Buying in to Gold

sabretoothtigger

The dollar is tanking and China is a creditor nation with massive cash reserves and stock piles of commodities.

China is actually borrowing money now ironically. They are starting to issue their own gilts, apparently the real reason is not fund raising but to widen the market alternatives to the dollar.
I wonder what rates they pay

GTG

sabretoothtigger wrote: »

China is actually borrowing money now ironically. They are starting to issue their own gilts, apparently the real reason is not fund raising but to widen the market alternatives to the dollar.
I wonder what rates they pay

Yes, I believe this is a move in the direction of achieving a hidden agenda.... an ambition to have the renminbi take over the dollar status of the worlds' reserve currency.

cloud_dog

Found this artcle which also made for interesting reading regarding whether we are near a top in gold / PM stocks.

http://www.resourceinvestor.com/News/2009/9/Pages/Gold-stocks-are-still-cheap.aspx

GTG

cloud_dog wrote: »

Found this artcle which also made for interesting reading regarding whether we are near a top in gold / PM stocks.

http://www.resourceinvestor.com/News/2009/9/Pages/Gold-stocks-are-still-cheap.aspx

I've read quite a bit of AH's excellent commentary but only speed read this one. I don't think he mentioned that the big gold producers also get sold off in heavy stock market liquidations along with the rest. I better time will come along to buy IMO. I don't think he mentioned that gold producers make money in times of deflation even if the gold price stays the same or even drops. That's because commodity prices fall at a faster clip and mining is energy intensive. Also the supply of mining personnel goes up with unemployment bringing labour costs down.

GTG

http://www.moneyweek.com/investments/precious-metals-and-gems/merryn-somerset-webb-why-im-sticking-with-gold-93804.aspx?utm_source=newsletter&utm_medium=email&utm_campaign=Money%2BMorning

sabretoothtigger

GTG wrote: »

Here's as an excellent audio interview with Elliot Waves' Bob Prechter (deflationist) on deflation and inflation http://www.netcastdaily.com/broadcast/fsn2009-0905-3a.mp3

Enjoy.

Funny Prechter discussion here

On The Beatles, which was known to most people as “the white album” of 1968, for instance, Lennon sang “She’s coming down, yes she is,” and on his 1980 comeback album, Double Fantasy, he declared, “Hard times are over, over for a while.” Applied to the stock market, those are two pretty good calls.

http://www.elliottwave.com/freeupdates/archives/2009/09/18/How-The-Beatles-Helped-Bob-Prechter-Develop-His-Waves-of-Social-Mood-Theory.aspx

mydinero

Just want to add to this thread that I came across a blog the other day called the deflation times about deflation that has a lot of stuff on Precter and Elliott Wave, which I've found facinating and very relevant to what's happening today and what's being discussed in this thread. I'm a newbie so I can not post the link but do a search on google for it.

DiggerUK

mydinero wrote: »

Just want to add to this thread that I came across a blog the other day called the deflation times about deflation that has a lot of stuff on Precter and Elliott Wave. I can not post the link.

Is this the link.
http://www.thedeflationtimes.com/
I don't understand wave arguments so can't condemn or condone the theories, but I do listen to the chartists chatter.
I trust my tea leaves, far more reliable than gurus.

On the 'flations debate I feel that deflation/inflation are two sides of the same debased coin, and regard gold as safe in both scenarios.
Welcome aboard.

sabretoothtigger

Deflation is the fall of asset prices I think. Its not happened in a long time because it means like earning free interest on your money. Like houses had deflation, if everything had it that'd be the situation.
Apparently deflation can still mean economy grows just like inflation does

mydinero

Thank you DiggerUK! Stoked to be here.

Yeap, that's the link. Thanks.

A friend of mine told me about Elliott Wave last year and now I'm kind of hooked- been reading all this material I've subscribed to and have ordered a couple of books about it. Some of the stuff on waves and patterns is very technical and hard to understand but from a socionomic point of view I find it fascinating.

Gold? I have a little bit of the real stuff locked away and I agree that in either scenario it is good to have some, just in case.

As a side note, however, I've been looking at buying 'goldgrams'. Through GoldMoney anyone can transfer US, Canadian, British, Euros... dollars (plus other currencies) electronically from a checking account to buy grams of real gold called 'goldgrams'. They will store it for you too. Have you heard of it?

A search in Google for GoldMoney will get you to their site.