Gold is going through the roof

[Deleted User]

The dollar is worth less and less. I doubt the goodwill to backing the american dollar debt will hold up as other countrys are turning to gold.

Safest money at the moment IMO -

Commodities + pacific defensives

worst money -

UK + USA property + finance and dare I say it even cash probably wont keep up with true inflation. Most currencys are pegged against the dollar to various extents thus the USA is a stealth tax on the world.

Any body disagree?

free4440273

Mining shares are looking overbought IMO: Yes, i know there is massive demand from China and India but even still... :eek:

[Deleted User]

ts_aly2000 wrote: »

I told the entire Sales team at an investment bank (part of NatWest) in 2001 that gold was a very good bet. I was laughed at and ridiculed while they repeatedly pointed to their property portfolio.

In the meantime gold has risen by something like 400%

At times like these and in any potential crash, value will always fall back to precious commodities. Gold, oil, even copper.

Gold is a safe bet. Not exactly easy to shift about though.

Property was good in 1996, now its a investment dog.

The larger mining companies are overbought, but theres still lots of bargains amongst the tiddlers, esp those just moving into production. Obviously because they are no good for investment banks needing to invest large amouts of money, not worth the effort i expect, bloody good for PIs though

Copper + nickel are so expensive that we probably should be buying currency from a lot of countrys and melting it down as the metals worth more.

ps vedanta looks the best of the fattys, if i was running a fund id be topping up there.

Jonbvn

A good article from yesterday's Torygraph on gold. They are predicting $1000/oz shortly.

The miner's may not be the best bet. Worth considering the ETF's.

free4440273

Strange you mention Vedanta: out of all the mining shares they seem very much overbought: day-on-day increases with barely any profit-taking. BHP Billiton seems to have more potential for an upside. Rio, Lonmin and Anglo are looking scarily overbought...but time will tell.

free4440273

Jonbvn wrote: »

A good article from yesterday's Torygraph on gold. They are predicting $1000/oz shortly.

The miner's may not be the best bet. Worth considering the ETF's.

Yeah, good article on Gold. and yes, the miners really are looking overbought at the moment, quite frighteningly so.

[Deleted User]

Theres an article on the BBC online today about gold hitting 2000 dollars an ounce too.

http://news.bbc.co.uk/1/hi/business/7072576.stm

I feel like nostradamus predicting this would happen and posting about it many times. I bet your friends at teh investment bank wont be laughing at you now, with propery on shakey ground, loans becoming more expensive and commodities rocketting. The worst is yet to come on the loan front it has been said, they are releasing things in dribs and drabs to try and lessen the impact, IMO but its bad I think theyll still be releasing the effects in 2009. The banks have let people be speculate and teh mob is dangerous as it knows nothing of balance or fundermentals.

free4440273

On the other hand the Fed seem to be implying that the worst is over: they had a choice between inflation and housing - they chose to ignore inflation. And as i have said before: I would not be surprised if the Fed keeps on slashing rates until they are between 1-2%. The ECB might have something to say about that: Euro/$ 1.4424 :eek:

[Deleted User]

The fed say what they say to try and keep the calm, they have to say it otherwise theyll be in more trouble, other countrys will run away from teh dollar to save themselfs and itll become a self fulfilling prophecy.

free4440273

I was not suggesting that i actually believe what the Fed says, anymore than i believe that CPI here in the UK is 1.8 per cent :rolleyes:

[Deleted User]

Inflation in the UK is near 8% I wont have anyone tell me any different

The problem is that money is cheaper then this by a few percent and that is a recipe for disaster. Running on illusion, borrowed time.

http://uk.biz.yahoo.com/01112007/35/rate-cut-surprise.html