Comments on: Gold: Is $1000 an Ounce in the Offering? http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/ Fri, 20 Nov 2009 19:09:54 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Visa IPO, Euro/Dollar and Good, all the Records http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-47035 Visa IPO, Euro/Dollar and Good, all the Records Tue, 18 Nov 2008 16:43:16 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-47035 [...] ounce, another record for the bullion. As the dollar keeps weakening and inflation remains a risk, a $1000 gold seems to be within [...] [...] ounce, another record for the bullion. As the dollar keeps weakening and inflation remains a risk, a $1000 gold seems to be within [...]

]]> By: Ladies and Gentlemen, Here’s the $1,000 Gold! | The Suns Financial Diary | A Personal Finance Blog on Saving and Investing http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-41330 Ladies and Gentlemen, Here’s the $1,000 Gold! | The Suns Financial Diary | A Personal Finance Blog on Saving and Investing Sat, 15 Mar 2008 03:45:49 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-41330 [...] ago, when gold was around $750, the manager of Tocqueville Gold Fund (TGLDX), that fund that I own, predicted $1,000 gold. And now, here we are, $1,000 [...] [...] ago, when gold was around $750, the manager of Tocqueville Gold Fund (TGLDX), that fund that I own, predicted $1,000 gold. And now, here we are, $1,000 [...]

]]> By: Random News: Visa IPO, Euro/Dollar and Good, all the Records | The Suns Financial Diary | A Personal Finance Blog on Saving and Investing http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-41022 Random News: Visa IPO, Euro/Dollar and Good, all the Records | The Suns Financial Diary | A Personal Finance Blog on Saving and Investing Thu, 28 Feb 2008 03:54:43 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-41022 [...] ounce, another record for the bullion. As the dollar keeps weakening and inflation remains a risk, a $1000 gold seems to be within [...] [...] ounce, another record for the bullion. As the dollar keeps weakening and inflation remains a risk, a $1000 gold seems to be within [...]

]]> By: Minimum Wage http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25633 Minimum Wage Sun, 14 Oct 2007 17:40:20 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25633 If somebody is offering gold for $1,000 an ounce, I'm not buying. If somebody is offering gold for $1,000 an ounce, I’m not buying.

]]> By: Tim http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25520 Tim Sat, 13 Oct 2007 15:44:04 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25520 sun, you can assess supply/demand for gold. The bottom line is that gold didn't become that scarce within a 2 year time span after staying flat and declining since 1980. i agree that gold is old...so is the thinking about it's value. Again, ride the wave, but I'd be expecting a sharp decline to a more realistic cost around $350-$400. sun, you can assess supply/demand for gold. The bottom line is that gold didn’t become that scarce within a 2 year time span after staying flat and declining since 1980.

i agree that gold is old…so is the thinking about it’s value. Again, ride the wave, but I’d be expecting a sharp decline to a more realistic cost around $350-$400.

]]> By: Roundup for week of 7 October 2007: Back in the Saddle Edition at Mighty Bargain Hunter http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25469 Roundup for week of 7 October 2007: Back in the Saddle Edition at Mighty Bargain Hunter Sat, 13 Oct 2007 06:16:34 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25469 [...] The Sun’s Financial Diary sees four-figure gold as a possibility. [...] [...] The Sun’s Financial Diary sees four-figure gold as a possibility. [...]

]]> By: Sun http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25404 Sun Fri, 12 Oct 2007 15:55:02 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25404 Tim: Unlike stocks, which you can evaluate by examining fundamentals such as earnings and cash flow, it's not easy to say about the fundamentals of gold other than supply and demand. Is the demand of gold growing? I think so. People have been using gold for centuries as currency and jewelry and once they have a piece of gold, they hold it for a long time if not forever which means that piece of gold is taken out of circulation. I have a gold coin and I don't think I will ever sell it. However, the bad thing about gold is that once it's produced, it can't be consumed like oil. It will exist almost forever. So as the production continues, there will be more and more gold on the market and in people's hands. But I don't think it will reach a point that there's too much gold out there. Then the production of gold is getting more difficult and it's not like there are lots of gold reserves to be discovered, as is pointed out in that interview. Oil is new, but gold is old. Tim: Unlike stocks, which you can evaluate by examining fundamentals such as earnings and cash flow, it’s not easy to say about the fundamentals of gold other than supply and demand. Is the demand of gold growing? I think so. People have been using gold for centuries as currency and jewelry and once they have a piece of gold, they hold it for a long time if not forever which means that piece of gold is taken out of circulation. I have a gold coin and I don’t think I will ever sell it. However, the bad thing about gold is that once it’s produced, it can’t be consumed like oil. It will exist almost forever. So as the production continues, there will be more and more gold on the market and in people’s hands. But I don’t think it will reach a point that there’s too much gold out there. Then the production of gold is getting more difficult and it’s not like there are lots of gold reserves to be discovered, as is pointed out in that interview. Oil is new, but gold is old.

]]> By: Tim http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25138 Tim Tue, 09 Oct 2007 20:05:36 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25138 sun, don't know how my reply to your reply got ahead of your reply. pretty funny. many parts of the world use gold as gifts, well primarily for a form of dowry. that said, again, gold didn't all of a sudden become scarce within a one year time span. again, the fundamentals justifying the spike is just not there. If you held onto gold from 80s to 2001, you would have had a significant real money depreciation in terms of both inflation and gold price decreases. remember 1979-1980 spike, which is similar to what is going on today followed by a plunge in gold prices. again, it is artificially inflated and will plummet, unless somehow gold becomes scarce in terms of supply/demand fundamentals. and let's just think about what you could do with gold, rather stocks in gold, if the u.s. currency bottoms out. Absolutely nothing. again, ride the wave, but the fundamentals just don't support the current prices or even higher prices. sun, don’t know how my reply to your reply got ahead of your reply. pretty funny.

many parts of the world use gold as gifts, well primarily for a form of dowry. that said, again, gold didn’t all of a sudden become scarce within a one year time span. again, the fundamentals justifying the spike is just not there. If you held onto gold from 80s to 2001, you would have had a significant real money depreciation in terms of both inflation and gold price decreases. remember 1979-1980 spike, which is similar to what is going on today followed by a plunge in gold prices. again, it is artificially inflated and will plummet, unless somehow gold becomes scarce in terms of supply/demand fundamentals.

and let’s just think about what you could do with gold, rather stocks in gold, if the u.s. currency bottoms out. Absolutely nothing. again, ride the wave, but the fundamentals just don’t support the current prices or even higher prices.

]]> By: Sun http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25126 Sun Tue, 09 Oct 2007 18:51:33 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25126 Tim: If gold price rises $40 a week, that could be speculation. However, the price of gold has steadily increased for nearly 6 or 7 years. I don't think speculation can last that long. There must be substance that supports the current price level. Though currencies are not tied to hard assets such as gold any more, people are still buying the metal to hedge against the falling US dollars. Should US dollars continue to weaken, the price of gold will keep going up. There are elements from speculative activities, but not all. And, gold is still popular in China. Not that everybody wears it, but as gift Tim: If gold price rises $40 a week, that could be speculation. However, the price of gold has steadily increased for nearly 6 or 7 years. I don’t think speculation can last that long. There must be substance that supports the current price level. Though currencies are not tied to hard assets such as gold any more, people are still buying the metal to hedge against the falling US dollars. Should US dollars continue to weaken, the price of gold will keep going up. There are elements from speculative activities, but not all. And, gold is still popular in China. Not that everybody wears it, but as gift

]]> By: Tim http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25125 Tim Tue, 09 Oct 2007 18:46:58 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25125 sun, i think your assessment of 6-7 years increase doesn't tell the whole story. Just taking the past 20 years of gold prices, gold was flat and declining for 14 years prior to 2001. the only time it increased was during desert shield/desert storm, but then continued the decline after the war. Gold didn't all of a sudden become scarce in 2001/2002 timeframe, we had 9/11 and the start of the two wars. people historically have flocked to gold in times of crisis for whatever reason, primarily because of the gold standard. I still contend that the increase is inflated and not based off of supply/demand fundamentals. The real spike (by this I mean over $400 where gold has been flatlined around until around 2005) is only 2 years old. I'm still not seeing a supply/demand fundamental justifying the increase. I see 9/11, two wars, and declining dollar due to currency deficit as the cause for the increase in gold. I say hold on until the wars end or at least Iraq and we'll see gold plummet again. the gold price right now is artificial and will definitely burst. sun, i think your assessment of 6-7 years increase doesn’t tell the whole story. Just taking the past 20 years of gold prices, gold was flat and declining for 14 years prior to 2001. the only time it increased was during desert shield/desert storm, but then continued the decline after the war. Gold didn’t all of a sudden become scarce in 2001/2002 timeframe, we had 9/11 and the start of the two wars. people historically have flocked to gold in times of crisis for whatever reason, primarily because of the gold standard. I still contend that the increase is inflated and not based off of supply/demand fundamentals. The real spike (by this I mean over $400 where gold has been flatlined around until around 2005) is only 2 years old. I’m still not seeing a supply/demand fundamental justifying the increase. I see 9/11, two wars, and declining dollar due to currency deficit as the cause for the increase in gold. I say hold on until the wars end or at least Iraq and we’ll see gold plummet again.

the gold price right now is artificial and will definitely burst.

]]> By: KMC http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25100 KMC Tue, 09 Oct 2007 13:33:03 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25100 Hathaway never did answer the first question, did he? I believe, as the question pointed out, that gold is not a good inflation hedge. I've seen studies that conclude it's a good hedge against <i>uncertainty</i> (war, political turmoil, etc) but not inflation. I'm glad you've been successful in this investment, Sun. I have no problem with gold as part of a diversified portfolio. Hathaway never did answer the first question, did he?

I believe, as the question pointed out, that gold is not a good inflation hedge. I’ve seen studies that conclude it’s a good hedge against uncertainty (war, political turmoil, etc) but not inflation.

I’m glad you’ve been successful in this investment, Sun. I have no problem with gold as part of a diversified portfolio.

]]> By: JC Carvill http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25072 JC Carvill Tue, 09 Oct 2007 08:03:26 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25072 gold is an important part of investment.there are so many ways to invest in this.but we should invest in more than one way.that will manage our losses if happen. gold is an important part of investment.there are so many ways to invest in this.but we should invest in more than one way.that will manage our losses if happen.

]]> By: Finance » Blog Archive » Gold: Is $1000 an Ounce in the Offering? http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25066 Finance » Blog Archive » Gold: Is $1000 an Ounce in the Offering? Tue, 09 Oct 2007 03:03:20 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25066 [...] Оригинал Ñ?ообщениÑ? от Sun тут… [...]

]]> By: Money Blue Book http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25065 Money Blue Book Tue, 09 Oct 2007 02:48:54 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25065 Sun, You're the only one I know who has made gold a part of their regular investment portfolio...interesting...guess I'm just not too keen on investing in materials. Sun,
You’re the only one I know who has made gold a part of their regular investment portfolio…interesting…guess I’m just not too keen on investing in materials.

]]> By: Tim http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25023 Tim Mon, 08 Oct 2007 20:20:51 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25023 I'd take the profit from precious metals and get out. It is based on old economics of the gold standard rather than supply/demand economics. There is no ties between gold and inflation other than people's antiquated thoughts that it still is a hedge against inflation. It is all based on speculation without any real links between currencies and gold. That to me is not a good basis for long term investment. if the rise was based on actual supply/demand, then there would be some substance to the rise; however, there is not. I’d take the profit from precious metals and get out. It is based on old economics of the gold standard rather than supply/demand economics. There is no ties between gold and inflation other than people’s antiquated thoughts that it still is a hedge against inflation. It is all based on speculation without any real links between currencies and gold. That to me is not a good basis for long term investment. if the rise was based on actual supply/demand, then there would be some substance to the rise; however, there is not.

]]> By: Investing » Gold: Is $1000 an Ounce in the Offering? http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25014 Investing » Gold: Is $1000 an Ounce in the Offering? Mon, 08 Oct 2007 16:41:54 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25014 [...] Daniel wrote an interesting post today onHere’s a quick excerptIn my opinion, gold ETFs such as streetTRACKS Gold Shares (GLD) would make the most flexible choice to invest in gold. Unlike mutual funds which invest in gold mining stocks, GLD is backed by bullion. Thus, the price of GLD is directly … [...] [...] Daniel wrote an interesting post today onHere’s a quick excerptIn my opinion, gold ETFs such as streetTRACKS Gold Shares (GLD) would make the most flexible choice to invest in gold. Unlike mutual funds which invest in gold mining stocks, GLD is backed by bullion. Thus, the price of GLD is directly … [...]

]]> By: Garnetlea.Com » Gold: Is $1000 an Ounce in the Offering? http://www.thesunsfinancialdiary.com/investing/gold-is-1000-an-ounce-in-the-offering/comment-page-1/#comment-25013 Garnetlea.Com » Gold: Is $1000 an Ounce in the Offering? Mon, 08 Oct 2007 16:38:24 +0000 http://www.thesunsfinancialdiary.com/investing/alternative/gold-is-1000-an-ounce-in-the-offering/#comment-25013 [...] wrote an interesting post today on Gold: Is $1000 an Ounce in the Offering?Here’s a quick [...] [...] wrote an interesting post today on Gold: Is $1000 an Ounce in the Offering?Here’s a quick [...]

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