So, if USD eventually goes back up, POG will decline?Well here's gold v us dollar until 2008 not that the US FED funds rates has moved yet and gold certainly should be north of that red line. I suppose if the chinese central bank moves their lending rate by 300 to 400 basis points over the next 12 months that may effect the value of gold. Either that or they look like getting monstered by inflation anyway.
This is not investment advice
I'm still learning
GL
DYOR
So, if USD eventually goes back up, POG will decline?
So, if USD eventually goes back up, POG will decline?
In that case, the gold bulls are betting on the US continuing their policy of printing money and they're not going to get out of this situation. It's just down hill forever until gold becomes a real currency again where you can trade a gold coin for some mixed lollies...
So, if the US/world sorts itself out, and we keep using 'paper' as currency, gold might go down?
So we could be witnessing the real value of paper Gold and Silver here.
worthless cash
Time will tell
Leading up to 1980 there was high inflation. As a result people were piling into gold. Then Paul Volcker came along and said "F~!K YOU, inflation!!", and proceeded to smash it with epic interest rates. Holding gold when you can get 20% on cash and inflation is going to be terminated, is not a popular decision. Hence the gold price went down like a lead balloon.What happened to make gold crash back then?
Is this time different and it just keeps going up for ever?
Leading up to 1980 there was high inflation.
But I certainly think 2011 will be a year of inflationary pressures rather than deflationary ones as Bernanke may disagree.
Maybe slightly inflationary in the US as they lag recovery from the GFC, but I think you have to remember the rest of the world... where there has still been higher inflation and stronger GDP growth, which apart from the currency conversion of the weak USD, has kept the USD POG relatively strong.
I think World inflation and GDP will start to reflect slow consumption by the US
Oh you think the world will eat less?
Nah, I'm of the opinion they will definitely eat more.
Just my opinion
DYOR
GL
Yeah, I suppose they will continue to eat well and lead in the world obesity stakes as they continue to sink into anxiety and depression over the state of their economy as they ponder all the luxury goods and big houses they can't afford anymore.
Yeah I saw that 109 point rise in the Dow and thought..what?
This month the trend has changed for gold and silver, that's all I know. Uncle F., it sounds like you're on board the hypothesis of a reverse unwinding.
Bix Weir
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OPEN LETTER TO THE CFTC
January 25, 2011
Commodities Futures Trading Commission
3 Lafayette Center
1155 21st St. NW Washington, DC 50581
Re: CFTC Delays 60-Day Notification To Assist Manipulators
Commissioners:
On January 13, 2011 the CFTC held a hearing on the Implementation of Position Limits for the Dodd-Frank Act that was mandated by the US Congress to be implemented on January 17, 2011. This meeting was a continuation of the same meeting held in December on the same topic. As of today, January 25, 2011, Position Limits have NOT been implemented and thus the CFTC is currently in violation of the laws of the United States Congress. The reasoning behind the current delay? "There must be a 60 day notice period"...
SO WHERE IS IT? WHERE IS THE 60 DAY NOTIFICATION ANNOUNCEMENT? WHY WON'T YOU START THE CLOCK TICKING EVEN THOUGH YOU ARE IN VIOLATION OF THE LAW?
Interesting move up in gold and silver in the last hour.
However the following article on the recent manfactured correction sums up some good points in my view:-
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