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Buying Gold/Silver?

High Binder

High Binder

Resident Tribologist
Full Member
Minuteman
Jun 18, 2008
495
24
Occupied Colorado
Hey guys, I recently had a interesting bank account adjustment and with interest rates where they're at I can't fathom only earning .01% when inflation is somewhere in the 2% range. So I've been thinking about hedging my bets with Gold/Silver. I know the time to buy was in the past but if you look at the graphs:

xe3j2a.jpg

263erye.jpg


the inter-day is a bit wacky but the overall trend is UP!! So obviously I'm thinking long term investment not a quick profit taking.

So what are your thoughts? and how does one go about buying physical Gold and Silver?

Thanks in advance!
 
Re: Buying Gold/Silver?

Gold and Silver are testing historic highs right now. It's kind of up to you and like any commodity there is risk involved.

However the overall trend does look to be going up specifically as the dollar keeps getting devalued as the printing presses run to give Goldman Sachs and BofA all the money they want.

I usually tend to watch the market carefully and wait for a dip before buying, however waiting does not always put you ahead of just buying steadily.

You want to have physical metals in your hands, not paper promises somewhere.

I have had good success buying from learcapital.com and they do have a nice referral program that you can use with a friend to get free shipping for you and a bonus for your friend.

My suggestion is to skip any of the overpriced "collectable" stuff and just simply get current minted American Eagle or Canadian Maple leaf gold and silver coins (stay away from the cheaper silver rounds)
 
Re: Buying Gold/Silver?

I am not rch by any means but in 06 i bought two gold buffalo 1oz gold coins for $804 ea today they are up to around $1950 to $2100 each. i also picked up a large amount of silver dollars years before that and have held onto them. Gold is to high for the common man, silver is up and coming.Picked up 14 Proof American Eagle 1oz silver for $60 ea last week soon to be on there way to NGC for grading.Go to the govt mint site and buy them cheaper then a dealer charges, you will be supprised by the mark up. crow hop
 
Re: Buying Gold/Silver?

Some find "junk silver" a good buy. Junk being pre 1965 U.S. silver coins. Roughly 715 ounces per $1000 face value. Pretty well recognized and accepted world wide. They don't usually demand a high premium except for silver dollars. Search on the Kitco web site, lots of info and up to the minute pricing.
 
Re: Buying Gold/Silver?

I have been following and buying silver and gold for years. I now just buy silver.

When inflation is considered, we are nowhere near historical highs, and the underlying reasons for silver's increase in value today dwarf the reasons for it's previous high.

Buy now, and hold long term. Buy only physical silver as many of the "stored" silver isn't actually there (scary but true). I buy american silver eagles from american gold exchange and golden eagle coins.com

I even bought a bunch with a 16% interest credit card. With the current gains, I'm making a killing even after the card's interest.

Also look into mining companies (gold and silver). As the dollar and all fiat currencies are exposed as fraud, you will grin.
 
Re: Buying Gold/Silver?

You can buy direct from Kitco. the best price sith least markup is in bars. The advantage of American Eagles (Im into the gold) is that they are protected under the numismatic coin act that Regan put in while in office. Ie: They are classified as collector items and cant be confiscated as they were years ago. As suggested above, stay away from the higher priced, old collectibles...Double Eagles, etc. They are over priced and the return time is too long. They are a thing of the past.

I see the rise as a steady trend. Bought in at $1219 and never looked back. The difference now is that gold has been found to have intrinsic value...plateing metals against corrosion etc in electronics. Also the recovery of it from the earth is getting tougher especially with new pollution guidelines. Its only gonna go up. As with anything expect adjustments up and down at times.
 
Re: Buying Gold/Silver?

Been in the business over 20 years and think gold is overpriced, but that doesn't mean it won't go up more. These are strange times with alot of uncertianty. Gold has and alway will have value anywhere you go in the world. I'm buying and selling regularly, not holding at these prices. It's never been a good idea to buy at the peak and the current demand is brough on by uncertian speculators, when they dry up the price will fall. If the fed does a QE3 and continues to print money, we could see 1600 gold with a very weak dollar, just my opinion.
 
Re: Buying Gold/Silver?

^^^ good points tunanut.
it boils down to who do you have faith in? do you think bernanke, geithner, and the gang in congress will stop spending and stop printing? highly unlikely.

its interesting to note that gas is hitting record LOWS. yes, LOWS.
in terms of constitutional money. gas hit a record low of .17 a gal during the depression. now if you have a silver dime, pre 65, you can still get a gallon of gas.
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Evolution 9</div><div class="ubbcode-body"> Buy only physical silver as many of the "stored" silver isn't actually there (scary but true). </div></div>

Very True - Search "Andrew Maguire GATA".

This story broke in late 2009, and I can find nothing further to confirm or deny the information:
http://pakalert.wordpress.com/2010/01/16/fake-gold-bars-in-bank-of-england-and-fort-knox/

There are a LOT of people who think they own Gold and Silver, but really only hold paper. Subsequently, I personally believe the prices are "artificially suppressed" due to this "fake" supply, and the "true" prices should be much higher.

I happened to meet with my financial advisor last night, and he believes commodities prices will fall with a stronger Dollar, once QE2 is completed. I don't see the dollar strengthening with all of the deficits we're running - "we're" borrowing just to pay the interest on "our" debt!...

Bill
 
Re: Buying Gold/Silver?

It seems the Peoples republic is going to divest it self of one to two trillion USD. I don't think that is going to be reflected in a notably stronger dollar.
 
Re: Buying Gold/Silver?

Buy low - sell high! IMHO now is not the time to be buying gold or silver. There are other commodities out there that are not at historic highs. Do some research: Diamonds, Collectible coins, guns, other metals, etc. When gold falls, it going to fall like a rock.

Stock market is also at two-three year high. The markets are screwy.

Good luck

Jerry
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: pimpgun</div><div class="ubbcode-body">Some find "junk silver" a good buy. Junk being pre 1965 U.S. silver coins. Roughly 715 ounces per $1000 face value. Pretty well recognized and accepted world wide. They don't usually demand a high premium except for silver dollars. Search on the Kitco web site, lots of info and up to the minute pricing. </div></div>

I bought silver dimes from a family member that purchased them du ring the craze of the 1970's. With inflation adjusted I would break even by selling them now.

And I might - I've got 1000 1964 silver dimes..

But if TSHTF these are the only income that would be worth their weight in silver/gold.


Now is not the time to buy. Not with an election around the corner.
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Evolution 9</div><div class="ubbcode-body">
Also look into mining companies (gold and silver). As the dollar and all fiat currencies are exposed as fraud, you will grin. </div></div>

I have a friend that did that, he did EXTREMELY well until the mine went bankrupt, make sure it's a good mine with some capital behind it!!

You can do VERY well with mines. Short-mid term, long term not so much since mines tend to run out of minerals after 10 years or so.
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Jerry M</div><div class="ubbcode-body">Buy low - sell high! IMHO now is not the time to be buying gold or silver. There are other commodities out there that are not at historic highs. Do some research: Diamonds, Collectible coins, guns, other metals, etc.
Jerry </div></div>

I would avoid diamonds like the plague. With the exception of the naturally colored ones they would be just about worthless if the prices weren't fixed by a couple cartels. Think about it you can buy tools at Harbour Freight for a couple dollars that are coated in diamonds.

When it comes to stones the real money is in colored stones like emeralds, rubies etc.
 
Re: Buying Gold/Silver?

"now is not the time to be buying gold or silver."

you know stock brokers have been saying this same thing since 2000.
where has the dow gone in the last 10 years? add inflation and you are basically down 20%. where is gold? it was what 2-300 an oz in 2000?

will gold correct in the short term? probably. will it drop like a rock in the long term? highly unlikely, unless congress stops spending and the fed stops printing. if one thinks this scenario is likely to happen, fiscal responsibility returning to DC, then you might not want to own gold. for the realist... owning pm's is a great idea. if only i would of had the money i have in stocks in precious metals instead... i'd be doing good. and its not supposed to be like this. gold just sits there. stocks are supposed to be investments, you are trying to make returns by investing in profitable companies. yet, due to fiscal recklessness in DC, gold, which is just a store of value has outperformed the US stock market over the last 10 years
 
Re: Buying Gold/Silver?

brutus1776 where is gold? it was what 2-300 an oz in 2000? [/quote said:
In 1978 they said the same thing about Silver.

Funny thing is, a lot of unemployed people went Silver mining and struck it rich, flooded the market with Silver and it dropped like a rock when the economy picked up.

Gold was at $400 an oz in July of 2007, that was the lowest. That was the year to buy, when the economy was at it's BEST.

Now it's at it's worst and gold is almost $1500.

If the economy truly DOES pick up soon, you think Gold will stil go up?

You have a LOT of people gold mining now too...

I would NOT buy now!

Incidentally that's why there are 3-5 MAJOR gold distributors on TV 10 times a day advertising - they are SELLING because it's a SELLERS Market.

You buy now you make someone else rich, and then gold drops and you wait another 20 years for an economy crash, but forget hte inflation and interest you COULD have made.


BAD BAD BAD time to buy precious metals right now.
(Maybe Titanium?)
Click to expand...
 
Re: Buying Gold/Silver?

DeBeers has tons of diamonds in a vault somewhere.
they release a little every year and that keeps the price high.
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: ArcticLight</div><div class="ubbcode-body">
BAD BAD BAD time to buy precious metals right now.
(Maybe Titanium?) </div></div>

Platinum too? I was thinking silver would be good because it's being used a lot more in solder. What do you think about that?
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: ArcticLight</div><div class="ubbcode-body">
You buy now you make someone else rich, and then gold drops and you wait another 20 years for an economy crash, but forget hte inflation and interest you COULD have made.

</div></div>

Umm... wait, what?

Let's back up a minute and just look at some facts

- Metals are a hedge
- Dollar has lost 93% + of its value since 1913
- Dollar has lost 6% this year thus far against a basket of currency
- Money is created by the Gov selling bonds, taxes pay the vig
- Oil is traded in dollars, as we devalue dollars oil becomes more expensive and becomes an even bigger drag on the econ
- As we devalue the dollar we export inflation
- As we devalue the dollar it increases the pressure to move away from the dollar as the world's reserve currency
- Last week the BRICS decided to move off the dollar
- When the G8 meets in November - they will discuss moving off the dollar
- Soros is setting up Bretton Woods 2 - to move off the dollar
- If the dollar is no longer the WRC, then our debt truly becomes our own b/c we can no longer use the advantage of inflation on a world scale to our advantage
- The decade surrounding the Carter admin was 7%+ per annum inflation, compounded
- We are on track for 6% in 2011 - even with the Gov manipulating the data
- Commodities across the board are at 30 yr adjusted highs

OK - here is where things could get funny - the Gov confiscates metals.

Aside from that, for anyone that poo poos metals right now - what solid evidence do you offer that indicates that we are not poised for significant inflation? And please, printing more money doesn't count.

If the world is still turning at this time next year a very conservative estimate would call for - silver at or above $65 an ounce, gold at or above $1,948.

We have gotten to the point where the gov is flat out lying b/c the situation is really THAT bad.

The debt ceiling argument is a leading indicator of the lie - little Timmy Geithner is saying that if the US defaults it will be the republicans fault - when did 'American default' enter the lexicon of the US Sec of the Treasury? Followed by we must raise our spending limit b/c it jeopardizes our world standing and credit rating. Never mind that when your outflows exceed your inflows and you demonstrate both an inability and an unwillingness to repay your debts - you are labeled a bad credit risk.

It is a tight spot - 50% of the folks don't pay taxes and in some way live off of the other 50%. If you don't raise the debt ceiling you need to cut spending and piss off the tax eaters. If you do raise the debt ceiling you will increase the cost of borrowing and thereby piss off the tax payers.

For many, the discussion should be less about buying metals vs a 50# bag of rice.


Good luck
 
Re: Buying Gold/Silver?

Whenever you see the national news and almost every commecial on Fox News touting Gold as a great investment it is way too late to get involved. By the time the common man sees something as a great investment most of the real players are the ones that bought it cheaply and are now selling it to all the new suckers at high prices.
 
Re: Buying Gold/Silver?

Gold & Silver are not investments. They never have been. They are life rafts for failing currency.

Gold and Silver ALWAYS maintain their buying power, that is why you invest in them... when you expect your currency to tank.

Pssst! You currency tanked years ago, the world is just tired of being drug down by the USA weakening it with QE.

To the point that you will see a new WRC before the end of the next election cycle unless we stop the spending.
 
Re: Buying Gold/Silver?

MZB, I think you have a better handle on things than many on here do. These are indeed periless times we live in. I for one would council diversification in ones investments. A good rifle, a good scope, a good knife, for that matter good tools, some food, and yes some gold and silver, these would make me sleep better at night.
 
Re: Buying Gold/Silver?

$1000 investment -

Current 1 yr T bill yield - 0.22
Current 1 yr CD Rate - 1.24%

April 26, 2010 - April 26, 2011 Gold - 23.61% return

April 26, 2010 - April 26, 2011 Silver - 59.97% return

If you have money in a savings account at a bank right now - aside from the fact that it is a stronger lock box than your's at home - ask yourself why it is in the bank. Check out 'Banking Holidays'. Read up on what happened in Argentina. Ask yourself if that fraction of a single percent of interest really is worth it?

For those that say it is too late - how are the market fundamentals different now? Hint - they are worse.



Good luck
 
Re: Buying Gold/Silver?

My Parents are re-opening our mine this summer to take advantage of record Gold prices . I have been following the prices of Gold since 1980 and I wouldn't spend a nickel on gold at this point in time . I would however take advantage of these prices to sell .

I am taking any money I make on Gold and re-investing it into resources to create ammunition as the prices are spiraling upward with an actual reason as to why . If the SHTF I would much rather have the components needed to make ammunition and wage war than Gold which would be worth something because why ??
 
Re: Buying Gold/Silver?

Great plan from the man with the ability to produce gold.

I am not a fan of either as an investment. As OR Shooter said - it is a life raft. You can not eat it, smoke it, wipe with it, or shoot it. It merely a portable store of value that depends on an economy with an organized set of rules to fully maximumize the trade efficiency.

I also don't like what it represents - a bet against America.


Good luck
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Mo_Zam_Beek</div><div class="ubbcode-body">$1000 investment -

Current 1 yr T bill yield - 0.22
Current 1 yr CD Rate - 1.24%

April 26, 2010 - April 26, 2011 Gold - 23.61% return

April 26, 2010 - April 26, 2011 Silver - 59.97% return

If you have money in a savings account at a bank right now - aside from the fact that it is a stronger lock box than your's at home - ask yourself why it is in the bank. Check out 'Banking Holidays'. Read up on what happened in Argentina. Ask yourself if that fraction of a single percent of interest really is worth it?

For those that say it is too late - how are the market fundamentals different now? Hint - they are worse.



Good luck

</div></div>


The facts are hard to argue with but some still insist...........
 
Re: Buying Gold/Silver?

This guy has been talking about silver for decades and only recently started selling it.
http://silverstockreport.com/

His markup is not too bad.
I am waiting for silver to come back down to $27/oz before I buy again. Alot of "informed investors" predict a spread for 2011 from $25/oz to $60/oz
 
Re: Buying Gold/Silver?

$1514.70
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Mo_Zam_Beek</div><div class="ubbcode-body">$1000 investment -

Current 1 yr T bill yield - 0.22
Current 1 yr CD Rate - 1.24%

April 26, 2010 - April 26, 2011 Gold - 23.61% return

April 26, 2010 - April 26, 2011 Silver - 59.97% return

If you have money in a savings account at a bank right now - aside from the fact that it is a stronger lock box than your's at home - ask yourself why it is in the bank. Check out 'Banking Holidays'. Read up on what happened in Argentina. Ask yourself if that fraction of a single percent of interest really is worth it?

For those that say it is too late - how are the market fundamentals different now? Hint - they are worse.



Good luck

</div></div>

this.
 
Re: Buying Gold/Silver?

Despite what Fred Thompson or Robert Wagner might say on late-night T.V, now is not the time to buy either gold or a reverse mortgage.
 
Re: Buying Gold/Silver?

not pointing fingers, but it is ironic that the people who generally said that the housing market was sound and that everyone should of bought real estate in 06 and 07 are the same people saying that no one should own gold or silver.

thought i'd repost this from above:

"Let's back up a minute and just look at some facts

- Metals are a hedge
- Dollar has lost 93% + of its value since 1913
- Dollar has lost 6% this year thus far against a basket of currency
- Money is created by the Gov selling bonds, taxes pay the vig
- Oil is traded in dollars, as we devalue dollars oil becomes more expensive and becomes an even bigger drag on the econ
- As we devalue the dollar we export inflation
- As we devalue the dollar it increases the pressure to move away from the dollar as the world's reserve currency
- Last week the BRICS decided to move off the dollar
- When the G8 meets in November - they will discuss moving off the dollar
- Soros is setting up Bretton Woods 2 - to move off the dollar
- If the dollar is no longer the WRC, then our debt truly becomes our own b/c we can no longer use the advantage of inflation on a world scale to our advantage
- The decade surrounding the Carter admin was 7%+ per annum inflation, compounded
- We are on track for 6% in 2011 - even with the Gov manipulating the data
- Commodities across the board are at 30 yr adjusted highs

OK - here is where things could get funny - the Gov confiscates metals.

Aside from that, for anyone that poo poos metals right now - what solid evidence do you offer that indicates that we are not poised for significant inflation? And please, printing more money doesn't count.

If the world is still turning at this time next year a very conservative estimate would call for - silver at or above $65 an ounce, gold at or above $1,948.

We have gotten to the point where the gov is flat out lying b/c the situation is really THAT bad.

The debt ceiling argument is a leading indicator of the lie - little Timmy Geithner is saying that if the US defaults it will be the republicans fault - when did 'American default' enter the lexicon of the US Sec of the Treasury? Followed by we must raise our spending limit b/c it jeopardizes our world standing and credit rating. Never mind that when your outflows exceed your inflows and you demonstrate both an inability and an unwillingness to repay your debts - you are labeled a bad credit risk.

It is a tight spot - 50% of the folks don't pay taxes and in some way live off of the other 50%. If you don't raise the debt ceiling you need to cut spending and piss off the tax eaters. If you do raise the debt ceiling you will increase the cost of borrowing and thereby piss off the tax payers.

For many, the discussion should be less about buying metals vs a 50# bag of rice."
 
Re: Buying Gold/Silver?

Open-$1507.10
Close-1527.50

Net gain-$20.40 or 1.02% today. 379% per year at that rate.

How did your portfolio do?
 
Re: Buying Gold/Silver?

Dollar sinks, gold hits new high after Bernanke speaks
, 2011 | 1:17 pm

The dollar sank further Wednesday and gold and silver prices surged as Federal Reserve Chairman Ben S. Bernanke signaled the Fed was in no hurry to tighten credit.

The DXY index of the dollar’s value against six other major currencies (charted below) fell to 73.29 at about 1:05 p.m. PDT, down nearly 0.8% from Tuesday and its lowest level since Aug. 2008. The index now is down 7.3% year to date.

Dxy427 Gold has soared to $1,530 an ounce in electronic trading, a new record nominal high and up $27, or 1.8%, from Tuesday’s futures-market close.

Silver was at $48.13 an ounce, up $3.07, or 6.8%, after falling $2.09 on Tuesday.

In his first-ever post-Fed-meeting news conference, Bernanke acknowledged higher inflation pressures but reiterated the Fed’s view that those pressures “appear to be transitory.”

As for the sliding dollar, which many Fed critics blame on the central bank’s easy-money policy, Bernanke said the Fed believes that “a strong and stable dollar is in the interests of the U.S. and the global economy,” and that the best way to lift the dollar was to boost the U.S. economy -- which is what the Fed is trying to do with monetary policy, he said.

Although Bernanke confirmed that the Fed on June 30 would end, as scheduled, its controversial economic-stimulus program of buying Treasury bonds, he said the Fed had no plans to begin selling those securities. Policymakers also are sticking with their commitment to keep short-term rates near zero for an "extended period."

Overall, Bernanke’s comments are “not going to change perceptions of a dovish Fed, or dent the positive global risk appetite view that has also translated into a softer dollar,” said Alan Ruskin, a currency strategist at Deutsche Bank Securities.

In other words, with U.S. credit still easy, some investors and speculators are borrowing in dollars to pour into commodities, emerging market stocks and other relatively high-risk markets.

Gold and silver have surged since August in part on fears that the dollar would continue to slide, eroding Americans’ purchasing power. The metals are many investors’ favorite way to hedge against declining paper currencies and higher inflation.

The stock market remains unruffled by the action in the dollar and the precious metals and continues to bet on economic expansion underpinned by the Fed: The Dow Jones industrial average closed with a gain of 95.59 points, or 0.8%, to 12,690.96, its highest level since May 2008. It's up 9.6% this year.

Treasury bond yields rose modestly. The 10-year T-note yield ended at 3.35%, up from 3.31% on Tuesday.

http://latimesblogs.latimes.com/money_co...-inflation.html
 
Re: Buying Gold/Silver?

When I was really heavy into buying gold and silver 5-8 years ago I could walk into any coin shop and purchase as many 100oz silver bars as i wanted. Now it seems alot of the coin shops I have come across have limited supplies of silver bullion/bars/round. Anybody else seeing this trend?
 
Re: Buying Gold/Silver?

To the OP...

If anyone tells you to stay away from silver/gold, ask the for their all data portfolio performance.

Then pm me for mine.

Physical gold and silver + Gold and silver mining company stocks= BANK

And yes, you ARE betting against the US economy... I'm not happy about it, but it is the way to bet.
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Goldie</div><div class="ubbcode-body">Open-$1507.10
Close-1527.50

Net gain-$20.40 or 1.02% today. 379% per year at that rate.

How did your portfolio do? </div></div>And that's the point: You can't short-circuit basic economics.

I don't measure my portfolio on a single day's performance because I am not a speculator. 'Same reason that I don't buy foreign currency.

If Gold reliably went up 379% a year there would be none left to buy.
 
Re: Buying Gold/Silver?

"And that's the point: You can't short-circuit basic economics. "

indeed.
which is why holders of dollars are losing their asses. the dow hasnt done anything in the last 10 years, if you factor in the govt manipulated fake inflation numbers, the dow is down 20%.
it does suck that our government is reckless and is constantly devaluing the dollar (which has dropped atleast 95% in value since 1913) but one has to own precious metals or commodities, or foreign stocks to simply try to retain their purchasing power.

as i stated previously... gas is cheaper than ever. gas's historical record low was something like 17 cents a gallon. you can now use 1 silver dime to buy a gallon of gas. that is 10 cents a gallon in real money.

lets look at it this way. would you rather find a chest full of 20$ gold pieces from 1900 or would you rather find the same quantity in denominations of 20$ bills?
 
Re: Buying Gold/Silver?

52 week return
ProShares Ultra Silver
+406.99%

SIVR ETFS Physical Silver Shares
+145.89%

SLV iShares Silver Trust
+145.57%

USV UBS E-TRACS CMCI Silver TR ETN
+145.20%

DBS PowerShares DB Silver
+143.69%

BAL iPath DJ-UBS Cotton TR Sub-Idx ETN
+116.86%

JO iPath DJ-UBS Coffee TR Sub-Idx ETN
+112.79%

DAG PowerShares DB Agriculture Dble Long ETN
+106.47%

BHH B2B Internet HOLDRs
+105.19%

and my favorite
IPGP +200%
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Graham</div><div class="ubbcode-body">And that's the point: You can't short-circuit basic economics.

I don't measure my portfolio on a single day's performance because I am not a speculator. 'Same reason that I don't buy foreign currency.

If Gold reliably went up 379% a year there would be none left to buy. </div></div>

One concept that I think hasn't been taught to people in the last 4 or 5 decades is what a 'currency' really is. People tend to look at a dollar / peso / gold / silver and say - Oh that is money. It isn't - it is a bucket to store the 'value' derived from the underlying economy.

In the absence of such an economy the object itself is meaningless. And let's all remember what a modern economy really is in the simplest of terms - one person exchanging 'currency' with another person in return for a good or service. The greater the velocity of such trades - the bigger the economy. Add a few rules that encourage access and fair dealing, and now you have a preferred market.

Now that nation states have capitalized on the advantages offered by central banks and fiat money, gold and silver (as well as other commodities) are still a store of value, but are more importantly a score card that reflects the true and actual real time value of any nation's currency, and functionally ranks the short term health of that nation's economy.

The only reason gold / silver / a store of value / a commodity's worth increases is b/c whatever the fiat currency that is be traded for a good or a service has declined in value.

So when we talk about short cuts to basic economics - that isn't what is going on here. You are thinking in reverse. It isn't that metals are making unsubstantiated gains - it is that the dollar is suffering unmitigated loses. Furthermore domestic and global speculation is looking at the policies of the current administration and the FED and making a judgment call about the integrity of our economy. Why the swings are so big is b/c the dollar is the WRC - when it falls it send a ripple effect around the globe.

Good luck
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Mo_Zam_Beek</div><div class="ubbcode-body">...Furthermore domestic and global speculation is looking at the policies of the current administration and the FED and making a judgment call about the integrity of our economy. Why the swings are so big is b/c the dollar is the WRC - when it falls it send a ripple effect around the globe.
</div></div>

Thus the effort in the past year to replace it. Our .gov has been getting clear warning signs to shape up or be replaced but we truly believe we are "too big to fail".

Problem is... China / Russia don't any longer.

At this point the best investment truly is food stores. If you don't have 30+ days worth of food stores that Gold Eagle in the safe is not going to mean much to you when the trucking unions stop the trucks and the grocery store shelves are bare in <3 days.

This will be an interesting thread to read in 2 years for sure.
smile.gif
 
Re: Buying Gold/Silver?

I don't know about the rest of the country, but in our neck of the woods (Oregon Shooter and myself) on an almost daily basis you can listen to local or regional talk radio and have the topic come up that the truckers are considering a strike 'unless something is done about the high cost of fuel'.

Never mind that we are talking about yet another subsidy for a 'special class'; the real is story is that we are reaching a tipping point of sorts. It is not entirely clear what that point is or what happens once we reach it - but it is coming.

No bullshit - have some food around.


Good luck
 
Re: Buying Gold/Silver?

Here is an interesting factoid. I don't have the math on me right now but it goes like this.

If you take the value of gold and what it converted for any given currency in biblical times and purchased a horse with it. It would cost the exact same amount today (weight in gold).

Gold hasn't changed in value at all, its only how the currencies that get their value from the confidence in the government's fiscal health change in time.

If the currency is deteriorating, then yes gold is a good buy. But not in the form of stock. Only real pure gold (not jewelry). Then again I wouldn't convert all my extra money, you really have to diversify.
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Mo_Zam_Beek</div><div class="ubbcode-body">So when we talk about short cuts to basic economics - that isn't what is going on here. You are thinking in reverse. It isn't that metals are making unsubstantiated gains - it is that the dollar is suffering unmitigated loses. Furthermore domestic and global speculation is looking at the policies of the current administration and the FED and making a judgment call about the integrity of our economy. Why the swings are so big is b/c the dollar is the WRC - when it falls it send a ripple effect around the globe.</div></div>Well put. I'm not sure that I agree completely, but well put.

What is going on with the dollar? We need look no further back than the launch of the Euro in 1999. It linked the money markets of the leading eight economies to each other. The idea was to protect them from speculators. The Euro came to be as a result of the beating taken by the Franc and the Pound in the unregulated money markets of the early 1990's. Then, in 1999 the Bundesbank formed an international financial monitoring framework to identify where regulation was needed and to re-regulate where necessary. Regulation has since returned with a vengeance. Why? Because while the Globalists thought that a 24/7/365 constant market would render the need for regulation obsolete, the truth is that the governments of the developed economies, in an attempt to prevent tax-free money from travelling off-shore, began to control and manipulate their own markets in detailed, pervasive, and unprecedented ways.

I suspect that the current problems with the dollar may have something to do with the fact that the major decisions about the global economy are increasingly being made at BRIC meetings to which we are not invited.
grin.gif
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Graham</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Mo_Zam_Beek</div><div class="ubbcode-body">So when we talk about short cuts to basic economics - that isn't what is going on here. You are thinking in reverse. It isn't that metals are making unsubstantiated gains - it is that the dollar is suffering unmitigated loses. Furthermore domestic and global speculation is looking at the policies of the current administration and the FED and making a judgment call about the integrity of our economy. Why the swings are so big is b/c the dollar is the WRC - when it falls it send a ripple effect around the globe.</div></div>Well put. I'm not sure that I agree completely, but well put.

What is going on with the dollar? We need look no further back than the launch of the Euro in 1999. It linked the money markets of the leading eight economies to each other. The idea was to protect them from speculators. The Euro came to be as a result of the beating taken by the Franc and the Pound in the unregulated money markets of the early 1990's. Then, in 1999 the Bundesbank formed an international financial monitoring framework to identify where regulation was needed and to re-regulate where necessary. Regulation has since returned with a vengeance. Why? Because while the Globalists thought that a 24/7/365 constant market would render the need for regulation obsolete, the truth is that the governments of the developed economies, in an attempt to prevent tax-free money from travelling off-shore, began to control and manipulate their own markets in detailed, pervasive, and unprecedented ways.

I suspect that the current problems with the dollar may have something to do with the fact that the major decisions about the global economy are increasingly being made at BRIC meetings to which we are not invited.
grin.gif
</div></div>

The Euro was a result of the EU wanting a common currency to enable the fast transactions for labor and products without having to hedge currency swings. Common market-common currency.

The decline of the US dollar is not a result of the current deficit, Quantitative Easing, but more the total US debt and what appears to be a lack of resolve in addressing a more balanced budget.A debt built up over several administrations and resulting(in part) from Regan(http://www.taxfoundation.org/news/show/323.html ) temporary tax cuts which have been renewed.
See:
http://www.economist.com/blogs/dailychart/2011/04/government_finances
and
http://www.economist.com/blogs/freeexchange/2011/04/american_government_debt_7
 
Re: Buying Gold/Silver?

OK I"ll give you this - and this is *NOT* a political post, just a historical FACT - when D's are in power the markets tend to drop a tad, a LOT in this case.

If an R gets into offic e in 2012 gold will drop like a rock (3 mos to a year).

If a D gets in office gold is a GOOD investment right now.

Platinum even better.

But damn that's risky, reminiscent of the late 1970's - you COULD get stuck wtih $5000 worth of gold that will only b e worth $1500 IF THE MARKETS kick butt and golddrops back to $400 or so..

Risky...
 
Re: Buying Gold/Silver?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Doug.</div><div class="ubbcode-body">FEAR METAL! </div></div>

Fear PAPER. I'm a believer in "Tangible Assets"....

Doug, you post a 6 month old article, yet have nothing else to back up your case. And, I might add, that article has thus far proved to be quite wrong, as Gold (and especially Silver) has done quite well since that article was published.

Cheers,

Bill
 
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