What to do when the dollar begins its meltdown, the Fed hints it may chicken out, China drives the bus, America heads towards bankruptcy, Iran goes crazy, Greenspan says asset prices are overvalued and the US housing market crashes?
You flee quickly to the one thing that could hold value in the carnage.
Gold.
And it's still early - we've got a long, long way to run.
Yes, I'm pumping. Someone please make an argument against the yellow stuff.
Gold put on more than $7 an ounce on Thursday as investors bet the rally driving prices to their highest in a quarter century was gaining momentum.
"Nobody's selling, it's all buying," one said. "Why sell when it's a pretty sure bet the price is still going up?"
A strong showing in gold futures also added lustre to gold across a range of investment portfolios, dealers said.
April 20, 2006
Gold
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38 comments:
Very good remark. Paper money has been made worthless by the relentless printing of them by all central banks and governments.
So I have been buying gold & silver last weeks. Who wants to have $ if there is no future in them anymore?
From my small ignorant studies I see gold heading toward $3-5K/oz and silver >$100/oz rather sooner than later. Probably I would buy solar panels too as energy prices will probably follow the same trend as precious metals. Soon all wage slaves in the western world will be struggling for 'survival' or at least wonder why their lifestyle has gone up in smoke (& mirrors).
Gold. And it's still early - we've got a long, long way to run.
Oh, goody! Another bubble.
Uh, but where can I sell my Kruggerands when gold gets to $8,000/oz?
You are absolutely correct long term. I would be careful adding new funds here as gold and silver have moved to the top of their uptrends and probably need to consolidate before moving higher. Nothing goes straight up until the blowoff stage and we are a couple years from that.
So can we use Kruggerands to buy groceries and pay our electric bill? Will the hospital accept Canadian Maple Leaves? Will the IRS accept shipments of American Eagle coins? Can I fill up my gas tank with Kronas?
Just wondering...
Anonymous above, Can you pay for all that stuff with money from russia? china? new zealand?
I'm buying gold as a halfway point to another denomination in the future. When? I dont know.
GOLD is just another investment game...when it goes up to say $3000/oz, well! good for who owns it, my question "now what"?. what would be the currency then?, can you cut you gold into pieces to buy your daily needs?, what would be the price of: gas, grocery, clothing...?, how goods and services could be exchanged???
Just buy gold as a hedge, investment, or what ever you call it!, don't bet on gold becoming a currency...powers that be won't let it happen.
Silver will continue to go up until the ETF goes on sale. The weak dollar is pushing commodities up. Even soybeans and pork bellies keep going up. The smartmoney doesn't want to own greenbacks with the irresponsible Fed at the wheel
At some point, gold will peak and the dollar will stabilize. That is when you sell your gold back for dollars. We're just beginning to see the long decline of the dollar.
People were making a million Deutsche Marks a week in Germany due to inflation back in the 1920's but eventually things stabilized. No matter how bad it gets, they always stabilize.
We will probably go through something like Japan did, probably a little worse and face flat to negative growth for 15-20 years.
The problem with investing in gold is that it is difficult to buy and sell for market rate.
Where can one easily unload gold bullion?
I think you are hitting another raw nerve here Keith. People don't like to think that thier dollars may loose value just like thier houses are.
this statement:
"Why sell when it's a pretty sure bet the price is still going up?"
should scare you. but only in the short term.
Eventually you will be right however.
Don't buy gold. Its either too burdensome to store or is based on paper (i.e., an ETF) and when things really go badly the government won't let you have it. I put my entire 401K in soap and maraborl lights - which will be much more liquid then gold when things go south.
Response to the "Thinker"
Local Metal Dealers will buy your gold coin/bullion.
Or APMEX.com will buy your gold/silver at the rates they update every 60 seconds. You call them, negotiate the price, lock it in, and then arrange for the shipment and they cut you a check once it's delivered.
whats the deal with metals today? will this down continue? is this the time to buy? give me some information, I am new to metals.
keith - you have an uncanny ability to get into stocks right at the peak...
GLD is down 3% today.....your 1000 shares is worth $600 less than it was yesterday.
I think people are just cashing out profits .. it'll come back up with a vengeance .... i hope ..
keith - you have an uncanny ability to get into stocks right at the peak...
GLD is down 3% today.....your 1000 shares is worth $600 less than it was yesterday.
Day to day doesn't matter, nothing goes in a straight line. Let's talk again in a year.
For those who are confused about the ultimate value of Gold, you should read up on the origins of money. Centuries ago people bartered and traded today we use paper currency as a 'fiat', essentially an IOU. The main reason paper currency is falling apart is because we went off the Gold standard. Our currency has been undermined by our government. There will always be some 'currency' of value. The reason gold is going up is because people for centuries have felt it held its value better than other things.
KEITH
I LIKED YOUR BLOG BETTER WHEN IT WAS ABOUT HOUSING,
NOT INVESTMENTS AND POLITICS !!!
WHAT GIVES?
Relax folks, gold just gave up one days gains (seems happy at 620 right now). If you can't handle that kindof choppiness, you don't have the stomach for this.
It must climb up against the collective wills of many central banks that have leased out their gold and are effectively in short positions.
You have to be on the floor to make money on daily fluctuations or you'd get killed by commissions and buy/sell gaps.
Local Metal Dealers will buy your gold coin/bullion.
Soo.....we have gold getting to $3000/oz. Suddenly all the gold investors have reached their target price and are getting nervous. Time to sell...
So they start selling. Let's say maybe a million ounces in a week. OK. One million ounces X $3000/oz comes to three billion dollars ($3,000,000,000) in cash which those metals dealers are going to have to come up with. Kitco could end up with demands for buying back 5,000,000 oz. of gold in a month or less??
Can you imagine walking into your local coin shop with 5 Kruggerands and having the clerk cut you a check for $15,000?
"Can you imagine walking into your local coin shop with 5 Kruggerands and having the clerk cut you a check for $15,000?"
Yes, and I can also imagine stacks of crisp U.S. $100 bills in outhouses all over China.
If gold rises to those levels, it will be much easier to pay with junk silver coins. A 1960 dime will probably cover something like a meal at a diner, while a quarter will get you a couple gallons of $8 gasoline.
I'm starting a blog called GoldPanic to counter this one that will cover the gold bubble that is underway. Irresponsible investing leading to gold bubble? Is Bush to blame? How bout those gold day traders cashing out today? These questions and more...
Oh The Banker probably just made a fortune shorting gold!
I'm starting a blog called GoldPanic to counter this one that will cover the gold bubble that is underway.
Keep us informed. Sounds interesting.
I shorted Gold yesterday when it was 645.
I am going to give it another 48 hours. I think we have some resistance at 615-620 but it won't hold.
I expect 600.
Uh oh, Bo Chen has figured out what's really going on. Better go to plan B I guess.
The internet really brings out the crazies.
Happily sitting on 300 oz in coins and two December gold contracts at the merc. I love America and God bless Greenspan, G.W. Bush and the Middle East.
P.S. Sold my Las Vegas McMansion last July. My wife is a realtor here and every night she gets notices of bank auctions in the valley. Some of these auctions are in nice places like Summerlin- the Vegas equivalent of Scottsdale. The market is crashing, she knows it and she has urged all of our friends since last summer to get out. Nobody listened.
no bible-length posts allowed. gotta be more brief that 20 pages
most people seem not understanding the real reason for the price of gold going up steadily since 2001.
the real reason is that the Fed has been printing effortlessly and endlessly in a fancy name called liquidity.
all paper currencies are destined to fail eventually, and that's the lesson from more than 5000 human history. gold is the store of value, and it has been so for the entire human history of more than 5000 years.
do you think this nation called the USA and its faith-based Fed Reserve Notes will be different this time?
all paper currencies are destined to fail eventually, and that's the lesson from more than 5000 human history. gold is the store of value, and it has been so for the entire human history of more than 5000 years.
You guys have been listening to the gold dealer propaganda for too long. They run the same ideas year-in-year-out decade after decade regardless of the gold market.
Same old stuff- fiat currency, blah-blah, eventual hyper-inflation, blah-blah, only store of value on earth, blah. It's ceaseless.
The store of value is in a smoothly functioning modern economy which provides goods and services to the society in a consistent manner...not in a pocketful of gold Kukurands.
gold generates no positive cash flow.
It is pure speculation on captial gains, mostly to protect downside rather then gain.
Gold is more insurance then an investment.
Insurance is good to have currently but putting all your money in an insurance policy...well it is up to you.
Disclosure: I have a gold chain and 3 gold fillings.
Yes, by all means "invest" on Wall Street or the safety of government securities. Read the DTCC settlement rules sometime and you will see that in-duh-vidual investors (those smart folks in the TV commercials) are just patsies in the big scheme run by the brokerage houses and Federal Reserve.
People put in their orders for 100 shares of XYZ and a computer at DTCC helps them pretend that a transaction really took place. In reality their money simply goes into a cash account, and if it's convenient those shares might actually get purchased at some date in the future. DTCC rules even allow the brokers to settle small sell orders from their cash account if the shares being sold aren't actually available.
Yes, gold isn't really an investment...pay no attention to that man behind the curtain
I had a friend in Denver who worked in the oil industry. He saved up over 250k in the 70s and put it all into gold, silver, and diamonds. He was sure that inflation would grow to the sky like in Germany. Gold was 800/oz in 1980.
In 1981, Volker ran up interest rates and choked off inflation. Then lowered rates and set off the biggest stock market boom in history.
Gold dropped from 800 to a low of 280 in the 1990s. Still my friend held onto his gold because it would eventually make him rich. Well, the gold got stolen from his secure vault (Swiss Vaults, Denver)and he lost the whole 250k and had a heart attack too.
His wife remarked to me that they would have been millionaires if he had invested the 250k in blue chip stocks. True story.
desbear -- for every sad gold story like the one you tell, there is a sad story of someone who lost their ass in a "safe" stock, municipal bonds or (gasp!) real estate. All investments have risks and none can survive the sea changes that occur once or twice every generation. Luck has a lot to do with it but the truly successful investors have the knack for picking winners.
It's obvious that the people going negative on gold know very little about the PM market. Better learn quickly because the train is leaving the station. Do your homework before you post because we don't have the time to school you. Should have done more homework before you bought that huge house. PANIC!!! OH NO!!
I have been following a site now for almost 2 years and I have found it to be both reliable and profitable. They post daily and their stock trades have been beating
the indexes easily.
Take a look at Wallstreetwinnersonline.com
RickJ
where ya been?
do you still check in?
gold is still gold!!
best wishes.
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