Skip to comments.Gold fever sweeps suburbia
Posted on 02/21/2009 2:47:20 AM PST by blueplum
Juggling glasses of white wine and baggies filled with baubles, dozens of women descended on a well-appointed Orange County home this week to trade in their old golden treasures for hefty checks.
There were earrings from ex-boyfriends, ring settings with missing stones and chain bracelets from sorority sisters. One woman brought in her husband's wedding ring -- from a previous marriage.
Julia Geivet, 39, had hopes of selling an "embarrassing" Italian horn bauble she had owned since eighth grade and a few other small trinkets, which she thought might get her $30.
"I figured I'd come get a little money and socialize and chat," said Geivet, who was recently laid off as a manager at Verizon Communications Inc. "It might not come out to a lot, but right now, every little bit helps."
She left with a check for $302.92.
Gold is hot. The precious metal soared $25.70 an ounce Friday to $1,001.80, topping the $1,000 mark for the first time in nearly a year.
(Excerpt) Read more at latimes.com ...
Is gold a deflation hedge?
I think we are looking at a gold bubble that will burst, followed by REAL inflation. I’m taking a pass now but might get in later.
You really can’t eat gold.
What happened to the people who owned gold during the depression? Was it an inflation hedge?
It was confiscated by the government.
oh yes, I agree, one should always do homework on party organizers - certainly don’t want to end up with a bouncing check from a con artist.
When entered and exited properly yes. If you have money and you want to ‘stash’ it for a few years gold sounds good. The same people that perpetuated the dot com bubble then the housing bubble, then the credit bubble, are in gold right now. Be wary. Make it if you can, but realize why the previous bubbles burst. They simply weren’t worth it. Short term gold is great. Long term is sketchy IMO.
Newly mined gold also had to be sold to the Fed, but payment of $35 an oz. was the new price.
I think there will be gold bubble/burst and then a forex run. Which paper is chosen I am not privy to. Just a guess
When it's all said and done .... what does a man really need to live and stay alive?
Food and shelter.
Everything else just makes a boring, get up, go to work .. (grow/hunt for food, gather/make fuel for heat .. etc), eat and sleep existence a little more interesting.
I think that's what God saw when He looked down and said, "It is not good that man should be alone"
Anyway, I agree with you RobRoy ... gold's value can be DEtermined (think about that word) at any time.
We live in a new age where geeks often command more power and money than the CEO (at least until after they fix the server problem) .. so what is 'worth' and what do we want something of value for?
Food and shelter.
I have to agree.
Several traders and economists were on a TV show recently (Russian sponsored?) and were talking about the influx in the precious metals market.
While a good investment, is it really what you need to survive if there are price controls, hyper-inflation, food shortages, a fuel crisis, and a huge upswing in riots and crime caused by social and economic collapse?
What are people going to do, chip off little bits of their gold bars stored in their basement safes?
I actually think black market trading will be done more in other currency (Euros, Swiss Francs), and in commodities like cigarettes, alcohol, ammunition, and other food stuffs.
thanks - yes, I recall the confiscation - they didn’t want scrap jewelry tho - so if there’s a good, reputable source who wants to trade cash for it, I say why not? what else are you gonna do with a smashed ring or necklace in 4 pieces? Sell it and buy seed, right?
But I agree gold is a risk - I recall not to long ago, gold being trumpeted as going to go as high as 5K/oz - I think Dec 07 it hit 1K and has taken a full year to get back to 1K. Not sure if Any market rules still work, but the wisdom was, to sell into strength, in increments over a set time while watching the market, not ‘all in’ at once, either way. If I had bought at $300, I’d be selling a bit now (but this is, just all hot air since I don’t own any). I did read somewhere that investment gold peeps started taking delivery of their gold instead of rolling it, which pushed prices up a tad - seems it should have driven it up further, tho. jmo
Sounds more like a travelling PAWN SHOP.
but you can trade it for something to eat or someplace to stay or safety - barter sets the value.
But if that happened, we're talking Thunderdome conditions. And the Government would confiscate at some point.
Even Rhodium was over $10k an oz in the past year.
Invest in AMMO!
It can be traded should oenerous laws ever pass or civil strife come to fruition. (more and more likely on BOTH counts)
Additionally, you can use it in defense of you and your loved ones. (also, more likely)
22 Long Rifle and 12 gauge #4 buck will be the coin of the realm in a meltdown.
I had a few Gold eagle coins and sold them on thursday.
The price went even higher on Fri, but I wanted OUT. I bought in at 915.00 a year ago and was under water till just a few days ago.
Took a modest profit and will use the money to buy emergency supplies...food, first aid stuff..etc. And will wait for a dip in precious metal prices.. and purchase what is called ‘junk silver’ that is bags of old 90% silver quarters, dimes and half dollar coins , they are more useful for barter in disastrous times.
I heard a news story on the radio (I don't know if it was the local or national segment) that these gold house parties are a huge rip off even compared to pawn shops. They give much less than the $1000/ounce current price. The only places worse were the mail in places like Ed McMahon was advertising recently.
Also, is a good source of obtaining food.
You can eat Federal Reserve Notes but as a store of value and nutrition I believe you'll be very disappointed in their performance.
If you read history you can see that many things are used as barter in hard times.
In Mary Chesnut’s Civil War diary, even though the well to do were buying gold, yarn was being used for barter in NC. (She had fled Columbia, SC ahead of Sherman’s burning raids.)
After WWII, in Germany as displaced persons were trying to get by and avoid being turned over to the Russians, cigarettes became the currency amongst many of them.
I’ve learned it is all about what you have and what you need, or what is needed locally and what you can trade.
We just don’t know what it will be. Is it cold where you live, will folks be unable to heat their homes, maybe blankets and warm clothes will be bartered? Do you live in the city where there is trouble with gangs, maybe ammo will be bartered?
Be prepared to take care of yourself and have something extra.
Put your money in Blue-Steel and ammunition.
Gold was not “confiscated” during the depression. It was turned in by people who were obeying the new law.
No police went door to door conducting gold searches. They did not even go to the homes of “suspected gold hoarders” to check.
(The govt paid out at $20/oz, then turned around and revalued gold at $35/oz, which was the real theft.)
This is not mere semantics. If gold were ordered turned in today, most people would simply refuse to comply. The level of trust in our fedgov today, compared to 1933, is simply nonexistent. So any gold banning law would have to have real teeth to have any effect at all. It would have to be made a felony to own gold over some token amount (”economic sabotage” like in the old USSR, perhaps?).
They would have to do sting operations, and put people in prison to get any level of compliance, but this could blow back in their faces with greater resistance to obeying govt. orders in general.
“I think we are looking at a gold bubble that will burst...”
I worry about that, too.
See 29. Gold was turned in, not confiscated. There is a distinction that will make a great difference today.
After giving hundreds of billions to the suits on Wall Street and their bonuses and Lexuses, I can imagine that seizing the $20 gold piece J6P got from his granddad is gonna go over good.
In 1933, most folks probably thought that “the federal reserve” was a govt. bank.
Can you imagine ordering people today to turn their gold over to the Federal Reserve, a private cartel of banks?????
That would be a hoot. They would get more lead by airmail than gold by FedEx ground.
No doubt at all.
Correct. In really rough times, gold is worthless.
I think the same. There are too many ads on radio and tv hawking gold to make me feel comfortable. My internal warning system is going off.If it gold was as great an investment as they claim, no advertising would be needed.
No one is buying jewelry these days.
...by Saint Franklin, America’s foremost admirer of Joseph Stalin.
No, but you can eat the bodies of the people you kill who try to take your gold away from you.
.....Sounds more like a travelling PAWN SHOP.....
That is pretty well on target.
The unmentioned fact is how much did the gold sold for $300 cost when purchased. The women had no clue as to the actual value of what was sold. Other women were selling and the consensus of the thing to do was established.
The herd mentality of this group elected the Messiah
That is incorrect. Even in Argentina in 2001, gold was the preferred method of money (or USD). For day to day stuff, silver is better anyway. You going to use a 1oz gold coin to buy some food?
Good posts about possible gold confiscation
Our huge restive immigrant population will not accept this shit even if the sheeple do
Also in a confiscation Canada and Mexico would still be available to trade gold for paper money (hopefully)
Also one should have a core gold holding that is absolutely held until the dust settles, the chaos is over and the United States has a new honest investment climate and economic order
Prior to that, during the chaos, you spend down your junk silver dimes and quarters and some gold if need be
My husband is a metalsmith, although it is a hobby, these days, and we have been out of the business as such for 13 years.
We have fine silver, sterling and 18kt/24kt from back then. We were discussing just how gold would be used in the event of TEOTWAWKI. We think people will want gold melted down and tested or alloyed for karat. Same for silver, tested and alloyed for percentage of silver. Some people will want to produce their own local coinage. Some will want their old jewelry refashioned, because life will go on, gifts will be given, marriages will take place and some folks will decide to wear their hoard.
Keep some aside, when scrapping.
What is the dwt price, these days? I recall in the 1980s, with $800 gold, the scrap price was $9/dwt for pure. We paid $5-$7 per troy oz from the supplier for fine silver back then.
Still not nearly a “bubble”. When the U.S. Mint has product for sale, when you can buy silver on ebay for less than a 25% premium over ‘spot’, when you start seeing movies and TV shows about gold / gold mining / gold markets, when you overhear people at the office or in the Starbucks line comparing Morgans of different dates, then we might be a year or so from it starting to become a bubble.
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