patrick.net

rileybryan says

Sounds like a great way for somebody who made a bunch of $$ on gold to unload it on a bunch of fools. I’d say this is indicative of a peak in the next 1-2 years. Gold is already ridiculous, it serves little purpose outside of electronics, and people are going to keep moving towards more practical and useful things as incomes keep dropping.
Hmm, 10k packets of Ramen, or 1 oz. of gold? Easy question if you’re hungry.

This argument have never held any legitimacy.

"The things which have the greatest value in use have frequently little or no value in exchange; on the contrary, those which have the greatest value in exchange have frequently little or no value in use. Nothing is more useful than water: but it will purchase scarce anything; scarce anything can be had in exchange for it. A diamond, on the contrary, has scarce any use-value; but a very great quantity of other goods may frequently be had in exchange for it."

-Adam Smith

On top of that, is there any reason why you can't own both gold and ramen at the same time? Why is it always one or the other with everyone?

John Bailo says

Gold has been kept high by China, which might just start unloading it.

Weren't you posting that we were "quaking in our boots" when Gold was around $800?

I have gold coins and I would like to dispose of them at the current price. How should I proceed? ebay?

Gold is really no longer an important factor in economy.

It will be worthless in the next economic expansion.

schmitz_kris says

...until we have a responsible government in place and a Fed whose actions DEFEND the value of the dollar.

Keep dreaming.

xenogear3 says

Gold is really no longer an important factor in economy.
It will be worthless in the next economic expansion.

"In truth, the gold standard is already a barbarous relic"

- John Maynard Keynes 1924

the price of gold was predicted by most economists to crash when the dollar peg was dropped from $40 an oz. in 1971. It shot up to $850 and settled above $300. It never saw $35 again. The prediction of a permanent drop in the gold price has consistently failed to materialize. In fact, today, the fundamental reasons for the gold price being as high as it is remain intact.

John Bailo says

theoakman says

Weren’t you posting that we were “quaking in our boots” when Gold was around $800?

No.

rofl, you really are lucky Patrick deleted the other forum. Your post was titled "gold bugs quaking in their boots" when gold went from $900 to $800.

There is a movie called “The Devil’s Backbone” set in 1939 near the end of civil war in Spain. It’s basically a ghost story, but one of the underlying themes is that there is a large amount of gold bars stored in a safe at the orphanage where the story takes place. At one point in the story the headmistress laments about all the gold they have, but yet they can hardly afford milk and bread for the children. She expresses no one would trade food for the gold bars and letting anyone know they had the gold would only get everyone killed.

I was impressed with this underlying theme and how it expressed the notion of how immediately worthless and dangerous gold could be when society breakdowns. Basically unload all your gold before the apocalypse. Gold only has an exchange value above death before all hell breaks loose. Don’t expect to be one of the ones left holding gold when sanity returns.

I think the market will continue to move into gold until 2013 or later. I also think you could replace the term/product of “gold” with anything that sufficiently rare and has limited practical use. A couple years of go the same market mentally working in gold was also in oil. The problem was it was significantly affecting the cost of energy that everyone needed. The market learned quickly the rush to oil was hurting themselves and society on the energy side. They needed to find commodities to trade that have little effect on society as a whole. In hindsight it is very clear why oil went up and it had nothing to do with growing economics or peak oil, it was the market. Gold is up and will stay up because the market needs something to believe in that won’t destroy the economy. No, I am sorry we have a growing demand for real gold and we have hit peak gold. That must be it.

This is not good for Glenn Beck.

What about Chinese currency instead of gold? Seems like investment into next biggest economy in the world can be good idea.

Yuan is off limits. China says so.

The dollar endures as long as we control the oil via cash for oil. This was the dream of Richard Nixon. Crazy to think how they could've thought it would work, and that people in the tents and huts would never find out how bad we were fucking them over.

In 1997, the Russian Ruble was revalued at the rate one new ruble equaling 1000 old rubles and there were limits per person on how many old rubles could be exchanged for new rubles. If that doesn't make a good case for holding gold in your financial portfolio, nothing will. Russia experienced 7 ruble exchanges since 1921. Germany, The Netherlands, Ireland, France, Austria, Belgium, Finland, Greece, Italy, Luxembourg, Portugal, Spain, Slovenia, Cyprus, and Malta all had there currencies reissued when they converted over to the Euro, the old currencies are worthless now. While there were no limits on how much currency they could convert, if you find grandpa secret saving stash, it's completely worthless now. The re-denomination of currency was implemented already by 50 countries as part of an economic reform. Israel and Mexico went through similar currency exchanges over the years. just because it hasn't happened yet in the United States doesn't mean it will never happen. While gold may go up and down in value, it's never been worthless as many of these paper currencies now are. The reissuing of currency is usually the result of wild inflation in the economy which the government is using re-issuance as a last resort to stabilize the economy. The Wild inflation was the result of the government trying to print there way out of debt. (sound familiar?)

While it may not be a good idea to have all of your life savings in Gold, it certainly makes sense to have maybe 10% of your net worth invested in Gold. You can still sell it when prices are wildly high and buy it back when prices drop, but it should remain a staple in any savers diet.

WOULD someone please tell a first time gold buyer when to buy it?
it went down today a bit
do you think it will take a small dive around thanksgiving? new years?
i realize it will rise to above 2000
but right now - does anyone think it could go below 1300?
i want to put my cash someplace besides stocks, chase, closet.

thanks

shrekgrinch says

Both quotes written by people who don’t know what gold role is. Gold is the original universal hard currency that any other currency is judged against.

Please enlighten us. What is the role?

Gold used to be used as a currency. So what? So did shells and beads.

Dollars are legal tender. There's a slight difference there.

UBSONICE says

WOULD someone please tell a first time gold buyer when to buy it?
it went down today a bit
do you think it will take a small dive around thanksgiving? new years?
i realize it will rise to above 2000
but right now - does anyone think it could go below 1300?
i want to put my cash someplace besides stocks, chase, closet.
thanks

Go to inflation.us to find a list of gold dealers with several reviews.
Consider also silver. It's raising faster than gold.

tatupu70 says

shrekgrinch says

Both quotes written by people who don’t know what gold role is. Gold is the original universal hard currency that any other currency is judged against.

Please enlighten us. What is the role?
Gold used to be used as a currency. So what? So did shells and beads.
Dollars are legal tender. There’s a slight difference there.

Everytime I hear people talk about gold this way it reminds my of my new age friends who use Ayurvedic medicine. It's ancient, so it must be true! They were wise back then, and we've lost all that ancient wisdom, blah blah blah.

Nice article.. reminds me of media blitz with Condo on ocean liners during the peak of the housing bubble. Equally lame!

UBSONICE says

WOULD someone please tell a first time gold buyer when to buy it?

around 2000-2002 would have been it! today is certainly a good time to sell..

You better read what you said!

"the ONLY" South Vietnamese who were assured safe passage out of the country were those with one ounce of gold. No other currency was accepted.

I call that full of crap!