Quote:
Originally Posted by will76
That tells me two things.
1. According to that graph, gold (proportionately) to the debt ceiling, is closer to it now then ever before, and even looks to be passing the debt ceiling line. When it got close in the past it had a nice drop off shortly after.
2. If the US can get the debt situation turned around gold is going to drop like a rock, back down to about $500 an ounce. Which if you live in the US (or any where in the world since everything is tied into what happens to the US so much) and the debt ceiling keeps going up you screwed 1000x other ways because of what will happen to the economy and those of you with a couple ounces of gold are still going to be fucked, even if gold is worth $5,000 an ounce.
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1. At the current rate of spending we will hit the new debt ceiling in September.
2.That is a huge "if", but yes, if the US balances the budget, massively cuts spending and interest rates go up then I would be looking to exit gold. All of this will eventually happen, but I think the government is going to stick with their "kick the can" method of dealing with things for awhile to come...
...and you are way off to assume that the gold bulls here only have "a couple ounces" of gold to their name. I happen to know a few people here with 7 figures in gold bullion.