Gold and Silver

Gold and Silver

One can argue a point such as this without understanding the underlying impetus behind the commodity move over the past couple of years. Metals don function like like housing, or the tech market and create a bubble. They are a response to the massive debt of our country and the world. The bubble is government spending. gold is the defensive action taken by those to combat this. prints money at $6billion a day. How much do we produce in GDP per day? About 1/6th of that. See the problem? The only answer people know is to purchase these metals.

Can blame them. As our currency falls and erodes the purchasing power of a dollar, gold continues to rise. I am not a gold or profit if one buys gold, frankly I don care if one sticks his head in the sand, but I am around the wall street rat race so try to point out the truth. the truth is governement spending and how do you protect yourself, not whether gold is in a bubble.

As the government spends and they are forced to, there is no other way until there is REAL job creation what is your defense?

Gold up from $200 in 2001 to $1540 now is the RED flag something is wrong in the country. 250k people lost their job last month, only 54k created minus 40k from Mcdonalds. no recovery, massive debt climbing. how do you defend? For me, that it is precious metals and buy properties.

I don see people preaching gold, why do they care if you buy gold? That not what is moving the price. Regular folk suggest gold because they want other folks to wake up to the problems in the country.

Originally posted by Bryan Hancock:Originally posted by Kevin Yeats:Just a mathematical response:

The US has about a $14 TRillion dollar economy. $14 Tr divided by 365 days equals about $38.4 Billion per day.

Not following your math. The US does not have a $14t economy when you have 14t in debt

We will miss our debt allowance by an additional $2t this year, that is an extra $6b a day $5.4 to be exact of additional debt a DAY! Estimates are we only produce an income as a country of $1b a day. Hence, it takes more than a dollar to buy what 1 dollar used to inflation. Gold in the general investing world represents something that can not be manipulated and is generally a hedge against the dollar usually, as the dollar goes down, gold goes up.

That theoretically is why. Some think this spiral will never stop because the debt printing never stops. I personally don see it that way, but will ride the train until it does. greece, etc and the collapse of the euro, etc. many many other reasons.

Just like in real estate, do your own due diligence, but it is wise to have SOME exposure. TIPS + metals, etc. 10% of your portfolio, 20%? Up to you. My % is much larger. to each his own. gets you $.69 Euros

Almost a 50% devaluing, and that is vs the Euro, which is really only relatively analyzing. The euro has many of it own problems.

Originally posted by Chris Martin:The important part is debt relative to GDP. The chart doesn look all that ominous. especially given the recessionChart is misleading. In 1950 our GDP was a fraction of the size and our currency was backed by the gold standard. Today, the GDP is 14t,and the FED can print money as it wishes since there is no gold standard. Also, chart only goes up to 2009. Thanks to our new presidents insane spending that chart for 2011 will now read 113% 17t / 15t with no end in sight.

Originally posted by Anthony C:Originally posted by Bryan Hancock:Originally posted by Kevin Yeats:Just a mathematical response:

The US has about a $14 TRillion dollar economy. $14 Tr divided by 365 days equals about $38.4 Billion per day.

Not following your math. The US does not have a $14t economy when you have 14t in debt

We will miss our debt allowance by an additional $2t this year, that is an extra $6b a day $5.4 to be exact of additional debt a DAY! Estimates are we only produce an income as a country of $1b a day.