Posted on 06/28/2002 3:00:46 PM PDT by Lazamataz
Well, 'the new spoosman' and many like him have told me for months that the 'fiat' currency is worthless, and gold is the only valuable currency out there. Disregarding for a second the fact that these gold bugs are so ready to part with their gold for those 'worthless fiat notes', I would like to point out that since the height of their caterwalling, Jun 01 2002, gold is down from 326$ an ounce to 314$ an ounce today. That is a 4 percent drop in less than a month.
The 'fiat currency' people are out to lunch. I don't expect gold to do any better than index with inflation in the long run, and today managed to show a savage loss of $5 an ounce.
Actually, there are gold and silver solutions that are sold to be injested (drank). They're very good for the immune system and the skin, I believe.
There are a few on FR [the new spoosman] whose underlying theme is the U.S. economy is on its way to total ruin, listen to me I'm your savior, buy gold to save yourselves, the world is coming to an end... .
It is possible based on history that patience might need to last 15 to 20 years. Just be prepared to grip that buy and hold strategy for a very long time. To paraphrase: In the patient run we are all dead.
Thje other way is a circulating gold coinage with the free coinage of gold. You take 5 ounces of gold to the treasury and the treasury gives you 5 ounces of gold coins. These coins could circulate beside the fiat currency and would be an instant visible-to-everyman check on inflation. Either or both would be of immense value to the economy as they would vastly reduce the costs of dealing with fluctuating and less than perfectly predictible values of currencies.
All rich men must humble themselves and unload their camel after hours (by one's latter days) so it can go through the eye of the needle (Jerusalem's night gate), an example of earthly riches having no credit for eternal rank.
But you do not realize that you are wretched, pitiful, poor, blind and naked.
A rich man easily forgets that there is a more important wealth, the wealth of the spirit.
I counsel you to buy from me gold refined in the fire, so you can become rich;
God calls Himself a consuming fire. Gold from the refining fire is wisdom from the Word.
and white clothes to wear,
Good works, planting seeds that we will take with us if we show ourselves approved and wear during the eternity.
so you can cover your shameful nakedness;
God's refining fire teaches one how to erase the rudiments of a person if he/she repents and tries to obtain wisdom.
and salve to put on your eyes, so you can see."
Only by gaining wisdom by reading the Word can one obtain eyes to see.
A good verse. It shows God's high opinion of gold as a store of wealth for our short fleshly existence.
You are writing tautology. The "price" of gold is spoken of rather than the "price" of currency because it is easier to say $320 an ounce than to say 1/320 of an ounce.
Gold is real wealth. Fiat paper currency is only to use for buying and selling day to day goods.
Save your profits buy buying gold.
Gold owneers are, in fact, losing value because of the transaction costs and the storage costs of owning gold. But they are losing far less than those who are holding currency or whose investments are performing at less than the rate of inflation (real probably 15-17% or so). The only way to "invest" in gold, to aim to increase your capital by gold investment is to buy gold mining stocks because they ctend to rise much faster than does the nominal price of gold in an infflation.
Timing is everything and even moreso when the commodity one is dealing with has a fleeting value - and stocks can be considered a commodity of value as well as gold.
The best time to get out of "whatever" is just before the top of the market, and the best time to get in is just after the market has bottomed. That said, getting in/out is one of the hardest things to do perfectly. Often one gets tied in emotionally as well as financially. Ask any of the bagholders who own Worldcom stock.
However, the astute investor can usually see when there is a bear or a bull market occuring.
For most (not all) stocks it is now a bear market (just check the overall numbers since March, 2000). The bottom of this stock market massacre seems a long way off, and probably is. When that bottom is reached, THEN is the time to get back into the stocks - unless you have a really good reason to buy into a particular stock.
In silver and gold, they appear to be postitioned stongly for a bull market, and therefore buying the actual commodity or associated stock is a more prudent thing for the investor who wants to maintain value or even come out making a profit on his risk. One is playing the percentages which one always does in any market. The analysis can be wrong, and in any case it will be a gut-wrenching ride because of the opposition!
Timing and positioning are everything.
Some day - IMHO still quite a long ways off - it will be time to get out of the precious metal and back into telecom stocks. But not today. Gold still seems to be in a bull market despite the recent setbacks.
That said, the precious metals markets have been subject to a lot of manipulation by large traders as well as governments (for their own purposes). This can put you on the wrong side of the boat really quick even though you are on the correct side of the market fundamentals. Therefore, there is a risk involved - especially if the government policy is to hold down the price of gold, which it seems is the case.
Uncle Sam likes his own dollars. He does not like gold - except that stored in his own vaults, if indeed it is still there. Besides, Ole Sam can print dollars cheap and by the ton and foreigners will give us their hard-earned goods for them. Imagine that! Nice trade, as long as they will accept that arrangement.
But the scam can't last forever. As the world gets more awash in the green stuff, they'll demand either more of them or something of equal value. One thing we have going for us is the rest of the world is busy printing their own pretty paper and the big juggling match distracts everybody from the game.
But investing in Worldcom, et al, carries it's own risk too. Therefore, you pays your money and you takes your chance. Or, you can just stick your greenbacks in the bank as electronic digits and let the inflation rate slowly, slowly (and sometimes quickly) eat their value up. Or, you can spend it and let depreciation on your hard goods eat it up. Or, you can take a nice vacation and have a good time and eat it up yourself.
Whotta Country! You have the choice. You can lose your money any way you wish if you have it in excess. Who knows? You might even make a little if you're smart (or lucky).
One thing is sure: you can't take it with you. And somebody is always after it besides you.
Cheers!
I've read every post in this thread and all I can think of is the movie, "Kelly's Heroes." Anyone remember what the price of gold was when Don Rickles priced it?
Richard W.
99% of all fiat currencies have failed through history. Our dollar will be tested severely. Revelation says there will come a time when no man may buy or sell unless he has the mark. Will this "mark" be valued in U.S. currency, I doubt it. Something's going to happen to make people want to replace fiat currencies with this system.
Gold is real wealth. Fiat paper currency is only to use for buying and selling day to day goods. Save your profits buy buying gold.
Gold will make it till the end, I believe, and may save many people from being forced to participate in the one-world system for it's duration, which I believe will be a few months. People will continue to trade goods for gold, no need to register. :^)
-- Goldbar Moderator.
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