Home Forums Hunting & Shooting Hunter's Campfire What Will Be The Bottom Of The Precious Metals Drop?

I should have known you would have trouble with that post. It goes well beyond your interpretation of how you think free markets work. You seem to read a lot, but have difficulty putting it into practice.

???

Precious metals are a commodity and will seek a "fail value" levels. On the-other hand, the WSJ's MarketWatch site headlines:"Spain's yields push higher; Risk-averse investors turn to U.S. Treasurys, the dollar" see: http://www.marketwatch.com/?link=MW_Nav_FP

U.S. FRNs are surging a bit now because investors are seeking a refuge for the wealth they have stored in the dropping Euro.

But in reality, a weak Euro doesn't change the fundamentals which caused the buying power of the dollar to fall.

The U.S. government can only continue to function by increasing its debt.

Every time a boomer retires, the fundamentals for PM's get better,...and 75 million of them will be retiring over the next 15 years, or so.

"What Will Be The Bottom Of The Precious Metals "

Very difficult to predict, that.
But if history is any indication, and we can bet it is, the bottom value of the US Dollar will someday be the same as every other currency man has ever created.

zero.

The question we should ponder is when.

TRH, I found a new place for you right here in north Idaho.

http://www.northidaholandman.com/rubycreek.html

If you use the last gold bubble as an example, gold rose to 800 an ounce in 1980 but fell to $300 an ounce four years later. Keeping the same ratio using gold's $2000 high water mark would give us $750 gold, which I believe is a realistic price target provided we begin a robust economic expansion sometime over the next two years.

Things are darker than you think

Snake

The Bible predicted that people would throw their gold in the streets because it became worthless. That actually happened during the siege of Jerusalem in 70AD. Quite likely it will happen again.

I honestly never thought I would hear those words.
Thats a statment that should strike mortal terror.

RISJR: I saw that Oil was down $3.10 today?
And Gold was up $16.70?
Gold has been "interesting" to watch over the last 100 years - has it not?
I wish I had bought it at $16.00 (U.S.) per ounce!
If hussein obama is re-elected Gold will indeed soar again - that may occur about 6 months from now?
Hold into the wind
VarmintGuy

The FRN price of gold was driven down in 1980 in order to rescue the FRN. The way it was done was by massively increasing interest rates. There was no other way to save it. That avenue for saving the FRN is no longer available to the Fed, since if they did that today, what's left of the economy (massively lacking, as it is, in a real manufacturing base) would come to a screeching halt. The only thing keeping our phony economy afloat at this point is artificially low interest rates, near zero.

Missing from this entire back-n-forth between TRH and his critics is any sense of time scale. Sure, the US$ might be safe haven from the woes of the Euro, but for how long?

TRH is taking a long perspective, his critics have a perspective measured in weeks and months.

I'm trying to figure out what "precious metals drop" they're talking about... it wasn't so long ago that many P.M. detractors were yucking it up over gold buyers predictions of the thousand dollar ounce...

You guys might be interested to look at what type of world events have played out in the past when countries invest in the US dollar. For what its worth...It gets hinkey.
Mira Wilkins, The History of Foreign Investment in the United States, 1914-1945

In the past forign inestors have been drawn to the US dollar when there was an increasing interest rate by the FED.
I exect that to be the case very very very soon. Say the second week in November.
You think home sales are flat now?
And when people dont buy homes they dont buy carpet, and dishwashers and tile and paint ect ect ect.
The US economy id about to take a tumble that can only be relived by World War.
Thats always been our quick fix.
Planes and Bombs.

Actually, from what I've read foreign investors are most drawn to U.S. investments when two things coincide - the U.S. dollar is going up in value along with the U.S. stock market. That way they get a double whammy on their investment. I believe such a situation is very likely to occur sometime in the next two years.

The black hole of the derivatives-alternate-universe scares the manure out of me when I dwell on it.

What was that company called?? Grenwich Conn. Long term capital?? They almost imploded the financial world into a cosmic black hole back in their day.

They call it a modern market economy... Just seems like a whole lot of gamblin and smoke and mirrors and double dealing flim flam deception floating on thin air or skating on thin ice.

I cannot even begin to get my pea brain around it all.