[miraculix]

oilfinder is turning into the perennial troll...

Gold is a store of value irrespective of physical demand in which gold is being consumed to fashion jewlery or to turn it into electrical components.

The reference currency is being debased, so the sticker price of gold rises. Throw in the psychological factor of inflation fears and the price increase outpaces the actual inflation.

It always has been that way with gold.

On the other hand, grain and oil are real commodities with actual physical shortages.

So please quit trolling on and on and on

[CrudeAwakening]

troll food deleted

[frankthetank]

I'll post this here. I like OF2. I hope he can convince as many as possible that the Titanic isn't sinking. I really want the food to stay on the grocery store shelves! OF2 probably has 8 chest freezers full, 2000 pounds of rice, lubes, plastic trinkets...

Ok... Just read this.

$this->bbcode_second_pass_quote('', 'A') large aluminium smelter consumes as much electricity as a city, and a single furnace, which is about the size of a lorry, uses enough power for 1,000 homes but produces only about three tonnes of metal a day. Anglesey Aluminium in Wales is Britain's biggest single consumer of electricity.

Analysts forecast that the aluminium price will hit $4,000 a tonne in the next couple of years. The metal was trading at $2,900 a tonne on the London Metal Exchange last week, up 50 per cent in two years. Power costs have risen by about 50 per cent for the industry in the past five years and are expected to rise further as oil and gas prices continue to rise.

[mmasters]

Totally agree with Rodgers on this one!

$this->bbcode_second_pass_quote('miraculix', 'o')ilfinder is turning into the perennial troll...

[Plantagenet]

$this->bbcode_second_pass_quote('OilFinder2', '
')$this->bbcode_second_pass_quote('miraculix', 'T')he reference currency is being debased, so the sticker price of gold rises. Throw in the psychological factor of inflation fears and the price increase outpaces the actual inflation.

It always has been that way with gold.

$this->bbcode_second_pass_quote('Plantagenet', 'S')o you think gold and oil are becoming similar investment vehicles?

[copious.abundance]

Incidentally, can't resist . . .

Gold


Oil


Hmmm . . .

[pictishbroch]

In this very recent interview with Bloomberg Jim Rogers says Asia is the future, the dollar is a terribly flawed currency and he doesn't want to own any, oil will certainly pass $200/barrel soon, and the (privately owned) Federal Reserve will disappear within the next decade.

http://au.youtube.com/watch?v=zhLPNdjyjyg

[mmasters]

$this->bbcode_second_pass_quote('pictishbroch', 'I')n this very recent interview with Bloomberg Jim Rogers says Asia is the future, the dollar is a terribly flawed currency and he doesn't want to own any, oil will certainly pass $200/barrel soon, and the (privately owned) Federal Reserve will disappear within the next decade.

http://au.youtube.com/watch?v=zhLPNdjyjyg

[kpeavey]

I thought Jim Rogers was Clarence for a minute there.

[Nickel]

$this->bbcode_second_pass_quote('mmasters', 'C')hina's not the future... The future is a world for the rich

[mattduke]

Keep cool. The investment thesis remains the same. First the crash, then the government response.

link

[charliebrownout]

$this->bbcode_second_pass_quote('mattduke', 'K')eep cool. The investment thesis remains the same. First the crash, then the government response.
link

[Iaato]

Jim, you da man. He is spot on. It's going to be inflation; you've just got to give it time to rear its ugly head.

[Micki]

I agree and re-iterate what I said a few times earlier; action is always in reaction not as a pro-active move. We need to have crash and chaos threats before serious inflation can take place.
Given that any amount of money can be printed, and if authorities willing, distributed via helicopters, it eventually comes down to their determination until the money they spread around loses it's status as actually being money.

I actually can't remember reading Jim Sinclair talking about Weimar like this before. Normally he has talked about inflating and dropping USD but then stabilizing the situation with a new quasi-gold standard when gold is at or above $1650.
If he firmly believes his own statements he should perhaps recalculate that number. Having that said, he likes to be conservative in estimates.

Fresh from Jim Sinclair
$this->bbcode_second_pass_quote('', 'D')ear Friends, Stay the course or jump directly into the fire! That's the soundest advice I can give you in this highly volatile market period. I told you that you would see volatility in gold beyond your wildest imagination. That statement usually went along with my warning that by margining anything gold you were putting yourself in great financial risk.

Today has to seal the veracity of that advice. Now get a hold of yourself. There is absolutely no way governments can make a problem of this size go away over a weekend. Those that question me on this issue are the same ones that laughed in 2000 when I said the growth of OTC derivatives was going to break the world. I told the lead director of Bear Stearns at the time that OTC derivatives were going to break his firm but the profits from them was simply too intoxicating for anyone to listen. Now I am asking you to listen.

Whatever is done to resolve this global financial crisis is going to inject incomprehensible amounts of new money into the global financial system.

Academics see the world as a 'Picture In Time." That means they are static thinkers who can't perceive motion. Visionaries like Harry, Monty, Trader Dan & Tony are "Dynamic Thinkers." At present, some academics are promoting the dumbest line I have ever heard. They say that all this new money going into the system is not monetary inflation because it is simply replacing all the money lost and therefore is a wash. That is part of the thinking pattern I am talking about and it's dead wrong.

Dynamic thinkers know that the outflow of these losses has existed from the time of transaction and therefore prior to truer valuation as mandated by Financial Accounting Standards Board (FASB).

The day the FASB mandated truer value had existed for years but was not recognized as such because it was generally accounted for off balance sheet. Just because financial institutions tried to hide their losses, those capital depletions were already a growing cancer inside their organizations.

You can be certain that a repetition of Germany's Weimar crisis is coming soon. There is nothing that can be done to make matters better - even if done by governments unilaterally in a unified action. In fact, such action will only serve to make matters worse.

The larger the financial action, the deeper the financial fall. The G7 still thinks they run the world. That should tell you something about the degree of what they can do.

Gold is honest money that will push all crappy paper out of its way. Why do you think so much intervention took place in gold in US market hours today?

All I can tell you is to stay the course or jump directly into the fire! If the heat in the kitchen is too hot for you, there is nothing I can do for you.
Regards,
Jim Sinclair

[threadbear]

$this->bbcode_second_pass_quote('Iaato', 'J')im, you da man. He is spot on. It's going to be inflation; you've just got to give it time to rear its ugly head.

[JohnDenver]

Jim Rogers has lots of egg on his face. His mantra has always been that commodities are on an unstoppable bull run. He was profoundly wrong, and people who kept the faith in him lost their asses.

At the moment, his "Rogers International Commodity Index" is down by about 40%. That's pretty much all you need to know about his credibility. If he's so good at seeing the future, why didn't he see that future?

He's just trying to change the subject away from his own failures. If the interviewer had any sense he/she would have kept pounding him about his failure to call the commodity crash.

[DantesPeak]

I've said this many times before but some still don't believe it - in the middle of the 1930s depression the US government was able to devalue the dollar and raise commodity prices 75%. Stocks prices also rose sharply during the beginning of the devlauation period.

See this post for links to historical data: link

Now, with liquid-nitrogen super-computers spitting out $1 trillion in new dollars in just the last few weeks, Sinclair is already behind the times when he says a 'Weimar crisis is coming soon'. It's already here. The rate of commodity inflation will eventually exceed the successful dollar devaluation experiment of the 1930s, which created inflation in a very depressed economy, although inflation won't get into gear until money starts coming out of one month Treasury bills earning the extremely low interest rate of 0.01%.

Also there will be no bank 'holidays', at least not until the dollar crashes. The President will just decree full FDIC backing of all deposits and bank assets if necessary.

The bad news is that the clock is now ticking on the coming dollar crash, which should now arrive before the end of 2010.

[DantesPeak]

$this->bbcode_second_pass_quote('JohnDenver', 'J')im Rogers has lots of egg on his face. His mantra has always been that commodities are on an unstoppable bull run. He was profoundly wrong, and people who kept the faith in him lost their asses.
At the moment, his "Rogers International Commodity Index" is down by about 40%. That's pretty much all you need to know about his credibility. If he's so good at seeing the future, why didn't he see that future?
He's just trying to change the subject away from his own failures. If the interviewer had any sense he/she would have kept pounding him about his failure to call the commodity crash.