What is up with all the buying of gold and other precious metals?

I have noticed that there is a wide increasing trend of buying gold and other precious metals from citizens. My observation is of course limited to the country I live in (Finland). Have you noticed the same? Businesses concentrated on this keeps on multiplying, they have adds where they are even willing to come to your home to do their evaluations. Is this common in other countries?

Should this be considered as a major sign of the arriving collapse? Is papermoney soon done? They are even offering a #ty exchange rate, but if the currency is going to fail, well... who cares... Paper won't be worth anything anyway.

reply to post by OnWhiteMars


Her in the U.S. it seems there is a Cash4Gold store on every street corner.

They are even hiring those sign-waving street advertisers to attract potential customers.

p.s. By the way, they are ALL rip offs. They offer only a tiny fraction of the gold's value.

here in canada as well.
you see growing 'electronic drop off' spots every where. (gold in them too!)
cash 4 gold stores are everywhere!!!!

They don't want you to have a valuable trading commodity that they cannot control

The United States Gold Reserve Act of January 30, 1934 required that all gold and gold certificates held by the Federal Reserve be surrendered and vested in the sole title of the United States Department of the Treasury.[1][2]

The Gold Reserve Act outlawed most private possession of gold, forcing individuals to sell it to the Treasury, after which it was stored in United States Bullion Depository at Fort Knox and other locations. The act also changed the nominal price of gold from $20.67 per troy ounce to $35.

reply to post by AnonymousCitizen


That's true! I understand that business has to profit, but those prices are ridiculous. Nice to know we aren't alone being screwed...

Personally I am trading the bulk of my fiat currency for junk silver. With QE3 now in effect, currency values are plummeting. This is why you see prices going up on everything. The dollar is losing even it's perceived value; it has no real, intrinsic value of it's own. Hyperinflation could begin at any moment, just as soon as the sheeple realize how badly they are getting screwed by Bernanke and company. Use this opportunity to prepare yourselves. There is no way to know for sure when the bottom will drop out. We are literally an eye-blink from financial catastrophe.

reply to post by DarthMuerte


It seems like we have been dancing on a thin rope for a while. It's just purely disgusting how even at times like these, maximum profit is all that matters. All morals have gone out the window. One can't rely on a handshake or another man's word to be worth anything anymore.

So, I have to start buying junk gold with monopoly money

It seems to me that, in the United States, the latest "Quantitative Easing" scheme perpetrated by the Federal Reserve (central bank) has no limit on the amount of dollars they can print. Endless dollars with nothing to back them up mean hyperinflation.

Hyperinflation means that gold and silver prices will go higher, so it makes sense to take possession of the physical metal before the price makes them unattainable.

reply to post by OnWhiteMars


Maybe because gold is at a 20 year high?
I don't know.

If I could scrape up an ounce of 24k and get 1700 bucks for it.
I'd find me some gold.

Well Cash for Gold probably is a rip off. I took the post more as "regular" people buying gold and other metals.


Now, I can think of two (fairly interchangable) reasons to own metals like Gold or Silver. I would if I had the additional funds, but right now am having a bit of financial hardship I am digging myself out of. If/when I do, I may try to buy a little bit of silver based on the thought of the following reasons.

First, in a major economic collapse, especially as an American using the US Dollar, if the Dollar collapses it's purchase power will be descimated. It could take 20, 50, or even more just to buy a gallon of gas, or a days worth of food. However; 1 once of Silver in coin or bullon, such as a US Silver Dollar, is worth about $ 34.00. So if you had 10 silver dollars (you might have them in a drawer, maybe that present Grandma slipped in the card) it's worth 340.00. Not bad for a dollar coin. But if the dollar falls, metal prices will go up, because they have tangable worth (especially silver due to its industry use). Also, no one will want dollars if they are not worth the paper they were printed on. In some scenarios silver could be worth 500.00 an ounce. Having just a couple of dozen 1 ounce silver coins might let you buy commodities like food and gas until (if) some stabilization is found. Or trade in for silver value if a new currency is adopted. It's why lots of "preppers" and "survivalists" have at least some silver.

The second reason (which really just expands on the first) any wealth you have (and I don't mean you have to be "rich or wealthy"), but any savings you have would take the same hit. Say you have 5000 in cash. Right now that's ok. Most working class American's could live for 2 or 3 months on that much. But if gas is $20.00 a gallon, and a gallon of milk 15.00 a gallon, how long will that last? But if you have 5000 in silver, It's tangable worth could be 2.5 million if Silver is 500 bucks an ounce. Obviously not everyone can afford to do this. And right now, other than metal exchanges, few banks or merchants are dealing in silver....yet. If you don't have savings just paying the bills is a challenge. But lets say you are, or become ok. Have some cash, have some savings, and have some silver or gold.

Those that are VERY wealthy, with large sums of cash in savings and or tied up in investments are buying gold. I beleive good ole' G. Soros is said to have some 30 metric tons. His cash might deteriate, but he his gold would still maintain his wealth. Heard on the radio he is getting out of most stocks very quickly. Buffet too. That ought to concern people.

www.apmex.com

This is a good place to go to check metal prices and purchase.

There is risk though. Gold or Silver could fall in value, especially if the dollar were to get stronger, but that's EXTREMELY unlikely. Should I ever be in a position where i had considerable savings and/or assets, I would spread them around into a couple of funds, currencies, and metals, just to keep total wealth "safe".

BTW one ounce of Gold is worth about $1700.00. About 20 years ago I beleive one ounce was less than 300.00. I had an economics professor say if we were ever about 1000 dollars and ounce, it meant the economy was in SERIOUS trouble. That was in 1993.

I was interested in buying some silver as an investment as it's price has sky rocketed over the years and I believe it will keep going up. Where do you buy Silver and gold though at a decent price that is reasonable? Or can you only get good prices when you buy in serious bulk?

reply to post by SrWingCommander


Great comments.

I to use www.apmex.com for my purchasing.

I tend to buy bags of silver coins. This way, they have both their silver content value AND an inherent collector value. So I get a bit of protection both ways.

Plus, they will make it easier to spend when TSHTF...easier than cutting up and dividing a 1oz silver bar.

However, they do sell silver bars that you can snap apart in 1/10th oz pieces...again, easy for trading.

Silver has a HUGE upside still. Gold may increase another 100%, but Silver has the potential to increase 500-1000%. Think about the gain percentage, not the value. Buy 1000 worth of silver over 1000 worth of gold!

reply to post by clintdelicious


I dont care where you buy it, just make sure you take it home with you.

The evidence of gold ownership ie a piece of paper that says you own it is in question.

Just read "Gold Warriors" by Sterling & Peggy Seagrave, the corruption in gold is global, so buy it for sure, but make sure you can see it every day, AT YOUR HOUSE.

Originally posted by clintdelicious
I was interested in buying some silver as an investment as it's price has sky rocketed over the years and I believe it will keep going up. Where do you buy Silver and gold though at a decent price that is reasonable? Or can you only get good prices when you buy in serious bulk?

Best place I have used for years, www.apmex.com

reply to post by clintdelicious


Buy from regular people! Cash4silver, mate

To be serious, this trend wasn't just local. Regarding the answers you have posted. There are even tv-adds encouraging to sell...

When TSHTF you can't eat gold. Who's going to trade you food for gold then? No thanks, I'll keep my food, guns, and ammo.

Originally posted by TheGreatDivider
When TSHTF you can't eat gold. Who's going to trade you food for gold then? No thanks, I'll keep my food, guns, and ammo.

I don't think a dollar collapse means TSHTF......well maybe after several days/weeks without any releif or recovery plan. If you guard part of your wealth with metals you can "trade" it at the high value for the "new" currency" that will likely come out. Not that I like that idea, but it "saves" your inheriant wealth.

That being said, I think aving copper, jacketed around lead, mounted to brass.......has a value all it's own

reply to post by OnWhiteMars


this has been going on for years now... their is a deffficiancy of physical metal. One way to solve that is too vacuum the silver and gold from the population...

reply to post by Henassy


It has existed here too for years, but recently it really has peaked out! I thought that would be a warning sign on its own.

Originally posted by SrWingCommander

Originally posted by TheGreatDivider
When TSHTF you can't eat gold. Who's going to trade you food for gold then? No thanks, I'll keep my food, guns, and ammo.

I don't think a dollar collapse means TSHTF......well maybe after several days/weeks without any releif or recovery plan. If you guard part of your wealth with metals you can "trade" it at the high value for the "new" currency" that will likely come out. Not that I like that idea, but it "saves" your inheriant wealth.

That being said, I think aving copper, jacketed around lead, mounted to brass.......has a value all it's own

edit on 9-10-2012 by SrWingCommander because: spelling