Economic update

[ashedfc]

This one I believe everyone shouldn't miss.
Illinois 10 billion $ Pension Fund in serious trouble.

http://www.youtube.com/watch?v=V3obG...layer_embedded

[ashedfc]

Blockbuster Expected to File for Bankruptcy Within Days, (stock at 5cents now, too late to short).

http://www.cnbc.com/id/39306983

[ashedfc]

This is a link worth listening...
http://kingworldnews.com/kingworldne...ames_Turk.html

[ashedfc]

This one you wouldn't wanna miss.......

"Consumer Credit Depression, CBO Deficit Armageddon, Government Warnings of Financial Fiascos!"

http://www.moneyandmarkets.com/3-gov...-fiascos-40235

[ashedfc]

Gold Takes Out All Limit Orders To Hit Fresh All Time High $1,307. Next Stop: $1,500?

The Fed thinks it can destroy the dollar? Sure they can. Gold just took out the $1,300 psychological barrier. Next stop, as predicted earlier today by BofA's Widmer: $1,500.
http://www.zerohedge.com/sites/defau...d%209.28_2.jpg

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(Kitco News) -- Gold could get a further boost if pension funds begin to diversify into the metal, as some speculated at the LBMA conference in Berlin, says GoldCore. “This trend looks set to continue and is significant as pension-fund assets are very large versus the small market that is gold,” GoldCore says. “The entire global gold supply is worth less than $200 billion a year while the largest 300 pension funds collectively hold about $6 trillion in assets. Therefore, even a small allocation of 3% to 5% to gold would contribute to higher prices….”

[ashedfc]

Worth reading !!!

http://www.marketoracle.co.uk/Article23092.html

&

http://www.marketoracle.co.uk/Article23100.html

[ashedfc]

Why Gold is rising

http://www.lewrockwell.com/north/north889.html

Bond Bubble: Be Wary! The downside will hurt.......

http://www.sprott.com/Docs/Investors...0_pg321Emb.pdf
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[ashedfc]

Gold and Silver, It Could Well be a Whole New Ballgame!
(must read for those serious to know more about the global economy)

http://www.marketoracle.co.uk/Article23216.html

[DaveP]

Are we in a gold bubble? I wouldn't want to be holding too much gold when the bubble bursts, as all bubbles do.

[ashedfc]

Are we in a gold bubble? I wouldn't want to be holding too much gold when the bbursts, as all bubbles do.

Short Term, things look very frothy...., so its hard to predict. But over the intermediate to long term, central banks worldwide are gradually getting into a currency war like situation, & you know what that means - too much money printing, currency debasement, & unintended consequences like inflation (or even hyperinflation).
As of now, emerging markets are experiencing inflation, & developed world if facing deflation, but this can change if you add multi-trillions US dollars/ Eurozone euro/ Japanese yen/UK pound/Brazilian Real, etc. worth of new money into the system.
Refer to this: http://dailyreckoning.com/deflation-...or-urban-myth/

Infact the Bond market is showing signs of the biggest bubble in history. When this explodes, mostly conservative investors will be the loser...
Go through this one: http://www.sprott.com/Docs/Investors...0_pg321Emb.pdf
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[ashedfc]

Bubble or not (we will see in the future); To sell or not - is a personal decision or an individual tolerance, risk-reward analysis, % allocation, etc.etc.

In general : The indications for medium to long term are for higher prices.....

Aug 16th 2010: http://matterhornassetmanagement.com...no-double-dip/

Sept 6th 2010: http://goldswitzerland.com/index.php/2010/09/
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[DaveP]

A lot of ifs.

My warning bells go off whenever I see a single sector reaching historic highs. Real estate, tech stocks, oil futures, even commodities like silver back in the 80s, or tulip bulbs in the 1500s. When everyone wants in is the best time to get out.

Gold at $600 an ounce within 2 years.

[ashedfc]

A lot of ifs.

My warning bells go off whenever I see a single sector reaching historic highs. Real estate, tech stocks, oil futures, even commodities like silver back in the 80s, or tulip bulbs in the 1500s. When everyone wants in is the best time to get out.

Gold at $600 an ounce within 2 years.

If that's the situation - than in all major cities in Canada, one should sell their house right-away. as houses have reached historic highs, & interest rates can't go any low (they are already going up in Canada).

All the asset prices are calculated relative to something (mostly currency). When currency is getting devalued than the outcome varies...

[brunt]

A lot of ifs.

My warning bells go off whenever I see a single sector reaching historic highs. Real estate, tech stocks, oil futures, even commodities like silver back in the 80s, or tulip bulbs in the 1500s. When everyone wants in is the best time to get out.

Gold at $600 an ounce within 2 years.

My problem (in general, not with you) is the lack of consistency with this opinion.

Gold at historic high equals bad future for gold. Real estate at historic high equals good future for real estate. All said with a straight face. And these people actually earn a salary to say this kind of dreck.

When a currency depreciates over time, one would expect (in absence of increased productivity) that the price of everything would increase over time. Check a grocery flier from 20 years ago. Or 40. The price of almost every dang thing that goes in your mouth is at a historic high.

I don't think that it is a case that everyone wants in. I have yet to talk to a single person outside of my coin collecting buddies (and one metals friendly blog) who is actually buying. Most are absolutely clueless as to how to buy even if they are aware that the price has increased.

You might be right, I may be wrong. But I personally don't think so. I believe that gold and silver will be more expensive (especially in terms of US dollar) one year from now than it is today.

[ashedfc]

Its is really very confusing, to predict the direction of an asset class.
We had never imagined the collapse of US dollar (which seems like an option), though its too early to call the demise of world reserve currency. The trades are already happening in that order..... Rise of Gold to $1341 & above is an indication that big money is moving into Gold. For silver, short covering is also a major factor.
Is the US Dollar crashing
http://www.zerohedge.com/article/us-dollar-crashing