Posted on 02/27/2008 3:20:35 PM PST by TigerLikesRooster
Should gold break the mental $1000/oz barrier, and it could by next week, Katy bar the door.
I think it could take off and go parabolic. $2000 gold by Christmas.
If the dollar continues to crater, gold is a solid investment. If the Fed manages to stabilize the currency back to 75-77 basis points then gold will ease back down.
Gold is not a money maker (except in times of sheer panic) rather it is a way to defend what you've worked hard for, locking in the value of your labors on the day you buy it.
What good is paper money? It has went to zero every time they tried it. Correct?
The correct question was answered.
No, I don't think it was. Not by a long shot.
Why? Because gold is honest. It doesn't need a bail out, or intervention to prop it up. It doesn't rust away and can be quietly handed to your descendants without the d@mn government presuming your inheritance can be stolen via taxation.
It is a time-honored store of value that humans turn to when fiat currencies like ours inevitably fail. (EVERY fiat currency fails at some point.)
When paper 'money' loses the confidence of the people using it, something has to take its place until the patsies start accepting promisary notes again, backed by the full faith and credit of lying politicians.
Closed at $958.30. We made a nice chunk-o-change today.
Onward and upward. :)
“It doesn’t rust away and can be quietly handed to your descendants without the d@mn government presuming your inheritance can be stolen via taxation.”
*APPLAUSE* :)
In all of history, an unbacked currency always goes to ZERO.
You can tell me. Why? (I’m clueless)
Of course. Perhaps I should rephrase the question: why gold over any other durable commodity? What can I do with gold other than look at it?
Nope. I don't think I will do that. Some things are better learned on your own. It is not a big secret after all.
As opposed to fiat currency, of course gold is preferable. But why gold as opposed to coal or timber or any other tangible commodity? Or aluminum ingots for that matter? The only thing I can think of is the relative ease of portability.
I just don’t see the fascination with a rare metal with such limited practical usefulness.
Fair question I think. Just don't look at paper money to long. I think you are smart enough to answer your last sentence.
FWIW, another angle popular on the goldbug sites is that the price ratio between gold and silver has traditionally been in the 15:1 area. This ratio currently is about 50:1 (gold $957 / silver $19.22).
Thus there’s at least a small contingent of the precious metals crowd that prefers silver if only because they expect it to ultimately more than triple in price relative to any advance in gold, which by that math would yield silver prices of $200/oz if gold should reach the $3000/oz posted earlier.
We’re only in first gear. Jim Sinclair says we are headed to $1650 gold. Hang on to your gold fillings. :)
I just dont see the fascination with a rare metal with such limited practical usefulness.
It's not fascination; it is an historically accepted commodity due to the aforementioned reasons.
The fact that it is globally recognized as the preferred medium of exchange is based on those reasons.
Its combination of rarity, durability, portability, and the very limited usefulness that you mention are substantive reasons for understanding why there is global agreement as to it worthiness to fulfill the role as the preferred medium of exchange.
By aforementioned reasons, I am referring to those reasons that others posted.
Good point. I’ve got some Gold, Silver and Palladium. Silver has done better than the other two. As of today it’s appreciated 450%, Gold 350% and Palladium 170%. Of course I’ve had the Gold and Silver for over 8 years and when Silver hits 25.00 I’ll sell half and that will more than pay for all I’ve invested and still have the rest of it as pure profit.
Heck, I keep it all in my safe and never look at it.
BTW, my dealer says Palladium is undervalued and will catch on soon.
He was out of it and has a hard time buying it, not sure it’s that hard to get, just saying.
Jewelry has fascinated humans since the dawn of time and the fascination is not likely to subside any time soon. That means that gold and jewelry will always be useful as a portable investment.
The root word of jewelry is Jew. And Jews have a habit of keeping a fraction of their wealth invested in jewelry because it can be essential in saving their lives when fleeing from antisemitic mobs and tyrants.
Much of what people own has little practical value. From the Mona Lisa to your DVD collection we own things that have value only because they can be looked at. But the aesthetic value of gold is unlikely to become obsolete.
“The root word of jewelry is Jew.”
Hahaha. Jewellery stems from the Latin word “jocale”, meaning plaything (I looked it up on Wikipedia).
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