Gold: What is the end game?
I hear a lot of people saying that I should get gold, and I understand the idea that gold, like stocks, can be bought at a low price and sold for a higher price. What I don't fully grasp however is the end game beyond just buy low and sell high. Can someone explain this to me? Why gold instead of stocks? Why buy gold just to hold onto it indefinitely?
Personally....I wouldn't buy gold to try and do anything with other than as a store of value. I also wouldn't buy anything but physical gold and hold it.
That is what I am talking about. People buying gold as a store of value. What is the end game? It's like telling me to buy a car and just sit it in my driveway and one day it will be a collectible and appreciate in value.Originally Posted by headhawg7
OP, unless you're a sophisticated trader/investor (and it appears you're not - I am definitely not one myself and am not afraid to admit it), do what Headhaw7 said.
Gold is money. Real money. Sound money. You can go to Montreal, London, Berlin, Rome, Madrid, Vienna, Moscow, Amsterdam, Tokyo, Beijing, Seoul, Canberra, Rio de Janeiro, Santiago, Johannesburg, Riyadh... with a 1-ounce gold coin (Maple Leaf, American Eagle, etc) and you will easily be able to see it for the local currency.
Get it and keep it for the long haul, and make sure you keep it in a secret & safe place (or more than one). And if you don't have it in your possession, you don't own it. I am not against things like Australia's Perth Mint, but I sleep better at night knowing I myself physically own my stuff.
Ron Paul - America, you WILL regret not voting for him!
KNOWLEDGE IS POWER
I'm not well versed in this topic which is why I'm asking. I just hear this same conversation over and over again. "Get gold!" "Why?" "Cause..just get it!"
It leaves a lot of unanswered questions for me, and no one seems to address any sort of risk associated with pouring thousands of dollars into gold.
Because it is highly possible. everything else , other than metals that is percieved as money ( most stocks , bonds,Federal Reserve Notes , etc ) , could, become worthless .
But isn't it equally possible that you buy gold at $1700 an ounce and it drops back all of a sudden and never goes back up that high? If you had invested thousands into gold you would lose a lot of money.
Also, if all other money other than gold becomes worthless then that begs the question why not just wait till that happens? Obviously gold will have to be spread around if it is the only game in town. Right?
In order to believe Copper , Silver, Gold are going to go significantly down , I think you would have to believe other parts of the economy are going to do very well, and that your currency is worth something. I , do not believe those things , I have investments in many things, most of which , I expect to lose significantly on in the near future . I do not expect that with certain other things.
I was going to refer you to a thread I created here where I pasted a long essay I wrote about gold to a friend. I did that to get other forum members to critique it, and although I was told my essay was solid, it is in both your interest and mine to refer you to REAL experts.
As such, I refer you to this video: where Ron Paul grills Ben Bernanke about gold and money.
Here is a much longer video where Ron Paul is interviewed; here he compares a $100 Federal Reserve note to a 1-ounce gold American Eagle.
You may also wish to read this article where Ron Paul explains how the gold standard was replaced by an "oil" standard and why this is the reason the powers that be want to attack Iran as they wanted to attack Iraq. Iran is quite willing to conduct oil transactions in currencies besides the US dollar.
And, for a lengthier and more complex and detailed, yet highly useful explanation of gold as money, read this now very famous piece by Alan Greenspan from 1966. (I'm not affiliated with The Victory Report website - just found it in PDF version and thought you may like PDF files).
Ron Paul - America, you WILL regret not voting for him!
KNOWLEDGE IS POWER
Gold does go up and down per se, but that only matters if you're buying it to sell it not long after to make a spread. For anyone to make significant profits on buying & selling gold, one would have to have substantial assets to begin with. Buying one ounce of gold to sell it for a profit would make no sense unless the markets change to the effect that gold goes from $1,700/oz to $5,000/oz - but if you have 2 or 3 coins only, why would you bother selling it then if it would become such a prized commodity in such conditions?
On the other hand, if you're a millionaire and you can afford to buy $200,000 in gold now, and then in a few months gold goes from $1,700/oz to $3,000/oz and THEn you sell, THEN you're actually making a good spread. But I speculate neither you nor I nor the majority of posters here have that kind of capital to use.
Ron Paul - America, you WILL regret not voting for him!
KNOWLEDGE IS POWER
Posting Permissions
Reply With Quote