Posted on 04/15/2013 7:05:37 AM PDT by SeekAndFind
Edited on 04/15/2013 8:51:37 AM PDT by Admin Moderator. [history]
He lost me at this: “ I live in the United States of America in the 21st Century and I have no interest in exchanging dollars in my savings account for something that hedge funds and sovereign governments can pump and dump at will.”
Does he not think that the dollar is pumped and dumped at will?
RE: Does he not think that the dollar is pumped and dumped at will?
Everything is relative.
I think he is saying that between the Devil called the Euro or the Yen or the Red Chinese and the United States, he will put his stake on the devil he knows.
At risk of being stoned for blashemy (either by Joshua Brown or the gold bugs)
Jesus said to Peter, “Truly I say to you that this very night, before gold drops to $1300, you will deny Me three times.” Peter said to Him, “Even if gold drops to $1000 I will not deny You.”
I doubt God watches the COMEX
You're a good poster. Not sure were I you I would want this up there in the same article about the Lord.
maybe it's just me....I am no holy roller but I take no chances with aggravating God.
I apologize for this sentence that I missed. I only read the first few paragraphs (which gave the gist of the article) before posting this.
Shoulda been more careful and put asterisks on the word.
I am not a gold bug. Never had the level of singular focus, or is it myopia, needed to be one. However, I do believe in diversification and thus my investments are well diversified in a focused manner (and no, focused diversification is not an oxymoron). My job doing private equity in emerging markets also provides interesting opportunity.
My thoughts on having part of one's investment in hard assets (whatever one's definition of that ....not necessarily gold) is that it is ok, depending on one's investment horizon, views, and risk appetite. What I find absolutely ludicrous is when (otherwise) intelligent people invest in PAPER gold (be it ETFs or shares in mines), and then claim it is their hedge against TEOTWAWKI. That is ridiculous! There is nothing wrong in investing in paper gold as a normal investment ...in which case it would be similar to investing in the stock/shares of a company you believed would appreciate in a long market. That's being a bullish investor, and it is normal. However, investing in paper gold as a bear investor is folly of the highest order. For one, that paper will be worthless if the sh! T really hits the fan. Does one really think any institution will exchange paper for gold? Or that the value of the paper will be worth anything if things go south? Yet I talk to otherwise sane people who boast about their gold investments, and then elaborate how it is in the form of gold ETFs and gold funds.
I always encourage my.hedgie friends to take all their money because those chaps are fools, and the natural order of things is to part them with their money. I am always oblidged.
Invest in gold if it fits your investment objective. Invest in gold ETFs/funds if you are bullish. Purchase the cold hard metal if you are bearish (just make sure it is not gold plated tungsten). However, if you are bearish and you are buying paper gold please do yourself a favor and leave investing and other financial activity to your spouse.
Back when gold was heading towards $800, Paul Samuelson, a Nobel Prize economist and an advisor to LBJ, said that the only reason gold had any value was because it could be turned into dollars.
The stupefying stupidity of that remark did it for me as far as heeding prize-winning economists with Harvard PHDs.
If anything it is the other way around. Gold is shiny. Gold is pretty. Gold is useful for both electronics and breaking into a woman's heart. Paper money isn't particularly useful for anything except buying other useful stuff.
A few ounces of gold can even be used as a paperweight to keep your stack of Federal Reserve notes from blowing away.
Gold is going down? Gold bugs scream “BUY GOLD!”
I think we are seeing the fall out of a bit of irrational exuberance for precious metals. Hopefully rational people didn't listen to the Gold bugs too much and bought a lot of Gold when the price was sky high. If they did they should hold onto it until it goes back up (and it probably will).
For myself I cushion against economic collapse by investing in LEAD not gold. Lead has intrinsic value when atop a charge of gunpowder that, in the case of a SHTF scenario - trumps Gold every day of the week and twice on Sunday.
When the SHTF paper stocks will have very dubious value regardless of whether it states you own a percentage of a company or a percentage of the gold or any other item that is actually under someone else’s physical control.
What will count is the stuff you have actually at hand or secure access to,and the strength of the bonds of family ,friends,and community.
A defensible piece of land with trusted family members who own and know how to use firearms, know how to grow food, and own livestock - priceless.
Gold is not an investment, it is a storage of wealth. Paper gold is being manipulated to drive down the cost so that the central banks can load up physical gold. They know that the dollars days are numbered. Very soon now you can use your fiat dollars and stock certificates as kindling and toilet paper.
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