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Old 11-21-2012, 01:45 PM   #1
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Is my maths right?

If one in ten western adults (USA+EURO-ZONE+UK = 500 million people) bought one ounce of gold per year it would use 80% of the world's gold production!?


Considering the per capita income is $35 000, do you think that if you took 10 random adults at least 1 in 10 of them might buy at least 1, 1 ounce gold coin per year if the economy starts getting worse or inflation kicks in?

I think at least 1 in 4 of my friends who are not into gold will move into when things gets worse and I think they will be trying to get at least 4 ounces probably much more, too bad that would work out to be 10X annual gold production demand just in the West!
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Old 11-21-2012, 04:17 PM   #2
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The msm works really hard at convincing everyone that pm's are not safe, not a wise investment etc .......

There are few who are prepared to look and think outside mainstream and they are all here, or on other pm sites, desperately trying to convince themselves and everyone else, that they have it right ( which of course they do ) (-:

Your friends will not buy gold because it will always be 'too expensive' )-:
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Old 11-23-2012, 08:08 AM   #3
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Originally Posted by rblong2us View Post:
Your friends will not buy gold because it will always be 'too expensive' )-:
Not when we hit the mania phase..
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Old 11-23-2012, 09:47 AM   #4
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@ rbl and DSA,

If I were to take my friends to the coin shop, they would be shocked at how much a lump of gold costs, and hardly any would buy. Even though almost everyone (inc. Obamabots) now feels the economy is doing terribly.

Maybe there would be action in the "mania phase", but my hunch is that while there would be some extra demand for physical gold, it would be the SELLERS that would just decide they are not going to let anymore onto the market. That is what FOFOA says could very well happen, the price goes up because the Giants decide not to sell any.
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Old 11-26-2012, 01:02 PM   #5
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@DoChen..

There is no fever like gold fever. - Richard Russell

When gold went to 800 the 1st time, it was because of the PUBLIC. When housing prices went through the roof, we had the public leading the way. Dot coms? Public.. See a pattern here?

Always, without fail.. The public drives up the price and become the last buyer. Your friends will be the ones buying gold because of FEAR. YOU need to be able to recognize when we are at that point. There will be a time to trade in your gold for paper because the physical will be overvalued. Today, is not that day.
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Old 11-26-2012, 01:56 PM   #6
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but but .....

The Fed will do everything in its power to ensure we never hit the mania stage ......
This is stated policy )-:

If it does happen then paper is in the process of reverting to its underlying value, so why would we cash in ?
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Old 11-26-2012, 03:10 PM   #7
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No bull market lasts forever rblong.. It will end once the views we are expressing are the consensus and speculation will be rampant. Governments and central banks can not prevent it from happening. In fact, their attempts to do so will only add fuel to the fire.

You need to realize that 4-8 years down the road, you'll be proven right and will feel rich much like how people felt rich during dot com and the real estate boom. Do NOT rest on your laurels. Look at how the last bull market ended. There will be a time to kiss gold good bye for 20 years. It will be from much much higher levels but we are much closer (time wise) to the end of the bull than we are to be start of it. We could hit 10,000 an ounce.. who knows.. I don't pretend to.

However, i know that there will be a point where other assets are cheaper on a relative basis. Even Sinclair sold gold and walked away at the end of the last bull market. By then, things will likely be MUCH different.
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