View Full Version : Bernanke On The Price Of Gold: "I dunno what's up with that."
Cogburn
06-10-2010, 02:24 AM
By Jon Hilsenrath
Federal Reserve Chairman Ben Bernanke says he’s a bit puzzled by surging gold prices. The 30% rally from a year ago, on top of gains in previous years, might be interpreted as a loud signal from markets that big inflation pressures are building in the U.S. Gold is seen by many investors as a hedge against inflation risk.
In this case, it might instead be a risk against risk broadly. Mr. Bernanke notes that the inflation signal isn’t confirmed by movements in other asset classes. Yields on Treasury bonds tend to rise when investors worry about inflation, but those yields have been falling recently. Inflation expectations as measured in Treasury Inflation Protected Securities (TIPS) markets remain low. And other commodity prices are falling. Gold is breaking records, but copper prices are down 17% so far this year.
“I don’t fully understand movements in the gold price,” Mr. Bernanke admitted. But he suggested it might be another example of investors fleeing risky assets and flocking to assets that are perceived as less risky, not only Treasury bonds, but also ones like gold.
Chorlton
06-10-2010, 08:05 AM
By Jon Hilsenrath
Federal Reserve Chairman Ben Bernanke says he’s a bit puzzled by surging gold prices. The 30% rally from a year ago, on top of gains in previous years, might be interpreted as a loud signal from markets that big inflation pressures are building in the U.S. Gold is seen by many investors as a hedge against inflation risk.
In this case, it might instead be a risk against risk broadly. Mr. Bernanke notes that the inflation signal isn’t confirmed by movements in other asset classes. Yields on Treasury bonds tend to rise when investors worry about inflation, but those yields have been falling recently. Inflation expectations as measured in Treasury Inflation Protected Securities (TIPS) markets remain low. And other commodity prices are falling. Gold is breaking records, but copper prices are down 17% so far this year.
“I don’t fully understand movements in the gold price,” Mr. Bernanke admitted. But he suggested it might be another example of investors fleeing risky assets and flocking to assets that are perceived as less risky, not only Treasury bonds, but also ones like gold.
Personally I think Gold is just about topping out now and Im getting ready to sell.
I made a few bob from the BP shares and will make a shitload from Gold.
Might just sell it all and put the money in a Bank in the ground.
Gold prices are surging because it holds its value in the short and long term. It cannot devalue in a physical sense and is high value for little storage area needed. Unlike land, or products. Not as risky as shares in the current climate. If you have it, it stays the same. At one time there was a fantastic scam dreamed up by a Jewish group of businessmen. To buy as many gold coins as possible. Coins were considered as a coin of the realm, money. Therefore they were exempt from VAT or taxes. Buy as many as you can - millions and millions worth, and melt them. Sell as scrap gold which means you can charge VAT. At the time it was 14.5% so you made 14.5% on your initial investment. Its changed now. But was a good scam in the beginning.
The trouble is that when everyone feels its time to sell based on trend, the market will flood with gold and it will bottom out quickly. And so the cycle will start again.
When push comes to shove you'll need an assay kit and an eye peace to exchange your gold for a can of beans. It's nothing more than a useless metal.
Is today the day the stock market crashes? Stay tooned!
Watcher-In-The-Shadows
08-01-2010, 04:39 AM
Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!!! Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!! Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!! That cult would never die till the stars came right again, and the secret priests would take great Cthulhu from His tomb to revive His subjects and resume His rule of earth. The time would be easy to know, for then mankind would have become as the Great Old Ones; free and wild and beyond good and evil, with laws and morals thrown aside and all men shouting and killing and revelling in joy. Then the liberated Old Ones would teach them new ways to shout and kill and revel and enjoy themselves, and all the earth would flame with a holocaust of ecstasy and freedom.
Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!!!
Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!!! Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!! Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!! Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!!!
Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!!! Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!! Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!! Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!!!
Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!!! Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!!
That is not dead which can eternal lie,
And with strange aeons even death may die.
Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!! Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn!!!!
theeindiee
08-01-2010, 10:27 PM
Ohhhh for christ's sake.... do you need a magickal ring to go obsess over in a cave for a few hundred years?