It is here... - Page 2

P H What factories ? We no longer have any.

Originally Posted by olddude

P H What factories ? We no longer have any.

exactly. minimum wage workers have no disposable income. no money, no factory's, no economy.

for all of the raging debate over wages and distribution of wealth, it is really simple.

the dollar menu is not relevant to you if you only have $.50.

how long can the manufacturer stay in business without a consumer who has that dollar and is willing to spend it. ( the manufacturer never considered that the low wages being paid to their employees would decrease the total number of consumers)

i see no change in our current economic policy's. which leads me to believe that we will see $2/k per ounce gold before we see $1k/ ounce gold. tho i would prefer the $1k/ounce. a healthy vibrant economy is good for all of us.

Originally Posted by Ewasted

The majority of gold's value is solely based on speculation alone... less than 5% of gold trading is physical trading, the rest is on paper

you are only discussing open market trading. i was including manufacturing. which would include recovery. i would include private trading and institutional/individual holdings but it is too difficult to get a realistic number. but they are there.

all commodity's have some speculation driving their pricing. some are affected more than others by that speculation. the cost of producing gold will keep it above the $1k/ ounce mark. demand, fear and speculation will continue to drive the price up.

looking at industrial metals, copper is greatly under valued. but it is what the market is willing to pay right now.

but your prediction of a gold crash does not have any validity to it. another year of volatility in the price and a continued upward move. will not be surprised to see it run down to the 1500 level and then start back up.

Originally Posted by Ewasted

where is all of this gold manufacturing taking place? What is the main driver of gold?

thought you are an ewaste recycler. we use a fair amount of gold in the electronics we all make use of every day. while it may be a very small amount in any particular item. look at all of the items in use. the jewelry industry is still going, tho at a slower pace.

i read an article where the author stated the price of gold was going to drop to $1300 an ounce by the end of this year and plunge under $1000 by the end of next quarter. he used that same theory that speculation was driving the price of gold. while ignoring the trend of gold over the past 10 years. since we have seen a steady rise in the price of gold for several years, and have seen the usage of gold in industry increase for several years, can you explain what was keeping the speculators in the market and why those same speculators are now going to abandon this commodity?

just how low do you think gold is going to drop to.

sure hope you are wrong about the gold trend. i am processing a lot of boards and plan to increase that amount dramatically. would really suck if gold dropped to $1k/oz.

btw- gold dropped under 1600 a few days back. it is now just over 1600. did you miss the 1500 lows?

10 years ago gold was just under $300/ ounce
5 years ago it was $600/ ounce
a year ago it was under $1300
currently we have $1600

10 years of speculation?

Originally Posted by Kris Kringle

Some People has Made lots of Money off of Gold/Metal by speculation and never even had to Touch gold/metals.

Called Futures Trading.

must be the reason gold has made such a dramatic increase over the last 10 years. if the speculators get out, then gold will drop to under 300/oz.

i am going to have to talk to my broker about this future trading. is this something new? i do commodity trading. is that different? in commodity trading, speculators can drive the price up or down. called shorting. sell high buy low. some people make more on shorting than playing long.

gold closed flat at 1607. currently trading at 1608.80. up slightly from the market close.

perhaps there is more driving the price than just speculators.