Shouldn't gold be going up?

IF you're a follower/believer of the gold-silver ratio, currently it sits an an average of the past recent years at 60:1 (historically 15:1 was the norm). At 60:1 silver should be $30 (based on gold at 1800) and/or gold should be $1200 (based on silver at 20).
It's currently at 87:1.
 
Breakaway500 said:
Gold will always be a store of wealth. It is real money, has been since the dawn of history. It may not flare up in currency value like other commodities etc etc but rest assured it will always be accepted and used in trade.Worldwide. Currencies..not so much.

In this virtual world the one thing you cannot conjure up is an ounce of physical gold, and why so many without it, despise it.
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I agree in principal. I would not own gold with the objective of making money, but rather when the USA fails, your dollars and bank accounts will be worthless.

The only reason I don't have any is because the buying and selling commissions amount to a 20% loss right off the bat. Another reason is that when I suggested buying some, she who must be obeyed said NO.

But then again, with the political events of the past week or so, maybe gold is truly the answer.
 
CAJUNLAWYER said:
That applies to everything. When you get down to it, the only thing of any real intrinsic value is clean water and food. Sometimes it is wise to sit back and ponder......
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A look at what people pay for water! Not so much your city water but the fancy bottled water! More expensive than gas!


Our city water is cheap and excellent RO water. It is the sewer charge which is calculated based on how much water you use!


Fiji water at Wally Mart
Robot or human?
 
Rudi said:
Gold/silver will always be of value. When you figure in the total US debt/ deficit and unfunded mandates, we are some 250 TRILLION DOLLARS in the red. Good to have some real money.
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There is no such thing as "real" money. Money is a concept, not a thing. It's a system of accounting to make exchange of dissimilar goods and/or services easily transacted.

Whether gold, or copper coins, or paper bills, or ones and zeros, or giant stone discs (Yap Islander money), money has value only because everyone accepts it as money.
 
Perhaps gold is not down. Perhaps it's just that the dollar is up. There are those that say the price of gold never fluctuates. Only the currencies it's priced in do. They have a point.

I view gold as a hedge, not an investment. I hope I do not make any serious money on it. It is a difficult and expensive asset to buy and hold if you're using physical gold. I own a little, reluctantly. Silver is even harder to hold.
 
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I have a fair stash of gold coins and bars ranging from 1/10oz to 1 oz. but I'm in a different situation in that I sell scrap gold (jewelry, dental etc) to a refinery and take the proceeds in 1 ounce bars. I sold some different times when the market was around $2000. I've had a working relationship with the refinery for over 25 years, all I have to do is call and FedEx picks up at no cost to me. Its a win-win situation for me and my business.
 
I have always wondered, if the dollar becomes worthless, how does one buy things or pay bills with gold or silver? If you have a bar of gold and you need $20 worth of groceries, do you take it to the store and whittle off some gold dust at the checkout counter? Do you send gold dust or coins in the mail to pay the mortgage and utilities? How does that work in practical terms?
 
Tom K said:
There is no such thing as "real" money. Money is a concept, not a thing. It's a system of accounting to make exchange of dissimilar goods and/or services easily transacted.

Whether gold, or copper coins, or paper bills, or ones and zeros, or giant stone discs (Yap Islander money), money has value only because everyone accepts it as money.
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To add:

 
SHTF basic Barter medium is Silver. And you will need some smaller fractional units.
Easy to do, just buy some 90% US Silver Coins.
$1.40 face value 90% Silver = approx 1 Ounce Silver.
Some folks might not recognize a Generic One Ounce Round,
But most everyone recognizes Dimes, Quarters and Halves.
 
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I think individual physical gold buyers are aging out and dying off as far as that goes.Governments will still buy it but the demand isn’t enough to drive the price higher right now
 
Protocall_Design said:
I have always wondered, if the dollar becomes worthless, how does one buy things or pay bills with gold or silver? If you have a bar of gold and you need $20 worth of groceries, do you take it to the store and whittle off some gold dust at the checkout counter? Do you send gold dust or coins in the mail to pay the mortgage and utilities? How does that work in practical terms?
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It could revert back to the system of the 1800s. Bank notes issued by private banks weren’t currency in the same sense as fiat Federal Reserve Notes. They were essentially receipts issued when someone deposited their gold. You could go to the bank with your receipt and withdraw your gold. People traded using the receipts rather than the gold itself.
 
THE PILGRIM said:
SHTF basic Barter medium is Silver. And you will need some smaller fractional units.
Easy to do, just buy some 90% US Silver Coins.
$1.40 face value 90% Silver = approx 1 Ounce Silver.
Some folks might not recognize a Generic One Ounce Round,
But most everyone recognizes Dimes, Quarters and Halves.
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With silver vs gold, it looks like gold is the better deal with the larger coins. 1 oz coins sell for about a 5% premium, while a 1 oz silver coin sells at about a 25% premium. The premium on gold goes up a lot on very small amounts. Not sure at what value the premium on silver beats gold.
 
That’s True, John. Gold is a better buy premium wise.
And Gold is still like always the ultimate Wealth Preserver.
But I hold the Brakes on SHTF scenario that Silver is the preferred barter metal.
I encourage all starting reluctant folks to buy some Silver.
Don’t buy that much, just buy some!
And some small ones, US 90% being the obvious.
And just for the record, I own Gold and Silver.
The other day I really wanted an ounce of Gold.
My local dealer only had one ounce that he knew I wouldn’t buy.
He never mentioned it but I saw it in his display case.
So I bought 60 ounces of Silver generic Buffaloes and departed.
 
I think the OP was simply asking why gold & silver prices are not way up when current economic conditions would suggest that they should be up. I think Crypto Currencies have taken some of the buyers away from precious metals. My son has done very well for himself buying and selling Ethereum the last 4 yrs or so. He told me to get in and I said I don’t invest in things I don’t understand. So he explained the whole concept to me. I still don’t understand it lol.
 
Bald1 said:
I think the OP was simply asking why gold & silver prices are not way up when current economic conditions would suggest that they should be up. I think Crypto Currencies have taken some of the buyers away from precious metals. My son has done very well for himself buying and selling Ethereum the last 4 yrs or so. He told me to get in and I said I don’t invest in things I don’t understand. So he explained the whole concept to me. I still don’t understand it lol.
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Virtual currencies scream ponzi scheme to me.
 
Bald1 said:
I think the OP was simply asking why gold & silver prices are not way up when current economic conditions would suggest that they should be up. I think Crypto Currencies have taken some of the buyers away from precious metals. My son has done very well for himself buying and selling Ethereum the last 4 yrs or so. He told me to get in and I said I don’t invest in things I don’t understand. So he explained the whole concept to me. I still don’t understand it lol.
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Do you go bankrupt if there is a blackout?
 
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