Start Buying Gold

[All Seeing Eye]

Paper Money isn't worth poop.

Have you noticed all the cash for gold websites and adverts springing up everywhere?? It's all I seem to be seeing these days, even 'Dickinsons real deal' an antiques and auction program is sponsored by a cash for gold company. The price of Gold actually went up recently which IMO persuaded people to part with their Gold jewellery.

I'll tell you why. It's because 'those who actually understand what's going on' know that paper money is worthless and are right now buying up as much Gold bullion as they can get their hands on. The companies that make the bullion need gold to make it so are buying up all jewellery etc in order to get all the Gold off the streets so to speak, make gold bullion bars and sell them to 'those who actually understand what's going on'.

When the recession really takes effect and money becomes worthless everyone will have absolutely nothing and the rich will have their Gold, the only true universal currency that's actually worth something.

My advice to you my friends is to start buying Gold.

Exchange that worthless paper for some precious metal!!

 

[StolenThunder]

Oh I don't know. My worthless paper is easier to use in shops.

 

[All Seeing Eye]

Oh I don't know. My worthless paper is easier to use in shops.

For now.

 

[Gary Mitchell]

What do you mean "when the recession really takes effect"? It already has.

 

[Kirby]

I've decided to invest in Snuggies instead so when the shit really hits the fan and nobody has power, and people are burning their worthless dollar bills to keep warm, I can trade my Snuggies for your gold! In the meantime, I can attend a football game, roast marshmallows, read, and watch tv in the soft luxurious comfort that only a blanket with sleeves can provide.
Choke on that you gold hoarding tools!

Oh yeah, the slap chop, I'm picking up a boat load of them too...

 

[Zulu Romeo]

I hear they tried that trick in Iceland this time last year. Not even Sportacus could save them.

 

[Data Holmes]

I was saying this back in 96/97. I only wish that I had had the money back then to actually do it.

 

[Holdfast]

My advice to you my friends is to start buying Gold.

I prefer miners as a proxy play, due to the scope for M&A activity in the sector, as well as the prospect for commodity prices in general to do well once the recovery kicks in. Today's copper deal in Mongolia is an example of the kind of deal that should become more common, and should benefit miners in general rather than just focusing on gold. I note that I have some decent exposure to the mining sector already so won't be adding to it much, but I expect it do relatively well over the next couple of years or so.

If you mean acquiring stockpiles of the physical metal rather than just using gold (either directly or by proxy of some sort) in your portfolio as a hedge, I can't be bothered. I'll gamble that the world doesn't end in a financial apocalypse. Sure, I almost lost that gamble in September 2008, but I think we're a long way off replaying that scenario anytime soon.

 

[Michael Chris]

Plus if you do lose that gamble I don't think gold would help too much!

 

[Holdfast]

Plus if you do lose that gamble I don't think gold would help too much!

Well, to be fair to the OP, in that scenario it would. If there's a complete financial meltdown, the only residual value would be in physical commodities and since gold is rare, its value would proportionately rise. So having an easily accessible stockpile of the actual metal would make you relatively better off than everyone else, allowing you to make the purchases you need.

The only scenario this doesn't work is if civilisation gets so screwed up in the aforementioned financial armageddon that we end up back in the Stone Age. But planning for THAT risk really is the preserve of the well & truly paranoid.

 

[RJDiogenes]

All my money is in Helium-3. And comic books.

 

[Zulu Romeo]

All my money is in Helium-3.

I tried investing in Helium-3, but that portfolio's all a bit up-in-the-air right now...

My plan to invest in the fruits market went all pear-shaped, too.

 

[Trekker4747]

I plan on buying Oil of Oregano.

 

[RJDiogenes]

All my money is in Helium-3.

I tried investing in Helium-3, but that portfolio's all a bit up-in-the-air right now...

I believe in shooting for the Moon.

 

[Zulu Romeo]

I plan on buying Oil of Oregano.

I tried buying shares in a company producing gallons of oil of oregano. It went into liquidation.
[Stop it - someone]

 

[Data Holmes]

Plus if you do lose that gamble I don't think gold would help too much!

Well, to be fair to the OP, in that scenario it would. If there's a complete financial meltdown, the only residual value would be in physical commodities and since gold is rare, its value would proportionately rise. So having an easily accessible stockpile of the actual metal would make you relatively better off than everyone else, allowing you to make the purchases you need.

The only scenario this doesn't work is if civilisation gets so screwed up in the aforementioned financial armageddon that we end up back in the Stone Age. But planning for THAT risk really is the preserve of the well & truly paranoid.

And what is wrong with being paranoid, exactly, Mr Grasshopper?

 

[Holdfast]

^ you can't plan for everything. I prefer a little bit of Xanatos Speed Chess thrown in alongside the Gambit.


Just for shits & giggles, I found a graph of inflation-adjusted gold prices:

As you can see, we're a long way off the real peak (post oil shock, 1980, nominal price $850, adjusted about $2100)... but you can also see in the graph the possible beginnings of an asset bubble. If that holds, we might see a real spike in gold prices.

Palladium might be a good play too, given that you'd get also get some upswing if the tech or auto sectors recover over the next few years. I still prefer the broader miner play I mentioned above though, in case those don't follow through directly. *shrug*

 

[Data Holmes]

Doesn't adjusting the price of something used to safe guard against inflation, for inflation, defeat the whole point?

I mean, You buy gold to protect your "money" against inflation, more so than for a "return on investment & profit" side of things.

If you bought $500 in '96, it wouldn't be "worth" much more now, but it protect your money from inflation loss.

 

[Sephiroth]

prsonaly I invest in canned goods and shotgun shells

 

[Data Holmes]

prsonaly I invest in canned goods and shotgun shells

Don't forget the bricks of 22 rounds. Post collapse nickels and dimes, you know.