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Re: mopnupn2010 post# 39839

Tuesday, 05/17/2011 1:20:22 AM

Tuesday, May 17, 2011 1:20:22 AM

Post# of 102667
well there are multiple situations that could arise from the sale of our countries gold into the open market and very much so depends on how both supply v. demand plays out and also how the market takes it. I will list a few possibilities but keep in mind it is purely IMO!

MOST IMPORTANT! Since gold is gains value for many reasons the main reason is to hedge against inflation! If the U.S finaly got fiscally responsible then concerns of inflation would diminish over time and gold prices would most likely plummet in time if certain debt concerns were no longer as prevelant! but below are some other statements i thought of!

1) gold will drop since a vast amount has been sold out into the market which will devalue the resource.

2) gold will soar in the U.S. at least since we would have little supply left so a resurgence in mining in the U.S. may occur.

3) Many of the major companies hold their gold in stockpiles and is not regularly available and hence those companies value relies entirely on the amount of gold they have in reserve

4) the markets in the U.S. would regain confidence and head upwards if only for a while but possibly linger term with the business confidence in the government that they might for once be conservative in how the spend tax dollars!

5) IT WILL NEVER HAPPEN!!! politicians are spending crazy and as long as they dont get kicked out of office they will spend us into bankruptcy and the whole time will blame the ones that wanted to stop spending to start with and use them as scapegoats so they can keep office!

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