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Gold Price Expected To Rise Significantly Soon


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Myself and others have recently made thousands of new gold discoveries that are accessible with minimal costs. Mining equipment and employee costs have fallen dramatically and parts, maintenance and fuel costs are of little concern. Central banks, nation states and ultra rich are all divesting of gold inventories and golds' anti-corrosive characteristics for industry just aint what they used to be. Furthermore gold has fallen out of fashion with the ladies (except Idaho Peg and Jennifer). Yup. I see no hope for a rise in the price of gold whatsoever. 

 So I guess I'll have to "Lay up my treasures in heaven".

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The physical price of gold is not connected to the paper COMEX futures market. It's been quite a few years since there has been a relationship between derivative paper gold and physical gold. Gold price does have a direct relationship to the purchase power of fiat currencies. If the dollar goes to zero gold goes to the moon - but so does food and fuel and all the other things we need to live. $10k-$50k gold is certainly a possibility under those circumstances but it's not something a reasonable person would wish for.

Every physical gold dealer I know of will pay you more than market spot for gold. Right now most dealers are offering $25 over spot or more. Actual physical American Eagle gold ounce prices are about $120 an ounce more than the paper market price.

What you see on television or market reports from pundits is often BS but the real physical market is not fooled by media hype. Look a little further than the TV and you will see that gold has risen in all currencies over the last 5 years. Our Australian friend's gold prices have risen from $1173 to $2063 today (56%). In the US during the same period gold has risen from $1200 to $1800 (66%).

Please don't "invest" in gold. Gold is a zero sum game - there is no "profit" from gold. On the other hand a zero sum game is looking pretty good when the value of the dollar is tanking and household inflation is around 25% this year.

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On 7/21/2022 at 7:58 AM, Clay Diggins said:

Please don't "invest" in gold. Gold is a zero sum game - there is no "profit" from gold. On the other hand a zero sum game is looking pretty good when the value of the dollar is tanking and household inflation is around 25% this year.

I find that gold follows the stock market over long stable periods but go the other way when things are under short term deviations ( a couple of years).   Remember 7½% interest double every 10 years and 10% interest doubles every 7½ years. It is inflation that throws a spanner into the work so how can you win, all you can do is try to stay stable. I guess my gold will be spent by my descendants making billionaires a bit richer. 

                                                                                😞  

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Over time gold will follow inflation and hold value. Big spikes in value take a crisis.

Gold has not gone up recently with the market downturn because gold is used for liquidity when people do not want to sell their stocks and people sell their gold when interest rates go up to get current income. 
 

 

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To me gold has kept well ahead of the vehicle price inflation cost that I use, in 1986 it took 50ozs to buy a new 70 Series Toyota Troopcarrier, in 2020 it took 35ozs to buy a new 70 series Toyota Troopcarrier, also the 2020 model is a very much refined model over the 1986 model it has A/C, coils on the front, front and rear diff lock, navigation, electric windows, central locking etc etc. but the same basic body with extra capabilities for the job of getting me to the gold. Thus I believe gold proves it belongs in a well balanced investment portfolio.

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  • 2 weeks later...

Gold and silver have rebounded a little that’s nice to see, gold looks like it hit the floor at around 1700 and at 1775 heading into the weekend.

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  • 1 month later...

Gold hit its current level over ten years ago, and with ups and downs, mostly downs, has basically traveled sideways for a decade. That’s hardly “keeping up with inflation”. It appears to me to simply be another commodity at this point, with a price that generally settles around US$1700. I’m not holding my breath for it to do anything more than continue to bounce up and down around that number.

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Depends which fiat money you are trading in. There is no such thing as money really. It’s just a human construct - nothing more than a mutually agreed on medium of exchange. It’s only one step removed from direct barter; a counting system for storing the value of labor for later use. If we are both starving, you can have your gold… I’ll take the potato’s!

That said, anyone who thinks fiat money is not real can send theirs to me. :smile:

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