Gold: What is the end game?

[sparebulb]

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.

Welcome to the jungle.

If you want a safe return for your fiat currency, you can go down to your local bank and invest your fiat in a CD which will guarantee a return on your fiat currency in the form of fiat currency. In fact, it is protected by the 'gubmint. It is a guaranteed, no-lose deal. Unless, of course, the problem is with the fiat currency itself.

You don't have to invest in pm's. I'm sure that you could buy a forward contract on corn, beans, oil, or FCOJ and stand to gain from increased value compared to fiat. But it is certainly not without risk either.

Only the elite know just where and how this ship is going onto the rocks. They know exactly where to invest. We do not. We can just guess.

[oyarde]

[QUOTE=sparebulb;4747170]Welcome to the jungle.

If you want a safe return for your fiat currency, you can go down to your local bank and invest your fiat in a CD which will guarantee a return on your fiat currency in the form of fiat currency. In fact, it is protected by the 'gubmint. It is a guaranteed, no-lose deal. Unless, of course, the problem is with the fiat currency itself.

You don't have to invest in pm's. I'm sure that you could buy a forward contract on corn, beans, oil, or FCOJ and stand to gain from increased value compared to fiat. But it is certainly not without risk either. Sparebulb is correct , it is a crap shoot , try to make educated guesses , but some things , just make sense.... Gold , silver , copper, beef , corn , will , never be worth , nothing , but a share of stock , can be .

[NoOneButPaul]

Here's your end game...

Gold goes into the mother of all bubbles as the currency, debt, and bond bubbles burst at the exact same time.

Without confidence in the Federal Reserve or our currency the world's equity (paper) markets, which are now directly tied to the housing economy we're propping up, crashes into oblivion. At once people are left with no safe store of value as hyperinflation sets in and the prices of all companies and real estate shoot way way below fair market value.

As equites and real estate are plummeting to levels never thought possible Gold, followed by silver, rise to levels also never thought possible.

The purchasing power of these particular commodities end up being the greatest stores of value on the planet and with this new found purchasing power you buy yourself back into undervalued equites but even more importantly into under valued cash flow real estate (think rentals, or storage, or parking garages- real estate that brings money).

After this mother of all collapses, the bursting of the 3-pronged debt bubble, the market will eventually rebound and the equites and real estate you got on the low with your massively inflated gold begin to gain value back (hopefully in a system that would be recreated as more stable than the current one) and then you're left with property and stocks that work for you.

The goal here with the gold, at least for me, is to position myself so that I can invest into undervalued assets after the real crash and the massive bubble we'll witness in gold will make that possible.

With real estate now working for me i'm freed up to not have to work a 9-5 job or take on much stress/responsibility for the foreseeable future. What my end game with gold and silver is is to position myself to buy back my time.

That's what we've really lost here in the last 40 years... we've lost our time... we've been turned into serfs with no end in sight.

These moments of great collapse also tend to be the moments where great riches are made as the sheeple are driven to the slaughter. I'm positioning myself with gold and silver so I can buy into assets that will make money for me on the market's upswing. I'm trying to position myself to buy my time back so i'm free to let my money work for me and not the other way around.

It's important to keep in mind that while gold and silver are wonderful they are ultimately means to an end.

It is my personal opinion that the central banks of the world are printing into oblivion while also hoarding gold in expectation of this event, it is my belief that the world's central banks are positioning themselves to buy back all the equites and real estate from we the people after they destroy the value of everything.

It's not about money, it's never been about money, it's all about control. They're going to keep accumulating gold, and they're going to crash our currency into oblivion. Then they're going to march in and buy everything back from us at absurdly low rates.

I'm going to follow their lead and do the same thing.

[LibertyEagle]

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?

If you wait until fiat currency becomes worthless, what are you going to use to buy the gold?

[Acala]

Hey OP, you have been here an awful long time to just now start asking about gold. Just curious, have you been focused on some other aspect of Ron Paul's campaign for liberty? If I had to point to one issue that he emphasizes more than any other, it is sound money.

[Seraphim]

What Acala said is good.

The Central bank regimes claim monopoly on 50% of ALL economic transactions (the dollar side of the equation). The system of fiat debt issuance is immoral and repugnant. That is to say that right off the bat - AT LEAST 50% of all economic transaction under the current regime is corrupted. The number is far higher, in reality.

By purchasing gold, not only are you storing value in a an unleveraged asset with no counter party risk - you are altering the pyramid of debt issuance that expands only through complicit behavior.

Gold/silver are monies derived of freedom. That's your end game.

[cubical]

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?

Why it technically COULD happen that physical gold goes down significantly and for long periods, but I would say it is as unlikely as Obama turning into a libertarian. There will come a day very very soon where we as a government and as an entire country will not be able to borrow more money(rates rising/lack of savings). In fact, you could say we have already hit this, which is why the fed is monetizing our debt. Almost all debt will eventually be paid for with cash.



This has to happen or else we will snowball into a 1930s style deflationary depression. And with the fed's propensity to print and bail, they will not sit by and let that happen.

Look at the banking system's assets, vs the base money growth. When rates rise, credit(their assets) falls. See in 08 when the markets tried to self correct? PANIC! To keep the train going, you always need more credit, but we have hit or are approaching the point where this is impossible without monetizing.



This, on its own, will create hyperinflation. But you also have all of the foreign holdings of US cash flowing onshore, our goods being bid up and flowing offshore and very few if any people accepting dollars for trade. The only escape from this paper nightmare will be gold. As people want gold, they will want the physical as nothing can be trusted anymore. Then the bullion bank's fractional reserve system will be exposed and many people who thought they had gold, will have nothing. So this will cause physical to skyrocket, but then you also have physical gold becoming THE world's reserve asset, so all of the reserves that used to be US dollars(and more than likely most other fiat currencies) becoming physical gold.

So really you have two factors pushing up the value of physical gold. The collapse of the bullion banks' fractional reserve system and gold becoming the world's reserve asset. Inflation will move it's price up nominally, like most other things.

[S.Shorland]

James 5:3

[LibertyEagle]

James 5:3

You probably should cite more than that, lest the point be lost.

1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you. 2 Your riches are corrupted , and your garments are motheaten. 3 Your gold and silver is cankered ; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days. 4 Behold , the hire of the labourers who have reaped down your fields, which is of you kept back by fraud , crieth : and the cries of them which have reaped are entered into the ears of the Lord of sabaoth. 5 Ye have lived in pleasure on the earth, and been wanton ; ye have nourished your hearts, as in a day of slaughter. 6 Ye have condemned and killed the just; and he doth not resist you.

[ZzzImAsleep]

So where can gold be bought by the coin? I dont have thousands to dump into gold right now.