Gold Hits $1,500 Price for First Time

[iwearcowboyboots]

I made a post in a sports forum in their "everything else" forum back in September and I predicted that physical Gold and moreover physical silver were where you want to be in 2011. When I made the post, gold was at $1,260.00 and silver was at $18.15 :--))
Gold will hit $2,000+ this year and Silver will slowly go to a 10:1 ratio of gold in the next 12 months or so. Gold is hoarded, but silver is used...hence, supply and demand = price increase! Both prices will increase as the dollar goes down...but silver will go parabolic soon.

I agree that prices will still climb, I just don't know about 10:1 gold/silver ratio. I'd be sweating to hang on at 20:1 because 10:1 has never been seen before. Not even the last time when silver hit $50 an ounce after market manipulation via the Hunt brothers... If silver keeps climbing faster than platinum (which the auto industry disruption should eventually hit platinum prices), I'd be watching platinum and looking for opportunities to make a good trade some of the silver to platinum.

 

[jedi]

It's the end of times iwearcowboyboots so all the # are going to up go. 2012 end of the world as we know it and we'll be fine. =)

 

[iwearcowboyboots]

It's the end of times iwearcowboyboots so all the # are going to up go. 2012 end of the world as we know it and we'll be fine. =)

Okay. Good. Well, in that case, the OP should trade in all that silver for remington bulk packs of 22lr and holy water.

 

[DodgebyDave]

Gold doesn't increase or decrease in value, it's those worthless FRN's that are fluctuating.

I am holding both gold and silver physical.

If you don't hold it, you don't own it.

Besides that, it's never too late to buy in. The physical price will continue to increase until the FRN's collapse. (some would argue that has happened already)

These dudes know what I wish I did.

Gold is Money - The Premier Gold and Silver Forum – Goldismoney

 

[CarmelHP]

Gold/Silver ratio is currently 32 . Some experts are predicting a ratio of 16, or even in the high single digits. $150 silver isn't out of the question, but when it corrects itself, it will be a huge drop. Just my theory.

Gold Prices Stall, Silver Explodes - TheStreet

15:1 or 16:1 was a historic ratio for a long time pre-Comstock Lode.

 

[John Galt]

100 years of the Fed destroying our currency is becoming too big to cover up and the end of the Great Keynesian Experiment is upon us. As bad as things are probably going to get, I'm kind of glad, as it will be an opportunity (although forced) for us to address and fix our own problems and our kids will not be forced to deal with our problems.
"If there must be trouble, let it be in my day that my child may have peace." - Thomas Paine

 

[joslar15]

“Regardless of the dollar price involved, one ounce of gold would purchase a good-quality man’s suit at the conclusion of the Revolutionary War, the Civil War, the presidency of Franklin Roosevelt, and today.” – Peter A. Bushre

 

[wrigleycub]

O.k. So its higher than ever! Why buy it when its high? Isn't this counter-productive? Wouldn't you want to buy when its low, stockpile, and sell when its high or keep around for the day that our dollar is dead? Then do, who knows what with it because it won't be worth anything at that point because the green backs in our pockets are worthless!

BTW, I know all the answers to these question, this is just more of a rant on how messed up things are becoming. Oh yeah, we are coming out the recession!

 

[E'villeGunner]

Should have bought silver 12 months ago. It is up by around 150%... Corn, cotton, and coffee are up by about the same...

I'm sitting on a bushel of corn. Getting ready to "dump" it.

 

[edsinger]

I'm sitting on a bushel of corn. Getting ready to "dump" it.

 

[ElsiePeaRN]

I'm not selling now. The biggest problem to selling it now is answering "where would you put your cash then?"

For the last few years, I've been utilizing Harry Borwne's permanent portfolio. He identified the following four states of the economy, and corresponding optimal investment assets:

• Prosperity. In times of prosperity, stocks perform well. According to the principle of diversification, he recommended (as do most experts) investment in passively managed mutual funds or ETFs that track broad market indicies.
  
• Inflation. In times of strong inflation, when the purchasing power of our paper currency is being eroded (and in times of political or currency crisis), gold does well. He recommended owning physical gold, although owning it in a more convenient alternative (such as an ETF) is also acceptable.
  
• Deflation. In times of deflation, when interest rates and prices are dropping, the value of bonds increase. The sensitivity of bond prices to such conditions is a function of the bond duration — the longer the better. Furthermore, we need to be holding bonds that can’t be called. In such times, we therefore need to be holding long-term government bonds — e.g. 20 year US treasury bonds.
  
• Recession. In times of recession, almost all investments decline. During such times, we need a cash cushion to sustain ourselves, and with which to buy up those other assets that are temporarily dropping in value.

Browne recommended that we divide our savings equally among those four assets, and periodically sell those that are doing well, and buy those that are doing poorly — a critical process known as “rebalancing” — in order to maintain that equal 25% distribution of savings across each.

I'm no invenstment expert, but this seems to make sense to me.

[ame]http://www.amazon.com/Fail-Safe-Investing-Lifelong-Financial-Security/dp/031226321X/ref=sr_1_1?ie=UTF8&qid=1304119350&sr=8-1[/ame] (Link to his book, Failsafe Investing)