Logic will get you from A to B. Imagination will take you everywhere.
- #158,462
- Nov 3, 2009 11:54am Nov 3, 2009 11:54am
dont sit on your nutz. dont think india and china is buying gold for nothing. maybe they think dollar will slip and be worth less......or maybe the want gold to prop up their own currency if need be.. they all gotta eat
- #158,463
- Nov 3, 2009 11:55am Nov 3, 2009 11:55am
- | Joined May 2009 | Status: Fight until we die | 1,114 Posts
- #158,464
- Nov 3, 2009 11:57am Nov 3, 2009 11:57am
people in india buying the gold purely for functions etc... but not as a investment... gold may drop to $500
Logic will get you from A to B. Imagination will take you everywhere.
- #158,465
- Nov 3, 2009 11:58am Nov 3, 2009 11:58am
- Joined Oct 2008 | Status: sideline is a position | 105,144 Posts
those who can, do. those who cant, talk about those who can
- #158,467
- Nov 3, 2009 12:02pm Nov 3, 2009 12:02pm
- Joined Oct 2008 | Status: sideline is a position | 105,144 Posts
people in india buying the gold purely for functions etc... but not as an investment... gold may drop to $500
edit it was central bank in india.. gold helped all commodities and eu today or we would still be sliding lower
those who can, do. those who cant, talk about those who can
- #158,474
- Nov 3, 2009 12:09pm Nov 3, 2009 12:09pm
- Joined Oct 2008 | Status: sideline is a position | 105,144 Posts
those who can, do. those who cant, talk about those who can
- #158,477
- Nov 3, 2009 12:19pm Nov 3, 2009 12:19pm
- Joined Oct 2008 | Status: sideline is a position | 105,144 Posts
those who can, do. those who cant, talk about those who can
- #158,478
- Nov 3, 2009 12:23pm Nov 3, 2009 12:23pm
- Joined Oct 2008 | Status: sideline is a position | 105,144 Posts
those who can, do. those who cant, talk about those who can
- #158,479
- Nov 3, 2009 12:28pm Nov 3, 2009 12:28pm
- Joined Feb 2009 | Status: Hasta la victoria siempre - El Che | 19,542 Posts
This may be way off base, but this is what my simplistic mind thinks!
Let's suppose that it is indeed India and China buying up all this gold. Bear in mind the current price which is something like $1088. Why are they buying gold? Really it is a bit of a useless commodity if a country is going to horde shit loads of it. After all, what are they going to do with it? It's only worth what people are prepared to pay for it.
So, if China and India are buying up large, some of their purchases are at a very high price. Other countries (and I'm guessing here) like USA, UK, EEC countries etc etc cannot afford to buy up large on gold, but that fact will NOT derail their economic recovery. It may slow down their recovery, but it won't derail it. Now, when those countries recover, and there are already signs that this is imminent, the value of gold will drop, as the demand for foreign currency (ie the greenback, EU etc etc) increases.
Is it not possible that by hording gold, those countries who are doing so will find themselves with a warehouse full of gold that is worth less than what they paid for it?? That would make their 'investment' a lemon, would it not?
Even if China and India held most of the worlds gold, that will not stop the economic recover, no matter what they think.....we have seen the lengths our governments will go to, to prevent a global economic meltdown, and it doesn't much matter who has the gold.
Of course gold is a good investment per se, but any commodity that is worth less than you paid for it, is just a lemon. After all, who are India and China planning on selling to???
Like I say, I'm simple and I may have it all wrong
Let's suppose that it is indeed India and China buying up all this gold. Bear in mind the current price which is something like $1088. Why are they buying gold? Really it is a bit of a useless commodity if a country is going to horde shit loads of it. After all, what are they going to do with it? It's only worth what people are prepared to pay for it.
So, if China and India are buying up large, some of their purchases are at a very high price. Other countries (and I'm guessing here) like USA, UK, EEC countries etc etc cannot afford to buy up large on gold, but that fact will NOT derail their economic recovery. It may slow down their recovery, but it won't derail it. Now, when those countries recover, and there are already signs that this is imminent, the value of gold will drop, as the demand for foreign currency (ie the greenback, EU etc etc) increases.
Is it not possible that by hording gold, those countries who are doing so will find themselves with a warehouse full of gold that is worth less than what they paid for it?? That would make their 'investment' a lemon, would it not?
Even if China and India held most of the worlds gold, that will not stop the economic recover, no matter what they think.....we have seen the lengths our governments will go to, to prevent a global economic meltdown, and it doesn't much matter who has the gold.
Of course gold is a good investment per se, but any commodity that is worth less than you paid for it, is just a lemon. After all, who are India and China planning on selling to???
Like I say, I'm simple and I may have it all wrong
Doing what you like is Freedom. Liking what you do is Happiness.
- #158,480
- Nov 3, 2009 12:28pm Nov 3, 2009 12:28pm
- Joined Oct 2008 | Status: sideline is a position | 105,144 Posts
those who can, do. those who cant, talk about those who can