Gold on fire in 2008
Wow, what a start to the year for gold. Up $50US per ounce so far. This doesn't bode well for the mighty US consumer. Here comes a US recession with rising inflation. As the Fed creates money out of thin air the US dollar is tanking. Lowering rates to save the economy rather than raising rates to curb inflation. Canadians are somewhat protected by our rising Dollar. Wow, this will be a volatile year. Expect the Fed and central bankers to try to hammer gold as they lower rates.
US consumer is still suffering from the subprime meltdown and the best is yet to come. I wanted to go the safe route with gold but figured it would be more lucrative to lend US dollars and buy some US equities, namely Apple (AAPL:Nasdaq) right now trading at 172 but with a 235 price target. Backed the loans with some AAA bonds here so I'm just waiting for a recovery and hopefully a massive US recession. Well maybe not too massive I still need apple to outperform the market.
Originally posted by adamantium I'm going to type this slowly so that you folk can follow along.
Originally Posted by CHIA
Interesting play. The DOW needs to be at 38000 to maintain the its value in gold from 2000. The DOW has lost 65% of its value in gold since the high in 2000. Its amazing that people ignore the devaluation of the US dollar and the illusion of US wealth. The dollar drop has masked a severe bear market since 2000. When everyone catches on, gold will soar. Now, Prime Minister Gordon Brown, as finance minister sold 60% of England's gold at 271.00 per ounce in 1999 costing the country 2 billion pounds (1999 value). Complete morons.
I still maintain that significant corrections in gold are to be bought. HGU
you might get a kick out of this. Ron Paul brickfilm
Originally Posted by 03terminator
more lean please
ron paul is the only candidate that makes any sense when he talks. lets hope he gets elected