[quote]LoRez wrote:
[quote]Varqanir wrote:
[quote]LoRez wrote:
[quote]Varqanir wrote:
At the risk of hijacking this thread into gold-and-silver bug land…[/quote]
So what’s your take on the current drop in dollar-relative prices?
Certainly a good buying opportunity, but besides that, with the Fed still doing its thing, I’m surprised the reversal has been so strong.
I was convinced I should have bought gold back when it was right around $400/oz, but I was pretty much penniless then. By the time I finally got around to it, it was right around $1200/oz.
I haven’t really been following things besides noticing the falling price. Just wondering your insight on the situation.[/quote]
My insight is, “take the long view.”
Every drop in price is a buying opportunity. The price of a valuable asset denominated in an instrument backed by nothing but debt is ultimately meaningless, as I said in a previous post. Better to buy an ounce or two at 1300, or 1400 or even 1500, than to end up having nothing but a pile of twenty dollar bills outside outside the bakery because someone stole your wheelbarrow. [/quote]
I like the “stole your wheelbarrow”.
The long view is the reason I bought gold in the first place. I was just wondering if you knew what had happened recently to cause the drop. In the near future, I’ll be buying more as-is.
Translating the units of gold and silver coinage into USD in the 1001 Nights made that a more interesting and relevant read. It’s not like prices in gold and silver have really changed that much.[/quote]
Nobody likes to imagine that their economy will go the way of the Weimar Republic, but the fact is that it can.
There is, as I’m sure you’re aware, lots of manipulation in the gold and silver markets. A lot of paper gold and paper silver is being bought and sold on margin, and precipitous drops and rises in the price are usually the result of profit-taking or dumping of some sort or another. Silver always goes up when sabers rattle, and gold always seems to rise and fall in a seesaw pattern with stocks.
I did the 1001 nights thing too! Haha! All that Sindbad had left of his squandered inheritance was 3000 dirhams. 3000 dirhams is a little over 289 ounces of silver, which is about 6300 dollars at current rates. And look what he did with his capital!