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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Gold's Twelfth Straight Gilded Year Is A Wrap

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  • mornin' Professor,

    Hope you're having great holidays and that 2013 is the best ever.

    As for your kind words, thanks, but it just goes to prove that occasionally, even a blind squirrel finds an acorn.

    Actually, it goes back to Gary Smith and his telling us to turn off the volume on the TV and ONLY listen to Captain Price. How many most excellent minds have been telling me I was crazy over the past decade? Their number is legion. In my case, I've never really been much of a gold bug and only really started buying a year of so into the run. I did so based upon the established trend. I was fortunate, having been a long time coin collector, to spot the breakout in '02 and watch as the trend coalesced. Since then, I keep waiting for the trend to break down but I really don't see that in light of our present monetary system. Alas.

    First off, folks need to remember that around here, the price of gold is expressed in terms of dollars. However, because the dollar is the int'l reserve currency and safe haven, its reliability as a true measure is jaundiced.

    That said, the fundamentals are huge. All the major currencies are now fiat based and therefore the govts can print as much as they wish. You want those wars in the middle east without raising taxes? No problem just print more dollars. It's an int'l currency war where everyone is racing to debase theirs faster than the others. They've been doing this for 1000's of years folks. It's like Groundhog Day on steriods.

    Aristophanes in The Frogs complains about the debased coinage, "Just as with our ancient coinage, and the newly-minted gold." when they started issuing what was effectively gold plated coins.

    We've got over $100T in Unfunded Liabilities and no way to pay. They can cut benefits and raise taxes as much as politically possible and they'll still be woefully short. They have no choice but to monetize the rest (i.e. print more $), hopefully without trashing the dollar or causing massive inflation.

    and so it goes,

    peace,

    rono

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