RE:RE:RE:RE:RE:52 week low
Curvature wrote:
Theo dude you say gold prices are depressed no they are not. It was not long ago gold was 300 bucks an ounce. Costs are inflated! As to Sprott the dude makes money on both sides of any trade he collects fees works the same as a Casino. And when he does make bets he makes the miners pay heft interest rates for those loans. Seeing there has been only 1 depression and 1 we will call economic event 2008 those who keep calling on another depression seem foolish. It has been what 80 plus years so could be tomorrow or another 80 years I think I will just be smart and not hope for a recession lol.
Cury,
Get your facts straight before you post. Not long ago... try 11 years ago. Taking an economics course or two may help. Depressions theoretically cycle every 60 years but that does not mean that they can be delayed through fiscal or monetary policies. Economically speaking though, a major correction is only a matter of time. That is why the US Fed Reserve is printing money like mad (Monetary Policy btw) in order to prevent a deflationary trend which usually indicates the start of a depressionary cycle. Study the 1970's & 1980's. Inflation was very high during those recessionary periods. Money printing rose as high as 300% between 1975 - 2002 and as high as 200% between 1980 - 2002. The 80's saw interest rates on housing mortages as high as 20%. Between 1990 - 2002 the money printing slowed to only a 50% rate. Between 2002 - 2008 money printing increased by only 17%. But since 2008 to NOW the rate has jumped to 86% with limited inflation (SOURCE: tradingeconomics.com). The prime rate is at its all time low. Debt is cheap, contrary to the 80's. Unemployement is double than the published figure because they exclude those who have stopped looking for work and have given up. Probably wise to double the published rate. Unemployment during the Great Depression was 25% for those who want to know.
Now let's look at inflation:
Global house-price index (SOURCE: economist.com)
Canada 2002-2013 up 105%
US 2002-2006 up 61%, 2002-2013 up 24% (due to house crash)
Britain 2002-2006 up 92%, 2002-2013 up 75%
Gas prices (SOURCE: ontariogasprices.com)
$.60/L (2002) $1.23/L (2013) up 105%
Fast Food Restaurant Prices (SOURCE: ****eyed.com)
Quote from site: "...more than consumer price index reported, sometimes as much as 100% for an individual item."
See the trend. If you take an economics course you will discover that the consumer price index that measures inflation can me manupilated by the weighted average of the consumer items they choose to place in the basket. How can this be manipulated you ask? Simple. Take for example consumer electronics. Since consumer electronics are constantly becoming more and more affordable due to technological innovations, one way to skew the CPI is to place more weight on these types of consumer goods and less weight on those that are in fact rising like gas, food, housing, etc. Get the picture. Note that the government decides what is appropriate in calculating the CPI.
Since 2002-2013 Gold has risen 317%. But before you make any conclusion consider this:
Reasons people invest in Gold:
* hedge against inflation
* hedge against deflation
* safe haven during economic/market/currency collapse
* safe haven against world conflicts
So naturally there will be a premium built into gold. The reason we have this premium is probably because those who understand what is really going on in the world have valued it as such. So before you go slamming gold, consider the above points and where we are in the stream of time.