Being an “I told you so, sort of person”, at least when I’m right (let’s not mention the times, as I often am, wrong), I'd like to reiterate something I said in comments back in 2004 on this blog, repeated below:
Tom, I basically agree with you, but the dollar fluctuation is only temporary. Its on a long term downward trend and the rest of the world knows it. Bush and the rest of his crowd might monkey around with it so it doesn't fall apart next week, or even in the next year or two, but eventually the chickens will come home to roost....and we’re the one’s sitting at the bottom of the chicken coop.You might want to go grab some Krugerrands.
Posted by: Buck on December 10, 2004 10:52 PM
So where are the naysayers now? Gold went down from well over a thousand dollars to the low 900’s on Friday. Which way is it heading long term? Anyone want to venture a guess? I’m sticking with the plan, and I’d buy some on this temporary weakness if I was flush with cash. Anyone changed their minds on this subject?
There is no intrinsic value -- gold, $, peso, euro.
It's all smoke and mirrors and a fragile gentleman's agreement.
Posted by: degustibus on March 22, 2008 11:31 PMGold went down DRASTICALLY on Friday. So Bushco are tossing Fort Knox on the fire to make sure there are no american resources left for the nexpresident.
Posted by: regulararmyfool on March 23, 2008 9:53 AMIt went down because the market had "priced in" a 1 point reduction by Bernanke (if you believe in such things). But Bernanke will keep cutting interest rates before the election IMO. Which will cause the dollar to continue to go down and require us to continue borrowing from the Chinese and other countries flush with dollars. We may see a further price reduction in gold and commodity prices temporarily, but long term, my bet is they are going up. The dollar will continue to weaken. The only solution is to raise interest rates here in the US-drastically. Which will happen in due time.
We've been through this before in the late 70's/early 80's. But this time it's much worse. Just my opinion folks. Call me on it if I'm wrong.
Posted by: Buck on March 23, 2008 10:09 AMdegustibus is right, of course, but as Joe Jackson succintly put it, so now what the hell do we do?
Laurence Hunt, a fellow alumnus of New College, has a great interest in this area and provides a lot of data. I recommend his blog for goldbugs especially but for everyone with a detailed interest in the economy.
Posted by: Chuck Dupree on March 23, 2008 8:54 PM