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The Price of Gold Toilets is Rising Fast!

Discussion in 'Investing Strategies' started by Tropo, 19th Sep, 2008.

  1. Tropo

    Tropo Well-Known Member

    17th Aug, 2005
    The Price of Gold Toilets is Rising Fast!

    It was probably many months ago that we came across an article about a man from China who’d furnished a castle, or palace or sorts, with items made from solid gold.
    The article spoke of his acquisition of the gold at low prices, the years it took to transform the gold into common household furnishings and the subsequent melting down and selling of the gold at prices far higher.
    During gold’s meteoric rise to above $1,000 an ounce, the only item that he did not consider melting down and selling was what he referred to as the throne – his golden toilet.
    After all, who else can claim they had a fully functioning toilet in their home made of solid gold.
    But in the last few months the price of gold had been moving lower in a hurry. Until yesterday, when the safe-haven quality that gold historically boasts came soaring in and swooped up the yellow metal.
    Prices went flying. The rush of money into gold was strictly due to the lack of confidence and security in so many other asset classes that are currently going up in smoke.
    The evidence of credit market chaos intersected in a whirlwind of surging Libor and commercial paper rates, plummeting 3-month T-bill rates, widening TED and swap spreads and ongoing counterparty risk.

    When all else fails, go to gold, right?
    That’s what happened yesterday. And gold is extending and holding on to gains today. This week’s move changes the outlook for the metal quite a bit, as Dennis Gartman admitted in a Bloomberg article this morning.
    Will this lead the buck to continue correcting? It could, and it probably will justify some more dollar selling. But if you think the US dollar’s rally is over and new lows are only a matter of time, I wouldn’t jump to that conclusion just yet!
    Are you hugging your gold toilet in hopes of higher prices? Or are you willing to let it go after this week’s gift to gold bugs?
    Black Swan Capital
  2. Mark Laszczuk

    Mark Laszczuk Well-Known Member

    16th Aug, 2005
    Poor fella. He's been forced to watch the value of his furnishings go down the toilet.

  3. crc_error

    crc_error The Rule of 72

    1st May, 2007
    Melbourne, VIC
    actually turn into a toilet.
  4. Enough Tax

    Enough Tax Member

    16th Sep, 2008
    Townsville, QLD
    And the market is moving in the right direction for some anyway. Personlly I was hoping for a bit more negative action for the bargin buys;)
  5. Billv

    Billv Getting there

    15th Jul, 2007
    Sydney, NSW
    Gold is starting to take off again.
    Perhaps it's time to buy back his gold and to start making the next generation of furnishings