Buying Gold--Yes!

Auburndale Ray · #1 (**permalink**) 11-20-2009, 04:04 PM

Dylan Grice, an analyst with Societe Generale,contends that the price of gold could reach $6,300 an ounce.
He explains: “The U.S. owns nearly 263 million troy ounces of gold (the world’s biggest holder) while the Fed’s monetary base is $1.7 trillion.
So the price of gold at which the U.S. dollar would be fully gold-backed is currently around $6,300.
Gold is very cheap — at current prices, the USD is only 15 percent gold-backed.”

REAL Gold Prices for the past 750 years...

Rolfe Winkler » Blog Archive » The Fed is sending gold higher | Blogs |

billms · #2 (**permalink**) 11-20-2009, 04:38 PM

So if I bought in 1500 I'd still be holding out hope to make up my losses - I think I'll pass.

hueytaxi · #3 (**permalink**) 11-20-2009, 04:53 PM

If anyone wants to get rid of their old gold, don't trust those TV ads. Send it to me and I'll give you an honest offer.

sub rosa · #4 (**permalink**) 11-20-2009, 05:07 PM

Quote:

Originally Posted by hueytaxi

If anyone wants to get rid of their old gold, don't trust those TV ads. Send it to me and I'll give you an honest offer.

huey, i think you should apply to the white house to be the gold czar. i'll write you a nice reference letter.

screwball · #5 (**permalink**) 11-21-2009, 08:58 AM

Quote:

Originally Posted by hueytaxi

If anyone wants to get rid of their old gold, don't trust those TV ads. Send it to me and I'll give you an honest offer.

I know you were being funny, but this is good advice anyway. Gold has been getting quite a bit of ink lately since it has went up to 1150 bucks. Many people are telling us to buy gold but there are right and wrong places to buy it. Anyone wanting to by gold, make sure you do your homework before doing so, on the metal and where you buy it.

rhino · #6 (**permalink**) 11-21-2009, 10:48 AM

Quote:

Originally Posted by billms

So if I bought in 1500 I'd still be holding out hope to make up my losses - I think I'll pass.

It's hard to tell with you when you are trying to be funny or serious, but in the event you were serious...

If you held fiat money in the 1500's it would be worthless now. If you held gold in the 1500's it would have retained it's value over the centuries. Whereas your paper currency devalued to nothing.

That is one of the attractions to holding some of your investment portfolio in gold/silver. Lately, as screwball mentioned, it is being touted as the next big investment opportunity, but the real benefit of holding some gold or silver is that it will always be worth something no matter what the economic situation. The same can't be said with fiat money, or as we have seen lately some stocks and bonds.

If the US Gov. decided to default on it's debts or go with a United North American currency (similar to the Euro) our Federal Reserve Notes could possibly not be worth the paper they are printed on and you would be at the mercy of whatever the government decided to exchange them for in a new currency issue.

screwball · #7 (**permalink**) 11-21-2009, 11:27 AM

billms · #8 (**permalink**) 11-22-2009, 11:43 AM

Quote:

Originally Posted by rhino

It's hard to tell with you when you are trying to be funny or serious, but in the event you were serious...

If you held fiat money in the 1500's it would be worthless now.

I was being both serious *and* funny. Markets go up and down - fans of markets like to ignore that - except for the expert fans who live on it.

But, let me point out, if I kept fiat money from that time I bet its increase would have been significant and much higher than gold. Of course not because of any government backing, but rather private collectors.

shabba4detroit · #9 (**permalink**) 11-22-2009, 03:18 PM

Quote:

Originally Posted by rhino

It's hard to tell with you when you are trying to be funny or serious, but in the event you were serious...

If you held fiat money in the 1500's it would be worthless now. If you held gold in the 1500's it would have retained it's value over the centuries. Whereas your paper currency devalued to nothing.

That is one of the attractions to holding some of your investment portfolio in gold/silver. Lately, as screwball mentioned, it is being touted as the next big investment opportunity, but the real benefit of holding some gold or silver is that it will always be worth something no matter what the economic situation. The same can't be said with fiat money, or as we have seen lately some stocks and bonds.

If the US Gov. decided to default on it's debts or go with a United North American currency (similar to the Euro) our Federal Reserve Notes could possibly not be worth the paper they are printed on and you would be at the mercy of whatever the government decided to exchange them for in a new currency issue.

For someone who thought he was being both funny and serious, thank you for the explanation. Fascinating.