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168 Comments
- inactive, on 06/29/2008, -8/+61Last fall I bought 3 grams of Coke for $60 from a friend who needed cash cash in a hurry.Its now worth $400 when I cut it.I'd say thats some good appreciation
- kd1s, on 06/29/2008, -3/+32Last fall I bought 3 grams of gold for $60 from a friend who needed cash in a hurry. It's now worth $89.40 I'd say that's some good appreciation.
- synarchy, on 06/29/2008, -2/+30I would not get too excited. Keep in mind that your gold is worth "more" only because you are valuing it in dollars. The basic buying power of the gold itself is relatively stable (the amount of bread an once of gold bought 100 years ago is about what it would buy today [which is a lot!]). Your gold is appreciating (relative to the dollar) because of the falling value of the dollar, which the Fed has inflated beyond belief to keep its banking and Wall St. friends "liquid" in the face of total collapse. Last time I looked the "value" of the dollar was just a few cents of what it was worth when the Fed was created back in 1913.
Gold is certainly a great hedge against a rapidly inflating fiat currency such as the dollar, and you are smart to be investing in it with so much inflation going on. Other types of investments, in corporate stocks for example, may be more profitable if things ever stabilize and inflation can be reigned in. Unfortunately, all we really can expect from the government/Fed/Wall Street triangle is more of the same. - inactive, on 06/29/2008, -0/+25200 years ago 1 ounce of gold bought a man a nice suit and a good meal. 100 years ago 1 ounce of gold bought a man a nice suit and a good meal. Today, 1 ounce of gold at $925/ounce you can still buy a nice suit and a good meal. So $925/ounce sounds about right.
- desuexmachina, on 06/29/2008, -0/+22With a big enough piece of gold you can use it to bonk somebody on the head and take their food from them.
- StingingNettle, on 06/29/2008, -3/+25I am a gold digger. Dugg!
- MrFlibble1, on 06/29/2008, -3/+23Meh, you can subscribe to the buy high, sell higher if you can theory. Me? I am buying all those things that are depreciating in other markets. I prefer buy low sell high. If stocks are unpopular, then in my mind it is time to buy them. Gold popular? Time to sell it.
- logicet, on 06/29/2008, -1/+16Gold has gone from $250 to nearly $1,000 an ounce in the past 5 years.
I can walk down to my local coin shop and get $1,000 FRN's for it at any moment.
Am I missing something? - logicet, on 06/29/2008, -2/+17What makes a paper dollar worth a paper dollar? I'm thinking the farmer would much sooner accept a hunk of metal than a worthless piece of paper.
- PabloIV, on 06/29/2008, -1/+16and liquefying those assets shouldn't be a problem either.
- StingingNettle, on 06/29/2008, -1/+13Gold has proven to keep value for thousands of years. People buy gold not as an investment but to only try to preserve their wealth, because there is no other good place to stick their money. Feral Reserve notes have been around for about 90 years have have lost about 90% of its value since. Am I missing something?
- DiscoLando, on 06/29/2008, -3/+14I have to ask, what practical good does it do to buy gold? Sure, I understand you're holding tangible value that is basically inflation proof, but can you always convert it back to cash when you need it? Even if the gold you're holding goes up in value by, say, 10%, if you try to sell it at that point you're only going to be able to sell it at a certain fraction of its current value so you're probably not going to net much, if any, net return.
Am I missing something? - StingingNettle, on 06/29/2008, -0/+11Sure, but there is one more leg up in this bull market for gold, and the trend has just started for a bear in stocks.
You will be right, but I think you are to early. - gryphon50, on 06/29/2008, -0/+10I love the commercials where they want to buy your gold- you just have to put it in a special envelope and mail it in! Yeah right. The U.S. postal service would never lose it, right?
- krnldmp, on 06/29/2008, -4/+13Quick! We need another bubble to ride. Forget about doing something with your time that the world needs, just hoard different things while the price goes up until the bottom falls out leaving the rich with the haul once again. Precious metals are different than all those other things we lost on before! No, Seriously!
- bphicke, on 06/29/2008, -2/+10Department store clearance rack != good suits.
- synarchy, on 06/29/2008, -0/+7I am struck at how people think they are making money by buying gold just because it now takes more FRNs to buy it (because of inflation of FNRs). That gold you bought in '04 won't buy you anything more today, except more FRNs. But it takes more FRNs today to by anything at all. Buy gold to protect assets, but you will need to invest your money in business if you want to increase your capital (or loose it).
Unlike the guy above you, dalittle, buying gold now is very smart, since the Fed's inflationary policies will hit the economy soon like a ton of bricks. At the rate they've been making loans to bailout investments banks and commercial banks, the damage to the dollar may be so severe that we'd see hyperinflation, in which FRNs would become close to worthless. You will be glad you have gold then! (Of course, back in the 1930s the government declared anyone who tried to hedge FRN inflation by owning gold criminals, and forced everyone to turn in their gold for more useless FRNs or face jail.) - gobbleplex, on 06/29/2008, -4/+11You can't eat gold or silver. Precisely what good would it do you to own a ton of it if the world goes to hell and you (along with everyone who isn't a farmer) is starving? Why would the farmer take your gold? It can't just have value because "it's valuable." There has to be a reason.
- ScottNyRealtor, on 06/29/2008, -0/+7Don't know who would dig this down lol, perhaps angry dollar holders. I've been in gold since $600 for the same exact reason and it's been a nice ride on up.
- pstroll, on 06/29/2008, -1/+8Obviously gold doesn't work in an apocalyptic scenario especially against zombies and werewolves.
- StingingNettle, on 06/29/2008, -1/+8My answer would be, "history". Gold has stood the test of time. Every fiat currency eventually gets inflated away.
- logicet, on 06/29/2008, -9/+15Investing in commodities is the only way to protect yourself from the Federal Reserve printing presses at this point.
Apmex.com is good for buying gold or silver. - jandor, on 06/29/2008, -0/+6In times of recession, moving your assets into commodities, precious metals, and real estate is historically what most people have done. Since real estate is no longer a viable option, and commodity futures are too volatile, precious metals are a sure hedge against our faltering economy. Hard goods, i.e. cash in hand, gold, and liquid tangible assets, etc. If you invest in gold, make sure part of your portfolio is not just stock, but real gold, especially older coins. Jim Sinclair gives valuable insight of the economic woes that are rapidly approaching and what you can go to protect yourself and your assets:
http://jsmineset.com/ - rromanchuk, on 06/29/2008, -1/+7
"Obama is elected and people start to gain hope again that things will get better, and the economy gets better, the price will plummet. Mark my words."
now THAT is funniest thing I have seen all day. - PabloIV, on 06/29/2008, -1/+7The farmer would still need tools and equipment, and the smith would need more than just food (including possibly gold). The reason that we no longer deal in a barter based economy is that you don't really always need what the other side is offering and vice versa, and it may be many many steps in the chain of acquisition before you come across something you do need.
Gold is a good standard that most people understand and based on its rarity it holds value. I've got a nice lil stash I got when Bush invaded, just in case everything went to *****. - MrFlibble1, on 06/29/2008, -1/+7Well, I know that no one can accurately predict the ways of "Mr. Market"*. I just know that when he shows up at my door, and is depressed because everything is going badly, and he has stocks at a reasonable price, I buy them. If Mr. Market shows up at my door, and everything is great, and the world is wonderful, I have no problem selling my stock to him, he does not mind.
I can't predict what Mr. Market will do on any given day. I can only know he is a little insane. Still, that does not prevent me from making a profit off of him.
* See "The Intelligent Investor" by Ben Graham chapter 20 for the treatise on "Mr. Market". - diggthis123, on 06/29/2008, -3/+9We should be back on the gold standard
- slezzzter, on 06/29/2008, -1/+7That would be the most interesting part of legalized drugs: the opportunity to trade drug futures on the open market.
- rromanchuk, on 06/29/2008, -0/+6You don't own any gold unless it's sitting on your lap.
- bjornski, on 06/29/2008, -1/+6http://www.goldsheetlinks.com/production.htm
Yeah. Real rare.
Let's use jewelry mined in another country as currency!
Please. Compare the gold produced in the 2007 graph with the gold in the 1970 graph.
1970 = South Africa produced over 32Moz of gold, 2/3's of the world's production of 47.5Moz.
2007 =1. China: 276mt [article]
2. South Africa: 272mt
3. United States: 255mt (estimated)
4. Australia: 251mt (est)
5. Indonesia: 171mt (est)
6. Peru: 167mt
7. Russia: 4.9mt (est)
8. Canada: 93mt
9. Papau New Guinea
10. Ghana
Other:
TOTAL: 2444mt
The amount of gold coming out the ground right now is STAGGERING!
Real rare. You're just being played for suckers on a different commodities market. - ChromaVita, on 06/29/2008, -1/+6If you believe in the apocalyptic scenario of werewolves, then it would be much wiser to invest in silver...
- dmbchris, on 06/29/2008, -3/+8Though gold sounds like a sound investment, it is still controlled, to a degree, by large mining companies. They typically sit on large volumes of gold (off the market) waiting to sell at the right time. Gold is not scarce, it has large reserves (unlike copper), and its value will drop just like any other commodity if a mine decides to flood the market with new gold.
A better commodity to invest in, as I alluded to, would definitely be copper. It is well understood that we have mined 2/3 of the world's copper and no one is finding any more. Just wait 20 years until the mines are exhausted and then people will do crazy things like mining landfills. It is already VERY common for thieves, even in the USA, to steal copper roofs (yes, the roof) from historical buildings and rip out plumbing from construction sites or vacant buildings. - inactive, on 06/29/2008, -3/+8Feral Reserve notes, you just can't tame them.
- dalittle, on 06/29/2008, -5/+10everyone that owns gold should be dumping right now.
- inactive, on 06/29/2008, -2/+7The reason it is valuable is because it is "rare".
- gobbleplex, on 06/29/2008, -1/+6:)
That leads to the other point of what good would it do you to have all this gold and silver if you don't have guns or a private army to guard it for you? The farmers have this quandary too, but unlike the gold hoarder he has a renewable and life-sustaining resource to offer in exchange for fealty. - inactive, on 06/29/2008, -0/+5I saw a couple of those just last night. Plus, how would you know if you were getting even a fraction of what it is worth? If you REALLY want to get rid of your old jewelry, have it appraised, and sell it for what it is worth.
- gobbleplex, on 06/29/2008, -0/+5Thanks, that's a pretty reasonable response. I still think many of the people hoarding it haven't really thought through what they're going to do with it if fiat currency collapses, or how they'll secure it, or how to keep themselves from being used as pawns or robbed blind of it. Or how they'll carry it all if they have to move themselves for any of the myriad reasons that such a world might present to them.
- jaymzdean, on 06/29/2008, -2/+7Anyone who thinks we're just experiencing a cyclical/historical bear cycle is either in denial, or hasn't looked at the economy's historical/cyclical cycles.
This situation we're in is unprecedented.
Gold will go very much higher because of it's intrinsic value, an iceberg you're only seeing the tip of right now. - angryfirelord, on 06/29/2008, -2/+6Not quite. It may appear that way, but the US Dollar still has a ways to fall, so when it goes down, commodities go up. Trust me, you haven't seen hell yet, $200 oil and $2000 gold is in the near future if the dollar continues to get devalued.
- darkciti2, on 06/29/2008, -2/+6Come on now, EVERYBODY knows that you "buy on rumor, sell on news". That's trading 101.
I bought Gold back in 2005 when it's spot price was around $300 or so. Now it's $927. That's a 300% increase in just the past 3 years. It may go up a little bit more, but I don't expect it to pop too much. Particularly when there are new gold mines opening up in Iran and Mongolia. - GruntboyX, on 06/30/2008, -0/+4ok...if you want to hedge against a recession, then ownership is the only real bet. Gold is not the answer, as the market is to easily flooded by a small set of producers. Land is where to go. Not because you can turn it around into currency, but because you can farm it. If you are self sufficient, then you are more resilient to economic woes then the guy who's net worth is nothing because he has financed everything.
My grandparents rode out the Great depression as farmers. They owned lots of land and farmed it for money and necessities. They ended up surviving the depression and continued on as farmers enjoying the simple life.
If you own all your possessions then you have nothing to worry about.
The whole reason we are in this mess is because of poor personal finance management. - StaticThunder, on 06/29/2008, -0/+4Gold demand is not inflexible.
- inactive, on 06/29/2008, -0/+4That's why it has value, but his point was, what happens when the world goes to hell in a hand basket? If people are starving, nobody is going to care how valuable your gold is.
- Elliuotatar, on 06/29/2008, -0/+3People use up the oil they buy. They don't use up their gold.
- dalittle, on 06/29/2008, -0/+3then buy euros
- jnordb, on 06/29/2008, -2/+5um maybe thousands of years of recorded historical context?
- mal1964, on 06/29/2008, -0/+3Dollar Low = Gold High
Dollar High = Gold Low
In 1979 gold was $850 and silver reached about $50.
http://www.technicalindicators.com/goldcomments.ht ... - XanderDee, on 06/30/2008, -0/+3People don't believe the Federal Reserve has printing presses or controls the money supply that's just a conspiracy theory.
That's why you don't have many diggs.
The banking cartel have done their job well. - inactive, on 06/29/2008, -0/+3Sorry, no.
http://www.j-bradford-delong.net/Politics/whynotth ... -
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