feralmerril
Absent Comrade
I lost $14,000s on that hunt deal at a critical time in my life. Bought on margin and was going to get rich!
The logic for buying gold/silver?
- Thread starter Peter M. Eick
- Start date
SJshooter
Member
Because @ $1600 an oz 2 years ago it was a deal, yesterday @ $1253 an oz makes it a great deal.
And how good of a deal will it be when it gets back to $1,000?
I love gold as an inflationary hedge, but I am not one of these guys who sees it shooting to $5,000/ounce over a short holding period. And in the meantime you have to absorb some huge volatility.
bhayles
Member
Pilgrim
US Veteran
I'd rather have a few dozen S&W's and a few (or many) thousand rounds of ammo than gold. There will always be a market for them and the 'value' of them will never go down.....no matter if the economy stays good or if SHTF.
SJshooter
Member
We have the DJIA at 16,675(!) and the VIX at 11 and change? This is probably the worst time to buy gold.
ChattanoogaPhil
Member
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What happened to all the hype about central banks buying up all the gold?
Wonder when gold will be a good buy, below $700?
Wonder when gold will be a good buy, below $700?
THE PILGRIM
Member
You mean this stuff?
Somebody mentioned that paper money and gold were really the same thing. Really?
another Milt Story- at the end od WWII, Milt was a bomb disposal officer.
He and his team removed mines, disarmed booby traps and blew safes. Disarmed bombs and shells. Made safe, that how they say it.
The safes were in gov offices, military locations and banks.
Late one day at the request of the US Military Gov folks they blow the vault in a bank. It's getting late so they decide just to spend the night in the bank.
So they start a fire. They use some of the available Marks and get warmed up.
A mil occupation Gov guy comes by to check on their progress. When he sees the burning Marks, he says do you know what you are burning?
They say just some old worthless German Nazi money.
He says no! Those are silver backed Marks guaranteed by silver stored in Switzerland! Quit burning those notes! So all paper money is not created equal.
But all gold is created equal.
Somebody mentioned that paper money and gold were really the same thing. Really?
another Milt Story- at the end od WWII, Milt was a bomb disposal officer.
He and his team removed mines, disarmed booby traps and blew safes. Disarmed bombs and shells. Made safe, that how they say it.
The safes were in gov offices, military locations and banks.
Late one day at the request of the US Military Gov folks they blow the vault in a bank. It's getting late so they decide just to spend the night in the bank.
So they start a fire. They use some of the available Marks and get warmed up.
A mil occupation Gov guy comes by to check on their progress. When he sees the burning Marks, he says do you know what you are burning?
They say just some old worthless German Nazi money.
He says no! Those are silver backed Marks guaranteed by silver stored in Switzerland! Quit burning those notes! So all paper money is not created equal.
But all gold is created equal.
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Gold is no investment, it is a hedge against economic disaster. If you think the stock market is a loser when you figure inflation, your math stinks, or your broker. The SHTF scenario is just fiction like UFOs and bigfoot. If you stare into the darkness long enough you can see anything.
I'll give you a hint: If you see ads in all the magazines wanting to sell you gold, it's probably not the time to buy.
I'll give you a hint: If you see ads in all the magazines wanting to sell you gold, it's probably not the time to buy.
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labworm
US Veteran
I don't understand all the fuss about our currency being worthless because it isn't backed by gold. I was reading some information about total recoverable oil and gas on federal land. According to the Institute for Energy Resources (whoever they are) at current market value it was worth $128 trillion dollars. How much gold has ever been held by government? Surely nothing close to $128 trillion. I'm sure a lot of the land has been leased, but the value is staggering. America ain't broke just yet. I wonder how much ANWR would sell for on ebay?
I'm sticking with XOM, like I have been doing since 1970.
It would depend on what I paid for that coin [emoji4]
I don't see precious metals being of any use when/if the economy collapses.
IF the SHTF ever happens I want to be invested in:
Good Whiskey
Cigarettes
Ammunition
Things people will really want and will trade for.........just have to be very careful who you trade the ammunition to!!!
IF the SHTF ever happens I want to be invested in:
Good Whiskey
Cigarettes
Ammunition
Things people will really want and will trade for.........just have to be very careful who you trade the ammunition to!!!
Harrison
US Veteran
You can put it in a coffee can wrapped in plastic and bury it someplace hard to find. Then the local/state/federal government cannot tax it on a yearly basis, or slicky it away from you. It is a tangible asset. When TEOTWAWKI occurrs gold/silver and ammo may be the only valuable currency. 
occurrs gold/silver and ammo may be the only valuable currency. 
Ματθιας;138109622 said:
Which would be more valuable today, a 1920 $20 gold coin or $20 of IBM stock bought in 1920?
BobC357
Member
Buy low, sell high.
NEVER buy on margin.
Who will be your dealer/broker?
Capital gains has long term and short term rates. Long term are less.
Then, there are commission costs to consider.
Are you taking possession or paying storage fees for bullion?
How do you want to purchase? Coins, bars, commemoratives, etc.?
I've traded since the late '70s. There are many considerations to keep in mind. American Eagle (silver or gold) coins have a premium associated with them but, if you buy a lot (uncirculated box), you can save considerably. Bars are cheaper but harder to exchange.
Silver is poised for a drop as it has negative pressure on it now. I'm waiting for below $18 to consider a buy position. It broke below $19 already. Watch the charts. Only the market knows what it is going to do. Just buy when you're comfortable and take possession. Anything else is gambling.
NEVER buy on margin.
Who will be your dealer/broker?
Capital gains has long term and short term rates. Long term are less.
Then, there are commission costs to consider.
Are you taking possession or paying storage fees for bullion?
How do you want to purchase? Coins, bars, commemoratives, etc.?
I've traded since the late '70s. There are many considerations to keep in mind. American Eagle (silver or gold) coins have a premium associated with them but, if you buy a lot (uncirculated box), you can save considerably. Bars are cheaper but harder to exchange.
Silver is poised for a drop as it has negative pressure on it now. I'm waiting for below $18 to consider a buy position. It broke below $19 already. Watch the charts. Only the market knows what it is going to do. Just buy when you're comfortable and take possession. Anything else is gambling.
I'm not talking about stocks I'm talking about currency.
I don't know about you, but I don't consider stock certificates currency. Unlike cash/coins I can't buy a meal with a stock certificate.
I don't buy gold at 1300 to 1400 hundred an ounce or whatever it has the potential to drop too much silver is I think a safer hedge against the dollar crashing it is used by industry and jewelry and costs 19 to 20 dollars a ounce to produce so if the market gets flooded the silver mines will slow production until the supply lessons thus keeping the price from tanking I don't buy silver to get Rich I buy it to keep from being broke if we have an economic collapse
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mrrick
Member
Someone mentioned Whiskey and cigarettes and they were spot on.
I was in Iran for the '78/79 revolution and here was what was in demand as everything was on strike and nothing was readily available:
Cigarettes
Vodka (the revolutionaries smashed every bottle they could find, the streets of Tehran were running with alcohol including the expensive wine cellars of the Hilton and Intercon).
fuel: gasoline, propane and heating oil, it's cold in Iran in the winter.
rice
cooking oil
dried beans and pulses
Gold could be readily exchanged for anything.
I've spent most of my adult life in Asia and they have a very different attitude toward gold. After thousands of years of revolutions, warlords, invasions, and general mayhem, nobody trusts paper money or governments. All discretionary wealth is put in gold. I even have this 17th century 100 pound bronze container made especially to stuff your gold and jewels in, sealed with a wax plug to bury somewhere in the fields when word that Genghis Khan is on the way hits your village.
In the back country of Afghanistan the medium of exchange is bullets. You gave the shop keeper some rifle bullets (.303 British), he tried chambering them in his collection of rifles behind the counter, he gave you change in pistol bullets (Webley, tokerev) which you tried chambering in your collection of pistols, one in a boot, one in a holster, and another in your pack.
I was in Iran for the '78/79 revolution and here was what was in demand as everything was on strike and nothing was readily available:
Cigarettes
Vodka (the revolutionaries smashed every bottle they could find, the streets of Tehran were running with alcohol including the expensive wine cellars of the Hilton and Intercon).
fuel: gasoline, propane and heating oil, it's cold in Iran in the winter.
rice
cooking oil
dried beans and pulses
Gold could be readily exchanged for anything.
I've spent most of my adult life in Asia and they have a very different attitude toward gold. After thousands of years of revolutions, warlords, invasions, and general mayhem, nobody trusts paper money or governments. All discretionary wealth is put in gold. I even have this 17th century 100 pound bronze container made especially to stuff your gold and jewels in, sealed with a wax plug to bury somewhere in the fields when word that Genghis Khan is on the way hits your village.
In the back country of Afghanistan the medium of exchange is bullets. You gave the shop keeper some rifle bullets (.303 British), he tried chambering them in his collection of rifles behind the counter, he gave you change in pistol bullets (Webley, tokerev) which you tried chambering in your collection of pistols, one in a boot, one in a holster, and another in your pack.
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ChattanoogaPhil
Member
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Cries of doom... Right.
A year and a half ago this thread was created and I still haven't seen the "logic" for gold to move higher other than doom or black helicopter theory of all the gold gone missing at Ft Knox.
QE is slowing down. Dollar strengthening. Oil production on the rise. Economy and wages puttering along. Where is the catalyst for gold to rise other than ME turmoil or some apocalyptic event?
A year and a half ago this thread was created and I still haven't seen the "logic" for gold to move higher other than doom or black helicopter theory of all the gold gone missing at Ft Knox.
QE is slowing down. Dollar strengthening. Oil production on the rise. Economy and wages puttering along. Where is the catalyst for gold to rise other than ME turmoil or some apocalyptic event?
Well....Since I can't go to the store and buy a loaf of bread with a gold bar, or gold coin from Switzerland.. Gold or silver for the end of days, makes me wonder....
If you can't eat it, can't spend it...or make love to it....then what good is it?????
WuzzFuzz
If you can't eat it, can't spend it...or make love to it....then what good is it?????
WuzzFuzz
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