Bubble bursting?
Posted on 05/14/2012 12:35:46 PM PDT by An American!
Concerns grow about a global economic slowdown and a restructuring of the European Monetary Union
Gold and silver started off the week by heading downward amid growing perceptions of a global economic slowdown and restructuring of the European Monetary Union (EMU).
(Excerpt) Read more at investorplace.com ...
See $GOLD chart
Bubble bursting or time to buy?
Flight *from* safety??
Lemmings...
Sorry guys, it’s all my fault. I was going to make a small fortune in silver, and I succeeded. Unfortunately, I started out with a large fortune. Precious metals have never worked out for me. When will I ever learn. Grrrr!
Charts like that don’t ususally end well and I say that as a metal bug.
When the markets tank, buy.
Wait for the panic and the blood on the streets, this could be any day as soon as tomorrow and as late as October.
Depends on your investing time frame.
I have always bought and held gold and silver by following the article’s advice to “focus on the long term and gold’s proven long-term diversification, wealth-preservation and safe-haven qualities.” Therefore, over a decade I have a lot more at $400 than at $1,500 an ounce. I plan for it to be part of my wife’s and kids’ estates, if all goes well.
Throughout this country’s history our currency was tied to a gold and/or silver standard. Until FDR messed with things one could buy a car for $470 by giving the dealer four $100 bills, three $20 gold pieces, and ten silver dollars. Even during the Depression one could still buy that car with $470 silver dollars.
While WWII destroyed most economies of the world, the United States prospered. The only way to restart international economic activity was for the U.S. to take the lead, which it did with the Bretton Woods Agreement. Every currency had a fixed value in relation to the dollar, and the U.S. kept everything functioning by buying and selling gold at $35 an ounce. Therefore, once again there was a U.S. gold standard and the dollar became the world’s reserve currency. However, Americans could not take their Federal Reserve Notes to a Fed bank and trade them for gold.
The U.S. unilaterally abrogated the agreement in August 1971, allowed the dollar to float in relation to the trading whims involving all paper currencies. Until about 1968 people could still trade their Federal Reserve notes for Silver Certificates and trade those for packets of silver from a Federal Reserve Bank. When the government renounced that option, silver coins quickly disappeared from circulation.
At this time the working careers of a single generation comprise the totality of comprehension for how the international community was to function economically without currencies emerging from things people can touch and see. Therefore, gold and silver are always going to be about 10% of my assets. None of the people incharge of currencies understand what is happening or how to reach.
Good advice, buy long term and regularly.
Whenever you see lots of ads on TV and Radio by celebrities etc advocating investments in a certain area...it is time NOT to invest...all the big money is already in and they are working the pump and dump
I think the latest cycle is finished and we will see the stratospheric price drop to something in the realm of reality...whatever that is any more. I personally GUESS that silver will end up hovering in the $20 range (in todays dollars). But one look at our economy and our national debt and rapidly increasing deficit...it is anyone’s guess.
So...follow the good Retain Mike’s advice...regular investments over time for long term hold.
Then it's really not going to matter much whether you brought gold at $200 or $2000 an ounce
One story I like to tell involves buying our house in 1977 for $55,500. Only 35 years ago when there was a discussion in the media about the federal budget and expenditures it was at the most about billions of dollars. Now stories routinely talk about trillions of dollars. If that sort of event occurred with my house, I would currently list it to sell at $55,500,000. I keep thinking there is are really disastrous events coming in the future.
I paid...$65k for a house...3 years ago.
I'm thinking your analogy is really anecdotal...on where you bot, what you bot, and when you bot.
For what it's worth.....
Great gag gift.....
I don’t buy PM’s to make money. I buy it for insurance.
If you believe you are storing wealth by putting your money in a bank......I have a bridge to sell you.
Gold doesn't drop because of economic slowdowns or EMU restructurings. That's nonsense. Institutional investors have just found another shiny thing to focus on in the short term.
And it may well be that gold was somewhat overpriced, but the whole world's still printing money as fast as the [computerized] presses will run. I'm still buying.
—If you believe you are storing wealth by putting your money in a bank......I have a bridge to sell you.—
At current interest rates, your mattress is safer than a bank. For starters, you don’t have to worry about a run on your mattress. If you need your money, you have it.
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