Econobrowser (Prof. Hamilton, see link on the right side) has noticed the gold phenomenon. Its price is rising while all other commodities are falling. A commenter writes:
Gold production is increasing rapidly and the cost of production is about half the current price. When this falls, it will fall just like the 1980s. But without the 5-12% inflation they had then, it will likely fall even faster.
But I don't doubt it could hit $2,000 before then.
The pic is the first known gold coin. (Update: Read also Dennis Mangan's comment below).
Econobrowser (Prof. Hamilton, see link on the right side) has noticed the gold phenomenon. Its price is rising while all other commodities are falling. A commenter writes: 
4 comments:
The commenter you quote is typical of the ignorance that prevails among paperbugs. Production of gold is falling, cost of production is much higher than that, and gold isn't a hedge against inflation, but against distrust of governments.
Dennis, you have a knack for finding the right word, and distrust is not the best description of what is happening. Rich people, the people who matters never trusted the government. What we have now is a widespread fear of a general geopolitical upheaval. Swiss banks are publishing the names of their numbered account clients, and closing private accounts. Investors are searching ways to store their wealth, and gold, diamonds and art are the traditional hiding places. The prices of all of them are rising. Some people is smelling the coming war.
Good news for you: apparently TASE is about the cheapest stock market in the world right now.
http://www.dailywealth.com/1386/This-Company-has-the-Highest-Dividend-Yield-in-the-Stock-Market
Thanks. Koor paid me last year more than 40% dividend. But that is exceptional.
Several new funds were established lately to invest in commercial rent-paying real estate in ... California. They say the price can only go up...
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