brussels_sprout

It was 1000 USD at one stage in the 70s, i thought. But After 9/11, western democracies printed money to save their economies and reduced the interest rates drastically. Historically low interest rates caused House prices to boom, inflation is a result and currencies are now weakening, the only hedge against this is to hold "real" commodities such as gold

Paladin

You should do some research my dear!

As per public comments from the Bank of International Settlements and no lesser person that Alan Greenspan(former Chairman of the Federal Reserve) from 1980 the Central Banks led a coordinated policy of selling, lending gold and selling Short gold derivatives to suppress the price of gold i.e. they ran a GOLD CARTEL TO MANIPULATE THE PRICE OF GOLD AND HOLD IT DOWN ARTIFICIALLY!!!!

Why do you think Gordon Brown announced to the world he was selling half the UK gold reserve BEFORE he sold it? Because he knew it would drive the price down!!! If he had wanted to get the best price for the gold he would have sold it before announcing it!!! DOH!!! Blatant!!!!

Why did they collude to keep the gold price down? Because they were and are running a huge policy of inflating the money supply which results in inflation. The price of gold reflects inflation in the currency therefore if they held the price of gold down it masked what REAL inflation was!!!!

The back of the gold cartel was broken in 2000; since then gold has more than doubled in price!!! And the Central banks now have only half the gold they did!!

On an inflation adjusted basis the price of gold should really be approx $2400-2700 per ounce right now. When ALL the Central Bank gold cartel collusion in leasing and selling gold is finished the price of gold will go ballistic, mark my words!!!!

Paladin

Sprouty is correct(except the High was 1980 at $830 an ounce).

As a qualified Fund Manager I can tell you he is correct - gold is traditionally a hedge against inflation and any good fund manager would recommend to clients to hold 5 - 10% of their fund in gold for that purpose!

The reson gold is used for that is that gold is the only REAL money(and to a lesser extent silver too). Gold cannot be made, cannot be mined easily or quickly, occurs in only small deposits, it does not tarnish or degrade and it is maleable.

This is why over the millenia, countries used gold as their money. It is a stable currency that cannot be easily inflated in supply or counterfeited.

The "money" we have now is just fiat(government sanctioned) paper I O U's from the Bank of England, Federal Reserve or whatever central bank. You cannot even take this paper into the Bank of England anymore and redeem it in gold which is what the words "pay to the bearer the sum of.." printed on our notes means. The governmenst have changed the law to stop us getting our hands on gold! In fact in the US they have even removed the wording form the "dollar bills". (actually these are not Dollars, they are FRN's - Federal Reserve Notes) the Dollar of the US Constitution is a Silver Dollar of a certain weight of silver. The "Dollar"(FRN's) is actually unConstitutional!!!!! As is the Federal Reserve.

Go to this website and get the facts:

http://www.honestmoneyreport.com/index.php

Paladin

If anyone wants to read INDEPENDENT comment on economics, financial system, gold, money, try these, you may learn a few things!!!

In no particular order:-

http://www.prudentsquirrel.com/index.php

http://www.dailyreckoning.co.uk/website/home.html

http://www.dollarcollapse.com/

http://www.freedomtofascism.com/

http://www.financialsense.com/

http://www.mises.org/

http://www.goldseek.com/

http://www.thelongwaveanalyst.ca/

http://www.goldensextant.com/

http://www.ifg.org/

http://www.gold-eagle.com/editorials...son051806.html

http://www.theinternationalforecaster.com/

http://www.iea.org.uk/

http://minneapolisfed.org/research/data/us/calc/



Happy hunting!!!!

Dave

Pompey_Paul

Im deffo interested

Paladin

Best read the thread then !!!



And you can always IM about the two things I suggested to IM me about!!!

brussels_sprout

http://www.fool.co.uk/Specials/1999/991908ramper.htm

This one is quite interesting too.
Gold will only rise dramatically when there is a THREAT of war or global instability (like in 70s), that will be the time when all the Western elite will start heading for small town Oz and NZ and their gold laden suitcases.
Btw, is Paladin meant to be the gentleman cowboy gunman ?

Paladin

Sh1T! I meant read my comments on the Jack Daws' Blog thread - sorry!

Pompey_Paul

Blowed if i can find it....can you paste a link?

Paladin

Well thats one reason why it will rise!!! But alas not the ONLY one - see my prior comments on Jack Daws Blog Thread!!!!! And look at the links I posted!!!

a) This is not the 1970's! Check your economic statistics and global fundamentals - this is different! VERY VERY DIFFERENT!!!!!
b) The western elite already own all the gold they'll need! Who do you think was buying all the stuff at $300 an ounce and had the money to do it!!!!? It wasn't just Central Banks outside of the gold cartel!!! And they've got too much to fit in a suitcase!!! LOL!!! Waaaaaaaaaaaaaay toooooo much !!!

No Paladin is not a gentleman gunmen but it IS something, guess again!!!
(small hint - computer game! )

Paladin

http://britishexpats.com/forum/showthread.php?t=406830

Paladin

brussels_sprout

If that was true all the former gold reserve-owning countries in the "Western Elite" would have done the same, many actually increased their gold at the time (only Gordon Brown sold it off at the lowest price possible, sell low, buy high, and he is responsible for nation´s finances)
Sounds like just another funny conspiracy theory to me, maybe for ramping purposes as already stated

Gordon Brown was obviously trying to stop Gold from rising in price, by announcing the sale in advance, it was strange that he had a sort of Dutch Auction of the Gold though, rather than selling it at the best price, but all this was to suppress the Gold Price , Japan, China and others have bought massive amounts of gold at the same time !

Paladin

As i stated previously: you guys do NOT have enough money to buy enough gold to ramp the price up silly!!!!!

And do you see me acting like one of those Gold Bugs pleading with people to buy gold to make a killing when the price goes to $50k an ounce?

NO I DO NOT!!!

My comments are from a firm economics base just recommending a way people can protect their financial situation!! Wealth preservation!

In the worst case scenario they would be better off if they own gold and all paper currencies collapse for sure BUT I understand that this situation is not for sure. The financial elites may just succeed in starting a new paper currency game and there will be no return to a gold standard!

BUT, even if that happens, people can still sell there gold when interest rates peak, buy Treasury Bonds and then watch their money grow as Treasuries sky rocket as interest rates drop; then they can cash in and be rich HAHAHAHAHA!!!!!

Paladin

Best check your facts:

USA - gold reserves have fallen to half.
UK - gold reserves have fallen to less than half.
Europe - Signed the Washington Agreement to sell 500 tons per year for 9 years!!!

Western Financial Elites are NOT just Central banks - think RICH INDIVIDUALS who own LARGE corporations.