That would be speculation. India might have a use for it in manufacturing ?
Look at what they buy in other commodities, they are all up there in volume, at least oil and corn they can actually use for something. This proves nothing, aside from putting a name on the speculator. Or maybe you just figured out the next ride at the ground floor. With your gold, add some corn in there. See how well that works out, just because India is buying it.
Find it funny you are using those "godless heathens" as an example of what to do...

Bad example to use. The DJIA moves 7.5 points for each $1.00 increase in any of the 30 stocks. How hard is it for each stock to move an average of 15 pts in a year, after being in an oversold condition ?
IBM at 131, with a P/E 13 is pluto ???? Kraft food has a P/E of 17. You have a strange idea of outrageous P/E then.
My guess for the broader market up turn is the money rotated out of interest accounts ( earning a big 1.00 % APR ) to the stock market, stock market can't do much worse. Bit more chance of a movement with the stock markets, it will not lay dormant for 1.5 decades like gold did.

Second time around, for this sad story.
Those prices even sound the like the same price ranges used in 1980.

 

Central banks don't buy gold for manufacturing.

Bad example? Look at the majority of the P/E ratios instead of cherry-picking. http://www.chartoftheday.com/20090821.htm http://www.lesjones.com/2009/08/18/s...h-record-high/

IBM has a loyal and consistent base of customers. Kraft always does well in spite of recessions/depressions. They sell food. In fact, companies like Wrigley's even sell slightly more gum in tough economic times.

 

Got to cut back on the smokes, so they chew gum!

 

Then the Central banks might just be riding the wave as part of the speculation.
I made the manufacturing comment about India, and now you want to assign it to the central bank part. Read the post and use some common sense. I know I am asking a lot.

Now you are changing your story. You give the DJIA as an example of out of control gain, and high P/E ratios, then back up your bad info with a S&P-500 chart. Pick something and stick with it for once.
If someone without any idea were to look at those trend channels, of course it looks bad.
That is the nice thing about numbers, you can make them say anything you want to.
Try a single channel, it will not look like the spike up that chart shows. I can also pick another stop time on the average channel, and make the spike up look not so bad. Why, because I can ( that seems to be the same reason that guy picked ).

Gold is still the same sad rehashed story from 1980. You can try the redirects, as you normally do. You are repeating, almost verbatim, the same story told in 1979 & 1980.
Let's try an easy question :
Why would a bank want to own something, that by your own admission is worth less per ounce now then the last peak, 3 decades ago ?

You still have yet to explain this "upward pressure" concept.
Lowered demand, can't eat it, can power an engine with it, where is the demand side of the supply - demand curve to produce this "upward pressure" ? I can give you the correct answer, speculation.
Increased price without an increase in demand, or a supply shortage, is speculation.

 

Actually, central banks are attempting to bolster their inflated currencies.

Actually, you are changing your story. You picked 2 stocks out of thousands in the DOW to attempt to prove your point. I gave you links that show P/E ratios are in pluto, which is common knowledge on Wall St.


I'm not making numbers say anything at all, just reporting what is widely known.

Many believe the 10-year gold chart proves there is "upward pressure" on gold and it will continue with the increase in the printing of money. It is a fairly simple concept.

 

Okay, I don't know anything about anything on this, other then what I pay for my own medical insurance now and what my company pays for my insurance and what I've experienced in the past when I wasn't covered..... I am still employed in this country, so I consider myself lucky in that fact.... My wife has been laid off for almost a year now and has not found any equivalent work since...

She has been paying for COBRA this whole time and is eligible for another 6 months or so... She has medical conditions that require regular checkups and services every month.... Right now, the cost of the COBRA payments is probably just breaking even with what it would cost her to pay out of pocket at the time of service...

The problem with the whole 'coverage' thing is that once you have a lapse in coverage, you can't get coverage for any 'pre existing' condition you might already have! Basically, she won't be able to get any coverage for any affordable amount that will cover her after the fact... I'll get my company insurance to cover her of course, and they will be able to take her as is, because she has had constant coverage for her whole life, but it's gonna cost a hellva lot more then her current COBRA is going to cost!

Again, it's almost going to be a break even situation on her current medical exams... The big thing is going to be a MAJOR medical situation that comes up....

That's the only reason I even have insurance at all.... For the MAJOR things.... I've never been in a hospital for myself... I've only been there visiting others.... I've never even had anything more then the Chicken Pox when I was a kid and all that my Mom did was take me to the doctor to confirm it and I stayed home for a week!

My company probably pays over $6,000 a year for my medical coverage and I'm contributing $60/month, or about $720 a year for it... Guess what?? I haven't even gone to my doctor for over 5 years!! I do need another physical because I'm of that age now that I should be checked out, but for the most part, there is no reason for me, or my company to pay all this money for zero service...

So now, with this 'new' medical insurance thing going on, I'll not only have to pay for my own coverage, my families coverage, but also for all those poor folks out there that don't or can't work and pay for their own coverage.....

Hell, I can be a total bum and give up working and be covered! What a deal!

I know there are individual instances where there is a real tragedy of the system, but for the most part, people are just being lazy and taking advantage of the system, or ripping it off completely...

Remember the story of the 5 guys that ate dinner together and each one only contributed an amount that was 'fair' to what their income was??? Well, in the end, the 'rich guy' that was paying the highest amount decided not to show up any more and guess what happened to the other 4 guys that showed up to eat????

Mitch

 

When your wife is covered by a group plan HIPAA gives her certain rights concerning preexisting conditions. If I recall correctly even if she loses coverage, they can only implement a waiting period for no longer than 12 months if she hasn't been covered in the last 12 months or 18 months if she enrolls late. If she isn't covered for more than 63 days they can only make her wait for coverage for the pre-existing condition only. Here is a website that has a fact sheet about HIPAA.

http://www.dol.gov/ebsa/newsroom/fshipaa.html

 

Thanks 1depd for that link.. I'll check it out and have my wife check it out because that's the only real 'fear' we have over this whole deal is her pre existing condition and the whole lapse of coverage deal.. If this waiting period pans out, then it's not going to be as critical as we fear if we can't get her on my companies coverage, or even looking for individual coverage of some sort....

Thanks again!

Mitch

 

Not a problem. My wife changed jobs a few years ago and had a major pre-existing condition. I had the same concerns you expressed. When your wife goes back to work, if there is a waiting period before coverage starts for new employees that does not count as a break in coverage.

 

Bolstering their currencies, with something that looses money over 30 years.... Sound like a nonsense reason to me.

No I took 2 stocks from the DJIA, the index you refereed to.
You are the one changing the story once again
Read your own post :
Oh, "many" believe.
Someone told a guy, that knows a guy, that has a brother in law that knows a guy......
Good luck with your retold story from 1980, take a look at your own post, it is worth less money 30 years on, by your own admission. The passbook saving account example I gave for the same time, stayed ahead of inflation.
Sure how you don't charge for this advice, and if you don't charge for it, people are getting what they pay for.

 

Actually, if you knew the history of fiat currencies, you wouldn't make such an ignorant statement.

And it's 'loses', not "looses."

If your portfolio isn't 15-30% gold at all times, then you have been getting bad advice scully. This is common knowledge.

"Passbook savings" have been getting hammered the last 10 years with the extremely low interest being paid. This is also common knowledge. You would've been much better off with your money in gold.

In your desire to always be right, you ignore sound advice.

Thank you for admitting that you cherry-picked 2 stocks from the dow. That's all I was asking.

 

Sure, another vague statement to prove your point. If you knew, you wouldn't say that is on par with a game of did too, did not.

Considering it has, by your own post, lost money over 30 years, you call this good advice ? Don't know where you get this "common knowledge" at, it is only common in your little corner of the world.

From 1980 to present, I already did the calculation, and showed this was not the case. You say to be in gold all the time. This only works for the last 10 years, the previous 20 years it was very bad advice.

This is ignoring sound advice, not to buy something that for 30 years only yielded 15% total ?


Keep in mind, the DJIA only has 30 stocks in it, not the 1000's you claim.
This shows your lack of knowledge of the stock market in general, once again someone taking your advice is getting what they pay for..free advice that is worth free.

 

Don't worry scully, i'm well aware the djia only has 30 stocks. You still cherry-picked 2 out of the thousands of stocks available.

I think you're missing the point of putting gold in your portfolio. When one owns gold, it is a store of value against inflation and tough economic times (we average a recession every 8-12 years). It is not intended as a dividend-paying investment because it does not pay dividends.

Most smart investors will always maintain 15-30% in gold. I say this mainly to help others on this board that may be deceived into thinking the current bubble in the stock market is real. It seems to me that you are personally kicking yourself for not purchasing any in the last 3-10 years (it was 250/ounce as recently as 2001 and is currently over 1100/ounce). Why does it continue to go up? Money printing and diversifying out of the dollar and fear that America will not be able to even pay the interest on the national debt a few years from now. Even the shills on CNBC are now saying to buy gold, when just last year they literally laughed at others for buying and holding it.

 

You were talking about the DIJA and the run up in the value assigned to that index. No changing the story here. Nice try at it though, you get an A for trying.

Gold is not this anymore, that is the case I was trying to make. It is a commodity that is speculated, it is not the safe haven, inflation item it once was. You are applying 1970's logic to 2010's, and you are going to get burned if you don't rotate out. Could be at 1500 or 2000, but the trip down is going to not be pretty.

No I am not kicking myself for not having it, I am kicking myself for owning it since 1995. Biggest money looser I own for the past decade +, nice try though. I am speaking from experience on this topic. It has not done me any favors to own it, while the other investments I own, walked away from it in terms of returns. I am pulling the trigger on selling it real soon.

Why does it go up, speculation. Plain and simple.
If the clowns on CNBC are saying to buy it, the train is about to pull back into the next station, and shut down.

 

If you've owned it since 1995, you should be very happy with your investment. If I were you, I would hold and keep an eye on it.

Obviously, we differ in our strategies. Whatever you do, good luck.