tag:blogger.com,1999:blog-5936637281134795592.post422143411347716167..comments2024-03-08T08:55:52.985-08:00Comments on Whispers from the Edge of the Rainforest: It was 40 years ago today...Unknownnoreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5936637281134795592.post-84187462149084331132011-08-16T01:49:46.386-07:002011-08-16T01:49:46.386-07:00Well, sure, gold has had 'huge' increases ...Well, sure, gold has had 'huge' increases in nominal terms, but percentage wise it is not as high as silver. Even looking at the rump up graphs over the past 2 years, slv looks clearly more bubbly.<br /><br />DmitriAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-65910973201564138492011-08-15T21:07:35.794-07:002011-08-15T21:07:35.794-07:00"However, the sov. debt crisis will precipita..."However, the sov. debt crisis will precipitate a massive move into Gold/Silver and thus represents a huge opportunity."<br /><br />That's absolutely correct. However, I would be careful about buying gold at this point (silver being a better opportunity). With such a huge increase of the gold price, massive profit taking are going to happen sometime soon.<br /><br />Somebody said one day that if your taxi driver starts talking to you about a buying opportunity in the stock market or real estate, it's time to get out, so is the situation with Gold today. Buy low, sell high is the mantra of smart investors. The price is objectively high right now and I'd rather sell and buy stuff that is considered cheap (don't know what is cheap nowadays though... apart from RE in the US that should continue its down spiral).Makayanoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-31021065666550764612011-08-15T20:57:21.593-07:002011-08-15T20:57:21.593-07:00Just like with any other fin. instrument, be it cu...Just like with any other fin. instrument, be it currency, derivatives etc... Unless we have strict, transparent and self balancing mechanisms, going back to gold will not change anything. <br /><br />Just like 100% of the banks hide what they have on their books, same will happen with 'gold currency'. No one will know what gold holdings each entity has... hence,"gold backed" securities will be emitted just like fiat now...<br /><br />DmitriAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-47302024293244854262011-08-15T20:19:56.205-07:002011-08-15T20:19:56.205-07:00As I have said before, I don't believe a retur...As I have said before, I don't believe a return to the Gold Standard is the answer. However, the sov. debt crisis will precipitate a massive move into Gold/Silver and thus represents a huge opportunity.Whispererhttps://www.blogger.com/profile/03524022285962626228noreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-26779617986963310212011-08-15T16:34:46.542-07:002011-08-15T16:34:46.542-07:00Never in History a gold back money has ever worked...Never in History a gold back money has ever worked, why would it work today?<br /><br />The problem is not what backs the money but who controls its quantity. With a very limited existing quantity of gold, it will be very easy for speculators and banks to interfere with the value of the currencies.<br /><br />The real problem is fractional reserve lending, aka the power of the banks to lend more money than they have in reserve, aka the possibility they have to create money out of nothing. If you remove that ability to the banks, and give the power to issue money only to the central bank or the government, you will remove all the financial instability we have know for years (no more leverage!).<br /><br />Inflation and deflation are created by the increase or contraction of the money supply. If you have only one entity responsible for the creation of the money, it becomes much easier to control the quantity of money in circulation in the economy.<br /><br />Everyone who owns gold would love to see the gold standard coming back. What's good for gold owners is not necessarily good for the rest of the economy...Makayanoreply@blogger.com