Gold Detecting and Prospecting Forum
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011

Go down

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Empty Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011

Post  Guest on Thu Dec 02, 2010 11:24 pm

[Editor's Note: This special report on the U.S. economy is part of Money Morning's annual "Outlook" series, which will forecast the prospects for oil, U.S. stocks and other top profit opportunities in the New Year. A related forecast for silver appears elsewhere in today's issue of Money Morning.]

By Peter Krauth, Contributing Editor, Money Morning

Gold investors are a happy bunch. Those with the luck or foresight to have boarded the golden railroad back in 2001 have experienced a fivefold investment in the "metal of kings." That works out to compounded return of better than 20% a year.

Such a torrid performance has evoked claims that this is just another financial bubble - that's soon to burst.

But the reality is that anyone who classifies this bull market in gold to be nothing more than a bubble simply hasn't looked at the market fundamentals, doesn't understand them, or has an ulterior motive.

Precious metals - and gold in particular - have been the asset class of the decade. But it's not too late to climb aboard - there's still plenty more growth to come.

In fact, before 2011 closes out, I predict that each ounce of the prized "yellow metal" will be trading at $1,900 - an increase of about 37% from yesterday's (Wednesday's) closing price of about $1,390 an ounce.


Guest
Guest


Back to top Go down

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Empty Re: Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011

Post  nero_design on Fri Dec 03, 2010 6:41 pm

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Dollar_USD_Purchasing_Power-753629

I'm going to quote someone else in reply (see below), but note that Gold is tipped to DROP to $1000 by the smart-asses HERE. I think they're most likely wrong (who can ever tell when it comes to stock speculation) but I also wonder how many Ebay sellers will adjust their inflated gold nugget prices to match the actual stock values and stock prices if Gold does drop below $1000 per ounce.


"One ounce of gold used to be worth $20. Now it's worth $1,300+ The Government does this because they can tax you without you knowing it. The government knows full well that there aren't enough "rich" to tax. So they tax the poor and middle class. First by stealing the purchasing power of your wages and savings, second by taxing you on any "gains". If the government debases the dollar by 10% they can tax everyone on the "gains" that they have "made" on their assets. If the dollar maintained it's value, the prices would stay flat and the government would collect no taxes on that.

Gold is rising for the same reason the Swiss franc is trading at parity. The same reason that the Canadian dollar is almost at parity. The same reason that the Australian dollar is almost at parity. The same reason that the Yen is hovering around a 15 year high. Because the dollar is losing purchasing power.

Gold is simply the most attractive because everyone other fiat currency country has interest rates too low and is debasing it's currency, trying to preserve an export market that isn't preserving. Everyone is printing more currency, but they can't print gold.

Gold is a rare, odd-numbered atom with 79 protons. For every single gold atom in the universe, there are 1 million iron atoms. It's supply is stable and functions are a measuring device to gauge how much purchasing power the fiat currencies are losing.

Virtually nobody is buying gold/silver on margin. They are buying gold to get out of the dollar. Sure they can buy Yen or Canadian dollars, but why not just go for the one that is impossible to print? The sharp pullbacks you see are shaking out speculative money. Highly leveraged bubbles, like the housing bubble could not withstand sharp drops like that. Such things would serve as a pin to any bubble.

A bull market takes the stairs up and the elevator down, the sharp drops are just market noise in the big picture that have nothing to do with the long term trend.

Now, what could save the dollar? Nothing really, the bridges were burned decades ago. If the Fed raised interest rates back to a historic norm of 7%, all the major US banks would go under again and the US government would be forced to default on it's debt. however, in theory, high interest rates would end gold's rise just like it did in 1980. The problem is such action are no longer possible for the reasons mentioned: The US government and major banks would be forced into default because of interest on debt and bad assets, which would be very negative for the US dollar."




Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Money-graphics-2006_973755a
An interesting RECENT article here in anyone wants to see how gold has been performing lately.... CLICK LINK HERE



.
nero_design
nero_design
Contributor Plus
Contributor Plus

Number of posts : 2068
Registration date : 2008-11-18

Back to top Go down

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Empty Re: Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011

Post  Guest on Sat Dec 04, 2010 10:50 am

Plus gold and other precious metals hold their value when inflation and hyper-inflation hits..

( i am not sure about the value in a deflationary enviorment) I think we /australia are in stagflation at the moment could be wrong though.

Interest rates going up and prices of goods and services going down except for basic food stuffs which are going up slowly and government services.

Guest
Guest


Back to top Go down

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Empty Re: Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011

Post  Jigalong on Sat Dec 04, 2010 11:51 am

I think it would be better to invest in gold mining companies than gold itself. The return with a rising gold price might be better.

nero_design, I don't understand why those people are "smart arses". Can you explain that please.

Jig
Jigalong
Jigalong
Contributor Plus
Contributor Plus

Number of posts : 1316
Registration date : 2008-11-14

Back to top Go down

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Empty Re: Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011

Post  kevlorraine2 on Sat Dec 04, 2010 12:01 pm

i was reading late last night the european money markets were in convultions, and this morning i see the gold price has spiked us$30. things are hotting up ... kev

kevlorraine2
Contributor Plus
Contributor Plus

Number of posts : 502
Registration date : 2008-10-23

Back to top Go down

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Empty Re: Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011

Post  Tributer on Sat Dec 04, 2010 12:29 pm

As a mug i believe gold is a great investment. The twenty year gold price chart is hard to argue against. Don't worry about ups and downs over the space of a couple months.
You must actually own/have the nuggets or ingots in your hand/vault though.

Re mining companies, I think china & india will continue with an unending need for more and more materials that will become absolutley obscene in a few short years. Gold and nickel (and a couple dozen other metals and rare earths) explorers with some semi proven reserves in different leases should do well over time.

I believe for the serious prospector there are still opportunities to learn the ins and outs of WA mining/lease legislation and to get out there in the wilds and find a little 2 million dollar patch of something.

Tributer

Tributer
Tributer
Contributor Plus
Contributor Plus

Number of posts : 1007
Registration date : 2008-10-27

Back to top Go down

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Empty Re: Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011

Post  nero_design on Sat Dec 04, 2010 1:37 pm

Jigalong wrote:I think it would be better to invest in gold mining companies than gold itself. The return with a rising gold price might be better.

nero_design, I don't understand why those people are "smart arses". Can you explain that please.

Jig

You're right of course. The mining company stocks are likely to be a sure way to invest. Possibly safer than investing in the metals themselves although I'm not entirely sure of that.

To me, speculating on investment stocks is really nothing more than a gamble... just like insuring your home is essentially a bet with the insurance company that your house won't catch fire.... but one that is usually tempered with an understanding of the market trends in the past, a knowledge of the present commodities trading and the current behavioral trends and future demands of the moment. I called them 'smart-asses' because by predicting a fall by gold to $1000 (down from say $1400), they're playing with the market by influencing the trade (or they're hoping to). According to nearly everyone else in the world, gold is likely to continue upwards. Perhaps they know something the others don't? Either way, the ones shifting large volumes are often the very same people who stand to gain by influencing those buying and selling. Bad investment advice in international stock (including a large investment in foreign gold) cost my father's company VERY dearly in the 1990s after taking advice from Westp@c's (cough!) a 'major bank's' top financial advisers. I was forced to sign an indemnity agreement with the banking institution responsible on the matter... a document that I can only describe in retrospect as a form of 'blackmail to keep their execs from being sued for their negligence'. It was quite some time ago but I seem to recall that the bank was told to drop certain gold/coin related investments... but they didn't do as told because they were making so much money on the subject themselves. Repeated requests were still not met, even when the stocks began to fall. The bank advisers were insisting the trend was going to change and at one point even refused to follow instructions. Eventually the market dropped and the money (a vast sum even by today's standards) was lost. In a day when trading was without the benefit of email paper-trails etc and all agreements were taken on word or by phone, the bank tried everything to get out of the mess they'd created and to avoid compensation for their self-inflicted losses. There's a lot more to it that what I've mentioned here and some of it contributed to the problem or exasperated it further. Hundreds of people's lives were affected through the company losses. But bad investment advice and a failure to follow the client's requests was the catalyst for most of the problems.

Hindsight is always 20/20, as they say. The cost to myself included two properties and my new home that I designed and had built through the company... and I had no involvement with the investment situation - this was just from the knock-on effect through the family. So smart-asses they are. I would certainly listen to a financial adviser's advice today because they do this for a living and have a better understanding that I would (or so I believe). But in the end, and after listening to them, I'd rather make my own decisions on what I invest in. At the moment, I like the idea of both gold and silver as an ideal investment ... but probably for different reasons to other people: I just think it's interesting and in a way, it's kind of fun. Hand someone a half-kilo of Gold or even a 1kg Silver Ingot and their faces light up when they feel the weight of it. It's interesting to read about it here on the forums and to see what other people are doing.

As Tributer said above, Gold is a great investment. It may again fall below $700 per ounce (and it is said that it may do so someday soon) and that would be a great time to buy. I personally WISH I'd invested in gold when it was a mere $350-$400 an ounce. There's a guy at Sofala who is said to have bought 16kg of nuggets from his neighbors back when it was that low ... and he's made a LOT of money selling off those pieces recently. I think he invested rather well.
nero_design
nero_design
Contributor Plus
Contributor Plus

Number of posts : 2068
Registration date : 2008-11-18

Back to top Go down

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Empty Re: Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011

Post  Beer Beeper on Sat Dec 04, 2010 2:31 pm

Good report Marco and I respect you for being honest. We also took a very big hit when our mining stocks collapsed losing both myself and my mothers(33 year school teacher retired at 76) life savings. Going from about $350,000(in stocks and warrants) to very little left. For all of us, learn from our mistakes, do not do them again, and try to pick up and get successful. Perhaps an almost full proof small business idea-plan that a person has been thinking about for a long time on the back burner in the back of a person mind that when applied and put into motion will do very well.

20/20 hindsight would make us all millionaires many times over. I even heard the multi billionaire Warren Buffet on TV lately complaining he could have doubled his money he had now if he would have done the right thing with his investments years ago. In our society this whole financial investing system we are in now dares us to know-predict the future in all types of investments of all kinds to become successful and a big financial winner, being the same for betting in Casinos and on dog-horse racing.

Well that was a short correction! Gold moves back above $1400
http://arizonaoutback.ipbhost.com/index.php?s=655980ef5f517d545cc2e3b0071d8f29&showtopic=9104


Last edited by Beer Beeper on Sun Dec 05, 2010 7:11 am; edited 2 times in total

Beer Beeper
Contributor Plus
Contributor Plus

Number of posts : 252
Registration date : 2008-12-15

Back to top Go down

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Empty Re: Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011

Post  Jigalong on Sat Dec 04, 2010 6:05 pm

nero_design,

That is a sad story and hopefully as you said it could not happen now with emails etc. It would be a killer to lose your house and have to start again.

I guess I would advise people who do not understand the market, to invest in something they do know about. In your case, you were merely a bystander.

The problem with the share market, is that the when it nears the top of a cycle, it gets plenty of media attention - everybody is making heaps. So then is the time the average punter goes and jumps on the gravy train. Then KABOOM, the poop hits the fan and he looses a heap, including the family home, if he has borrowed against it to invest in the market.

The reason I like the gold producers is - Say there a 20% increase in the gold price (if the AUD does not strengthen against the USD) from a theoretical $1000 to $1200. The company involved has production costs of $800 per oz so was making $200 per oz profit. Suddenly the companies profit is doubled to $400 from a rise of only 20% in the gold price. Theoretically, the share price would then go up by a lot more than 20%.

Jig.
Jigalong
Jigalong
Contributor Plus
Contributor Plus

Number of posts : 1316
Registration date : 2008-11-14

Back to top Go down

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Empty Ways to Profit as the "YELLOW METAL" Zooms to $1,900 an Once in 2011

Post  TWO BOB on Fri Dec 10, 2010 3:32 pm

Nero_design & Jig,
Good comments from you both.
One must do their own research for their own investments. There is only one person that is really interested in your financal security and that is you.
The Daily Reckoning,Morning Money,Kitco site contributors & Harry Dent. Are all interesting, but know one can predict the future.
In the early 80's silver was at $50 an ounce. We were selling our detected pre 1945 Florin's for$8.oo each. Gold was about $800.oo was it better to sell than or hold on when silver later dropped to $5.oo & Gold to $250.oo.
Cheers
"TWO BOB"
"Be the CAPTAIN of your own Destiny by using residential rental property." G.W.S.1998
TWO BOB
TWO BOB
Contributor Plus
Contributor Plus

Number of posts : 275
Registration date : 2009-02-03

Back to top Go down

Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011  Empty Re: Ways to Profit as the “Yellow Metal” Zooms to $1,900 an Ounce in 2011

Post  Guest on Tue Jan 04, 2011 12:38 am

Two Bob

just read your post good sites to look at as u mentioned. Every thing works in cycles and has ups and downs you have to try and follow the trend and get out when the trend starts to change. ( Easier said than done i know) but this up trend is just beginning with the Precious metals sector and if you are after some fast bucks trade the gold in at a good price and get some more silver bullion the supplies are runing out fast for it now.

Guest
Guest


Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum