Hello everyone of PM Bug, this is my first conversation with other serious sound money advocates.
I guess I'm ranting because an investor I somewhat hold in esteem (though only for his ability to read charts and flip stocks, he's more of a gambler) has recently been trying to tell me that a massive move up is coming in the dollar and he's one of the only people who can see it coming. The only foggily possible factor I could think of to cause this would be the disintegration of the Euro, which could indeed buy some more time for the dollar.
But he also goes on to tell me that gold is "look out below" because "everybody is rushing into gold and calling for the end of the world." He says that gold is topheavy, but looking at the gold chart it is a very easy conclusion to make. Nonetheless, this is where I break ranks with him. "Everybody is rushing into gold"? When I turn on CNBC, I hear constant poo-pooing of gold and everybody is still flipping AAPL and buying bonds. Though it is nice to hear someone as big as Bill Gross talk bullish on gold, all the other money managers are sitting in cash and building positions in dividends. Gold is still persona non grata on Wall Street.
So this notion that "everybody is rushing into gold", as if sound money guys are lemmings and the guys sitting in cash and bonds are smart, I can't even begin to get my head around that. 99.99% of the American public has *zero* exposure to gold; they don't own gold and they aren't invested in gold equities. Heck just drive down the street and it looks like everybody is pawning their gold for paper when they should be getting rid of their paper for gold.
2001 really marked the beginning of the end of fiat dollar somnambulism, but now the country is sitting on $16T in debt and a gazillion in unfunded liabilities, and Bernanke is monetizing debt to the tune of $85B a month and the fed gov is running trillion-plus deficits...man I think the dollar price of gold hasn't even begun to move yet, but I'm not even all that worried about it, I just want to keep buying it cheap as long as I can. My greatest concern is that the Chinese are using their dollars to buy gold while the western central banks are suppressing gold in order to keep their ponzis going, I don't know...everything tells me to keep buying gold, what say you?
I guess I'm ranting because an investor I somewhat hold in esteem (though only for his ability to read charts and flip stocks, he's more of a gambler) has recently been trying to tell me that a massive move up is coming in the dollar and he's one of the only people who can see it coming. The only foggily possible factor I could think of to cause this would be the disintegration of the Euro, which could indeed buy some more time for the dollar.
But he also goes on to tell me that gold is "look out below" because "everybody is rushing into gold and calling for the end of the world." He says that gold is topheavy, but looking at the gold chart it is a very easy conclusion to make. Nonetheless, this is where I break ranks with him. "Everybody is rushing into gold"? When I turn on CNBC, I hear constant poo-pooing of gold and everybody is still flipping AAPL and buying bonds. Though it is nice to hear someone as big as Bill Gross talk bullish on gold, all the other money managers are sitting in cash and building positions in dividends. Gold is still persona non grata on Wall Street.
So this notion that "everybody is rushing into gold", as if sound money guys are lemmings and the guys sitting in cash and bonds are smart, I can't even begin to get my head around that. 99.99% of the American public has *zero* exposure to gold; they don't own gold and they aren't invested in gold equities. Heck just drive down the street and it looks like everybody is pawning their gold for paper when they should be getting rid of their paper for gold.
2001 really marked the beginning of the end of fiat dollar somnambulism, but now the country is sitting on $16T in debt and a gazillion in unfunded liabilities, and Bernanke is monetizing debt to the tune of $85B a month and the fed gov is running trillion-plus deficits...man I think the dollar price of gold hasn't even begun to move yet, but I'm not even all that worried about it, I just want to keep buying it cheap as long as I can. My greatest concern is that the Chinese are using their dollars to buy gold while the western central banks are suppressing gold in order to keep their ponzis going, I don't know...everything tells me to keep buying gold, what say you?