I spoke to a hedge fund manager today...

[rodent]

..

[bbachtung]

Sorry to hear about the results of the interview.

Obligatory RP question: Did you mention RP?

[xao]

People are betting heavy against the dollar, for the most part. The wealthy are shifting strategies to avoid eating losses on the credit crunch, and the poor/retirement/middle-classers are the ones that are going to be left holding the bag when the markets get smashed. There's no real mix in the consensus otherwise.

Just figured I'd share.


We're trying to sell our other house right now and it's not looking good. So I am one of those who may have a problem.

[freelance]

We're trying to sell our other house right now and it's not looking good. So I am one of those who may have a problem.

We talked about it for a year, and in August, we got really scared, so we cleaned up and threw out all the years of accumulated junk. It officially went on the market in late Sept. and we close in nine days.

I wish you all the best and hope that you have the incredible luck that we did.

[xao]

We talked about it for a year, and in August, we got really scared, so we cleaned up and threw out all the years of accumulated junk. It officially went on the market in late Sept. and we close in nine days.

I wish you all the best and hope that you have the incredible luck that we did.

Good work. Yeah I think we will be okay and break even. Only because it is a new house in a new neighborhood. We took too long to do additions to it and then the market just went downhill. We'll see. Worst case scenario, we will rent it out and wait for a few years if we have to before we can sell it.

I wish I had seen some of those "flip this house" shows online earlier. ugh

[Lord Xar]

so gold is the thing to buy? isn't it very high right now?

[Perry]

So I'm in the hedge fund business, as an employee. (Well, sort of. I'm unemployed garbage, at the moment. I'm making my living scalping the markets while I'm unemployed.) I was at an interview today[1]. The lead trader mostly focused on FX and commodities, so I told him about how I'd been long gold ETFs since the low 600s and how I just didn't see the dollar picking up.

His response to me was this: "The dollar is moving towards 0. Gold is moving towards 2000. In the simplest terms, that's our view. There'll be a correction in December/January when the hedge fund managers want to lock in their profits so they can get paid, then a brief consolidation, then a solid push to $2000 in a long, consistent trend."

Or so their analysis was. Not saying they're 100% correct, but it's interesting that people who manage 500 million held that view.

In general, that's what the consensus is on Wall St. The rumor mill is that a lot of these banks and such are in trouble with this "credit crunch" and everyone is worried. One of the jobs I was offered (about a month and a half ago) was actually canceled because the bank posted a huge loss.

People are betting heavy against the dollar, for the most part. The wealthy are shifting strategies to avoid eating losses on the credit crunch, and the poor/retirement/middle-classers are the ones that are going to be left holding the bag when the markets get smashed. There's no real mix in the consensus otherwise.

Just figured I'd share.

[1] Didn't get the job, not quite what they wanted. They didn't want a research and math monkey; they wanted an IT manager. Recruiter mismatched me, unfortunately.

I don't think the large majority of the population really gets it. We are in real trouble. I can honestly see the dollar going <.40 in a short period of time(1yr).
The only question in my mind is when will the real panic begin. It won't happen like it did in 1929 but it will continue on in much the same way the past six months have gone. America is dying in the same fashion Rome did. Not with a bang but a whimper.

[RP4ME]

its higher than it has been since the 80's but many think its poised to go through teh roof - this in no way something new - what the hedge fund managr is saying.
But ist nice to have that kind of confirmation as much as any post here can be trusted online... :o)

[RP4ME]

I don't think the large majority of the population really gets it. We are in real trouble. I can honestly see the dollar going <.40 in a short period of time(1yr).
The only question in my mind is when will the real panic begin. It won't happen like it did in 1929 but it will continue on in much the same way the past six months have gone. America is dying in the same fashion Rome did. Not with a bang but a whimper.

Panic cahos and then AMERO an dthen we get to lose our Constitution and govt hello NAU!

[curiousobserver]

11/1/2007-Peter Schiff Interview Glenn Beck Show


http://www.youtube.com/watch?v=-w5pSm_BLGU&NR=1

[OptionsTrader]

so gold is the thing to buy? isn't it very high right now?

High, versus what? Paper?

Gold is extremely underowned internationally. ~1% of Chinese reserves are gold.

A couple gold investment related links:

http://www.mises.org/
http://goldmoney.com/en/index.php
http://www.goldensextant.com/
http://www.gata.org/
http://www.gata.org/node/20 VIDEO
http://www.howestreet.com/articles/index.php?article_id=4443
http://www.usagold.com/gildedopinion/turkesfgold.html
http://silverbearcafe.com/private/esfexam.html
http://www.kitco.com/lease.chart.html
http://www.golddealer.com/
http://www.financialsense.com/editorials/turk/2007/0813.html
http://www.kitco.com/commentary/archive.htm
http://www.gold-eagle.com/editorials_01/puplava042801.html
http://www.marketoracle.co.uk/Article661.html
http://www.fgmr.com/sdr.htm
http://www.fgmr.com/whatgold.htm
http://www.321gold.com/editorials/taylor/taylor031706.html

[Perry]

High, versus what? Paper?

Gold is extremely underowned internationally. ~1% of Chinese reserves are gold.

A couple gold investment related links:


http://goldmoney.com/en/index.php
http://www.goldensextant.com/
http://www.gata.org/
http://www.gata.org/node/20 VIDEO
http://www.howestreet.com/articles/index.php?article_id=4443
http://www.usagold.com/gildedopinion/turkesfgold.html
http://silverbearcafe.com/private/esfexam.html
http://www.kitco.com/lease.chart.html
http://www.golddealer.com/
http://www.financialsense.com/editorials/turk/2007/0813.html
http://www.kitco.com/commentary/archive.htm
http://www.gold-eagle.com/editorials_01/puplava042801.html
http://www.marketoracle.co.uk/Article661.html
http://www.fgmr.com/sdr.htm
http://www.fgmr.com/whatgold.htm

Gold is just a win win buy. I wouldn't be surprised if the quantity of the worlds gold was actually decreasing because of the amounts we use in computer/electrical equipment. Too many fall into the old "buy low sell high" trap. You buy when it's time to buy regardless of how much something has already increased in value. The demand for gold is going up on all fronts and it will continue to do so for some time.

[OptionsTrader]

If you have Federal Reserve notes, they aren't money until you convince someone into parting with their gold for enough of the depreciating notes.

[Alabama Supporter]

What is the best way to be in gold? ETF? Coins?

[Lord Xar]

see, I am sitting on a some mone getting 5% interest in a CD.. should I drop that and just buy gold?

[ChooseLiberty]

ETF's are convenient until another shock hits that shuts down the financial system.


What is the best way to be in gold? ETF? Coins?

[torchbearer]

so gold is the thing to buy? isn't it very high right now?

silver is a better buy right now. more practical too.

[Original_Intent]

so gold is the thing to buy? isn't it very high right now?

High is a relative term. If hyperinflation hits, like has been threatened by doom and gloomers for years there is LITERALLY no ceiling to how high gold could go. It is only dependent on how hypper the inflation is.

Sadly you won't have "made" any money other than maybe you will be able to pay off any debts that will still take the FRNs. It won't be that the gold is valuable it will be that the dollar is next to 0.

edit: and I would agree with torch on silver. It is a better deal and if the crap really hits the fan it will be easier to use because you will have more chunks of it, it would suck to have to chop up some nice pretty gold coins to buy things with. And silver is a better deal right now.

[torchbearer]

High is a relative term. If hyperinflation hits, like has been threatened by doom and gloomers for years there is LITERALLY no ceiling to how high gold could go. It is only dependent on how hypper the inflation is.

Sadly you won't have "made" any money other than maybe you will be able to pay off any debts that will still take the FRNs. It won't be that the gold is valuable it will be that the dollar is next to 0.

then wouldn't it be just as beneficial to buy Euros or Pounds? The gold you would have in hand would still have the same relative value in those currencies anyway.

[cindy25]

why is silver so low and gold so high? the ratio is out of balance so I can't see gold much beyond what it is today

[ChooseLiberty]

Don't have a link but I believe Bernanke intimated he would NOT cut rates again even though the futures are building it in.

If he would just show some balls and let the i-banks, brokerages and hedge funds fail like in a free market the dollar slide could be contained. The US still has plenty of value adding real industry left to power the economy. If he cuts again the cascade effect will just get worse. Other central banks are raising their rates now.

Let them collapse like Enron and get it over with.

[specsaregood]

What is the best way to be in gold? ETF? Coins?

I like to have the physical stuff.
http://www.apmex.com is superb, professional and has good rates.

Another Ron Paul supporter runs a forum on this topic.
Here is the section about PM dealers.
http://goldismoney.info/forums/forumdisplay.php?f=150

[american.swan]

This is a messed up global problem. I am in south korea, ok, and the dumb central bank here thinks that if the Korean won is too strong vs the dollar then companies here that sell a mass of products in the US are going to get hurt real bad and technically that's true, but here is the big problem. These companies can't just shift to other markets that fast, especially the larger companies that have a say in how the central bank does it's thing, so, the central bank does some hankie-panky and makes the won weaker to keep pace with the weakening Dollar. How stupid!! There is nothing Korea can do about the weakening dollar so get over it and start working on plans to sell products other places and start forgetting about the won/dollar ratio.

It worries me to no ends, Korea is in a recession too because of the same banking shenanigans as the Fed.

[strategos]

Fort Knox is lookin pretty valuable right about now.

[rodent]

..

[freelance]

so gold is the thing to buy? isn't it very high right now?

It's going to go WAY higher. It won't be a straight line up, and there will be some pullbacks, but it's not anywhere near through with its run.

[PatriotG]

I purchased physical silver yesterday.

bullish on both.

Im thinking silver is still undervalued at 15.50.

The sub prime mess is far from over.
More losses to come me thinks.

That mixed with the fact that some countries are looking to sell of dollar holdings,
not looking good at all.

PatriotG

[misconstrued]

so gold is the thing to buy? isn't it very high right now?

No, adjusted for inflation the "all time high" in today's dollars (vs. 80s) would be around $2400.

$2,000 an ounce gold is very realistic...

[Man from La Mancha]

Fort Knox is lookin pretty valuable right about now.
There is no gold at fort Knox, no physical audit has been done I think since 1953.


.

[misconstrued]

why is silver so low and gold so high? the ratio is out of balance so I can't see gold much beyond what it is today

You're going to be in for a surprise ;)

[misconstrued]

silver is a better buy right now. more practical too.

Did you hear about the Credit Suisse report about falling gold production?
http://www.resourceinvestor.com/pebble.asp?relid=37477

(i have both gold and silver, but more gold)

[xao]

I don't know anything about how gold or silver works when you buy and sell from stores, people, etc.

How does it work? Do you get gold coins? How does one pay for groceries?

Is is the key to just keep the gold until we get a new currency that is backed by gold, and then trade in the gold for the new money? Roughly, how does everything work?

[FreedomProsperityPeace]

Gold: Next stop $1,000?
http://www.cnbc.com/id/15840232?video=586362707

[Mortikhi]

We're trying to sell our other house right now and it's not looking good. So I am one of those who may have a problem.
A firefighter friend of mine said that power strips that have those light up buttons start house fires when the light in the button starts to flicker. He said that means the strip is short circuiting.

This is just some general information that may or may not help you one day. :D

[RP4ME]

Fort Knox is lookin pretty valuable right about now.

mmm if there is anything still in it?

[Smiley Gladhands]

I don't know anything about how gold or silver works when you buy and sell from stores, people, etc.

How does it work? Do you get gold coins? How does one pay for groceries?

Is is the key to just keep the gold until we get a new currency that is backed by gold, and then trade in the gold for the new money? Roughly, how does everything work?

If the taxation of gold 'capital gains' (read: inflation protection) were eliminated, then gold/silver could work just like dollars do right now....a shopkeeper would sell a DVD for 1 ounce of silver, so you could hand him 1 ounce of silver and he would give you the DVD. There may be some sales taxes associated with that purchase, but that can be added to the price just as well as it can be now, assuming silver coins exist in enough denominations and in enough volume, to take care of those smaller transactions.

They key is that gold/silver have historically been sound currencies due to their limited supply...people trust that gold/silver will be worth something.... when complete control over a money's creation belongs to a central bank, there are always abuses of that power. So gold IS money....and is in fact sounder money than the US dollar or any other central-bank-controlled money.

The only thing that keeps us from being able to use gold when we go the grocery store is government interference. Because in dollar terms you may show a 'gain' on your gold, though it may have been because the dollar dropped 20% and your gold went up 20% in dollar terms. Is your gold more valuable? No, but the IRS still wants you to pay tax on that 20% 'gain'....it's one of the ways they inflate the dollar's value: by undermining the value of other monies. Because if they make a currency less useful, they temporarily make it worth less. However gold's sound-ness cannot be taken away, and as the dollar's structural weaknesses become more apparent, gold/silver will increase in relative value.

Suffice to say, someday I believe it will be preferable to take silver when you go to purchase something, rather than taking FRN dollars. Right now that's not the case because the fed gov't is restricting our freedom to use sound money. I just hope that when gold/silver are usable as currency, the fed gov't hasn't come and tried to take MY gold/silver by that time (citing some freaking emergency....the exact type of financial emergency we've been warning them about). I also hope there are still grocery stores at that point in time. I also hope there's still a sovereign United States at that point in time.

So the point is, start buying gold/silver if you haven't already. Don't buy it all at one time, and buy as much as you can on pullbacks (hopefully we'll see sub-800 gold again soon, so I can buy more....gold/silver have sudden/violent pullbacks after rallies such as these, so don't go hog-wild right this second IMO). I'm not going to be using mine as currency until I don't have to pay taxes to do so...but I feel a lot safer now that I hold some, than I did when I had none.

By the way, there are a lot of great resources: www.goldismoney.info is a great resource...reading through those forums can be quite interesting and educational. You'll also probably find more links to, and suggestions for, great sources of information there. I just found it recently thanks to this forum...I'm still a gold noob compared to the people on that forum.

:) Gladhands

[Bossobass]

I read a while ago, take all the cash in the world's currencies and divide the total into the world's gold reserves and you'd get $20,000.00 per ounce.

Gold began as a price fixed commodity and people like GATA have been proving (IMO)that the central banks have conspired to keep it's price down and evidence is good that they won't be able to succeed nuch longer.

Bosso

[enjerth]

Last year I looked at buying gold when it was $525. My wife wasn't too sure because she thought we should have some money in savings for emergency purposes and we don't have much to spare.

Silver was about $14.75. I was interested in silver as an alternative, but in retrospect it would have better to go with the gold.

If I had invested my small $2000 savings in gold, today it would be worth over $3,100 in just over a year.

If I had put it in silver, it would be worth just $2,100.

Go for the gold. I'm kicking myself for having not done that.

http://www.lewrockwell.com/north/north436.html


I purchased physical silver yesterday.

bullish on both.

Im thinking silver is still undervalued at 15.50.

The sub prime mess is far from over.
More losses to come me thinks.

That mixed with the fact that some countries are looking to sell of dollar holdings,
not looking good at all.

PatriotG

[rodent]

..