Talking gold

October 5, 2009

Chatting about this blog post from last week.

UPDATE: gold hits record high today. BTW, be careful of chasing this momentum. While I remain a long-term bull on gold relative to the dollar based on fiscal/monetary policies in Washington, I think the price could be quite volatile and investors may have future opportunities below $1,000.


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Have you ever held a Krugerrand in your hand? I think it’s something every investor or manager or regular curious citizen needs to do. Some time back I bought a few, mostly for entertainment value…I had never held something with so much concentrated, recognized value. I have to tell you, they are IMPRESSIVE. Big and solid, with a nice ‘chang’ when plunked on a glass table or marble surface. It’s particularly enjoyable watching an acquaintence’s face as he/she hefts one for the first time, and considers aspects of what is in their hand.

Posted by John Kessler | Report as abusive

Hey Rolfe, good interview. I’ve been trying to figure out how we’ll get out of this without a sudden stop. The only analogy I can come up with is the civil war reconstruction. Basically, there was a false economy constructed around free labor in slavery before the US civil war. This entire economy needed to be torn down and retooled; the south suffered for years but eventually through purging the economy and reconstruction the economy recovered.

The same applies now, except instead of the cotton industry its real estate. and instead of slavery we have exported inflation via cheap foreign labor. we need to purge our economy of these two forces before we can see any sort of recovery.

Posted by Ed Giardina | Report as abusive

Nice video to promote your career.
However, once again you only complain about what we are doing, and don’t offer concrete suggestions on what we ‘should’ be doing…..
Next time, spell it out for this dumb economist…..

Posted by Edgy | Report as abusive

I think it’s likely for us to have another major stock market crash by the end of next year. Commercial mortgages, derivatives, Social Security payouts more than what we are taking in – there’s several catalysts here.

Just like late 2008, it’s easy to see the selloff from margin calls – and gold and silver will be liquidated to pay the piper. I’ve blogged this before; good stocks get sold along with bad in a stock market drop. They just recover more quickly.

I also expect the dollar to rise based on the derivatives that will need to be paid(demand), and for all commodities to take a hit except agriculture. It’ll be short lived but all signs are pointed that way.

Posted by Lisa | Report as abusive

Edgy….What should we be doing? See here: 009/09/30/krugman-and-the-pied-pipers-of -debt/

Posted by Rolfe Winkler | Report as abusive

Lisa on the spot as always.

Posted by Gaspard | Report as abusive

Frankly the blog post is as good as not saying anything. It has an entropy of near zero. The prediction seems to cover heaven and earth and everything in between.

Posted by Lim Boon Chuan | Report as abusive