Question on Buying Gold

[grsthegreat]

The one thing in the back of my mind is what if a cheap way to produce gold is found?

The technology is so good that flawless diamonds can be made... who knows what the next big gold strike will bring or an asteroid of gold collides with earth... well maybe not.

also, they just found a planet thats made of diamonds Scientists Discover a Diamond as Big as a Planet - TIME wait till they find out that mars is made of solid gold haha

 

[ultrarunner]

A little off topic, but in the same light...

My friend is and has been a flooring contractor for 35 years...

There was a time in the late 90's where he would get several unsolicited cold calls offering to sell stock daily...

It got to the point where he decided to have a little fun with the callers...

They would call and talk up the market and tell him now was the time to buy stock... he started saying yes, that he sees the price going up and agrees.

Then he would ask to price stock for Cabin Craft, GAF, Olin Mills, etc... the guy would be dumbfounded and my friend said you know you called a flooring contractor... what kind of stock do you think I would buy?

 

[schoolsout]

I agree that the people buying gold are in for a shock when the price drops out. The market is so volatile right now and people are pushing up the price of gold but there is no real reason for it. No one is really seriously thinking that the US dollar will become useless are they??? i mean seriously. If push comes to shove the good old US govt can simply write off all foreign debt...simply not repay it. What the he** can they do about it.

I sure get tired of these people that think there will be no food or other commerce unless they have gold.

They brag about how they made double their investment in 4 years.....my ford stock made 300% increase since i bought it at its low. My LVS (las Vegas sands) stock went from $5.xx back in 2009 to $45.xx today. And i bought alot of it. If i would have purchased gold instead...id be alot poorer.

Why would the price of gold drop when the entire Western World is printing up money left and right?

 

[schoolsout]

I'll go on record here and now that gold will reach $3-4k within a year or two...and if you want to get extreme, it would take 5-digit gold to equalize the US' debts...

that said, for those that say the gold "bubble" will burst, have you taken into account that the Western World's gov'ts has done everything it could to keep the price suppressed as the price of gold reflects the status of the monetary system?

Let's get real, here....the gov't is printing up paper left and right...is absolutely broke and you want to invest in shares of that country (Shares being US Dollars)? I don't think so

Wikileaks cable mentions gold price suppression | ZeroHedge

Wikileaks Discloses The Reason(s) Behind China's Shadow Gold Buying Spree | ZeroHedge

 

[JB4310]

I'll go on record here and now that gold will reach $3-4k within a year or two...and if you want to get extreme, it would take 5-digit gold to equalize the US' debts...

that said, for those that say the gold "bubble" will burst, have you taken into account that the Western World's gov'ts has done everything it could to keep the price suppressed as the price of gold reflects the status of the monetary system?

Let's get real, here....the gov't is printing up paper left and right...is absolutely broke and you want to invest in shares of that country (Shares being US Dollars)? I don't think so

Wikileaks cable mentions gold price suppression | ZeroHedge

Wikileaks Discloses The Reason(s) Behind China's Shadow Gold Buying Spree | ZeroHedge

Maybe I should hold on to my 3 ounces :laughing: I read somewhere about $5,000. an ounce, but I think the suppression efforts will kick in before that.
Though I was looking at some charts and it has been climbing pretty steady for several years now. No indication of a correction needed or coming?

It's tempting to sell and take a decent profit but what do you invest in if gold is to high.

JB

 

[beppington]

Maybe I should hold on to my 3 ounces :laughing: I read somewhere about $5,000. an ounce, but I think the suppression efforts will kick in before that.
Though I was looking at some charts and it has been climbing pretty steady for several years now. No indication of a correction needed or coming?

It's tempting to sell and take a decent profit but what do you invest in if gold is to high.

JB

Sell only 1 or 2 of your 3 ounces :thumbsup:

 

[schoolsout]

I wouldn't sell the little bit of physical gold you have unless you really needed it. What I would do, and have been doing for some time now, is acquire good miners....gold/silver/copper/whatever. Commodities/resources will be the greatest beneficiary in what is about to come.

I could be wrong, but my money is where my mouth is

 

[massey990]

I agree that the people buying gold are in for a shock when the price drops out. The market is so volatile right now and people are pushing up the price of gold but there is no real reason for it. No one is really seriously thinking that the US dollar will become useless are they??? i mean seriously. If push comes to shove the good old US govt can simply write off all foreign debt...simply not repay it. What the he** can they do about it.

Maybe that is why China is buying gold hand over fist, some folks I know that know chinese bankers are speculating that gold will be at $6k/oz in the fairly short term and twice that in the longer term

 

[mmurphy]

Think about your post for just a minute...do some critical thinking...Just who will want gold if everything falls apart and food, water, medicine etc. are in short supply...? No one, I submit will have any use for gold, silver ,diamonds...they will however, have a desire for food, seeds, land to grow it on...think about it , seriously. In such dire times...what good would gold serve the end user..? The person who purchased it..:confused2:

I have to agree with Brin.

If times get that bad, do you people who are holding certificates instead of physical gold think they will not scam it away from you? Meaning that certificate may only be worth the paper it is wrote on.

My old grandad lived to be 100, lived out of a garden and would have told you it would have been useless when you were starving in the depression. He never had money to speak of but, lived quite happily.:2cents:

 

[forgeblast]

Amazon.com: Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown (9780470918142): David Wiedemer, Robert A. Wiedemer, Cindy S. Spitzer: Books

aftershock the book. I just started it.

 

[grsthegreat]

Yup, i agree. we grow our own veg's and such and can can for a rainy day. We have access to fresh water lake a few miles away that holds trillions of gallons of drinkable water. As far as i know you cant drink or eat gold.

I live in an area where you can hunt to stock your freezer also, and i dont think gold would make good bullets either.

and as an afterthought. In 1980's i had purchased some gold Kruggerands just for the heck of it....they were in the $600 - 640 per ounce range. I held onto those for quite a few years, and made about $50/oz profit when i sold them. Back then i thought...what a stupid investment.

Now if gold was selling for $640/oz nearly 30 years ago, then with inflation it SHOULD be selling for:

based on the inflation data CPI which is 82 in 1980 and 211 at present and extrapolating this data and applying the method of partial differentiation on this
1$ in 1980 = 3.57$ today
Source(s):

www.inflationdata.com

640 x 3.57 = $ 2,284.00 today.

So according to this, gold still hasnt even cought up to where it SHOULD be selling at to have made a profit over 30 years.

 

[schoolsout]

Y'all do what you want

What is funny is some of you think that because one owns gold, he doesn't grow/kill his own food or have guns....this is a tractor site. Are you serious?

That said, there may be a 6 month period when things get shaken up so bad and our JIT inventory system proves to be inefficient because of extreme fluctuations in currencies, but it won't be the end of the world.
If you "can't eat gold" people would take the time to read up on currency failures in the past, you will see that gold (along with some other assets) helped those living through it get to the other side with their wealth.

Also, some of you still need to read up on "money" and how it is used for trade. You seem to think you will be able to barter your food for other stuff. That may or may not happen.

Brin keeps skipping over the scenario where he has tomatoes, but needs gas. The guy with the gas also has tomatoes and doesn't need any more. The guy with the gas needs fertilizer. So, either Brin needs to get fertilizer from a guy that may or may not need tomatoes in order to get some gas or, through the magical use of "money," he can give the guy a little and that guy can then get what he needs when he needs it.

Christ...this is elementary stuff here.

 

[beppington]

Now wait a sec. How do you know the guy doesn't need any more tomatoes?

 

[schoolsout]

Now wait a sec. How do you know the guy doesn't need any more tomatoes?

lol...

 

[brin]

schoolcout,

I know you are advocating buying gold so I am asking your opinion on what I got in an email today...I have pasted it below....Thanks
__________________

Total Government Control of Bullion

Phase Onecomplete)
Phase Twoin process)
Final Phase: _________

Fellow Conservatives,

You're probably already aware that Obama Law makers Banned Over The Counter Physical Bullion for All U.S. Residents. The Ban of OTC Physical Bullion is part of the Dodd-Frank Act and went into effect on July 16, 2011.

The BREAKING NEWS is that the Feds, Are Now Seeking Jurisdiction over 10 ounce gold Transactions.

The Commodity Futures Trading Commission(CFTC) Just approved A contract in the Transactions Size of 10 Gold Ounces AND the Amendment of Rule 855, Pursuant to Section 5c(c) of the Commodity Exchange Act. The Anticipated Effective date is September 12, 2011

Discover How this New Law Empowers Federal Agencies and What Restrictions may be Imposed on Gold Bullion. Plus, Discover Their Ultimate Plot.

Click Here: Educate yourself BEFORE New Restrictions > http://www.goldworth.com/townhall.html

 

[5030]

Brin...

Like all 'new' things, nothing is really new and everything has been done before.

Wasn't it Wilson or Rosevelt than made the public ownership of gold illegal?

It will happen again and it's only a matter of time.

At that juncture, 'law abiding' citizens will have to turn in their gold in exchange for paper currency backed by nothing more than a promise to pay.....

And we all know how good the Central Government is about keeping it's promises, don't we?

Past administrations and more importantly, the current one, want curtailment of gold buying by the public because those investing in a tangible commodity, like gold, aren't investing in and using worthless FRN's (except to buy the commodity in the first place.....)