2010-09-29goldseek.com

Short and to the point. A powerful missive.

There is less than one ounce of gold per person on the planet, less than 1/4 ounce of silver. As the screw tightens, every scrap of paper will be thrown at gold and silver. But most of the gold and silver will be off of the market. No one will want bonds, so the central banks will print trillions to buy them all. But the bond market is just the tip of the spear. Paper money will be destroyed when people insist on payment in gold and silver. Only the demand for goods and services will bring gold and silver out of hiding. The price that I project, an ounce of gold for a year's wage, is near the all time historical high. These are unreasonably high prices if there is a functional credit system, but not in the absence of a credit system.


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Comments:

mtpockets at 14:47 2010-09-30 said:
Gold has no utility, pays no dividends and no one would pay a years wages for it.

Holding gold for the sake of holding gold is meaningless when you can't feed, cloth or provide shelter for yourself.

If the world gets as tight as people suspect, then I would be investing in guns, lead (think bullets), water purifiers, dried food, land with water and the ability to provide food. gold won't provide me with any basics, only make me paranoid someone might kill my family and me for it.

This gold bubble will burst and the retail holders will take a serious beating for it. Permalink

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