Posted on 01/24/2013 6:29:46 PM PST by arthurus
I can’t figure out gold. I bought 20 ounces of gold right after 9/11—I’d been watching the spot price for a few years and it was below the cost of extraction. 9/11 goaded me into buying.
So I got in at the right time. Today, I don’t know. Is gold a store of value? When I took my first job out of college in 1967, I was paid three ounces of gold a week. That translated to $105 a week back then, entry-level salary. Gold was $35/oz.
I’d sure settle for three ounces of gold per week today—let’s see, that’s about $5,000 a week at today’s spot price.
Something is out of whack.
I think my theory is sound. Gold isn’t rising as all disposable income is being spent on lead right now.
I think you’re making a mistake in thinking that the Fed or the PPT gives a crap about getting fiat to the people. They both exist solely to advance their own interests - “too big to fail” banks. The Fed would be an illegal banking cartel if the law applied to them. The SEC prosecutes small-time frauds but lets the perpetrators of the 2008 collapse, and Jon Corzine, walk free without any sanctions whatsoever. To think they act in your best interest is to take the blue pill.
The reason that gold is not climbing is that those intelligent enough to want to buy gold recognize the parallel danger of a rapid deflation when reality kicks in and all the low/no information zombies go non-monetary (violent).
>> “ in the same time, they haven’t nearly quintupled the number of dollars in circulation.” <<
.
Really?
I think that you’re mistaken on that. Lots of the dollars in circulation were not “printed,” they were loaned into existence by China and Japan buying our worthless debt.
>> “Gold isn’t rising as all disposable income is being spent on lead right now.” <<
.
That certainly is a factor, and China has taken to mining much of the gold they are adding.
Right on Onyx!
People do have the jitters right now, but this phony “economy” makes a house of cards look stable.
Something like that.
Like many, the writer is Amerocentric. He places the force driving the price of gold on American market devices and forces.
In so doing, he failed to consider a major force driving the market, people in Asia, be they traders or just people. That component is apparently now missing. Why? I have no clue.
There is a fallacy or perhaps fallacies present in Free Republic gold threads.
The first is that lead and brass are superior to gold. The fallacy is single mindedness. A wise investor would diversify into both or even better into a mix of hard assets.
The second is the SHTF mentality, the thought that hyperinflation will destroy the world. While the hyperinflation is possible, it is not likely. A far more likely condition is inflation at an elevated rate but never approaching the hyper level.
Finally, I must tell you that when I hit 70, the onset of true wisdom occurred. The above is a manifestation of that phenomena,
Preppers, a word of warning:
I have a friend who, apparently, took physical possession of PMs. I’m not sure how much since my friend keeps her mouth shut.
One fine morning, her hubby walked out of his front door and was met by a man with a ski mask and a pistol.
She and he would be DEAD except that hubby is an incredibly brave and incredibly strong old man. After the struggle, both she and hubby were bloodied but alive as the robber escaped.
Who talked? The gold seller? The UPS driver who delivered the PMs? A close friend?
All I know is that if you have PMs or cash or a lot of firearms, you need to live your life in constant awareness of danger.
BTW, hubby did NOT have a weapon on his person. He SHOULD have been armed!
>> “Finally, I must tell you that when I hit 70, the onset of true wisdom occurred. The above is a manifestation of that phenomena (sic)” <<
.
Perhaps you’d do well to wait for the the big dose at 80, judging by your post.
That’s awful...you have to keep your mouth shut. Maybe FedEx, or UPS or USPS knows when PM are the package due to sky high insurances? You have some POS working *inside* at one of these places and he tips off a thieving friend to rob that place
They could mint trillion dollar platinum coins and hand them out at political rallies.
“Making me crazy.”
LOL - I limit my news to about 1/2hr, and drink spiced rum.
And remember all these media streams just want your eyes and ears so they can money.... which they can’t do if they tell you everything was alright.
There is no doubt that they are. In many cases they are leasing gold from the central banks. Its difficult to understand why someone who wants to be long gold would buy a gold ETF, essentially they are investing against themselves.
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