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Cash In A Mattress? No, Gold In The Closet
newsweek ^ | From the magazine issue dated Mar 16, 2009 | Lisa Miller | NEWSWEEK

Posted on 03/07/2009 12:07:33 PM PST by dennisw

With prices setting new records, the worried wealthy are piling up ingots in home safes. NEWSWEEK goes shopping for precious metal.

On the day I held the gold bar in my hand, it was worth $100,000. My companion—an established, accomplished, affluent businessman of retirement age—had bought it as a hedge against the sinking Dow and his fear that Obama's stimulus package will inevitably trigger wild inflation. We had picked it up in the basement of an HSBC bank branch in midtown Manhattan. When I handed it back to him, he put it in his briefcase. We went upstairs, past guards, through metal doors. Out on the street, we said goodbye and I watched him go, a tall, thin man carrying a $100,000 briefcase. He doesn't want me to tell you his name—or anything about him—because he's keeping the gold in a safe in his basement. His friends, are doing the same thing. "There is an increase in the number of wise, reasonable, well-read, well-intentioned people who are buying some gold and putting it aside," says Dennis Gartman, editor of The Gartman Letter, a daily analysis of financial news.

John Wynocker, a hydraulics inspector, lives in Cincinnati and has been buying gold and silver coins and bars for 15 years, but since the passage of Obama's stimulus bill, he has been motivated to buy more. He is hiding the precious metal in places where not even he can find it, he jokes. Are you burying it? I ask. "Perhaps," he says. "Our country is so far in debt, it's staggering. I'd like to retire someday. What else am I going to do to protect myself?"

the number of Americans who are taking delivery of gold coins and bars is rising.

The last time gold sales spiked so dramatically was Y2K,

(Excerpt) Read more at newsweek.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: banking; bho44; bhoeconomy; doomgloom; gold
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To: Anti-Bubba182; wardaddy

Beans an bullets are better than bullion these days IMO......

Albeit a lot of folks are stashing cash and coin in places other than banks. Zero confidence in Precedent Zero and his socialist agenda.


21 posted on 03/07/2009 12:18:51 PM PST by Squantos (Be polite. Be professional. But have a plan to kill everyone you meet)
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To: WKUHilltopper

I’m investing in antibiotics.


22 posted on 03/07/2009 12:19:27 PM PST by Marie ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Bobalu

1000 a piece is a bargin. 3000 an ounce in less than 6 months the way things are going.


23 posted on 03/07/2009 12:19:42 PM PST by Electric Graffiti (In Guns We Trust)
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To: madison10

I understand they make great door stops.

Glad he’s wealthy enough to purchase them, but one would think bars would be difficult to trade and transport. If times get that bad, smaller more manageable valuables would make for easier and quicker bartering.


24 posted on 03/07/2009 12:20:57 PM PST by bgill
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To: dennisw

Better to buy smaller amounts and scrap silver dollars.


25 posted on 03/07/2009 12:22:51 PM PST by stockpirate (A people unwilling to use violent force to defend liberty deserves the tyrant that rules them SP)
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To: irishjuggler
You can’t show up at Walmart and buy groceries with gold. At least not yet. You’ll need to be able to exchange your gold for cash. Thus, assuming for sake of argument that gold really is the best hedge against Obama-flation, does it make much sense to buy a $100,000 bar of gold like the guy in the article? Wouldn’t gold coins be a much smarter choice, as they could be converted to cash gradually and on an as-needed basis?

Even gold coins can attract unwanted attention from home invasion crews

When you are worth some millions and are buying 100oz gold bars like this guy you will bury them and forget about them until after the storm passes. Maybe bury them for five or more years. This guy is stashing away other things like silver for real world purchases when TSHTF

26 posted on 03/07/2009 12:23:37 PM PST by dennisw (Archimedes--- Give me a lever long enough and a fulcrum to place it, and I shall move the Earth)
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To: dennisw
You know BHO will bring back the FDR law that makes it a felony to posses any gold other than in artifacts,jewelry or vintage coins.

It will take lead to keep your gold.

27 posted on 03/07/2009 12:23:59 PM PST by Happy Rain ("This is the way America ends,this is the way America ends,not with a bang but a whimper.")
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To: bgill

Heard that whiskey & tobacco are good for bartering, but I’ve never purchased either. Conviction thing.


28 posted on 03/07/2009 12:24:11 PM PST by madison10
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To: dennisw

You can’t eat it. I’ll stock up on food, it’s getting more expensive by the day.


29 posted on 03/07/2009 12:25:24 PM PST by pray4liberty (Always vote for life!)
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To: stockpirate
Better to buy smaller amounts and scrap silver dollars.

I agree but premiums on gold coins are a rip off today. Gold bars trade much closer to the gold price. If you are in for the long haul then 100oz gold bars are OK. I wish I had even just one

30 posted on 03/07/2009 12:26:02 PM PST by dennisw (Archimedes--- Give me a lever long enough and a fulcrum to place it, and I shall move the Earth)
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To: madison10

Me neither but if this admin keeps going as it is, I may have to reconsider it not for barter but for myself.


31 posted on 03/07/2009 12:29:31 PM PST by bgill
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To: dennisw

About 6 grams (.186oz) of gold
http://www.thegoldcoinstore.com/WorldGold/French_Gold_20_Franc_Roosters.php

In dire times, if you go with 1 lb of gold you will be killed for it. You probably want to buy enough guns, camping supplies and gas to reach a remote location if $#%$%$% hits the fan.

32 posted on 03/07/2009 12:31:53 PM PST by nameless-fool
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To: stockpirate
Some "silver dollars" and half dollars are only 40% silver. For the most part, try to stick to the dimes and quarters.

junk silver

33 posted on 03/07/2009 12:32:04 PM PST by smokingfrog ( Dear Mr. Obama - Please make it rain candy! P.S. I like jelly beans.)
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To: Kent C
"And which bank is that??"


The one that you own, and are the only depositor.


Think piggy

34 posted on 03/07/2009 12:33:12 PM PST by G.Mason
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To: madison10
What happens if the price of gold drops back to “normal” levels?

Whats normal?
Gold has never been worth zero.
Huge numbers of stocks have gone from great highs to worth pennies or zero.
The Government is currently printing money and as they release more and more into the economy they will be devaluing the current dollars you hold.
Short oh hoarding guns and ammo gold is the next best thing if you can afford to get any.

35 posted on 03/07/2009 12:35:15 PM PST by SECURE AMERICA (Coming to You From the Front Lines of Occupied America)
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To: Squantos
"Beans an bullets are better than bullion these days IMO...."

I agree and the poorer you are the more true it is.

36 posted on 03/07/2009 12:35:20 PM PST by Anti-Bubba182
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To: dennisw

In escape and evasion kits issued to us in the military we carried very thin gold wafers, smaller than a dime but for the reason you mention about 10 of them. Total weight may have been an ounce of gold for the 10 of em. Used to bribe and barter.....

Personally I believe if the SHTF scenario were upon us a box of .22 long rifle would be more valuable than a ounce of gold coin to most.

Just my opinion of course......


37 posted on 03/07/2009 12:39:10 PM PST by Squantos (Be polite. Be professional. But have a plan to kill everyone you meet)
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To: madison10

The answer is: That’s not going to happen.


38 posted on 03/07/2009 12:39:50 PM PST by Arthur McGowan
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To: SECURE AMERICA
Gold has never been worth zero. Huge numbers of stocks have gone from great highs to worth pennies or zero.

If in 1900 your grandfather had a choice: $100,000 in Gold or investing in a stock index fund, which would have done better?

39 posted on 03/07/2009 12:40:57 PM PST by nameless-fool
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To: Squantos

one tenth ounce gold coins would be nice when the SHTF. But the premium on them is an insult. Even such small gold will attract unwanted attention during lawless chaos. Junk silver coins are better


40 posted on 03/07/2009 12:43:24 PM PST by dennisw (Archimedes--- Give me a lever long enough and a fulcrum to place it, and I shall move the Earth)
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