All that glitters...

[Diggles]

Yeah, in 1980 it was a "superspike", which many are saying could happen today. The trick would be selling at the peak...

However, this time around it is more a fundamental story than a speculative one. Foreign governements are diversifying into gold in a big way, particularly China, which is the real story. Will they move back into dollars if it strengthens? I'm not so sure. It's obvious to me that even if the fed causes a brief rally in the dollar next year, the long term prognosis for it is down, down, down...

I'm thinking if you havne't invested in Gold, you might get another leg as the people who've already invested in gold, now begin to invest in the $.... I'm assuming, if something like this is going to happen before Hyper-Inflation sets in (over supply of the $, right?), we should see some huge volitility (another big market correction, depending on how fast the dollar move is...followed by another bull run until the $ finds support?)?

EDIT: And for silver, doens't silver shine in recession & depression because of its Industrial aspect and governments tendency to invest in infrastructure, wage war, and emerging markets capitalizing on cheap imports?

I think you're missing the point that when people dont trust paper money in bad times, silver is the MOST COMMON form of currency in the history of the world. virtually every great society has used silver coinage.

Silver production has been flat for at least 30 years, and the past 5 years been at least 15% under the demand. once all the stockpiles are used up and supply cant meet the industrial demand, it can only go up.

throw in the fact that silver cannot be reused/recycled like gold and you should be good.


i dont have the money to throw around, but I think silver will be up to 35 per once by 2011