Gold ready to crash?

Market Watch.com ^ | Jun 1, 2006 | Jesse Czelusta

[Harmless Teddy Bear]

Doubtful, a very wise man taught me along time ago that you can truly measure an item's worth by subjecting it to the "deserted island test" if it would be useful on a deserted island to survive then it has "real value" , otherwise any value associated with an item is subjective at best.

Very true. If there is a total collapse then the metals like steel, lead and copper are valuable.

Precious metals are precious only because we make them into pretty trinkets.

Should that time ever arrive you could offer me pounds of your pretty metal for my hoe and I would not trade.

[Toddsterpatriot]

Yeah, that's fascinating. I don't suppose you can answer my questions?

[Axenolith]

Yes, on the bi-metalic standard and they tended to be localized. The only instances (Pre FED) where you had inflations in backed money, it was local to significant easily worked placers and it generated temporary monetary expansion in excess of available goods and services in that area.

While we were still under the "standard" under Bretton Woods, they FED printed money to excess and people like the French saw that as an open invitation to get while the getting was good. That's why Nixon closed the gold window...

[Axenolith]

Give a person some time. Do you put that question in all of your debates to lend an air of "I'm winning" to them?

[Toddsterpatriot]

Yes, on the bi-metalic standard and they tended to be localized.

So you think we had less inflation? What about deflation?

That's why Nixon closed the gold window...

Yes. So do you think we should go back on a gold standard now?

[Axenolith]

You'll probably get my next replies after I get home, and have spent some time metal detecting, so don't go and get a hard-on that I've run off...

[Toddsterpatriot]

Give a person some time.

Sorry, thought you were answering post #199.

[Axenolith]

One more...

Cool, I'll slow up too. Catch you in a while...

[roostercogburn]

I just feel that in a world of competing currencies (dollar, euro, yen, yuan), the only thing countries WILL agree on is the certain value of gold.

The days of the dollar as the most sought currency are over. What exactly happens next is unknown. As such, I will be holding the gold I have, and purchasing little bits at a time as the prices fluctuate around the current ranges.
But I sense alot of hostility from people who do not own gold. Why?
There may have been alot of stocks that have done better over the last 30 years, but how many sons and daughters have opened their parents safe deposit boxes after they have passed and found worthless stock certificates?
But right beside that stock certificate was a few stacks of one ounce gold coins.
Gold may be many things, but worthless will never be among them.

[Toddsterpatriot]

The days of the dollar as the most sought currency are over.

What currency is more sought than the US dollar?

But I sense alot of hostility from people who do not own gold. Why?

I think it's because people who own gold, or claim they own gold, say silly things like, "Gold is a store of value".

Gold may be many things, but worthless will never be among them.

That's right, it makes pretty rings and the fillings work pretty good too.

But right beside that stock certificate was a few stacks of one ounce gold coins.

I'll take the Philip Morris certificate next to the gold coins.

[palmer]

That gold money declined about 13% in the last 3 weeks. Do you consider that a store of value?

Gold and silver are being speculated on, they went up unsustainably earlier in the year.

[palmer]

I think it's because people who own gold, or claim they own gold, say silly things like, "Gold is a store of value".

I keep an ounce at work to show to silly people who believe that paper can hold its value. Over the very long run, gold will always hold value and paper will always become worthless. There are no exceptions.

[ol painless]

"Not as much value as guns and gasoline."

True, which is why I am well supplied with a variety of firearms.

[ol painless]

"Doubtful, a very wise man taught me along time ago that you can truly measure an item's worth by subjecting it to the "deserted island test" if it would be useful on a deserted island to survive then it has "real value" , otherwise any value associated with an item is subjective at best."

Something to consider. I guess on a deserted island you could at least burn paper to start a fire.

[ol painless]

I like your idea! I will have to tell this to the wife whenever I buy another gun, or more ammo.

[Toddsterpatriot]

I keep an ounce at work to show to silly people who believe that paper can hold its value.

Who said paper held it's value?

Over the very long run, gold will always hold value and paper will always become worthless. There are no exceptions.

I hold my paper as shares of Altria. It pays a higher dividend than gold.

[roostercogburn]

Yeah, well how about Braniff stock? Or Eastern Airlines? Or Enron stock?
It is so easy for you guys to pick in hindsight stocks that have done well.
If someone had stock in the above mentioned companies, how much are ANY of them worth now? But the gold would still have value.
If you guys do not like gold as an investment, do not buy it. If you do, buy it.
This thread is not anything but a pissing contest between those who enjoy owning gold and those who do not. Unbelievable. Can a reasonable discussion be had here anymore?

[1rudeboy]

Sometimes, when someone writes something along the lines of "There are no exceptions," it is necessary to identify an exception.

[Toddsterpatriot]

Yeah, well how about Braniff stock? Or Eastern Airlines? Or Enron stock?

I'd suggest you not buy those stocks.

It is so easy for you guys to pick in hindsight stocks that have done well.

It's so easy for you goldbugs to talk about how you all bought it at $270, how come no one ever admits to buying it for $700 in 1980?

If you guys do not like gold as an investment, do not buy it.

I won't.

Can a reasonable discussion be had here anymore?

Apparently not.

[palmer]

It's so easy for you goldbugs to talk about how you all bought it at $270, how come no one ever admits to buying it for $700 in 1980?

I sold my gold in 1981 at a nice profit. But I needed the money for college. Sold some of my stamp collection too.