Maybe Im starting to seriously think owning phisical gold is the way to go!

[errolanderson]

cotton . . time to live in the present

[wedino]

Errol,
Inflation big time. USA is printing $85 billion each month, $1000 billion per year. Japan huge priting as are other central banks.

[Horse]

I dont have a big problem of where to store my wealth. But I always wonder just what good is gold, if noone wants to trade a steak for gold who cares how much you think its worth. $800 two yr ago now $16/1800 how did it become valuable, unless money manuplators did it and if they did they can also go the otherway IMO

[HappyFarmer]

Wouldn't silver be more of a liquid commodity to
have than gold if all hell breaks loose?

[sumdumguy]

Tend to agree with Errol. I was there in 1980.
Soon after Jan, both precious metals and land
took a ride on the Reading. Think Berkshire is
buying today?

I guess none of us know for sure what will
survive. Would be nice though. $1470 is cheap
for gold considering it was $800 in 1980. Land
needs maintenance and buyers are at the mercy
of farm workers right now and lots of capital.
Gone are the days of 1/2 and 1/2 farming.

[cottonpicken]

I feel like i'm going mental trying to explain this stuff.

The run up in the eighties was stopped by interest
rates.The crash in land values and gold was easily
forseeable by those astute enough to know how
things work.

I'll be the first one selling land and gold and my first
born to buy 30 year maturities at 18% if i was to ever
be blessed with the opportunity.

But i assure you guys-this will not happen to the
current system in its present form.

[SASKFARMER3]

I agree cotton its 1979. This time we have countries printing money like their is no tomorrow.

[liberty]

Gold prices started falling back in 1980 when central banks starting jacking up interest rates. There's absolutely no sign of that happening now, and no chance of it happening in the foreseeable future. Even a small rise in interest rates would instantly bankrupt the U.S. government as almost all of their current spending would have to be diverted to service their debt. Central bank strategy will center on keeping interest rates ultra low and on hoping that people don't realize how much their purchasing power is being eroded over time by a supposedly "moderate" amount of inflation.

[ado089]

All you inflation bulls keep forgetting about the other side of the money balance sheet. Money printing isn't keeping up with corporate debt paydown and an overall decline in borrowing. Paying off and reducing debt is the exact opposite of QE.

[errolanderson]

wedino . . . agree that under more
normal economic circumstances it would
be inflation bigtime with this excessive
money printing. But (IMO) QE3 is a
colossal flop and will be dismantled.
It's not working as to U.S. Fed plan.

Where's the inflation considering how
much money is printed? Yes, land prices
have rocketed over the past year. But
will this land inflation remain when the
reality of lower grain prices hits us
all by next fall?

To me, precious metal markets may be
unsettled commodities for many months
ahead. There is no inflation to jack
gold and silver prices up and there is
no risk of interest rates rising to jack
them up either. Precious metals are now
caught between a rock 'n a hard spot.

Also, personally believe Obama does not
escape his term without a major
disturbance in the equity world.

To me, this is just the beginning of a
leg lower in gold and silver and copper
markets for that matter. Copper is a key
commodity indicator for global economic
health.

The rebound of the past week in gold and
silver may be no more than a 'dead cat
bounce'. And listening to so many gold
bulls on the internet talking up their
own position stories, just pisses me off
more.

I'm sorry, but can't buy into the
inflation story that the majority are
praying as a savior for an overspending
past. The prospect of deflation is flat
out nasty and means all of us will have
a lower standard of living ahead.

Guess that is why nobody wants 'talk-
the-walk' or 'walk-the-walk'.

[cottonpicken]

Not trying to be a smart ass serious question.

Do you believe the debt will be paid back?

Do you believe governments will be able to balance?

Will society be able to handle the austerity that needs
to happen?

[cottonpicken]

If the answer is yes to all 3 questions,in your mind
and what will end up happening,then it is deflation
and you end up being correct.

if the answer is no,then it is inflation,the bad kind,the
cost push kind.