OT: Buying Gold

Geo-TH,In · Dec 21, 2011

Is buying gold a good or bad idea? Physical gold, coins, ETF's? What are your experiences?

Anonymous-0 · Dec 21, 2011

I've not done it because I think the middlemen will make the money not me.

Gun guru · Dec 21, 2011

The price of Gold is too high.
I would buy silver....a lot cheaper and can be traded easier. Silver is $32 per oz. (or there abouts)
Gold is $1600 I think.

ohiojim · Dec 21, 2011

you got it right by the middle man making the money,..when you buy you pay so much over spot and when you sell you get under spot,...takes a big jump in prices to realize a profit,...

4020guy · Dec 21, 2011

Look up site 321 Gold. Read some of the authors, neat perspective.....Ron

Anonymous-0 · Dec 21, 2011

OK,,Lets just say i bot GOLD when our little war got started (witch i thot about) (and i didn't)And so now its Worth a bunch...So what now...Sell it and buy greenbacks?,,,That are on shaky ground to say the least....Na,,I think not..Auction sale time is just around the corner....Think IL just go collect some more sh,,,,, i don't need...LOL

Mike M · Dec 21, 2011

Why is gold so popular over the eons as currancy ?

It serves no other purpose other then looks and electricial conduction,but years ago they had no electric either.

Food,water and weapons to protect it are going to be most valuable if all he!! breaks loose.

rustyfarmall · Dec 21, 2011

(quoted from post at 11:34:34 12/21/11) Why is gold so popular over the eons as currancy ?

It serves no other purpose other then looks and electricial conduction,but years ago they had no electric either.

Food,water and weapons to protect it are going to be most valuable if all he!! breaks loose.

Gold is valuable only because we say it is, and because generations of folks before us said it is valuable. If it weren't for that, Gold is just another mineral that comes out of the ground.

The Dukester · Dec 21, 2011

Sometime look up the physical properties of gold and that will help you understand why for ages and ages it has been such a highly prized metal. I never thought about gold that way until I went to work for a company (Wesgo) that refined gold, among other precious metals, for industrial applications. I'll give you a clue....Few metals resist corrosion like gold does.

wisbaker · Dec 21, 2011

Also realize their are other things being paid for when you buy gold coins, jewelery or other gold assets. Basically you pay a comission to buy and a comission to sell, weather it be the coin cost more than what the melt value of the gold was worth or you are paying transaction fees. it's like buying a front loaded fund, the market value may not compare to the price you can sell what you own it for at purchase price.

tjdub · Dec 21, 2011

This chart is why I'm not buying any gold. To me that says that the price of gold is about 25% higher than the all time maximum over the past 110 years and well over twice what the average price is over that time. Unless you expect cattle to start selling for $3000+/head any time soon, I think gold will come back down.

dhermesc · Dec 21, 2011

Cash is only worth something because we say so too.

The difference is gold has been worth something for more than a 2000 years, paper money has been worth something 150 or so years - and the first 70 it was backed by gold. Would you rather have a $20 double eagle from 1930 or a $20 dollar bill from 2011?

dhermesc · Dec 21, 2011

Actually I've been buying old silver coins. Nothing collectable - just the common Peace and Morgan dollars. If it all falls apart they'll be easier to use as currency - kind of hard to do that with bars.

big fred · Dec 21, 2011

Lotsa folks out there are recommending that folks buy gold. Most of those doing the recommending are (coincidentally) selling gold.

Bob Huntress · Dec 21, 2011

Gold has artifical value. It's worth is based almost exclusively on it's limited status. I use the phrase, "You can't eat gold". Unlike silver, consumer goods are not dependent on gold. Aside from it's artifical exchange value, gold is relatively worthless. If world economies were to go completely array, as gold pimps articulate, is gold what you want to be stockpiled with? Put a different way, what happened when the housing market was inflated to levels that were completely unsupportable? What happened to this housing market when the cost of housing greatly excceded the value of the houses, due to flipping and speculating? It crashed. Those holding the inflated mortgages were stuck with a bill for a house that wasn't worth what they owed. Now everyone needs a place to live, while gold is not as necessary to support life, and if a commodity such as housing crashes when the cost excceds the value, imagine how much a crash gold will take? I'm asserting that gold is in a massive bubble, that makes the housing bubble appear to be minor. Even if the gold pimps are right and the worls economy tanks hard, gold will still crash.

old · Dec 21, 2011

20 30 years ago maybe but if you think about it gold is up and buying when the market is up is the worst time to buy. Most markets go up and down a lot so you have to buy when things are low and sell when high because you can not make a thing if the market is say a $1 an Oz and then a year from now it is 1/2 that and stands a good chance gold will go down before it goes up much more I know silver has been dropping

Gun guru · Dec 21, 2011

One thing to remember is that as a nations currency slowly or quickly moves to become worthless, The nation will revert to a barter type economy. For Example, I will trade you 1 box of .30-06 rounds for 5 cans of soup, and so on. Something else takes the place of the paper money to a point.

Bob Huntress · Dec 21, 2011

As the bulk of provisions from laws passed between 2009-2011 come to fruition, the barter system provides a means of exchange that Federal Revenue Agents will have a hard time extracting 90% in taxes on. The government will seek creative ways to pay the debt brought by Stimulus, external_linkcare etc, and it will be difficult to tax bartered goods and services. I've always said, "The best things in life are free, but in Washington politicans are working around the clock to find ways to tax them."

Nebraska Cowman · Dec 21, 2011

I think like you Bob. It's only valuable because people think it's valuable. As a metal it's way over rated.

Texasmark1 · Dec 21, 2011

He'll make some as he works for a living as surely you and I did. I just asked a gold buyer what he would give me for an African Krugerand and he said $1400 something when the market was "selling" at $1600 something. That's a more than a fair markup as far as I am concerned beins it was selling fro $35 per ounce when I was growing up.

Mark

Jason the Red · Dec 21, 2011

That's funny!!

Jason the Red · Dec 21, 2011

I've been buying coins with more melt value than face value. I feel silver is a better investment, because it has less value which makes it more liquid. If you have an ounce of gold and want to trade for a loaf of bread, how do you make up that much difference? An ounce of silver is alot closer to the real value of the loaf of bread therefore makes the transaction easier to accomplish.
More jingle than you thought

pat sublett · Dec 21, 2011

Why are people spending millions every day advertising Gold if it is such a good investment. Why don't they save the advertising expence and keep it if it is such a good investment.

kyhayman · Dec 21, 2011

I try to always do the contrary to what everyone else is doing. To me, now is the peak or up side of the gold cycle. Hence, its time to sell gold, not buy. What does it matter if the greenback becomes worthless? If it does I dont expect gold to be worth any more. Its hard to store, hard to trade, and easy to steal. All the doom and gloom sayers may be right and the end of the world is near, if it is and the dollar fails so will the rest of the worlds economies. Not sure I want to live through the dark ages any how.

Now, as to your question on investments. I dont have any positions in gold. If I did, as a hedge against a new dark age I sure wouldnt have anything other than the physical metal, locked up where I knew where it was and could get to it. I actually told a little lie, I do have a hand full of gold coins locked up in the safety deposit box. Mostly family heirlooms but a few Krugerrands I picked up at a sale.

Personally, I'd a lot rather invest in crude oil. Its a lot more useful.

Anonymous-0 · Dec 21, 2011

I don't think you get the gold, just a piece of paper also I think there is a different price to that you see on the stock market.

Handyman · Dec 21, 2011

If you want to invest in something that will only increase in value after a financial crash, buy toilet paper. its the one thing everyone is going to be wanting to have other than food and water, think about it.

OhioD14 · Dec 21, 2011

Read a book called "The Creature from Jekyll Island" by G. Ed Griffin. Warning, you will NOT be happy with the Corporate Banks after reading this.

36 Coupe · Dec 24, 2011

You will have a hard time spending gold around here.Silver coins will be easier to spend.I would stock up on fire wood, hay,shoes,gloves and such.Vodka and beer would be a good trade item.Bar oil and common nails will buy more in hard times.Kerosene and candles are a good item to stock up on.Paying for items in gold would attract crooks fast.

OT: Buying Gold

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