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Time for Gold


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#1 cgnx

cgnx

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Posted 06 March 2011 - 05:24 PM

These assets currently are extremely cornerable. When today we have 1000's of billionaires and Countries with large pools of cash searching for something to invest in, what percentage should go towards precious metals? If all the gold mines market capitalization is less than that of Apple Computer stock market cap. how hard would it be to control or monopolize? If the Hunt Bros. just one family had delusions of cornering silver back in 1980, how hard would it be for China to do it currently? Can we stop them, like we did the Hunts? Gold/silver is such a small fish in a sea of capital that it has never been more vulnerable to complete ownership by a very small group of people. This dynamic alone will forge prices so high as to nullify this condition. How high would prices have to go? I would imagine it would have to be equalized historically to benchmarks such as Money Supply, Real Estate Total Worth, total stockmarket market cap and the like. What we have now is a sector which has been neglected for decades and far surpassed by its bretheren, stocks and real estate, playing catch up ball. And since folks have no clue how to evaluate its true value are totally in the dark. I have to admit even my projections of $8500 an ounce could be paled. It is very hard to determine. For sake of argument lets say gold goes to $50,000 an ounce. Could that be the wealth creator that spurs on the virtuous cycle. The whole system feeds on a wealth creator. Which feeds all the other areas. I think an explosive move in gold could be the solution the World needs and is looking for. Gold may just be the new horse in front of the cart. Albeit a very misunderstood one. .
If it can be cornered, it will.