WHY I Dont Invest in Gold/Silver

reply to post by BlueAjah

Then there is that survivor... something show on tv, and they always show people saving gold and silver for future barter.

That's because they are idiots.

Currency hasn't been backed by gold for a LONG time....the basis for determining a nation's currency is FAITH. That's right folks...just faith. Faith in that nation's economy. If a nation has a strong economy (even for all it's apparent weakness, the US is STILL the world's largest national economy) (the Euro is not a "national" economy, it's a collective one), so it is a strong currency.

The only time gold and silver will be valuable, in a SHTF scenario, is once civilization has again stabilized somewhat. Even then, it won't have NEAR the same purchasing power is what you'd pay for it now, at the height of civilization so far....

Originally posted by phantomjack

Originally posted by Logarock

Originally posted by pacifier2012
It depends on the time frame you intend to invest for. If it's the long term then gold/silver/shares are all great investments.

No one will lose anything unless they buy for short term gain which is stupidity not investment..

Even then you must buy low. If you buy when prices are high you are forced to set on it. What we have now is a gold price bubble and like that house one may have bought 8 or 6 years ago its not worth what what you paied for it. And you cant refi gold and silver.

Sorry, but there is no "gold bubble" that you speak of. Gold prices are partially driven by scarcity, supply, and demand. Housing is not. Houses lose value because they do not last forever and depreciate over time.

Gold will hold its value simply because as others have posted, it has been used as currency for thousands of years.

Gold is not being used as currency right now. It is being used as a tool to suck "cash" out of the economy and keep inflation down.

And why would anyone want to buy gold now when its no longer surging anyway.....in fact compared to a few years ago the gold prices are just twitching back and forth......not a good time to buy. When one buys now they are truly not buying to hedge inflation. Why? Because gold is inflated. You must buy cheep and let the rise of gold prices carry up the cash value, just like real estate. Folks act like there is some magic quality to gold. Its all very simple gold goes up and it goes down and you hedge by being smart and buying early and low and selling while the issue is hot and on the rise.....you dont want to get into gold when its trendy.

Do you really think gold will hold value when its price is plundging? Nothing holds its value when prices are droping. Golds no diffrent. You pay 1,500$ for an oz and two years later its selling for 1,350$? You are out the cash value diffrence. Thats not a good envestment.

reply to post by CSBowie


Or in the event of a total collapse Gold and Silver will go the way of currency - devalued to the point of worthlessness.

reply to post by Logarock


Sorry, but you're still wrong. The market is completely manipulated, prices are being HELD down. Physical markets (i.e. actually selling physically held gold or silver) is VERY different from the paper markets traded on the exchanges which are the "spot price". A meaningless term, it is the difference between "Value" or "Wealth" and "Money" or "Price". These are not equal terms.

reply to post by Gazrok


Unless its used to back a new basket of currencies in a global network of trade. Which is likely the way it is going to play out in the next fifteen years. In which case, the price will surge upward and stabilize at a new higher level, to level the playing field across currencies in one of the greatest world-wide currency corrections and value standardizations in world history. Which is my vote. BUY PHYZ!

reply to post by CSBowie


I bet a lot of people here feel the same way, too bad they weren't even willing to take it to sell it. No one understands money or value these days....

www.youtube.com...
Can't even give away a gold coin on the streets.

reply to post by auto73912621


I dont see anything on the horizon or the past which indicates NOW is the time to invest in Gold. I invested in 04 and sold in 12 and still missed out on 300 an ounce. Now I would touch it unless I had a crystal ball. It may go back to 2011 prices but then again it may drop to 07 prices. I can wait. I got lucky, but I also got lucky on a Old Transformer toy I sold on EBAY for $600.00. I still am of the believe that if it gets bad enough the Govi wont let you keep it.

www.kitco.com...

If you are gonna use it for bartering, not saying it wont work, it has to look legit. If you came up to me with a piece of shiney stuff you carved off a coin or little brick I can't test it and I sure won't trust ya. However,a silver coin would work, but a bag of silver dimes are not much of a hedge for recovery.
I like all the input so I can see my situation from different angles. So far I'll stick with no debt and lots of junk.

reply to post by auto73912621

Unless its used to back a new basket of currencies in a global network of trade. Which is likely the way it is going to play out in the next fifteen years

Why? What would trigger it? There's a reason (global trade) it (currency) has evolved to be based more on a nation's economic strength, than the amount of shiny metal it has. Can't see that trend changing....

Originally posted by auto73912621
reply to post by Logarock

 

Sorry, but you're still wrong. The market is completely manipulated, prices are being HELD down. Physical markets (i.e. actually selling physically held gold or silver) is VERY different from the paper markets traded on the exchanges which are the "spot price". A meaningless term, it is the difference between "Value" or "Wealth" and "Money" or "Price". These are not equal terms.

As far as John Doe out here....when he is trading his cash for gold it is a paper market. Whatever they do on the large scale and whatever it means does not change that fact for him. Whatever and who ever sets the value of paper its all the "little" guy has. They, the big dogs, wouldnt be trading their gold for paper unless they are trying to manipulate paper value. When the two are interchangeable on any level then they are not very diffrent in reality. At some point you are going to need or hope you can let the value of your cash ride on the back of gold in the hope that gold will "pan out" better in cash terms.

Originally posted by POXUSA
reply to post by CSBowie

 

Or in the event of a total collapse Gold and Silver will go the way of currency - devalued to the point of worthlessness.

Right. What would be the big deal if my oz of gold was worth 5000$ paper when a loaf of bread is 500$ per. So I bought an oz for 1000$ and now its worth 5000$ in an off the chart inflation economy. Theres no hedge there.

Originally posted by CSBowie
reply to post by caterpillage

 

Thats the 44 mag they only made a dozen (11) of the 45 long colt. I though the same thing till I opened the book and there was mine. Surprises are always good. Check this one out

www.gunsamerica.com...

Not what the last one went for but I'll still take it! LOL

Ah I stand corrected then. Something rare about that one then, maybe the 4 inch barrel. They made a ton of 45 longs in six inch. Nice gun btw

reply to post by CSBowie


I'm new at this so if I say something totally stupid don't everyone pull the trigger at the same time, but i will have too lean towards csbowie. If we end up like Germany, no one was producing anything anyway so a case of beans would do more good for my family. I would have nothing to spend the gold on.Right? But I ubderstand that if I made it through 5-7 years of real hardship my precious metals would beworth something. To me and my family thats a big IF, I have three small children to feed.

On another note (dont laugh to hard) whats the purpose of a flag and whos the OP?

reply to post by CSBowie


Are you married and do you need a wife?

Edit to say I like your well grounded attitude in the OP.

Also I have always had this aching feeling that it is a bait and switch because of the huge popularity of BUY/SELL deluge of the past 5 years. Cash for 4 gold and such just feels wrong to me.

Originally posted by URSOCLUELESS
reply to post by CSBowie

 

I'm new at this so if I say something totally stupid don't everyone pull the trigger at the same time, but i will have too lean towards csbowie. If we end up like Germany, no one was producing anything anyway so a case of beans would do more good for my family. I would have nothing to spend the gold on.Right? But I ubderstand that if I made it through 5-7 years of real hardship my precious metals would beworth something. To me and my family thats a big IF, I have three small children to feed.

On another note (dont laugh to hard) whats the purpose of a flag and whos the OP?

Shhhhh! Don't tell that to people that are heavily relying on shiny metal...they get mad.

OP is original poster. Flags are a way of getting the thread seen by more and a "hey, good job" kind of like the stars. That's how I see it.

**IF** SHTF only two things will matter:

How good of shape you are in and how strong you are. Everything else is moot.

reply to post by superman2012


LOL Not a word! I'm just not smart enough to see their point. Thankyou for the info. I'm buying more beans at Wally world tonight...think they'll take my little silver ingot?

reply to post by ConspiracyBuff

How good of shape you are in and how strong you are. Everything else is moot.

Nope...if you have actual, useful skills, you'll be in high demand...(medical, electrical, mechanical, plumbing, construction, marksmanship, martial skills, survivalist skills, etc.)

reply to post by Gazrok


Useful skills is what I acquire during the winter months...and no, I will not accept shiny metal if TSHTF.

I read the other day that the average cost of a custom made suit is $1295. Gold has historically kept pace with the cost of a custom made man's suit. Given the geo-econo-politics of the last few years we have overshot that by quite a bit....and now may be in a position to retest that metric which could be a floor (but cant rule out overshooting to the downside either).

reply to post by antar

Are you married and do you need a wife?

Yes and no would probably be the answer from most men.
Sorry, couldn't resist.