What My Father's Stock Broker Says About The Dollar & Gold

[Gold9472]

Your question from Jon about gold is a good one, but I have had a concern about gold for several years because there is a substantial amount of gold being held by the destitute Russian government and no way to determine how much they really have. The result is that anytime gold starts a sharp increase they may be tempted to increase their sales and cap the increase. Since supply and demand is so difficult to predict it gives me a considerable amount of discomfort.

As far as potential profits are concerned, it might be advisable to place some money in copper. The world wide supply of copper is not such a mystery and the demand is escalating tremendously. China is growing at a very steady pace and has unbelievable needs for electricity. They have recently built 4,000 high-rises in Shanghi, all of which are over 20 stories high. They do not have the infrastructure to produce or transmit the power around their country. Their citizens are just starting to be consumers and need the power to enjoy their purchases. There is a tremendous shortage of potable water and electricity will be needed to address that problem.

If a crisis occurs in the Dollar, hard assets will make a dramatic climb in value, including gold. If there is a Dollar crisis, copper should increase also, but it should increase even if there is no crisis.

[Gold9472]

As you all know, I'm a financial retard. The knowledge that I have comes from what I've read, and watched, but it's REALLY not my strong suit. My father on the other hand, is VERY good with investments. If that means anything.

[rayrayjones]

gold...good!, jon or the commodity!

dollar...propped up as much as it can, nowhere to go really but down and with interest rates expected to go higher stock prices will also fall. that is the nature of the cycle and federal reserve manipulation.

any metal is better than the dollar which backed by $8 trillion deficit....copper, platinum, silver, nickel...hell, i think guano is better than the dollar right now....at least you can make energy and fertilizer from it....with a dollar all you can do is buy shit and wipe your ass, and that doesn't feel good. (all puns intended)