Thoughts on investing in gold/silver

[brin]

The price of gold is directly related to supply and demand...the only way there could be a "bubble burst" effect...is if everyone that currently owns gold started selling it and they did not care what they got for it...

The more people that buy at high prices...the less likely they are to sell it at a loss...

There will be no bubble burst effect in gold like there was in other sectors...

Pine...surely you jest....gold is a mere commodity...do you not remember the Hunt Brothers back in the early 80's ? They thought they could corner the silver market and drove silver up to $20.00 per oz. ..they lost it all. I am here to tell you I lived through that and folks were saying then what you are saying now...Silver would never go down..there would be no bubble burst..LOL...Silver dropped like a rock and only within the last few years has it recovered and has yet to hit the $20 high set some 30 yrs. ago...

When everyone is saying buy gold...best stay away...What saved Joe Kennedy from losing everything back in the big stock market crash in 1929...? He later said , when asked why he had sold all his stocks before the crash..." When the man that shined my shoes was giving me stock tips, I knew it was time to get out of the market ! " And like a previous poster pointed out ...When Gordon Liddly is on TV saying ..." Buy Gold " It is time to sell...Yes the Gold bubble will burst....just a matter of when...My 2 cents.

 

[beppington]

Back in 1999 I was giving my neighbor some produce out of my garden. He said something like "Shouldn't you be keeping this food for Y2K?" and laughed. I replied with a very straight face "All I have to do is keep you fat..." He laughed, then got kind of uncomfortable looking! :laughing:

Oh lordy!! I'd be putting up a fence & gate if I was him!!! :laughing: Oh, and keepin' real fit.

 

[beppington]

I am here to tell you I lived through that and folks were saying then what you are saying now...Silver would never go down..there would be no bubble burst..LOL...Silver dropped like a rock and only within the last few years has it recovered and has yet to hit the $20 high set some 30 yrs. ago...

That's similar to my BIL. Between 4-6 years ago he was investing in "pre-construction investments" where you buy in during the project's construction phase "knowing" the units will be worth more by the time their done, so you can just sell the thing before ever having to own it. He was so incredibly optimistic about it, he said to me, "This is awesome. Easy money. I will be pre-construction investmenting for the rest of my life. You're just afraid to pull the trigger." etc etc etc. I asked, "What will you do if real estate prices fall? Just go ahead & buy the units outright & rent them out, or sell them, I guess?" He said, and I kid you not, "Real estate prices never fall. They never have. When?? When was the last time real estate prices ever fell??" I tried finding a solid, reliable source to show him, but couldn't really find anything like a chart. He now owns some rental units & has become the landlord he never wanted to be. Not the end of the world, as long as you can afford the payments, hassle, end up with positive cash flow (or at leats break even), etc etc, but not the easy, never-ending money train he was flat-out guaranteeing me I was missing. I've taken the high road & never brought the subject up again :laughing:

 

[/pine]

Pine...surely you jest....gold is a mere commodity...

completely different these days...back then it was illegal for individuals to possess gold/silver etc. that was not in the form of collectable coins...

These days individuals actually own (and can possess) the gold they own...it's not a "futures contract"...

 

[dmccarty]

TV as history....

Who would have thunk it....

Remember Barney Miller?

Loved that show. Sometimes I catch it on reruns and it is still funny to watch. But also interesting history. The precinct was dirty, filthy, rundown and needed paint. One episode I saw recently had Detrich, remember he was the guy who knew everything, was talking to a guy who had bought tickets to get on the Space Shuttle. Detrich gave a long speech about how you had to be careful of the space shuttles. The tiles were falling off not sticking like they were supposed too. If one fell off in reentry it was gong to be ugly.

Now NASA mostly fixed the tile problem but it was never 100% and of course we lost the shuttle when the tiles fell off after they were hit by the ice. That episode was from 1979 or so.

Remember Harris? He was the officer that dressed NICE and he had made money on a book. One of the story lines was of the trials and tribulations of the investments Harris made. And messing up his expensive clothes. Loved the one where he had to follow a guy into the sewer.

One investment he made was in gold since gold was going up, Up, and UP as inflation roared. Harris bought in near the peak at $600-800.

And lost his pretty shirt.

I ran an inflation calculator a few months ago to compare the gold prices then to today. The price of gold would have to get up around $2,300 today to be of the same value in 1979/1980. Current price is $1,227.40.

I want some gold. It is pretty. I think I will wait for it to fall in price in a few years.

Later,
Dan

 

[/pine]

...I think I will wait for it to fall in price in a few years....

remember...patience is a virtue...

the price of gold is directly related to the value of the dollar...

With all the "dollars" the fed is printing it may be more than "a few years" before the inflation (caused by the fed printing) allows the value (of a dollar) to come back up...

 

[brin]

completely different these days...back then it was illegal for individuals to possess gold/silver etc. that was not in the form of collectable coins...

These days individuals actually own (and can possess) the gold they own...it's not a "futures contract"...

Piner --that is just not TRUE --Back then I bought a 100oz. Bar of silver when it dropped to $10.00 an ounce and have held it every since...It was not illegal at all...I also bought gold coins back then int he early 80's...check your facts..it is exactly the same kind of irrational exuberance as back then..

 

[/pine]

brin...do some Googling...

try "gold is just a commodity" you may be enlightened...

 

[tallyho8]

Pine...surely you jest....gold is a mere commodity...do you not remember the Hunt Brothers back in the early 80's ? They thought they could corner the silver market and drove silver up to $20.00 per oz. ..they lost it all. I am here to tell you I lived through that and folks were saying then what you are saying now...Silver would never go down..there would be no bubble burst..LOL...Silver dropped like a rock and only within the last few years has it recovered and has yet to hit the $20 high set some 30 yrs. ago..

Actually silver was $6 an ounce when they started buying it and they drove the price up to $48.70 an ounce before the bubble burst on Silver Thursday.

They owned 1/3 of the world's supply of silver and still were not able to control the market and when the price dropped they wound up losing 4 billion dollars.

 

[brin]

brin...do some Googling...

try "gold is just a commodity" you may be enlightened...

Nahh Pine, I will pass...I have been buying and selling gold, silver, stocks for over 30 yrs. now...I will just keep on keeping on...You have at it..I just wanted to share with you what I have come to know...Good Luck in your investments in Gold :thumbsup: