Stock question

[Winner_13]

Why does the price of silver and gold go up when the economy is doing bad?
Is it because rich people know that their money is not going to be worth as much because of inflation that they are buying gold and silver??


thanks SBR

[fishmonger]

Because when the shit hits the fan and money isn't worth shit people with gold and silver will have the simplest form of currency. But if it REALLY hits the fan those things will not be worth anything either. Food, water, and firearms will be the forms of currency. It will be like the new series "Falling Skies" but no aliens. Worst case though, it should never happen.

[MartinBlank]

Fishmonger is right....

They can hoard all the gold and silver they want---if the economy worsens to the point where those are the only currencies being traded---they better hope that gold can be melted down and formed into giant f'in rocks-----because the shit will really be hitting the fan.

I like the "Falling Skies" reference-----add Zombieland in there as well, or Mad Max.

By the way Monger-----The David Lo Pan avatar kicks ass.

[jjgold]

I need Gold to go down like 50 bucks

I am short and in fukkin trouble

Common one time

[Winner_13]

could happen short term, but long term gold goes to like $2500-3000.

gdluck JJ

[jarvol]

Because every fiat currency since the Roman empire has failed and failed miserably. You only need to view the Ron Paul/Ben Bernanke exchange yesterday to see how the USD is crumbling and will continue to do so.

[jarvol]

I need Gold to go down like 50 bucks

I am short and in fukkin trouble

Common one time

So you are short gold and long the Euro??? Your investments may even be worse than your bets.

[Waterstpub87]

It might be a good thing to be short gold. If the debt ceiling is resolved you will see a lot of short term movement into equities and away from gold.

[jarvol]

It might be a good thing to be short gold. If the debt ceiling is resolved you will see a lot of short term movement into equities and away from gold.

You can lose alot of money in 2 weeks......but hey I applaud you guys wanting to call the top of the 8 year gold bull market.

[Waterstpub87]

You can lose alot of money in 2 weeks......but hey I applaud you guys wanting to call the top of the 8 year gold bull market.

Uh huh. Just like there was perma-bulls on housing for longer then that. Gold doesn't have cash flows or pay dividends.

In the words of Warren Buffet "The problem with commodities is that you are betting on what someone else would pay for them in six months. The commodity itself isn’t going to do anything for you….it is an entirely different game to buy a lump of something and hope that somebody else pays you more for that lump two years from now than it is to buy something that you expect to produce income for you over time.”

But hey, even Hitler gets Margin Calls

[jarvol]

Uh huh. Just like there was perma-bulls on housing for longer then that. Gold doesn't have cash flows or pay dividends.

In the words of Warren Buffet "The problem with commodities is that you are betting on what someone else would pay for them in six months. The commodity itself isn’t going to do anything for you….it is an entirely different game to buy a lump of something and hope that somebody else pays you more for that lump two years from now than it is to buy something that you expect to produce income for you over time.”

People have been saying that for what.......5, 6, 7 years?

Just keep buying your Microsofts and Ciscos.

[NYSportsGuy210]

Bottom line is precious metals will always go higher in value in the long-run because of the fact that they are "precious" metals. The name in itself implies that these metals get scarcer and scarcer every year because they cannot be made artificially. So no matter what happens, the prices of gold and silver for the long-run will always go up as compared to any sort of temporary fiat currency.

[BettingGeek]

I need Gold to go down like 50 bucks

I am short and in fukkin trouble

Common one time

Big mistake shorting gold, coach ...
Get your ass out ... NOW!!!

[Deep_Rest]

I sold all my gold, stocks, and converted all my currency into Nuka-Cola caps. Going down into Vault-66 in a month or so.

[Gee]

Why does the price of silver and gold go up when the economy is doing bad? Is it because rich people know that their money is not going to be worth as much because of inflation that they are buying gold and silver?? thanks SBR

Supply and Demand. All the monkeys who believe silver and gold are hedges against inflation start scrambling to buy.

Gold is never a horrible investment though, but there are better.

[Balco10]

Watch Tech sky rocket through the rest of the summer. Google up $66 after hours. Apple could easily see $400 by year end.
A deal will be made for the worst or better. Either way metals are golden!

[dabomguy11]

It is also related to the fact that as inflation devalues our dollar, it takes more dollars to buy the same amount of gold, thus increasing the price of gold compared to the dollar.

[Balco10]

Gold at $2500 by Dec 21st 2012...show be a great place to be and enjoy social unrest!
Oh my god are we in the Jimmy Carter days again???

My 4 years son ask me if Jimmy was crocked?

[eleuropeano]

Gold has a fixed supply. Can't produce more of it. With a currency, on the other hand, just watch Bernanke crank the printing presses with another quantitative easing program. So you can't devalue gold artificially, like you can a currency.

[jjgold]

I think Gold and other commodities now are over valued

Its speculators just driving prices up or should i say gamblers

[gamemastere]

everyone should sell there gold and buy SBR points

[Waterstpub87]

everyone should sell there gold and buy SBR points

[sprinter319]

Bernanke has been hinting at firing up the printing press for Round 3 of Quantitative Easing...aka there's going to be a lot more dollars in circulation soon, which lowers the overall value of the dollar, which makes hard assets and commodities like oil, gold, silver, copper, even wheat go up in price.

[jarvol]

I think Gold and other commodities now are over valued

Its speculators just driving prices up or should i say gamblers

Always best to let price action dictate your trade than trying to catch a falling knife. Why would you get short before their prices start to go down? Gold has gone straight up for 2 weeks since it bottomed at the same place it did back in May. Dumb, dumb trade to get short before it broke that support without a tight stop.

[jarvol]

Looks like shorting commodites are gonna kill some goons again today.

[MEATHEAD]

I've got a few oz's of gold I bought back in the 90's for around 300 a oz. Seems like a good investment so far.

[alling]

metals and oil are the next bubble

[jarvol]

metals and oil are the next bubble

LOL! They have a long ways to go before they enter bubble territory then since oil was at $147 a couple of years ago and silver was nearly $50 just a few months ago.

[jarvol]

Another day, another dollar lost by jjgold shorting gold. Fading his investments is even better than fading his spreadsheet.

[Iced]

Gold has continued to soar, passing over $1600 per ounce for the first time in history.

I think it will hit $1700 per ounce over the next year.

The dollar and euro are -EV, gold and silver are +EV.

[agharah1]

Realistically, precious metals aren't so much a hedge against inflation as they are a hedge against economic uncertainty. Inflation is related to an expansion of the monetary supply, and if you want to protect your wealth from inflation then the most effective way to do so is to follow all that new money. If it goes to stocks, go there. If it goes to oil, go there. If it goes to China or Brazil, go there.

[dice]

All valuation of commodities and currencies are "perceived" value. Since the dollar is no longer guaranteed by gold, there is no true valuation relationship between gold and the dollar. The U.S. dollar went off the gold standard in the 1970s. We have a gold and silver bubble, new buyers beware. Could the price of gold go higher? Yes. Could the price of gold go lower? Yes.

With this being said... is the U.S. ready to see inflation and devaluation of the dollar? Likely. Will investing in gold save you? Unlikely.

Hope this answers your question.

[scratbandit]

I bought aug. 159 puts on the gld. In the short term I.e. next 5 weeks we should see a dip to about 1555.75 JJ... for support so I think you are correct. Did you use options as I am assuming you probably did. As soon as the debt deal is signed we should be ok. We have a choppy week ahead that is for sure. We have a strong earning this week with over 100 companies reporting so hopefully gold will hold in the 1600 1615 range for the rest of the week. Its possible resistance is 1653 so there is some upside potential there. Good trade for the short term.

[Deep_Rest]

All this up and down action is a day traders wet dream. All-in guys!

[NYSportsGuy210]

Those ca$h for gold guys are making out like bandits.