Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Posted on 09/28/2009 3:30:09 PM PDT by maclogo
Many gold companies use this ending line in their advertisements: "Gold has Never been worth Zero."
Is that really the best ending sales pitch they could come up with?
.
the time to buy was a few years ago...or even a few months ago...too high now.
Does the name Bernie Maddoff mean anything?
You pay to buy it (say a certificate, not the real thing) and you pay to sell it. If you had the real stuff what could you do with it? Say the dollar was worth zero. How do you value a chunk of gold against a loaf of bread? Who would then determine value? The grocer could say, “Ok, that’ll cost ya a chunk of gold” .... an ounce ... a quarter ounce? Carry a scale around with you?
Gold is a hedge, and should be treated as such.
Once everyone starts talking something up, your window of opportunity for large returns is likely gone. Best thing you could do at this point is invest in a metal detector and hope you stumble on a hiddden treasure like the guy in England did.
There is only one way to “make” money with gold ... lease it to others. Gold still buys the same things that it bought hundreds / thousands of years ago. The currency ratio to gold may change. It may take more dollars or euros to buy an ounce of gold but if you factor it backwards, how much gold is a loaf of bread or a house or whatever, you will find that through out history, the price of goods relative to gold has remained the same.
If inflation causes gold to “go up” ... what you are really seeing is the value of the currency “going down”.
It convinces the gullible.
I’m not talking about buying or not buying Gold. I’m talking about the sales pitch these companies are using to Sell it.
I’m thinking they might want to “Rethink” that.
I'm sure there are gold bugs out there who can refute those arguements (or try) but those are the exact reasons I haven't bought gold.
The price of gold relative to other commodities has changed continually throughout history. It is impossible for it not to have changed particularly since the ratios between the other commodities are not constants. Technological changes in the production processes guarantees changes in those ratios and in the value of gold/metals.
Too high now? If Iran attacks Israel or vice versa you will see how much higher gold can go. Same thing for oil...
“It convinces the gullible.”
It’s really a sad state when a company thinks more of their Customers are Gullible, than Not.
I fear that we may learn the practical answer to your question.
That, plus the fact that a very small amount of gold has a lot of value (relative to the dollar), is why I like silver. To be precise, pre-1964 90% US silver coins. Most everyone is familiar with them. They are very easily traded at multiples of face value, currently right around 11.7 to 1. People always need a medium of exchange and I believe that at sometime in the future they will be referenced in silver and cartridges. For example, 8 22LR rounds = 1 silver US dime.
In terms of gullible customers, almost every gold commercial is “head & shoulders” above the ExtenZe commercials. Viagra and Cialis is only slightly better - BLEECH!
Gullibility and ignorance are part and parcel of the appeal of gold as a monetary instrument. False monetary history and false views of the monetary system are also important.
These companies take advantage of people’s dissatisfaction and distrust of government hence, all the ads on “conservative” media. Gold is pretty though and is particularly charming adorning beautiful women.
I wonder what the sizes would be for say 1,5,10 dollars. Would inflation be so high that 100 dollars would be the lowest denomination - then how small or large would your chunk of gold have to be???
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