Also keep in mind that when the dollars value falls it will allow our exports to be cheaper for other countries to buy, which means that it will ramp up manufacturing, which leads to more new jobs here in the states (to meet the demand) which means that there will be more money circulating here. Which will drive up the value of the dollar again, and that will mean that gold vs dollar will change again in favor of the dollar.

Anyway this is just my opinion with very little investigation, but if you are heavily invested in gold because the sky is falling, you may want to do some more research.

 

[supertiger]

I think silver may go up more then gold in the long run. I don't mean silver is going to be worth more, just higher growth.

 

[budsmoker87]

wasn't the price of gold artficially set at 35 dollars an ounce, up from 20 dollars an ounce, after the gov't passed the emergency banking act of 1933 and confiscated the gold/made it illegal to possess?

i could be wrong

i don't know how much i'd be worried about gold falling considering china and india are buying heaps of it

 

[doc111]

I know there are a ton of Glenn Beck watchers or Fox news in general that are in this section, so thought I would tell you something that I think may happen soonish.

A gold bubble.

Just like 'flipping' houses turned into everyone and their mother getting into it, books being sold about how to do it, tv shows ect, became a huge bubble, I think Gold is going down the same path.

It seems that everyone and their mother is going crazy buying gold because the recession that just hit, and the news constant doom and gloom forecasting.

I just did some searches and it does seem that there are people out there talking about it, so if you have been really putting all your investing into gold you may want to be a little careful.

Especially since Fox news and talk radio (and starting to see it more and more on the other fake news stations) are getting so much money from it that they may be hesitant to lose more sponsors over talking shit about it bursting.

But look at the bubble gold had during the great depression, this could be similar.


Also keep in mind that when the dollars value falls it will allow our exports to be cheaper for other countries to buy, which means that it will ramp up manufacturing, which leads to more new jobs here in the states (to meet the demand) which means that there will be more money circulating here. Which will drive up the value of the dollar again, and that will mean that gold vs dollar will change again in favor of the dollar.

Anyway this is just my opinion with very little investigation, but if you are heavily invested in gold because the sky is falling, you may want to do some more research.

What manufacturing?

 

[Keenly]

how exactly can a bubble be created with the only thing thats actually "real" money

 

[tebor]

You cant eat gold.
invest in a self sustainable farm instead
and some ammo to protect it

the only thing worth anything in the PAW is food.

 

[doc111]

You cant eat gold.
invest in a self sustainable farm instead
and some ammo to protect it

the only thing worth anything in the PAW is food.

Maybe not but you can drink it if you like Goldschlager.

 

[laughingduck]

In my opinion gold is over priced 250 an ounce, it should stabalize around 750 an ounce. This is from a traders perspective, the gold bubble will be the next to burst. Trader rule #1 if everyone has bought in all that is left will be sellers.

 

[hanimmal]

wasn't the price of gold artficially set at 35 dollars an ounce, up from 20 dollars an ounce, after the gov't passed the emergency banking act of 1933 and confiscated the gold/made it illegal to possess?

i could be wrong

i don't know how much i'd be worried about gold falling considering china and india are buying heaps of it

Here check this out: http://www.telegraph.co.uk/finance/china-business/6712676/China-wary-of-gold-bubble-danger-after-quietly-doubling-its-reserves.html

They are helping to drive the prices up for sure, as they snatch up it causes everyone else to have to bid against eachother for the remaining gold, which drives up the price. But eventually (or already) the price outweighs the value of it, and that causes the first large people (i.e. China and India) to dump their product at the highest possible prices, because they will be able to affect the market while timing it and you will not.

That bursts the gold bubble and they will have taken all the money from the profits people thinking they are making on buying gold were counting on.

Then they get to turn and put it into other investments (like the dollar) and watch as people flock to it because it is the most stable currency in the world (and will be for a looong time).

Remember if America has an economic collapse the entire world collapses, so no country is a safer investment than here.

What manufacturing?

I am sure you were being sarcastic, but this is fundamental thought in many peoples minds today.

We are still a huge exporter.

http://www.bea.gov/newsreleases/international/trade/tradhighlights.pdf

About 1.3 trillion a year is exported.

And as our dollar decreases in response to other currency it means that exportation increases, which forces us to produce more, which means that the economy gets stimulated.

This is the irony of all the doomsayers of the value of the dollar scaring the people that work for a living. When the dollar decreases they may not be able to buy as much at first, but it is the best thing to increase production and help those same workers find jobs.

Also we do things bigger and better here in the states, we export ships, high end commercial equipment, engineering, finances, food, art, on and on. Pretty much everything you can think of we make it. But the big difference is that our products take lots of design and several steps of production and lots of smart people to make sure everything is flowing right.

Just because all the small cheap crap we touch on a daily basis has made in china slapped on it, doesn't mean that we are not huge exporters.

how exactly can a bubble be created with the only thing thats actually "real" money

Because it is not 'real money'.

I cannot go to the mall and buy a tv with gold. Gold is about as stable in its price as houses.

All you need to do is put your finger on the chart where gold prices are today and see that it is a huge spike this last year.

Gold increases when the dollar is weak, but as soon as the dollar is strong gold loses its value. Imagine what china and india will do with their stock piles soon now that gold is skyrocketting and the dollar is relatively cheap to buy.

 

[hanimmal]

This shows the relationship of gold/dollar better.

 

[PVS]

how exactly can a bubble be created with the only thing thats actually "real" money

it has universally recognized monetary value, but that value is not constant and thus is subject to supply/demand rules like any other market. so yes a bubble is possible. i think its an exaggeration to call it that though. i do however agree that these gold-rushers are going to lose their shirts.

 

[PeachOibleBoiblePeach#1]

Buy low and sell high, Now is not the time to be buying gold imo, If you have gold that was purchased cheaper I would sell, but I already did last year lol,,but I only had a 1/4 ounce gold proof coin, I can't afford gold,,,I prefer silver even that is way to high to buy now.
Although I only buy coins for collector value not really as an investment per say to become rich,,,but I can alway's sell and profit.
The US mint has like no gold or silver American Eagle coins for 2009 for collectors, it's all being sold in the investor market, which sucks They don't even know when or if there will be 2010 collector American eagles in gold or silver.
Just my 2cent's cause that's about all the gold and silver I can afford to buy now lol.

 

[doc111]

Here check this out: http://www.telegraph.co.uk/finance/china-business/6712676/China-wary-of-gold-bubble-danger-after-quietly-doubling-its-reserves.html

They are helping to drive the prices up for sure, as they snatch up it causes everyone else to have to bid against eachother for the remaining gold, which drives up the price. But eventually (or already) the price outweighs the value of it, and that causes the first large people (i.e. China and India) to dump their product at the highest possible prices, because they will be able to affect the market while timing it and you will not.

That bursts the gold bubble and they will have taken all the money from the profits people thinking they are making on buying gold were counting on.

Then they get to turn and put it into other investments (like the dollar) and watch as people flock to it because it is the most stable currency in the world (and will be for a looong time).

Remember if America has an economic collapse the entire world collapses, so no country is a safer investment than here.

I am sure you were being sarcastic, but this is fundamental thought in many peoples minds today.

We are still a huge exporter.

http://www.bea.gov/newsreleases/international/trade/tradhighlights.pdf

About 1.3 trillion a year is exported.

And as our dollar decreases in response to other currency it means that exportation increases, which forces us to produce more, which means that the economy gets stimulated.

This is the irony of all the doomsayers of the value of the dollar scaring the people that work for a living. When the dollar decreases they may not be able to buy as much at first, but it is the best thing to increase production and help those same workers find jobs.

Also we do things bigger and better here in the states, we export ships, high end commercial equipment, engineering, finances, food, art, on and on. Pretty much everything you can think of we make it. But the big difference is that our products take lots of design and several steps of production and lots of smart people to make sure everything is flowing right.

Just because all the small cheap crap we touch on a daily basis has made in china slapped on it, doesn't mean that we are not huge exporters.

Because it is not 'real money'.

I cannot go to the mall and buy a tv with gold. Gold is about as stable in its price as houses.

All you need to do is put your finger on the chart where gold prices are today and see that it is a huge spike this last year.

Gold increases when the dollar is weak, but as soon as the dollar is strong gold loses its value. Imagine what china and india will do with their stock piles soon now that gold is skyrocketting and the dollar is relatively cheap to buy.

Perhaps a little but I can take a drive and see a dozen factories within 20 miles of where I live which are now closed. Borded up windows, weeds growing through the cracks in the pavement, the whole nine yards. Manufacturing jobs which used to be the backbone of the American economy are leaving the country in droves. Why wouldn't they? If you owned a factory and paid your American workers $25 dollars an hour plus benefits why wouldn't you take your factory to China where the workers will work twice as hard for a fraction of the pay? Simple economics.

 

[hanimmal]

It is crazy to think about, but exports have continues to increase over the last 30 years. What we are actually exporting is worth more than when those factories where in use.

We have become more efficient, we have moved our resources from cheap inexpensive products to harder to produce things (that is much harder for say china to mimic our production due to lack of educated workforce and the structure of internet, power, roads, schools, government, ect) that bring in a lot more wealth when we export them.



Think about it this way.

Say you are legally able to grow 12 mj plants.

You have the best lights, atmosphere levels, best nutes, best soils, and are ready to go.

Are you going to continue to pump out cheap ditchweed, or are you going to plant the top tier seeds that sell for far more and will net you much more per plant?

See those old rundown 1930's style plants are no longer efficient, so they go to waste. They are the old bucket and backyard dirt that the ditchweed was started in to be able to buy the good light and room setup.

Now because you have 12 slots open, those old buckets (unless recycled into use somewhere else) are useless, and sit in the closet collecting dust, because you would be better off with the best that you have worked hard to produce.

Basically those old factories are in the same boat. Because those cities (like detroit and cleveland) did not change and get their workforce up to current standards, businesses have moved to places that have. And that is why those streets look like shit and the buildings are not in use, they did not adapt for the future.

 

[IAm5toned]

blame it on three things

1: labor unions. if you cannot see the damabe that labor unions have wrought on our country since the late 60's, i suggest you take a lesson in economics.
im not knocking unions, when they function as intended, but the fact of the matter is that they dont. did we need unions back in the days of The Jungle? yes, for many many reasons, but mainly to protect the health of the worker. People had a habit of working themselves to death back then...like @ age 15.
But now we have laws and standards... and the unions grow bloated and worry more about a 1.25 annual raise with no top out than if there going to have a job next week because there employers can no longer afford to pay premium wages and benefits because they've been bled dry.

2: piss poor parenting. yep, thats right, i said it. and i say it as a victim, not as an observer. most kids have no strong ethics, and i know every generation says crap like that, but if you cant see it, your blind. It seems like every new kid I hire is dumber than the last, and have there priorities all fucked up. I once had a helper that damn near starved himself and fiance, just so he could have some 22's... after telling me his situation and then asking to borrow $ for groceries, i told him to sell the damn rims. he went hungry.
lol wtf, right?
its this overly materialistic attitude that is destroying america's workforce. everyone wants everything, but no one wants to work for it. so they finance it, and when they cant afford to pay there bills because an unexpected event raised prices of basic commodoties (think katrina and the hike in gas and food prices in the months afterward) banks begin to fail because THEY no longer are getting income, so the institutions give the banks loans to maintain, but since alot of people are in collections or are still struggling to make payments, the banks cant payback the institutions, and then we have mjor financial institutions collapsing... unless they get a bailout from the governemnt... which destroys the value of the dollar (something isnt worth much if all you have to do is 'print it and give it away'), which in turn raises the value of gold, artificially.
the gold hasnt changed. just your perception of how valuable it is, because everyone else says its valuable, because the dollar is taking a dive.
financial players call that confidence. (or more realistically, a lack of confidence in the dollar.

3: Insurance/healthcare and other benefits.. they way they work (or dont work)
In order to remain competitive and to attract the best workers, american heavy industry and corporations in the past have been forced to bid and compete against each other for providing the most attractive benefits package, in order to attract the best workers. makes sense, right? i mean you would want to hire the best, give them the best, and hope to get the best out of them(the workers) it looks great, on paper...
the reality is that what happens is that while the )kind of)slight majority of employees in america keep themselves in shape, the other larger majority of people that are in worse health put an enormous tax on the heal;thcare system and the insurance institutions that pay the hospitals. i say this because most people that do not have insurance simply do not pay there medical bills. are they lazy? most of them, no. they simply cant afford it. healthcare costs have risen out of control because of the plague of chronic illnesses that affect the lower classes that cannot afford to pay there bills; this situation has forced healthcare providers to compensate for the loss of this income by raising the rates of patients that pay there bills (mainly insurance customers) this cost is in turn passed onto the clients of the ins companies (corporations and employers) in the form of higher premiums, higher deductibles, and less benefit payouts. so now your employer, who is already shelling out premium benefits (remember benefits for an employer are a 100% cost, there is no tangible return besides your employees happiness)is forced to shell out even more, to get less... after a few years of those most major conglomerates figured out a lesson in basic economics- if you can buy the same thing somewhere else cheaper, why are you still buying it here? (labor) so they move offshore.... which kills more jobs, takes away the ability of more people to pay there financed bills, causes stress in the homelife, and starts the whole cycle all over again.

pretty neat huh.

 

[doc111]

blame it on three things

1: labor unions. if you cannot see the damabe that labor unions have wrought on our country since the late 60's, i suggest you take a lesson in economics.
im not knocking unions, when they function as intended, but the fact of the matter is that they dont. did we need unions back in the days of The Jungle? yes, for many many reasons, but mainly to protect the health of the worker. People had a habit of working themselves to death back then...like @ age 15.
But now we have laws and standards... and the unions grow bloated and worry more about a 1.25 annual raise with no top out than if there going to have a job next week because there employers can no longer afford to pay premium wages and benefits because they've been bled dry.

2: piss poor parenting. yep, thats right, i said it. and i say it as a victim, not as an observer. most kids have no strong ethics, and i know every generation says crap like that, but if you cant see it, your blind. It seems like every new kid I hire is dumber than the last, and have there priorities all fucked up. I once had a helper that damn near starved himself and fiance, just so he could have some 22's... after telling me his situation and then asking to borrow $ for groceries, i told him to sell the damn rims. he went hungry.
lol wtf, right?
its this overly materialistic attitude that is destroying america's workforce. everyone wants everything, but no one wants to work for it. so they finance it, and when they cant afford to pay there bills because an unexpected event raised prices of basic commodoties (think katrina and the hike in gas and food prices in the months afterward) banks begin to fail because THEY no longer are getting income, so the institutions give the banks loans to maintain, but since alot of people are in collections or are still struggling to make payments, the banks cant payback the institutions, and then we have mjor financial institutions collapsing... unless they get a bailout from the governemnt... which destroys the value of the dollar (something isnt worth much if all you have to do is 'print it and give it away'), which in turn raises the value of gold, artificially.
the gold hasnt changed. just your perception of how valuable it is, because everyone else says its valuable, because the dollar is taking a dive.
financial players call that confidence. (or more realistically, a lack of confidence in the dollar.

3: Insurance/healthcare and other benefits.. they way they work (or dont work)
In order to remain competitive and to attract the best workers, american heavy industry and corporations in the past have been forced to bid and compete against each other for providing the most attractive benefits package, in order to attract the best workers. makes sense, right? i mean you would want to hire the best, give them the best, and hope to get the best out of them(the workers) it looks great, on paper...
the reality is that what happens is that while the )kind of)slight majority of employees in america keep themselves in shape, the other larger majority of people that are in worse health put an enormous tax on the heal;thcare system and the insurance institutions that pay the hospitals. i say this because most people that do not have insurance simply do not pay there medical bills. are they lazy? most of them, no. they simply cant afford it. healthcare costs have risen out of control because of the plague of chronic illnesses that affect the lower classes that cannot afford to pay there bills; this situation has forced healthcare providers to compensate for the loss of this income by raising the rates of patients that pay there bills (mainly insurance customers) this cost is in turn passed onto the clients of the ins companies (corporations and employers) in the form of higher premiums, higher deductibles, and less benefit payouts. so now your employer, who is already shelling out premium benefits (remember benefits for an employer are a 100% cost, there is no tangible return besides your employees happiness)is forced to shell out even more, to get less... after a few years of those most major conglomerates figured out a lesson in basic economics- if you can buy the same thing somewhere else cheaper, why are you still buying it here? (labor) so they move offshore.... which kills more jobs, takes away the ability of more people to pay there financed bills, causes stress in the homelife, and starts the whole cycle all over again.

pretty neat huh.

You have hit on some very key points here. Outsourcing and globalization are killing us. Our economy used to be based on manufacturing, and perhaps still is but not for long. With manufacturing jobs leaving, all the businesses which sprouted up to support those factory workers will be put out of business. It's not theory folks, it's happening. I've seen it firsthand. If we don't figure out a way to jumpstart manufacturing or shift our economy to something else we are screwed. We are at the edge, staring into the abyss. We have the ability to pull ourselves back at this point, but we need to act quickly.

 

[NoDrama]

As long as the Fed Reserve keeps buying treasuries with "printed out of thin air" dollars the price of gold will continue to rise. The rising price of gold is due to monetary inflation. Very very few people are actually buying large amounts of Gold. If 5% of the population actually converted all their savings into gold you would see prices go to $6,000 per ounce, alas less than .2% of the US population invests in gold. When times are tough people flock to quality, there is no higher monetary quality than gold which is a liquid money in any part of the world. Take a gold coin minted in the USA and take it to any country you wish and they will gladly exchange their currency for your barbarous relic.

The real bubble is the stock market.

Don't be surprised if the Government decides it can manage your 401k's and IRA's better than you can and co-opts by force all of your savings. Its already happening in other countries.

The next few years are going to decide the fate of us all.

I hope I am wrong about it all.

 

[hanimmal]

And which website that sells gold did you get this off of?

 

[NoDrama]

Actually I got it off of this little known thing called "Reality"

 

[hanimmal]

And your perception dictates your reality.

So turn off youtube for a while and maybe get a good (real) economics book or two.


Because if you would actually take two seconds to look into it, you would find that over the last year we have mainly had Deflation, and that is while gold was increasing in it's stock price.