Posted on 10/16/2008 1:03:38 PM PDT by ovrtaxt
most money is stored on a computer. You won’t find stacks and stacks of cash in your savings account.
ping
Is this an informercial????
Gold down 12% this week. Hedge funds are liquidating their gold holdings to raise cash. This may continue through October. $800 has held thus far. Below 725 it can fall hard. Long term, the likelihood of increased inflation bodes well for gold. But for now, I think if you wait a bit you can get gold futures or coins for cheaper.
I bought some 1 oz rounds from a private mint a couple of weeks ago. Good price, but I won’t get them for two months. In the meantime, I can trade my paper positions, but only at the spot price minus the spread. Once I get the actual silver, I can sell them at a much higher value. Of course, in a couple of months the discrepancy on COMEX might be corrected.
For what?
Physical dollars are a limited-supply commodity, the value of which is rising rapidly due to demand. This is not to be confused, which most do, with virtual dollars which are as you imply just IOUs. Methinks at some point the government will disconnect physical dollars from virtual dollars, just as they disconnected gold from dollars (to wit: gold certificates).
That’s an interesting angle. As if a EMP bomb wiped out the records of every bank? I guess paper dollars would be worth more in that event.
You pay for stuff at Walmart with gold?
Or, if things get real tough, and dollar bills are fueling fireplaces, you’ll be able to get just about anything with gold, or the silver coins that make change into smaller denominations.
Of course, the printing presses would have to be guarded from the control freak bankers by regular armed citizens who understand how they rip us off...
You mean, you buy gold with current dollars.
Then you convert it back for highly deflated (devalued) dollars over time- an economic survival technique.
We tried to buy just the bags of “junk” silver (which have a lesser value than the really good stuff but go for more than face value) here in Austin and we were told by the Austin Gold Exchange they don’t have any. The demand is so high they can’t keep it and now they can’t even get their hands on it.
Seems that bailout has reminded many of our fiat currency system.
I see commodoties deflating, but gold has recently unhinged from oil- usually they track pretty predictably. This indicates to me that metals are being looked at as MONEY (or at least as a hedge against inflation) as much as an industrial need again.
The important thing to remember is that gold COMEX prices are the result of huge positions being dumped for liquidity right now. If you need actual delivery of the metal in a timely manner, be prepared to pay a healthy premium.
Kasper, depending on the content of the coins, and they don’t have to be rare necessarily, the silver content is worth more than the coin’s face. You can sell it for a certain price. My Mom-in-law had some silver dollars she had saved from her mom. Right now, some of those $1 silver dollars can either be used at Walmart to buy $1 worth of goods, OR, it can be sold and it’s value is estimated around $20.00. See the difference?
The problem is, if it is sold, it is for cash, which is not pegged to any commodity and can become worthless overnight.
Are they selling them at the current metal price or their own price? If you look closely they are selling what coins they have at a substantial mark up from current metal value.
My daughter tried to buy $500 worth of silver “rounds” at the local store. All he had were 9 of them so he made up the rest of her purchase in pre-1946 quarters. He still had some gold pieces and a bit of palladium but no silver.
RE: “most money is stored on a computer. You won’t find stacks and stacks of cash in your savings account”
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Very true. I took a little cash out recently and bank teller had to get permission from two superiors to give me the funds. They did NOT want to let go of it; tried to talk me out of it and believe me, it wasn’t very much money.
The pre-64 coins are 90% silver, and 64 to 69 coins are 40% silver. After that, they are a realtively worthless alloy.
As for face value, you can get a $1000 face value bag of nickels, dimes or quarters (they don’t sell them mixed) for about $10,000.
If anything illustrates deflation of the dollar, that’s the perfect example.
The great thing about fiat money is that you don't have to hold it. Just exchange the dollars for precious metals, equities, treasuries, Swiss francs or anything else you think is a better store of value. Money facilitates financial liquidity. That's all.
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