Alot of fear mongering going on here...

[cbc58]

take all these "sky is falling" posts with a grain of salt. Yes the economy is contracting and yes things will slow. The people who want to sell you gold are pushing for it while others say that it should go down in a deflationary period.

don't spread fear because it will only make things worse. many people don't have a clue what they are talking about and only regurgitate what they hear from others.

[LiveFree79]

take all these "sky is falling" posts with a grain of salt. Yes the economy is contracting and yes things will slow. The people who want to sell you gold are pushing for it while others say that it should go down in a deflationary period.

don't spread fear because it will only make things worse. many people don't have a clue what they are talking about and only regurgitate what they hear from others.

This is 2008 not 1930. Gold will be worthless as time goes on.

[noxagol]

This is 2008 not 1930. Gold will be worthless as time goes on.

FRN's will be worthless as time goes on, gold that much more valuable.

[Dr.3D]

FRN's will be worthless as time goes on, gold that much more valuable.

True, gold can never become worthless.

[LiveFree79]

3/4 of all the people spouting this gold BS are charlatans. You guys are the Mona Vie of gold! LMAO! Trust me in the next 50 years gold will be all but worhtless.

[ShowMeLiberty]

3/4 of all the people spouting this gold BS are charlatans. You guys are the Mona Vie of gold! LMAO! Trust me in the next 50 years gold will be all but worhtless.

LF, you claimed to be a twenty-something living paycheck to paycheck in another thread. What about that would make older, more experienced people trust you over other older, more experienced people?

To the OP - I haven't seen any of the people here who promote having gold and silver on hand trying to sell any gold or silver. If that were the case, then yes, we would be wise to consider the source. It seems to me, though, that these are all well-intentioned information only posts.

If we are just "regurgitating" what we hear from others, it's others like Ron Paul, Peter Schiff and Jim Rogers. Considering how accurate they have been in the past, wouldn't it would be pretty silly to ignore what they say now?

[Ozwest]

[quote=cbc58;1739702]take all these "sky is falling" posts with a grain of salt. Yes the economy is contracting and yes things will slow. The people who want to sell you gold are pushing for it while others say that it should go down in a deflationary period.

don't spread fear because it will only make things worse. many people don't have a clue what they are talking about and only regurgitate what they hear from others.[/quot

Sorry ,

But I don't think you will ever get it.

Trust your government.

Corporate fascism is your beacon.

Bunny

[newyearsrevolution08]

True, gold can never become worthless.

not until people stop making jewelry and using it as a status symbol.

It will carry value just like the FRN's do, the value is in the eye of the beholder.

[tonesforjonesbones]

Well don't forget, the same people who regulate the interest rates and printing of money...regulate the price of gold. You know, "congress" lol...who have outsourced their authority to the fed. I believe it's good to have some gold and silver, but don't put all your eggs in one basket...if you have any eggs. Tones

[cbc58]

I'm not talking about schiff, paul and the others.

The people trying to push gold and silver post pro-PM articles and they have alot of followers. Others think gold should go down to the low 700's or even low 500's based on a deflation situation.... or lower

my point was that no one knows what's going to happen and creating fear doesn't help. people should do research for themselves and come to their own conclusions.

[Highland]

I'm not talking about schiff, paul and the others.

The people trying to push gold and silver post pro-PM articles and they have alot of followers. Others think gold should go down to the low 700's or even low 500's based on a deflation situation.... or lower

my point was that no one knows what's going to happen and creating fear doesn't help. people should do research for themselves and come to their own conclusions.

Schiff needs to relax.....all the stuff about marshall law makes people live in fear without any instruction on how to think strong. God is with us...God brought us Ron Paul...and thank you Ken Snyder for encouraging him to run.

[IChooseLiberty]

not until people stop making jewelry and using it as a status symbol.

It will carry value just like the FRN's do, the value is in the eye of the beholder.

Not quite. Gold is a rare element with many properties that make it's value intrinsic. It's value is only partly in the eye of the beholder while the majority of it's value comes from it's rarity coupled with it's usefulness... and it's usefulness far exceeds it's use as jewelry/status.

[Ozwest]

Schiff is for the most part right.

Take a pill and relax.

It's only 700 billion dollars....

No wonder you guys are $#@!ed.

Go to Disneyland, take your pretend muskets with you.

[danberkeley]

I'm not talking about schiff, paul and the others.

The people trying to push gold and silver post pro-PM articles and they have alot of followers. Others think gold should go down to the low 700's or even low 500's based on a deflation situation.... or lower

my point was that no one knows what's going to happen and creating fear doesn't help. people should do research for themselves and come to their own conclusions.

The spoiler to your conclusion is a run on the dollar. But yeah, I agree with you, people should do their own HW.

[Ozwest]

The spoiler to your conclusion is a run on the dollar. But yeah, I agree with you, people should do their own HW.

No credit.

[Ozwest]

The debt is soon to be paid.

[cbc58]

what's to say that china, the saudis and other major debt holders don't forgive a large portion of debt in a surprise announcement. who's screwed then?

[Ozwest]

what's to say that china, the saudis and other major debt holders don't forgive a large portion of debt in a surprise announcement. who's screwed then?

I think what you mean, as bankers , they can make the call.The theory goes that Americans are the world's major consumers, and lenders will not call in the debt.

Risky.

You might be drawing to an inside straight.

[cbc58]

no, i don't mean call it, i mean forgive it... as in it's gone for good.

[fj45lvr]

Gold will be king for a long long time. Not because of its ductile nature or its ability for use in electronics. But simply because BILLIONS of Chinese and Indians are going to be the most prosperous countries in the world and want their wives, daughters and girlfriends to get some BLING.

[Ozwest]

Gold will be king for a long long time. Not because of its ductile nature or its ability for use in electronics. But simply because BILLIONS of Chinese and Indians are going to be the most prosperous countries in the world and want their wives, daughters and girlfriends to get some BLING.

This is true.

Important observation.

[SeanEdwards]

True, gold can never become worthless.

Nonsense.

Gold is a naturally occuring substance. Much of its perceived value is a result of it's scarcity. End the scarcity of gold, and its value would plummet.

How could this happen? Well, a major new source of natural gold could be discovered that floods the marketplace with gold. This happened to Europe when Spain took over South America. There was massive devaluation of silver (and probably gold as well, though I'm not positive), because of the huge amounts of PM's that Spain was bringing back to Europe.

Or, some new technological innovation could make gold much more plentiful.

Maybe these events are not likely, but they are certainly possible, and they are worth considering before rushing to make a shiny rare earth the entire basis of the economy.

[Dr.3D]

Nonsense.

Gold is a naturally occuring substance. Much of its perceived value is a result of it's scarcity. End the scarcity of gold, and its value would plummet.

How could this happen? Well, a major new source of natural gold could be discovered that floods the marketplace with gold. This happened to Europe when Spain took over South America. There was massive devaluation of silver (and probably gold as well, though I'm not positive), because of the huge amounts of PM's that Spain was bringing back to Europe.

Or, some new technological innovation could make gold much more plentiful.

Maybe these events are not likely, but they are certainly possible, and they are worth considering before rushing to make a shiny rare earth the entire basis of the economy.

That would not matter, it would still have some value. It would not be worthless no matter how much they could manufacture.

[jclay2]

I do somewhat share feelings of the op. You people must realize that holding pm's does not have the long term gains that equities do. There is a place for PM's and gold in a portfolio, however, it is not 100% of your portfolio. To avoid the dollar bubble that will in all likely hood be coming it makes sense to have a well diversified international portfolio with a small portion given to the United States, 20%-30%. Along with that well diversified international portfolio, you need at least 7% in PM's. You should also include probably 10% of international and domestic bonds, weighting more to international. Now all of what I have said so far applies to a persons investments. Along with these investments, I believe one should actually carry some hard assets such as gold or silver in the slight chance that there is an emergency. I would say you probably need to save at least $2000 in physical pm's, just in case the world goes to hell. You might want to start building a stock of canned food also. Again I don't think the sky is falling, but I do believe the United States dollar will have its day of reckoning and that although WWIII situations and Full scale depressions are unlikely, you still need to prepare for them. The most prudent thing an investor can do is to have a well balanced portfolio that hedges the risk of even unlikely scenarios.

In conclusion, DON'T INVEST 100% IN GOLD!

Remember the saying, There can be too much of a good thing.

[SeanEdwards]

That would not matter, it would still have some value. It would not be worthless no matter how much they could manufacture.

Yeah, feathers have "value" too, and they've been used as money in the past as well. And they share the same problem that gold has of tying a non-material entity, the human economy, to existence of a physical object. For that matter, the paper that FRN's are made of has some value too.

Gold currently remains a reasonable way of protecting wealth, because its scarcity and long term desirability have a consistent record and it is expected that this situation will continue into the future. However, evidence of past performance is no guarantee of future performance.

[Brian4Liberty]

Or, some new technological innovation could make gold much more plentiful.

lol! the oldest quest in the world...gotta find that old book on alchemy and get a nuclear reactor. Maybe that's what Iran is really trying to do?...

[Bossobass]

Hypothetical scenario:

1988. Conventional Wisdom says that gold is an outdated relic and has no investment value. Conventional Wisdom says the owning your own home is the American Dream.

A man, after considering Conventional Wisdom, buys a house for $200,000.00:

$50,000.00 down payment and a 20 year fixed rate mortgage for $150,000.00 at 6%. 240 payments of $1,074.65.

Total paid for the house: $307, 916.00. Current value of the house: $490,000.00, less costs to sell of 7% = $148,000.00 increase in value.

A different man, after thinking it through and deciding that Conventional Wisdom is just so much BS invented by the bankers, buys gold instead:

In 1988 he buys $50,000.00 worth of gold at $450.00 per ounce, or 111 ounces.

He then spends $1,074.65 every month purchasing gold for the next 240 months at an average of $400.00 per ounce, accumulating 755 ounces of gold.

Total paid for the gold: $307, 916.00. Current value of the gold at spot plus $49: $667, 000.00 = $359,084.00 increase in value.

In the current crisis, the home is being devalued by double-digits and gold is holding steady. It's increasingly difficult to borrow against the value of the home or to sell the home and it's increasingly easy to sell the gold at above spot prices.

These numbers are from national averages and the interest on the home mortgage was tax deductible, but the conclusion is a simple one:

Conventional Wisdom is usually worth questioning.

Bosso

[Fox McCloud]

Schiff needs to relax.....all the stuff about marshall law makes people live in fear without any instruction on how to think strong. God is with us...God brought us Ron Paul...and thank you Ken Snyder for encouraging him to run.

God punishes nations and let's them fail too....

[TheEvilDetector]

take all these "sky is falling" posts with a grain of salt. Yes the economy is contracting and yes things will slow. The people who want to sell you gold are pushing for it while others say that it should go down in a deflationary period.

don't spread fear because it will only make things worse. many people don't have a clue what they are talking about and only regurgitate what they hear from others.

If you agree that economy is contracting and things are slowing down, then you might agree that it is prudent to plan ahead.

Certainly I (amongst others) have stated my opinion on more than one occassion that it is a good idea to have Gold due to a real possibility (in my opinion) of a hyper-inflationary destruction of the dollar as a result of the current Fed/Treasury Policies and Laws.

This message (and others like it) once presented, can be taken in one of 2 general ways.

Either it will be assimilated mostly emotionally or mostly rationally.

I hope that most take such messages on board in a mostly rational manner rather than becoming mostly emotional.

Finally, I have not seen anyone attempting to sell Gold here.

[cbc58]

yes... but the man lived in that house and received tax breaks on his payments...

tell me what did he pay in rent during that time? let's add that to the totals...