Start Buying Gold
- Thread starter All Seeing Eye
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Those who "understand what's going on" know that buying gold won't do squat. People like you keep shilling fear and misinformation by constantly telling people to buy gold. Give it a rest.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!!
A
Amaris
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I'm investing into cans of grease.
J.
J.
now you can see why all the "we buy gold" companies are pushing it so hard, because they want to drive the price up now that people are buying it by inducing fear.
I don't think so.
No asset is a perfect hedge, as the graph shows.
And even if it's used as a hedge in your portfolio, in the shorter term it will go up & down in value with other sorts of supply & demand issues like any other asset so it makes sense to vary the proportion of it (or its proxies) in your portfolio like you would with any other asset.
Historically, gold has been one of the *worst* hedges against inflation and loses value. Anytime I hear this talk about buying gold (which is ridiculous since the supply is finite) I ask people if they've ever heard about the Hunt Brothers.
A friend just married into that family.
I share similar feelings to yours about the "gold rush" going on, but this statement of yours is untrue. The purchasing power of gold has been pretty steady since about 1600 (it DID slump dramatically after the discovery of the New World).
Looked over shorter timeframes such as between 1900-2000, there's much more volatility, but also much more complication in the comparisons since there's periods of using the gold standard and fixed gold prices in there, which fucks up how well you can use dollar prices to measure inflation since you no longer have an independent variable to compare and because the market is distorted. I don't have a PPP-based measure of gold to hand over the last century but I'd expect it would show some big spikes & troughs. Even allowing for this gold still works as a hedge, since its moves also tend to be counter-cyclical to equity and property investments. It's not just an inflation hedge, it's also an equity & property hedge, and a potential f/x hedge in times of dollar weakness. In fact, a big part of its current rise is down to that last reason.
I'd never suggest it should BE your portfolio, but PART of your portfolio (or a proxy based on it), yes, I can support that idea.
I'll have to dig up the charts I had that show gold is a lousy investment because it has fluctuated too much and has lost against inflation. If anything (and you touched on it), the key is to buy gold STOCK. I have some of my IRA invested in precious metals stocks, which include gold, palladium, silver, etc.
Here's what the doomsdayers never think about: Crash. Money can't be traded for goods (far-fetched, but stick with me), and John Smith has 20 bars of gold in his basement. He cuts off a chunk and heads to town with the intention of buying supplies. Meanwhile, I trot into town with a case of bottled water. Someone in town is going to want to trade meat, fuel, vegetables with me for the water rather than for gold.
The gold and silver and other metals are not to secure your wealth during the collapse, but post recovery when the world returns to "normal".
Sure, it's important to maintain a supply of "barter goods" and have a skill set which lets you offer "trade skills" as payments during the dark periods of during and post collapse. But one must always look and plan for the long term. So, just as you plan for the collapse and dark times, you also plan for the post dark times after society recovers.
I agree with the others, if society regresses to the point where we have out scales and are measuring gold dust to trade for canned tuna fish then an investment in 5.56mm and 9mm ammunition will be worth many times its weight in gold.
I agree, but I'd say that 22, 308, 30-06, 45, 12 gauge, and 357mag would be a better to stock up on.
All Seeing Eye
Admiral
I could not have put it better myself!
I'm glad someone else has a good head on their shoulders and can see the bigger picture.
Iohknow, I'm sleepy, but as I see it, gold is at a massive high, so buying it now would be kind of dumb, especially if stuff pans out and we don't head into the second leg of a Dubya recession.
And the reason we see so many 'Cash for Gold' places is because the price is so high, and these places aren't paying that price to people, but people don't care because they're still getting a good price nonetheless (they hope).
Me, I would buy property. It's dirt cheap (bu-dum-ching) and unless you're picking up houses in Detroit, it's gotta go up eventually. And if not, you've got property, you can do stuff, like make the world's largest scarecrow sanctuary.
And the reason we see so many 'Cash for Gold' places is because the price is so high, and these places aren't paying that price to people, but people don't care because they're still getting a good price nonetheless (they hope).
Me, I would buy property. It's dirt cheap (bu-dum-ching) and unless you're picking up houses in Detroit, it's gotta go up eventually. And if not, you've got property, you can do stuff, like make the world's largest scarecrow sanctuary.
I'm buying up canned goods to stock my underground bunker where I will ride out the collapse of society.
* twitch *
* twitch *
Buy ammo and take the gold.
this.
All Seeing Eye
Admiral
Buy ammo and take the gold.
this.
But your bullets will be useless against my Ironman style mechanical suit made from pure Gold.
Costco is now offering one year of freeze dried and canned food for $799.00. Hmmm, coming appocolypse... of deals!!
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