What will gold come down to over the next five years?

[Oldtrader3]

"When the U.S. sneezes, Canada catches cold". Careful what you think, it might come true, no offense.

 

An interesting article today about oil future holdings by wealthy college endowment funds as an inflation hedge. They have purchased approximately $800+ million bbl's of oil futures, which is one of the factors driving oil prices up. Interesting twist, I always thought that these endowments were dedicated to the support of the school's continued ability to provide education and award scholarships for deserving students that can not afford to attend these schools? These Endowments were not designed to be capitalistic, profit centers given their billions in size and multi-millions in earnings each year. On the average they only devote a pittance percentage to scholarships for worthy students each year.

[just-john]

once the older retires start dieing off and GM and Ford start saving that $1200.00 aprox a month

health insurance plus what ever the retirement check equal x the 1000s getting them

car prices will still go up but GM and Ford stock should look real good again.

China now has over 600,000,000 cell phones thats 600 MILLION'

Thats in just 10yrs and now their starting to make cars in huge numbers and those will need gas $4.00 a gal will be looked back on like 36 cents was to my generation in 10yrs.

bye bye big RV's bye bye big fast boats bye bye long drives on the weekends bye bye free check in baggage bye bye $69.00 round trip to Vegas this is going to suck

 

price of gold doesn't matter it's what is your dollar worth vs the price of gold

compare gold vs pound or euro or yen

[MBA101]

Interesting article on where gold is headed:

 

http://www.kitco.com/ind/Lee/may232008.html

[Oldtrader3]

An interesting read, the Kitco article. The RMB was 8.125 when I last worked in China, (9) years ago. A RMB of 5.95/dollar is a 1/3 decline of dollar purchasing power of Chinese goods, mostly over the past (4) years. Chinese goods have supplanted American produced goods in many markets. Try and buy an American made tool at True Value or Loew's. Additionally, all TV's and electronic goods are made in Mexico, Malaysia or Singapore.

 

What will happen to the economy this country when all the "Value Added" occupations have been exported to India, Singapore or China and we not only can't afford them anymore, but can't make them anymore because the expertise is gone. Most American's now are employed in the lower paying, less-knowledge required, sectors of service industry's? Plus, engineering and technical graduates are declining in this hemisphere. My generation is retiring and are not being replaced by knowledge workers with the mechanical skills to make anything. A country full of Service Workers, MBA's and Computer Science Graduates will not be able to sustain this economy through this century.

[thehumantorch]

"When the U.S. sneezes, Canada catches cold". Careful what you think, it might come true, no offense.

 

An interesting article today about oil future holdings by wealthy college endowment funds as an inflation hedge. They have purchased approximately $800+ million bbl's of oil futures, which is one of the factors driving oil prices up. Interesting twist, I always thought that these endowments were dedicated to the support of the school's continued ability to provide education and award scholarships for deserving students that can not afford to attend these schools? These Endowments were not designed to be capitalistic, profit centers given their billions in size and multi-millions in earnings each year. On the average they only devote a pittance percentage to scholarships for worthy students each year.

 

Make no mistake, I love the U.S. Canada would speak Russian by now if the U.S. wasn't our neighbor. A large portion of our economy is directly tied into the U.S. economy and your pain is our pain. The U.S. has been the dominate economic and military powerhouse on the planet since WW2. Just as England, Spain, ,Portugal, Rome etc had their day, I believe that the U.S. is in decline and China is ascending. I think the price of gold and frankly most currencies in relation to the American $$ is up, I also think the price of oil is being manipulated and it seems like any little excuse will cause the price of oil to spike yet again. I bought gold at $300 and I'm not selling.

[PCcoins]

I believe history is doomed to repeat itself, as it has many times before. Once the economy gets back to normal, or at least better. The price of gold will come down, I'm guessing it will get lower again, around $450 oz. There is alot of gold still in the ground, more than we have ever taken out. There's no way to predict the prices, but Up and down.

[thehumantorch]

I believe history is doomed to repeat itself, as it has many times before. Once the economy gets back to normal, or at least better. The price of gold will come down, I'm guessing it will get lower again, around $450 oz. There is alot of gold still in the ground, more than we have ever taken out. There's no way to predict the prices, but Up and down.

 

I have no doubt gold will go back down but not for a while. If I recall correctly it is costing more than $450 per oz to bring it out now.

[jackson64]

you can't eat gold...I don't like to be a doomsday type but food shortages and rationing are already occuring in some "developed" countries...we're only a 2 year drought in the US from a worldwide famine . We've never had the potential for the scale of what could occur because of populations.....

 

My point is, a midwest drought or California catastrophe ( pick one, fire-earthquake-mudslide etc) and your grocery bill may be a higher value than an ounce of gold

 

There are lots and lots of scenarios that could turn gold into a pretty rock..

 

My answer: eventually gold will have very little value...

 

PS: our societies--especially the US--were built on the back of fossil fuels which is a finite resource. People act as if this structure will continue on also..

[MBA101]

 

PS: our societies--especially the US--were built on the back of fossil fuels which is a finite resource. People act as if this structure will continue on also..

 

Oil does not come from fossils. It is made in the ground much the same way as diamonds. The earth is constantly making more oil. If oil came from fossils, it would not be in many of the places that it is found, such as the bottom of oceans. And the quantity of organic matter required to produce the amount of oil the world has used in the past would exceed the amount of dinosaurs that have existed.

 

https://www.predictweather.co.nz/assets/articles/article_home.php?id=30

 

We just have to have the will to get it. 90% of the oil available on US grounds is blocked from use because of government policy.

 

[jtryka]

you can't eat gold...I don't like to be a doomsday type but food shortages and rationing are already occuring in some "developed" countries...we're only a 2 year drought in the US from a worldwide famine . We've never had the potential for the scale of what could occur because of populations.....

 

My point is, a midwest drought or California catastrophe ( pick one, fire-earthquake-mudslide etc) and your grocery bill may be a higher value than an ounce of gold

 

There are lots and lots of scenarios that could turn gold into a pretty rock..

 

My answer: eventually gold will have very little value...

 

PS: our societies--especially the US--were built on the back of fossil fuels which is a finite resource. People act as if this structure will continue on also..

 

I agree, in a nuclear holocost where we all turn into mutants scrounging for our next rodent for dinner, then yeah, gold is just a pretty rock, but still a heck of a lot better than pretty euros with holograms or polimer pesos or raimbow colored fednotes! Yes, there will always be scenarios where if we take a giant leap back to the stoneage then gold is worthless, it's far more likely the experiment in floating fiat currencies will end badly with just a small step back to less than a century ago where people will demand payment in something more tangible than colored slips of paper.

[MBA101]

 

I agree, in a nuclear holocost where we all turn into mutants scrounging for our next rodent for dinner, then yeah, gold is just a pretty rock, but still a heck of a lot better than pretty euros with holograms or polimer pesos or raimbow colored fednotes! Yes, there will always be scenarios where if we take a giant leap back to the stoneage then gold is worthless, it's far more likely the experiment in floating fiat currencies will end badly with just a small step back to less than a century ago where people will demand payment in something more tangible than colored slips of paper.

 

Well put!!!!

[Oldtrader3]

"The next rodent for dinner" sounds like the present state of most residents of Myanmar, India and much of Africa. My first extensive stay in India was a lesson in humility on the way we eat, live and waste resources. Most Indian women carry their wealth (if they have any) on their bodies in the form of gold jewelry. This is because in many Indian sub-cultures, women can not own property.

[just-john]

Thats why i have a stock pile of barbecue sauce rodent not bad it's all depends on how you prepare it. After a nuclear -flood-major earthquake type event a few AR's or AK's or L1A1 and a few S&W and more than 50 rounds of ammo if you live outside California check that new bill their trying to pass there.Will be worth more than GOLD I'll be dead in 2 weeks without cable and DR Pepper and Camel's anyway so you guys can split my gear.

[jackson64]

yeah..you're right..guess it could never happen..would take a nuclear holocaust for us to run out of food for 8 billion people...and even then I'd rather starve to death than use a pretty gold coin for a can of baked beans to feed the brats..

[Oldtrader3]

My kids are old enough to feed themselves, hopefully. We used to eat squirrel and wild cottontails when I was a poor kid in Maine. I guess that we can do it again, although my sharpshooter eyes are not very sharp anymore. I can always use a shotgun now instead of a .22 rifle.

 

I think that our standard of living has been sinking for awhile. Ever since American companies became "Transnational", read this as making their profits outside the U.S., where they don't pay much in taxes. I know, I helped a couple of companies do it. Now we are paying for it. I believe that our standard of living will eventually settle somewhere near most European's living standard. Our politicians and Transnational, CEO's are making sure that everyone but they loses high living standards. They receive more in perquisites than most of us make anyhow.