Thread: Gold & Silver : storehouse of value or what?

That's actually a good point. When you speculate in precious metals (or any other commodity), you essentially invest in that medium and have to deal with the fact that it's value moves up and down. Why do investors invest in precious metals? To "hedge" themselves against depreciation in value of fiat currency. The dollar is looking scary (much like the EURO & many other currencies), so buying precious metals isn't really looking so bad in the long run.
Gold may rally above $1900 an ounce before the year is out!

Commerzbank Sees Gold at $1,900 By Year End

http://fortressgoldgroup.com/commerz...0-by-year-end/

I am happy with the metal, but not so happy with the stocks. That being said, we are at a bottom (IMO) for shares in gold/silver mining companies.

Hedging : as in hedging one's BETS. anyone who knows anything about casino gambling knows that the only winner in both the short and long term is the house.

Would you rather have these?!



Iconoclast

NO. And the next question?

This move up in Silver looks genuine to me. I thought that in the worst case, if it pulled back the same amount it did during the great Bull of teh 1970's, it would go down and flirt with 20 bucks, but it looks like the 2011 low has held. I bought more for the first time in almost 2 years last week. Will add more on the first up close following a dip of a day or 2.

This next Silver trade is the trade of a lifetime, when it comes. I would rather have bought down around $21, but flirting with last year's low as long as it did, without breaking lower has been enough to get my juices flowing.

The next run, which I think has started, will blow through the old high of $50 like a downhill freight train.

Originally Posted by Edmund Ruffin

This move up in Silver looks genuine to me. I thought that in the worst case, if it pulled back the same amount it did during the great Bull of teh 1970's, it would go down and flirt with 20 bucks, but it looks like the 2011 low has held. I bought more for the first time in almost 2 years last week. Will add more on the first up close following a dip of a day or 2.

This next Silver trade is the trade of a lifetime, when it comes. I would rather have bought down around $21, but flirting with last year's low as long as it did, without breaking lower has been enough to get my juices flowing.

The next run, which I think has started, will blow through the old high of $50 like a downhill freight train.

Depending on how much you have to invest ;whether in gold or silver, i would stay away from the pure metal[ a commodity] and i would try to get the best deal i could find in high quality ,the best i could afford, in rare silver coins . or rare gold coins. Even if you only bought two or three ,you would own an appreciating asset ,rather than risking speculation and market conditions and a possible loss. but you do what feels right to you.

Comedy time. Do you think this reporter has a University degree ?

Originally Posted by Ozzy Bon Halen

That's actually a good point. When you speculate in precious metals (or any other commodity), you essentially invest in that medium and have to deal with the fact that it's value moves up and down.

How about if you think of it measured in hours of labor ?
Then which is more undependable, gold or paper money?

It takes work to produce gold or silver.
How much work to hit a button and create a billion dollars of fiat?
If you watch the value of real stuff and compare it to money I think you will find real stuff holds it value.

I also suspect that the attempts by the banking cabal to hammer down precious metals in sudden sharp moves is deliberate to make gold and silver look scary.

I found this 1923 paper money under my Dad's socks in the top drawer after he died in 1990). I've had it listed at $98 OR BEST OFFER for a couple months and no takers. However, if i were selling a canadian $5 gold piece of the same age, (1/4 oz of gold) i would have no problem getting over $400 for it now. Still think paper money is the place to be ?

This bill cost no more to make than those above!



Iconoclast

Originally Posted by Dirigible

How about if you think of it measured in hours of labor ?
Then which is more undependable, gold or paper money?

It takes work to produce gold or silver.
How much work to hit a button and create a billion dollars of fiat?
If you watch the value of real stuff and compare it to money I think you will find real stuff holds it value.

I also suspect that the attempts by the banking cabal to hammer down precious metals in sudden sharp moves is deliberate to make gold and silver look scary.

I found this 1923 paper money under my Dad's socks in the top drawer after he died in 1990). I've had it listed at $98 OR BEST OFFER for a couple months and no takers. However, if i were selling a canadian $5 gold piece of the same age, (1/4 oz of gold) i would have no problem getting over $400 for it now. Still think paper money is the place to be ?

They have done everything they could to hold them down. JP Morgan, with the backing of the Fed, has sold naked short several times as much silver as there is in the world, and they have not been able so far to take it down by as big a percentage as it pulled back in the Great Bull of the 1970's. There is no way to know how long they can keep the lid on, but when it blows, those holding the metals will have wealth. All others will be broke.

If JP Morgan tried to cover its shorts, the price would be above $500 quickly. If JP Morgan is forced to cover its shorts, it is bankrupt!

Being long the metals means being on the opposite side from the power, and always means a lot of suffering, but the end must be the death of the dollar and the end of Bankster rule. So I will hold on.

There's no doubt that holding gold[owning] precious metals has a certain psychic benefit ; it definitely exudes a feeling of confidence during times such as these. But ,my point is that Gold and especially silver make poor investments.

Metals are commodities and what a commodity broker will never te ll you is that maybe 6% of investors ,even the pros ,make any profit for all their trouble. The brokers make hefty commissions and as in a casino ,the house always wins,they always take their cut or piece of the action.
Buying metal is risky because you're dealing in commodities.

Governments buy metal to instil confidence in their currency ,but they also sell when the market seems right.

Switzerland has been a net seller over the past ten years. The confidence is psychic because there's no way any government even switzerland can tie their paper to metal,and certainly the usa could never do it.

In times such as in weimar ,the folks sold expensive jewelry , diamond necklaces ,heirlooms for a few small bags of groceries. they sold farms and expensive homes for a pittance. they still were no better off. if you read the history of gold ,from the times of persia and rome to the aztec gold brought from the americas to europe ,you can see how the yellow metal destroyed the economies of europe. and it can destroy what little is left of an economy right here.

IMHO when the dollar, euro, ect. fails gold, silver and other metals along with paper money will be useless. I think grain or seed might make a comeback, even if a temp. one. I could be wrong of corse. Metals like gold and silver will have very little practical value to people that are hungry. Paper money will have no value except for cleaning after a visit to the out house. But seed and grain has a practical value. When everyone on my street or in my area is hungry it will be the people with the means to feed people that will be considered wealthy. IMHO of corse.

Originally Posted by Dirigible

How about if you think of it measured in hours of labor ?
Then which is more undependable, gold or paper money?

It takes work to produce gold or silver.
How much work to hit a button and create a billion dollars of fiat?
If you watch the value of real stuff and compare it to money I think you will find real stuff holds it value.

Actually there is a lot of work behind the creation of fiat currency. Normally, money is created out of thin air, BUT it is circulated as loans, which means that every dollar that is created is backed up by a guy who might lose his house if he doesn't keep working. An ounce of gold, by contrast, is worth much more than the labour that goes into producing it, the rest of its price being an enormous profit margin. There is a profit margin on loans too of course, especially with fractional reserve banking.

The two are actually very similar when dissected. The only thing that gives currency value is demand, and this demand is based on the belief that the money will be honoured as valuable. The "debt" element ensures this, up to a point. With gold and silver, again, the only thing giving it value is demand. But this demand is not guaranteed. That's a key difference...be careful investing in gold, because demand may fail.

Originally Posted by negative3

Actually there is a lot of work behind the creation of fiat currency. Normally, money is created out of thin air, BUT it is circulated as loans, which means that every dollar that is created is backed up by a guy who might lose his house if he doesn't keep working. An ounce of gold, by contrast, is worth much more than the labour that goes into producing it, the rest of its price being an enormous profit margin. There is a profit margin on loans too of course, especially with fractional reserve banking.

The two are actually very similar when dissected. The only thing that gives currency value is demand, and this demand is based on the belief that the money will be honoured as valuable. The "debt" element ensures this, up to a point. With gold and silver, again, the only thing giving it value is demand. But this demand is not guaranteed. That's a key difference...be careful investing in gold, because demand may fail.

The key difference Negative3, is that you can actually, physically posses the Gold, it is NOT based on debt or other promises which you can not enforce, even in principle.

Furthermore, over most of the last century and before, Gold mining has not been an especially profitable industry as the gold in most ore is measured in grams per ton.

Iconoclast

Originally Posted by Iconoclast

The key difference Negative3, is that you can actually, physically posses the Gold, it is NOT based on debt or other promises which you can not enforce, even in principle.

Iconoclast

Good point.

Recently, it was admitted that in America the gold and silver buyers are only paying 50 cents on the dollar vs. the actual value of gold and silver.

An actual gold and silver buyer told me that the biggest purchaser of gold and silver in America right now is Microsoft. It has also been revealed that the big purchaser of water rights (water ownership) in America is Bill Gates.

Pastor Lindsey Williams, who has been very accurate with the insider information that he disseminates, stated that silver will be at 75 dollars an ounce before the end of 2012.

Originally Posted by Iconoclast

The key difference Negative3, is that you can actually, physically posses the Gold, it is NOT based on debt or other promises which you can not enforce, even in principle.

Furthermore, over most of the last century and before, Gold mining has not been an especially profitable industry as the gold in most ore is measured in grams per ton.

Iconoclast

while you may be able to hold gold or silver ,you face the risk of theft. when you sell ,you will receive more paper money. just what you don't want. and finally ,just as with fiat currency ,there's a huge political risk in owning precious metal. The feds can shut down the sales of gold and silver anytime they wish. and you will be left having to do business with blackmarketeers . good luck. hope you don't get mugged .