RDRUNR wrote:vincecate - I would not buy gold or silver purely as a speculative investment. I've been in the coin collecting business for 34 years and a coin is only worth what a collector will pay for it, it doesn't matter at all what it is MADE of. If you think so then I have a bag of pennies to sell you at 2.4 cents each.
Plus, gold bugs like you think people want gold over a US dollar, you are wrong. People recognise the value of a US dollar, it's easy to trade, easy to carry and people trust it, Gold on the other hand, few trust, is it real? What is it really worth? Where did you get it from? What do I do with it if I accept it?
Gold bugs think the end of the world will be there paradise. Where their gold will be worth trillions of dollars per once. What gold bugs do not realise is no one will trade food for gold; I wouldn't trade you a loaf of bread for an once of gold, sorry. They didn't in WWI or WWII and I don't see it happening in WWIII either.
Gold is speculative bubble and cheer all you want on the way up in value, just remember to not hord it and sell it if it starts to fall.
Vincecate. I'll be happy to give you a loaf of bread for every ounce of gold you have. And if I don't have enough loaves, I'll find some.
As it is the gold I purchased at around .... and the silver I purchased from between.....an ounce have still outperformed nearly any other investments I could have made.
CrosstimbersOkie, you are thinking with your wallet, not with your head.
So, what you are saying is you and your family is starving (you DO know you can only go so long without food?), and you have 1 loaf of bread to feed your family, you would trade that for a gold coin eh?
And you my friend are being silly. If I were starving I wouldn't trade a loaf of bread for anything. Not a Dollar or 1,500 of them, nor a Yen, yuan, Euro, Walmart stock or whatever it is that Warren Buffet is buying at the time.
My offer stands. In fact, I'll double it and pay the shipping. I'll pay you two loaves of bread for every ounce of gold bullion you can get. How about it? Do we have a deal?
RDRUNR wrote:
So, what you are saying is you and your family is starving (you DO know you can only go so long without food?), and you have 1 loaf of bread to feed your family, you would trade that for a gold coin eh?
Enjoy eating that gold.
I have well over a year supply of food. I don't expect to be the one starving. I expect to be the one trading food for gold. I am the main gold buyer on my island. I expect that with some delay I will be able to turn the gold back into more food. Trade always goes on. Gold has been money for 5,000 years. It seems the best bet that there will be others who will trade things for gold. We will see.
CrosstimbersOkie wrote:And you my friend are being silly. If I were starving I wouldn't trade a loaf of bread for anything. Not a Dollar or 1,500 of them, nor a Yen, yuan, Euro, Walmart stock or whatever it is that Warren Buffet is buying at the time.
My offer stands. In fact, I'll double it and pay the shipping. I'll pay you two loaves of bread for every ounce of gold bullion you can get. How about it? Do we have a deal?
You really think you'll have bread eh? I doubt it 'cause everyone will give you their gold (pounds of it!) and you'll have nothing because of your greed. And then you'll be asking to have it back (go ahead, offer them a pound of gold for a loaf), and they will laugh.
RDRUNR wrote:
So, what you are saying is you and your family is starving (you DO know you can only go so long without food?), and you have 1 loaf of bread to feed your family, you would trade that for a gold coin eh?
Enjoy eating that gold.
I have well over a year supply of food. I don't expect to be the one starving. I expect to be the one trading food for gold. I am the main gold buyer on my island. I expect that with some delay I will be able to turn the gold back into more food. Trade always goes on. Gold has been money for 5,000 years. It seems the best bet that there will be others who will trade things for gold. We will see.
"Statements of the US Federal Reserve System head that gold is not money" - Fed Chairman Bernanke Says "Gold Is Not Money"
13 Jul 2011 – Gold is a fetish and Bernanke is right in this aspect: it is not gold what makes money but social wealth in general...
Vincecate, you may not agree with Fed Chairman Bernanke, but he has a hell of a lot more financial education and higher job position/responsibility than you do.
Humm, who to believe... Fed Chairman Bernanke or Vincecate word??
Ya. Case closed.
Go ahead and best against your own country, just don't be movin' to Canada when it colapses. You can't buy your way into being Canadian with gold.
vincecate wrote:
Vincecate, you may not agree with Fed Chairman Bernanke, but he has a hell of a lot more financial education and higher job position/responsibility than you do.
Humm, who to believe... Fed Chairman Bernanke or Vincecate word??
Ya. Case closed.
John has a great quote where a politician says that when things get serious they have to lie.
Personally I trust Vincecate more, but I am biased. I don't think there are more than a couple years left before we find out who is right though.
Dear John,
Commenting upon your blog of 28 July regarding the gold bubble:
I have no doubt that gold is already in a bubble, or at least forming a bubble, and that in due course a lot of people will lose a lot of money. I have been investing in gold for years and done very well, and more recently bought into silver bullion, but the important question is when to get out. I am not an investor in gold in a traditional sense as I sell and then buy back reasonably frequently: Trading behaviour rather than investing
I now review my technical analysis on a daily basis and I am seeing gold's next 'resting point' at $ 1755 but of course I may be wrong and I may sell before then, or even at a small loss versus today's price; it depends upon events.
An increasing number of people are starting to talk about gold at $ 3000 even $ 5000 so I suspect that the bubble peak could be very high. If this is correct there is a lot of money to be made.
I agree with comments that gold has 'been money' for thousands of years, and will continue to be money, but its value as money has varied enormously. If one bought gold today at $ 1615, you won't lose all your money, but you might find the value dropping by 75%, only to be worth a great deal again in your children's lifetime.
Regards,
Richard
John,
Thanks for posting your analysis on the current gold bubble. I completely agree with you. I think a lot of "investors" who falsely worship the God of Gold will find gold only serves one master, and it isn't the owner of the gold.
Amazing to think American's didn't learn from the current housing bust, people bid up homes as they got more and more unaffordable only to find it all crash down. When gold was $500 or less per oz, few wanted it, now it's $1600 and it's "going to go up forever", exactly the mentality of the US housing correction.
Oh well.
BTW - Canadians are no better, we haven't even learned that simple lesson from the Amercians yet (on housing).