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  • Posted by freedomforall 9 years, 5 months ago
    Gold and silver in hand, yes.
    Gold and silver indices, no. They are used by banksters to manipulate prices of the genuine asset, just as the banksters use financial instruments (including fiat) and market rules to manipulate share prices. Be aware that such manipulations will detrimentally affect the value of your holdings. Don't buy on credit or margin.
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  • Posted by 9 years, 5 months ago
    Gold Is more than a commodity. From my book "The New Gold Standard":

    "Wealth is production, and gold is the equivalent of wealth
    produced. Because neither wealth nor gold can be created out of
    nothing, neither wealth nor gold are possible without individuals
    of intelligence, individuals of ability, and individuals of productivity.
    Fiat is force and it is the equivalent of wealth confiscated.

    Both fiat and force are the tools of those that seek the unearned.
    Where a gold standard is welcomed by productive and honest
    individuals, the fiat standard is welcomed by those that prefer
    government control and regulation. Where the gold standard
    demands the earned, the fiat standard grants the unearned. Where
    a gold standard evolves from individual choice, a fiat standard
    evolves from government edict. Where a gold standard necessitates
    only that individuals be left free to act, to choose, and to
    trade, a fiat standard invites government to control, to regulate,
    and to dictate individuals’ choices, actions, and the terms of trade.

    Gold limits the government’s power to spend more money
    than it receives in taxes and, in doing so, gold limits the government’s
    arbitrary power over the economy; gold checks artificial
    money and credit expansion; it prevents artificial booms, which
    lead to very real busts; gold protects individuals from economically
    unsound government programs; and it protects citizens from the
    inflationary confiscation of private property."

    Paul Nathan
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  • Posted by $ Commander 9 years, 5 months ago
    When the market hits bottom...I'll consider.
    My uncle purchased one troy ounce per week from the early fifties into the early eighties. When the Hunt brothers made their run on the precious metal market, my uncle sold everything at near $850 per ounce. When the market came back to reasonable "value", he traded all the "fiat" back to gold. My cousin is sittin pretty!
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    • Posted by Robbie53024 9 years, 5 months ago
      There are certainly instances where some try to cause a market imbalance. But given the recent manipulations in the market, and major manipulation using purchases, one must give independent credence to tangible assets.
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      • Posted by $ Commander 9 years, 5 months ago
        freedomforall answered for me!
        Gold is now a predominant commodity for the manufacturing industry. It takes "X" resources to locate, mine, refine and distribute. This determines fair market value....not the "fiat" speculations of the stock market.
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  • Posted by Herb7734 9 years, 5 months ago
    If I'm into gold and silver, I want real gold and silver or what's the point? It's not an investment, it is a fall-back that you may wish you'll never need to use.
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  • Posted by RonC 9 years, 5 months ago
    gold is a commodity. If you buy low and sell high it can be a good investment. However, it pays no dividend. It's pretty, it feels good in your hand. Between the time you buy and sell it does nothing for the investor. My advice: buy low, sell high.
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    • Posted by term2 9 years, 5 months ago
      Its really NOT an investment at all, unless the demand for it soars and there isnt more to be had. It IS a store of value which is much better than the fiat currencies we have to endure on a daily basis
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      • Posted by JanelleFila 9 years, 5 months ago
        Thanks for that explanation, I've always wondered about the investment benefits of gold. You hear people telling you to buy gold, but I guess I never understood why. Is it basically like a safer savings account for your wealth than the bank? When I think of gold I think of the end of the world...
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        • Posted by term2 9 years, 5 months ago
          Yes, its a long term savings account that you can tap by simply selling off what you need, when you need it. Unless there is some sort of supply shortage, demand bubble (like people all of a sudden want to buy it), or serious manipulation by governments, an ounce of gold should pretty much just retain its value in terms of purchasing power over the long haul. Dollars used to be tied to gold, so they were "as good as gold" until 1971 when Nixon took the precious metal backing away from the dollar. Now the dollar is worth whatever people at the time think it is. In 1971 it took about $40 to get an ounce of gold. Now its $1200 or so to get the SAME ounce of gold. That tells you how much of the dollar has been debased. If you had bought an ounce of gold in 1971 for your 40 dollars, it would be worth 1200 dollars today. If you just saved the 40 paper dollars in the mattress for all that time, you would still have the 40 dollars (but those dollars would buy now a fraction of what they were worth in 1971 ). Hope that helps
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          • Posted by JanelleFila 9 years, 5 months ago
            Yes, that does really help, thank you. I've been wanting to "invest" in gold for a long time, but now I have a clearer understanding of how gold buying should play into my savings/investing strategies. Thanks so much for the explanation!
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  • Posted by MagicDog 9 years, 5 months ago
    The price of oil is declining and likely to keep going down for some time to come. The central banks are likely to continue printing vast sums of worthless paper. Draw your own conclusions. :)
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  • Posted by mccwho 9 years, 5 months ago
    Not sure how this principle works for Gold. But a few years back. Someone showed me the price of food and gas from approx. 100 years ago vs the cost of an ounce of silver. Then they showed the current prices for all the same. IT was interesting to note that the same amount of silver bought the same amount of gasoline 100 years ago as it did when he showed me this.
    I have been buying copper, silver, gold ever since.
    Wouldn't it be funny (sarcasm) if Fort Know was empty, and all the security was just for show to try and fool all of us into thinking it was full of Gold. I have been wondering this for decades now.
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  • Posted by Robbie53024 9 years, 5 months ago
    Don't overlook silver. It has greater industrial usage and so will continue to have demand regardless of use in jewelry and as an investment.
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  • Posted by comsguy 9 years, 5 months ago
    OK keep on keeping an eye on Dow Jones now. With the Republican wins it is spiking higher. Seems price of gold and silver always gets clobbered as a result. Question is will the economy actually improve now in order to justify market valuations (are the R's for real this time)? I'm going to wait a little more.
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    • Posted by 9 years, 5 months ago
      "Question is will the economy actually improve now in order to justify market valuations"

      The answer to that question lies more abroad than it does here. If the world falls into a deflationary recession, which is the direction their headed, it will affect the US. Gold's fall is indicating that scenario is developing now.

      See http://www.paulnathan.biz/ for more on this subject.
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  • Posted by wiggys 9 years, 5 months ago
    you can not buy anything with gold and get the seller to give you equal value. if you take gold jewelry to a gold buyer you get the value of the gold only.the labor that went into making the jewelry is not considered. all over the world american dollars are accepted., as is gold but again not for its value. if it is trading at 1200 per ounce and you want to buy a sandwich at katz's deli in nyc for $20.00 and you give then an ounce of gold do you think they will give you 1180 back, think again. people who invest in gold lose as often as those who invest in oil. bad deal.
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    • Posted by comsguy 9 years, 5 months ago
      I remember a saying that 1 oz of gold would buy you a brand new suit back in the 19th century and that that same oz of gold would buy a brand new suit today. Definately should use smaller denominations when buying that sandwich tho...
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    • Posted by 9 years, 5 months ago
      Wiggy,
      I was refering to a gold standard, not today's fiat standard.
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      • Posted by wiggys 9 years, 5 months ago
        i do not believe a gold standard exists today and i also think that we have gone so far off base that it will never exist again. our government as well as all other governments really like fiat money and will not ever change. so enjopy the jewelry while you are alive and leave to favorites when you die, that is all gold is worth. also buy it as cheap as you can.
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        • Posted by $ jdg 9 years, 5 months ago
          You're right that there isn't any gold standard today, and blarman is mostly right that you can't "spend" gold most places and get what it's worth. (Especially if it has collectors' value as coin. You'd want to cash it in at a coin dealer just before spending it.)

          The upside of gold (and silver) is insurance against runaway inflation. Since 2008, under both Bush and Obama, the Fed has increased the official money supply by over 40% (mostly by buying treasury bonds with newly printed bills). This monetary inflation (mostly) hasn't shown up as increased prices and interest rates yet because of the ongoing depression, but it will -- and as soon as the treasury has to start paying more than 0.1% interest on the national debt again, that interest cost is going to be a BIG problem, which may well force them to print even more money. (Raising taxes won't help because we're above the hump on the Laffer Curve.)

          A couple of big downsides to watch out for: The next president, whoever he is, may very well try to seize all gold and make it a controlled substance again, as FDR did in 1934. (So don't have a bank or anybody else hold your gold for you, and try to buy it without giving your name or paying by card.) And/or, he/she may find an excuse to have the EPA shut down gold mining operations. I would not want to be holding gold mining stocks if that happens, at least if the company's mines are in the US.
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          • Posted by wiggys 9 years, 5 months ago
            jdg,
            i am,a simple business owner, a manufacturer of products. as far as i can tell the economy is far worse than the press and wall street are making it out to be. the government will not take gold out of the economy because it is traded like oil, and they aren't going to take oil out of the economy. they will continue to print money and the interest rate will stay where it is for a long time to come. one should realize that those who run the government are poorly educated, they went through the government school system and as a result they simply do not know how to think and they prove that each and everyday. i would love it if Ayn Rand were able to give her view of things today or maybe she already did and i read it but don't recall it at this time. in my opinion the usa is screwed!
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  • Posted by Winston777 9 years, 5 months ago
    I've been holding physical gold and silver for some time now so I'm not under water with the recent drops in price. That said, I'm still holding some small stocks in two gold "miners" which one has tanked (BRZG) and the other (GDXJ) is heading there it seems. I'll never buy another MINER stock - period. Even with holding physical precious metals, it does haunt me that the Bible speaks of a coming time where "people will throw their gold into the streets because it will be worthless". What will cause that, I don't know, but I trust in God's Word.
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