$5000 Gold in near future .....Economy and stock market are hanging off a cliff

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$5000 gold is very possible due to the US dollar could collapse at any time. Oil is going much higher and this will cause a financial panic not seen in recent modern history. Gold will start moving smartly by 03/15/2000 and run through 06/01/2000. By the end of May gold could be trading as high as $10,000 an OZ. Sounds fictitious I know, but with trillions of dollars around the globe in equities, this is a very real financial panic that could take gold to highs people thought never possible. The US titanic has hit an iceberg and nobody is prepared.

-- Larry (lgb@home.com), February 28, 2000

Answers

I'm rich? Actually, gold at those prices would scare the hell out of me. I DO NOT want to see people starving in the streets. I'd like to make some profit, sure, but not ruination for everyone else.

-- Mara (MaraWayne@aol.com), February 28, 2000.

Heck...I'd be happy at $350/oz. Since I bought last March, precious metals have been about as productive as a 3 legged racehorse.

-- TM (mercier7@pdnt.com), February 28, 2000.

Larry,

Kick back, pop a brewski and hunker in yer funky bunker.

-- (nemesis@awol.com), February 28, 2000.


TM:

You want to know how to raise the price of Au to $350? Easy, take it from a pro: before the price liftoff make sure to sell ALL the metal you've stored away. Works like a charm. Always has for me.

Bill, PL (Professional Loser)

-- William J. Schenker, MD (wjs@linkfast.net), February 28, 2000.


LOL, Bill. Sounds painfully familiar. Oops- gotta go. My village called...their idiot is missing.

-- Gia (laureltree7@hotmail.com), February 28, 2000.


This'll put terrible smiles on all those dentists faces while they install those gold crowns!

-- OUCH! (That@Hurts.com), February 28, 2000.

Larry,

Gold trading for $10K an Oz. by the end of May?

Nope. Not gonna happen.

If the economy went down the dumper and got flushed that far down the sewer, any physical gold you have would be just nice hunks of yellow metal.

For about a pound of the stuff, you could maybe buy a handful of rice, and a nice handful of beans to go with it. You provide the water and the heat.

Unless of course, you'd rather have some paper with $10,000.00 printed on it; I'm sure you could use it as tinder to start a fire to boil your drinking water.

Holding onto my preps,

Don

-- Shimoda (enlighten@me.com), February 28, 2000.


Heck Bill, as you know I bought at $195.00 oz. in 1978 and haven't sold yet. Shades of Howard Ruff!!!! "How to Prosper Through the Coming Bad Years." Been waiting all these years for these same predictions. I'm afraid we may not live long enough.

Joe

-- Joe Stout (joewstout@iswt.com), February 29, 2000.


My dear Larry,

I do hope you are wrong sir.. But if it (gold) did lift off for such an orbit. We would not know of it. Simply because the vestages of civilization will have all but disappeared long before it hit the 10K mark.

Man! And I though I was just a little right of infomagic! You surely have me beat, by a country mile. And no...LOL There is no room in my bunker ( I'd really want one of those to) if gold does go up like that.

"As for me...I shall finish the Game"!

~~~~~~~~~~~~~~~~~~~~~~~~Shakey~~~~~~~~~~

-- Shakey (in_a_bunker@forty.feet), February 29, 2000.


I have some gold and silver however, I would have to agree with William. The best way to get the price of gold to go above $350 is if I sold all I had. If I want to get in on the stock bubble, I should sell my gold and invest in stocks. Then I will be a two time loser. Murphy's Law always works for me. I was selling my Platinum eagles after y2k to buy gold. Platinum soared and gold tanked. Now I have some silver that I have watched sink from 5.58 to 5.08.

Lets see what else is a good investment for these interesting times. I was thinking that I should work on getting into value investments like yahoo and juniper (on margin of course). Then get a second mortage for 125% of the value of my house and charge all my credit cards to the max. Sign up and purchase any products on credit, buy two new cars on credit. And after I do this the bottom will fall out of all the markets and i will be stuck with all this debt. But thats ok, in "THE NEW ECONOMY" a stock market crash will not effect the economy. Also neither will a 250% increase in the price of oil. See as you all know this is about productivity gains and rising efficiency. These savings are passed on to the consumer in the form of easy credit to fuel the PONZI scheme.Forget about inflation.We can cook the books to hide it.Forget about unequal incomes and the wealth effect. Forget about Japan. It has no problem as long as it plays along with the US. Those budget deficits don't mean a thing as long as they play by our rules we will keep them from falling over the cliff. That goes for China as well.Sure you can increase domestic production by 8% a year as long as the domestic production is not consumed but exported.

Forget about all the other principles of supply and demand and inflated equity assets, all I have to do is claim bankruptcy. Weee then I get a free ride and get to keep all the goodies and pay back my creditors 10 cents on the dollar. Now this may not be a bad idea. Just in case Larry is right I will keep at least 5 oz. of gold so that I can pay of all my debts with just two oz. of gold when hyperinflation sets in. Aaah one ounce of gold equals 100,000 hyper dollars.

Anyway its wishfull thinking, but it is not going to happen. I have reached the end of tolerance for the gold bug fever that bit me last year and I think it is about time to try and shake it. Go with the flow. Don't buck the trend. Get with the program. Don't rock the boat. The nail that sticks up is the first to get hammered. The wheel that squeaks gets oiled, but is the first to be replaced. IF you think you are right and everyone else is wrong, then it is probably you who is wrong as people believe what they want to believe. If the the shoe fits wear it. A stich in time saves nine. And finally it all has something to do with 42.

-- Feeling sorry for my investments and life savings (I agree@with william.com), February 29, 2000.



I was listening to Don McDonald (a syndicated radio finance talk show host) last week, and he was mentioning his opinion of the current bubble in tech stocks ("these stocks are going to go up forever and ever and ever...") To point out how silly that line of thinking was, he mentioned how he was a broker back during the fabled Gold Boom, and - I kid you not - that people were predicting gold going up to $10K an ounce. And they were dead serious. (Never mind gold never even got to a tenth of that price.)

I have to agree, in a severe economic crash, nobody would have the money to support gold at that price. Commodities would be a better bet (assuming you think that will happen.)

-- lurker (lurker@lurker.com), February 29, 2000.


Gold silver what ever doesn't matter. People are greedy, they what more than they need. This is what being down us all down.

-- ET (bneville@zebra.net), February 29, 2000.

10,000 tons of borrowed gold to fuel the present boom, $10,000 gold maybe alot closer than you think with 300 trillion dollars in derivatives in the world financial system. We may all get to see what this new era means and where it ends. When it finally gives way, credit creation and cheap money will all be a thing of the past. Gold is the only financial asset that could settle such a disaster. 10 years ago no one thought DOW 12,000. Look what happened.

-- Larry (lgb@aol.com), February 29, 2000.

Good point Larry. When the markets tank you know what the FED will do.....print, print print.....

It's called hyperinflation.

IN THE FAST LANE ON THE HYPERINFLATION SUPERHIGWAY......

-- Ishkabibble (ishman@home.com), February 29, 2000.


lurker,

Don't think of gold as a commodity that could never be supported at 10,000 dollars per ounce. Think of gold as money, and dollars as the ever wasting pieces of paper that they truly are.

Gold always holds its value, paper always devalues. It happens slowly most of the time, but occasionally it happens very quickly. Like in the early 30s, a dollar went from 1/20th oz to 1/35th oz. Then in the early 70s, it went from 1/35th oz to 1/160th oz. In the late 70s-early 80s, it went from 1/160th oz to 1/380th oz or so.

It is only a matter of time before the dollar drops to 1/10000 oz. Maybe not in our lifetimes, but eventually, it will happen. When it does, it will probably be a very violent move.

-- J (Y2J@home.comm), February 29, 2000.


If gold does go that high I hope you are prepared to eat it. What do you think a loaf of bread would cost?

-- David Whitelaw (Dande53484@aol.com), February 29, 2000.

If gold does go that high I hope you are prepared to eat it. What do you think a loaf of bread would cost?

Ah, the old "you can't eat gold" bromide. How nostalgic. By the way, has it occurred to you that you can't eat paper money either? I know which I'd rather have if the economy comes apart, though.

-- Steve Heller (steve@steveheller.com), February 29, 2000.


This bears entirely too much similarity to hyped up wishful thinking. Not very good wishing either, because a scenario such as described would mean collapse and disaster, which no responsible person actively hopes for.

Yes, the US government and economy is capsizing in the tank.Only a fool would hope to get rich from the fall.

-- Irving (irvingf@myremarq.com), February 29, 2000.


E.T.

I have heard a few people hear complain that "people want more than they need". Would you be so kind to define what you consider a need vs. want?

-- Chief (bmc@sealret.com), February 29, 2000.


Steve I would rather have a full larder than either one.

-- David Whitelaw (Dande53484@aol.com), February 29, 2000.

Do I *have* to sacrifice one for the other?

I believe balance is the key to this quandry,not to have all the eggs in one basket.Plus, food is replenishable whereas gold is somewhat is more finite.

Just my way of doing things :)

-- capnfun (capnfun1@excite.com), February 29, 2000.


Let's see, gold at 15x current price... figure the bread loaf about the same increase proportionately... say around $40 for a loaf of bread.

-- Scarecrow (Somewhere@Over.Rainbow), February 29, 2000.

J (J2J) 's point needs repeating/restating. Gold at $10,000 an ounce means the dollar would be worthless.

The purchasing power of an individual dollar would tank, and you'd need a whole lot more of them to buy a gallon of gas. An ounce of gold would buy you somewhat more than now -- but not 30 times as much.

Paper is for wiping your ass. Gold rules. (and silver and platinum and palladium and other COMMODITIES -- REAL STUFF).

If you had taken my advice last spring and summer, you could have diversified your metal money between Au, Ag, Pl, and Pd through e-gold (http://www.e-gold.com) and played the subsequent metals prices manipulations against each other.

-- A (A@AisA.com), February 29, 2000.


Dr. Bill:

Please sell your gold IMMEDIATELY, and kick-off this long overdue rally, so that I can sell some next month and make a killing.

I'm sick of being the one who always has to start these things off. Sold a little last month at $285, and the NEXT DAY it went to $316.

Somebody else's turn this time.

Godspeed,

x

-- Pinkrock (aphotonboy@aol.com), February 29, 2000.


Hey, folks,

I sold all my gold and silve, and the price *still* went down. One thing strikes me, however, about all this speculation about high gold/silver prices: If everything tanks, like all these (bear) analysts write, Dot Gov will want all your gold and silver, like they did with FDR in the 30's. Won't they?

-- bz (beezee@statesville.net), February 29, 2000.


--Want an easy to understand answer with what's "wrong" with "investing"? Take a good, close look at this thread, it has the entire answer in a nutshell. All these alledged "investors" want SOMETHING FOR NOTHING. Investing in anything-gold, stocks, etc, USED to mean that you believed in a product or company, you wanted a stake in that company, you wanted to see that company take your money and use it to expand their business. Now, 99% of "trading" and "investing" is this get-rich- quick, something-for-nothing mentality, that for some reason you-the alledged "investor" seem to think that you "deserve" to "earn" just a pile of "money" for DOING NOTHING other than some electronic clicking. How about really getting some "interest" in a company and sticking to it? And if you want to get and hold metal,then get and hold metal, stop this silly "gotta sell tuesday because I'm betting it'll go down, then I can buy it back wednesday and make a killing". Sorry, greed is NOT good. This isn't "investing" it's called GAMBLING, and it isn't good for you, or our society's long term health and future. And don't give me you are "investing" in xyz's "company", you mostly don't know diddly squat about these companies, you look at trading "charts" and "trends" and other pseudo voodoo investment "guides" to make a quick profit for doing NOTHING. Pick a business, learn that business, support that business, let the company know you are there for the long haul, you want them to make good business decisions, you want them to show that their product or service is good, that it will expand and "do good" by ACTUALLY being productive. That's real capitalism, not this "trading mania frenzy". Stop being greedy, and maybe you might "pick" a company or stock or whatever that does some GOOD, and maybe that company will show a profit. Short term "killings" are "short changing" our society in the long run, or maybe you just freeking don't care about anything at all besides GREED.

-- stopbeing (greedy@invest.something.you.believe.in), February 29, 2000.

One generally doesn't hold physical gold to make money, one holds physical gold to not lose accrued wealth. Psychologically, the difference is quite important. In its unmanipulated state, gold is a merely fixed value reference point. If gold eventually trades at $10,000 per ounce (and some day it most certainly will), gold didn't generally increase in value, rather the $ lost its purchasing power proportionally.

If you wish to speculate on gold price movements in a moderately leveraged fashion, unhedged mining stock is the way to go, as allocating capital to these entities supports their efforts at mineral extraction. And I can't recommend investing in gold options and futures. Paper representations of gold are very much a paradox. Most derivatives, and especially gold's own derivatives, are essentially contrary to gold's function as a store of wealth.

Caveat emptor.

-- Nathan (nospamwh@tsoever.moc), February 29, 2000.


Larry-- $10,000/oz. for gold! Ain`t gonna happen my friend. Global monetary demand for gold no longer exists. Even if this demand did exist, there has and continues to be a production deficit. In other words, there is not enough physical gold in existence to meet such a demand.

-- NoJo (RSKeiper@aol.com), February 29, 2000.

NoJo,

It is not a matter of gold going up, so much as it is a matter of the dollar losing its value.

An ounce of gold is an ounce of gold. What is a dollar? When my mom and dad were young, it was the equivalent of 20 bottles of Coke. Now it is equal to 1 bottle of Coke at some vending machines.

Gold is not an internet stock, gold is money.

-- J (Y2J@home.comm), February 29, 2000.

J-- Gold is money only if there is a monetary demand for this medium of exchange(gold). Currently, this is not the case. If this demand were to exist, the supply must meet the demand for gold to truly become an adequate medium of exchange.

-- NoJo (RSKeiper@aol.com), March 01, 2000.

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