Flagpole wrote:
God was $612 an ounce in 2007. Today it is over $1,300 an ounce.
God is even cheaper than that my friend and more available.
Silver was/is a better investment than gold, not only as a harbinger of sovereign credit risk, a store of value, and a metal with some industrial application if you think the inorganic recovery will become organic. But as I said two day ago, to be exact, these metals are ripe for a pullback.
*day(s)... as stated on another thread, easy to pick on a guy who was an English major, a writer, and generally very clean with his writing... none of which applies to me.
Flagpole wrote:
steve22222 wrote:Charlie Rose has a large part of a recent show on gold. They said that gold hasn't really gone up - it is our currency that has been losing value. This applies to any commodity, but gold is pretty easy to buy now with ETFs, and it is used as money. Since our dollar is going to probably even get weaker with quantivie easing and our other problems they seemed to think gold was going to continue to rise. They say China and other countries that had been investing in the US will begin to see gold as more appealing.
I always thought gold was not a good investment because it had risen so much and because it was advertised on sleazy radios ads. You can see the show on Hulu and maybe charlierose.com
The price of gold is affected by our currency losing value, but since 2007, gold has gone up WAAAAAAAY more than the currency has dropped...WAAAAAAAAAAAAAAAAAAAAAAAAAAAY more. God was $612 an ounce in 2007. Today it is over $1,300 an ounce.
But it could be a function of what our currency is EXPECTED to do in the future, and that of the rest of the world.
China knows the dollar is doomed and is buying up gold. That is what is driving the price up. If you want to make money on gold, buy mining stocks. Otherwise, physical gold only maintains its value against inflation (which is a real plus in the current environment). The buildup in commodity prices will soon translate into higher consumer prices. My utilites company just notified us that prices will go up %17 nexy year. With no end in sight to the Fed's quantitative easing strategy and a massive government debt to finance, I expect the dollar to continue dropping.
Oops. I meant "GOLD" of course.I DO think you are right that silver and gold are ready to pull back, but I only think that based on the same reasoning I've had all along, and gold has continued to buck the trend. Again, I'm not going to BUY any gold, but if someone wants to tell me they think it will go to $2000 an ounce or more, I'm not about to use logic to argue that...logic has seemed to go out the window with regard to gold.
Sagarin wrote:
Flagpole wrote:God was $612 an ounce in 2007. Today it is over $1,300 an ounce.
God is even cheaper than that my friend and more available.
Silver was/is a better investment than gold, not only as a harbinger of sovereign credit risk, a store of value, and a metal with some industrial application if you think the inorganic recovery will become organic. But as I said two day ago, to be exact, these metals are ripe for a pullback.
You could be right. I've given up trying to figure out the current gold buyers.
steve22222 wrote:
Flagpole wrote:The price of gold is affected by our currency losing value, but since 2007, gold has gone up WAAAAAAAY more than the currency has dropped...WAAAAAAAAAAAAAAAAAAAAAAAAAAAY more. God was $612 an ounce in 2007. Today it is over $1,300 an ounce.
But it could be a function of what our currency is EXPECTED to do in the future, and that of the rest of the world.
l and | and L and 1
Of course a question is, why are you owning gold. If you are just speculating on the price of gold and you thought it would be lower at this point than it is, then yes you are wrong.
Its my understanding that the purpose of owning gold for an investor is just as a hedge against inflation or deflation. But for all the talk about hyperinflation or deflation, the bottom line is that it doesn't exist. The monetary system is stable even though the economy may suck. I question then why people would buy into gold for this purpose.
Besides that Flagpole, I think you would agree that if someone has debt outstanding, its best to pay down debt instead of investing in gold.
The bottom line then is that nobody is right or wrong about gold. It depends on the individual.
What is all this talk about God.
And what does this have to do with investing.
And why would you change your opinion on God.
And ...
... oh, "Gold"
Nevermind.
read this as "changing my opinion on god" quite different
firefly wrote:
read this as "changing my opinion on god" quite different
Actually, it's not much different at all.
Both are things that people value way more than their actual import.
Flagpole wrote:
Anyway, the point here is that I was wrong about gold...can't say I never admit it when true.
You have completely missed the point. Where you went wrong was not merely in thinking one way or the other about gold. It was when you decided your opinion was important enough to share with the rest of the world in the first place.
Is it the Glen Beck effect?Scare the hell out of people and they will buy gold.Know that Glen Beck will scare the hell out of some people who will drive the price up so buy gold.Gold will crash at some point. I think when it starts to drop it will snowball because it is over valued.
Flagpole wrote:
I'm still not going to buy gold, because it is like buying one stock, and that's too risky, BUT, I will admit I am surprised (and therefore was wrong) about gold continuing to stay where it is and actually continuing to go up since March 2009 along with the stock market. That is against what it has done historically, so either the attitude about gold really has changed forever (I'm still not sure that is the case) or this recession (which is now over) was severe enough and scary enough for people to get to gold and now are staying in it because they have seen great gains since 2007 and so they are convinced that it is the best place to be.
I still think that EVENTUALLY gold will come down as the stock market goes north, but I really have no idea when in the process this will happen.
Hopefully (for their own sake) people don't get so enamored with gold that once the tide turns they still stay with it. I've seen this happen with CDs. When CDs were gaining 12% annually in the 80s, many people used them as a big part of their portfolio, and some older people still do that just out of habit more than anything, but those 12% annual returns are long gone.
Anyway, the point here is that I was wrong about gold...can't say I never admit it when true.
Why is it that gold is bought because of its yellow?
I thought that this was a "changing your opinion on god". Hoping to see that some one else realized there is no such thing. Nothing intelligent to say for gold (or in general for that matter).
biggus dickus wrote:
Looks like it's time to sell gold.
^^^^Exactly.
The Treasury bubble is starting to pop too.
Flagpole I am impressed to see you acknowledge that you have changed your opinion on God in this religious thread since most of your topics are focused on monetary matters.
biggus dickus wrote:
Looks like it's time to sell gold.
As I mentioned before, with the election of a Labour (left wing) government in my country in 1997, one of the first actions of our equivalent of your Treasury Chief, our Chancellor of the Exchequer, was to sell off half our nations gold reserves at a knock down price, claiming that gold no longer had an realistic value.
The economic record of previous Labour governments had, without exception, been disastrous, inevitably leaving office with a hideous economic crisis facing the incoming government.
So, on the basis that if the existing incompetent in charge of our economy thought that gold was useless - clearly, the reverse must be true.
With the added bonus that gold became VAT exempt in 2000, I raided my savings to buy a huge amount of gold coin, at around $300 an ounce.
I don’t bother to check the exact current price, but I see it mentioned in various news items that it’s now around the $1400 an ounce level.
But it’s not the profit that I’ve made that the main source of satisfaction - it’s the protection I now possess against the possibility that paper currency will become worthless, as it did in pre-war Germany.
The coin incidentally, is hidden in the proverbial ‘mattress’ - I don’t trust it out of my sight in some bank vault or equivalent.
You have just gone up in my opinion
I would like gold purely because your are not going to lose eveything
It is my philosophy that you should not invest at all until you have NO DEBT other than a mortgage (that is no more than 25% of your take home pay) and you have at LEAST a 3 month emergency fund set up. So, yes, pay off debt before investing in gold or anything.I appreciate your view that no one is wrong or right about gold. In my case though, I took a VERY hard line stance against it, and I've changed my tune...not so much that I'm going to go buy any gold, because I'm not...but enough so that I won't just tell someone they are wrong for buying it. Besides, I don't mind admitting that I was wrong.
ryan foreman wrote:
Of course a question is, why are you owning gold. If you are just speculating on the price of gold and you thought it would be lower at this point than it is, then yes you are wrong.
Its my understanding that the purpose of owning gold for an investor is just as a hedge against inflation or deflation. But for all the talk about hyperinflation or deflation, the bottom line is that it doesn't exist. The monetary system is stable even though the economy may suck. I question then why people would buy into gold for this purpose.
Besides that Flagpole, I think you would agree that if someone has debt outstanding, its best to pay down debt instead of investing in gold.
The bottom line then is that nobody is right or wrong about gold. It depends on the individual.