Article

2008-12-13 Home Front Economy

Fear triggers gold shortage, drives US treasury yields below zero

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by tipper 2008-12-13 08:54|| || Front Page|| [21 views ] Top

#1 I've heard there's no shortage of 100 oz gold bars, just the bit and pieces retail investors tend to accumulate. That's the problem with retail gold - bid and ask spreads are huge - buy high, sell low is the retail investor's experience.

Posted by Zhang Fei 2008-12-13 14:44|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2008-12-13 14:44|| Front Page Top

#2 More unnerving, because of the frenzy to build a T-bill bubble, the FED wants to get in on the action and issue bonds itself.

An analogy was someone so desperate to deposit money in the bank, that he hands a bag full of cash to the bank security guard.

Posted by Anonymoose 2008-12-13 17:00|| 2008-12-13 17:00|| Front Page Top

#3 Everything is un-nerving, especially when you calculate the bird flu problem which is right on the event horizon.

Posted by .5MT 2008-12-13 18:55|| www.cybernations.net]">[www.cybernations.net] 2008-12-13 18:55|| Front Page Top

#4 My advice is to buy ten gallons of hand-lotionk withdraw all your FIAT money and turn it into Whiskey and Fishhooks, don't be deceived by hucksters trying to sell you gold. Ever try to eat gold? Ever get a buzz from silver? Dawgs, you are wanting to trade your cash for Likker, Fishooks, and Stuff (stuff to be named later).

Posted by .5MT 2008-12-13 18:59|| www.cybernations.net]">[www.cybernations.net] 2008-12-13 18:59|| Front Page Top

#5 good advice. I cashed in the 401K and bought cases of Jack Daniels and Dynamite. Screw the fishhooks. I want the fish to ~~float~~ come to me

Posted by Frank G">Frank G 2008-12-13 19:42|| 2008-12-13 19:42|| Front Page Top

#6 I cashed in the 401K 10 years ago. I invested in black powder, fish-hooks, and incandescent light bulbs. When incandescent bulbs become unavailable I will make a killin' on the Black Market. I makes me own likker.

Posted by Deacon Blues">Deacon Blues 2008-12-13 19:48|| 2008-12-13 19:48|| Front Page Top

#7 Gold has been generally falling for most of the year. If there was a "shortage" the price would be going up. It isn't.

Also, the dollar is rising relative to the Euro and other world currencies. We might have it bad but other countries have it worse. As the dollar rises, gold will fall. Gold is traded on world markets in dollars.

Buying gold right now is a dumb idea. There is no inflation, the dollar is strong, and all appearances are that the US stock market hit bottom on November 20.

I would hold cash and buy into any down markets. If you already are invested, now wouldn't be the time to get out. I would start buying in regular small intervals to use dollar cost averaging to make the most gain out of current low prices.

Posted by crosspatch 2008-12-13 20:47|| 2008-12-13 20:47|| Front Page Top

#8 OOps, expand that USD / Euro graph back to about June to see what I was talking about. I forgot the default link only shows a short recent period. You can drag the slider to expand the graph.

Posted by crosspatch 2008-12-13 20:50|| 2008-12-13 20:50|| Front Page Top

23:42 Old Patriot
23:40 Frank G
23:35 Barbara Skolaut
23:33 Barbara Skolaut
22:57 Barbara Skolaut
22:47 Jolutch Mussolini7800
22:43 Steve White
22:43 mhw
22:39 SteveS
21:50 DarthVader
21:34 Muggsy Glink
21:30 DoDo
21:25 Frank G
21:22 Frank G
21:12 Kermit
21:08 Frank G
21:02 Spogum Hapsburg8193
20:56 Frank G
20:50 crosspatch
20:47 crosspatch
20:45 sjb
20:45 Barbara Skolaut
20:44 Barbara Skolaut
20:42 SteveS