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Where are the gold bugs NOW?
Gold Prices Online ^ | 06/27/2002 | Lazamataz

Posted on 06/28/2002 3:00:46 PM PDT by Lazamataz

Well, 'the new spoosman' and many like him have told me for months that the 'fiat' currency is worthless, and gold is the only valuable currency out there. Disregarding for a second the fact that these gold bugs are so ready to part with their gold for those 'worthless fiat notes', I would like to point out that since the height of their caterwalling, Jun 01 2002, gold is down from 326$ an ounce to 314$ an ounce today. That is a 4 percent drop in less than a month.

The 'fiat currency' people are out to lunch. I don't expect gold to do any better than index with inflation in the long run, and today managed to show a savage loss of $5 an ounce.


TOPICS: Business/Economy; Extended News; Your Opinion/Questions
KEYWORDS: goldbugs; scammers; spammers
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To: arthurus
Gold is more than just an asset. You cannot eat it

Actually, there are gold and silver solutions that are sold to be injested (drank). They're very good for the immune system and the skin, I believe.

41 posted on 06/28/2002 4:20:09 PM PDT by #3Fan
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To: DeaconBenjamin
I am a gold bug and have 90% ov my assets in gold and silver.
Physical metal, not paper.
I have watched the value increase 32% while it sits there in my safe doing nothing.

Article 1, Section 10, US Constitution. No State shall make anything but gold and silver coin a payment of debt.

The above still hasn't been repealed.
42 posted on 06/28/2002 4:20:46 PM PDT by Chewbacca
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To: demlosers
If the government is an honest and good steward and maintains the price of gold as its only economic intervention (a true gold standard) such dislocations do not occur. The bank collapses and wild gyrations and then general crashes of business and economies were due to governments trying to push the buttons to make things keep working. Much of those gyrations were the result of the biggest economic actor in the world, the US, shutting off its international commerce. When the US throttled its own participation in world trade (Smoot-Hawley and follow-ons) the rest of the world trade system collapsed and banks and industry got scrambled and governments tried all sorts of foolishness to save their economies. None of it worked but it provided the stuff for tales of BigBanker and BigCapitalist Evilness for generations.
43 posted on 06/28/2002 4:23:02 PM PDT by arthurus
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To: DeaconBenjamin
and on this question, it seems like you adopt the same position proffered by those same "gold bugs" whom you would attack.

There are a few on FR [the new spoosman] whose underlying theme is the U.S. economy is on its way to total ruin, listen to me I'm your savior, buy gold to save yourselves, the world is coming to an end... .

44 posted on 06/28/2002 4:24:40 PM PDT by demlosers
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To: demlosers
Anyone who seeks salvation in monetary concerns deserves what they will get.
45 posted on 06/28/2002 4:29:47 PM PDT by DeaconBenjamin
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To: Lazamataz
You need to be patient, of course.

It is possible based on history that patience might need to last 15 to 20 years. Just be prepared to grip that buy and hold strategy for a very long time. To paraphrase: In the patient run we are all dead.

46 posted on 06/28/2002 4:31:48 PM PDT by Stentor
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To: dennisw
There are 2 ways to run an honest gold standard that will iron out the bumps and dips in economic "cycles". One way is for the only economic rule of the Fed to be that the price of gold must not vary. Continuous corrections are signaled byincreasing and decreasing demand for liquidity which is satisfied by open market bond operations to stabilize gold.

Thje other way is a circulating gold coinage with the free coinage of gold. You take 5 ounces of gold to the treasury and the treasury gives you 5 ounces of gold coins. These coins could circulate beside the fiat currency and would be an instant visible-to-everyman check on inflation. Either or both would be of immense value to the economy as they would vastly reduce the costs of dealing with fluctuating and less than perfectly predictible values of currencies.

47 posted on 06/28/2002 4:32:11 PM PDT by arthurus
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To: Chewbacca
You say, 'I am rich; I have acquired wealth and do not need a thing.'

All rich men must humble themselves and unload their camel after hours (by one's latter days) so it can go through the eye of the needle (Jerusalem's night gate), an example of earthly riches having no credit for eternal rank.

But you do not realize that you are wretched, pitiful, poor, blind and naked.

A rich man easily forgets that there is a more important wealth, the wealth of the spirit.

I counsel you to buy from me gold refined in the fire, so you can become rich;

God calls Himself a consuming fire. Gold from the refining fire is wisdom from the Word.

and white clothes to wear,

Good works, planting seeds that we will take with us if we show ourselves approved and wear during the eternity.

so you can cover your shameful nakedness;

God's refining fire teaches one how to erase the rudiments of a person if he/she repents and tries to obtain wisdom.

and salve to put on your eyes, so you can see."

Only by gaining wisdom by reading the Word can one obtain eyes to see.

A good verse. It shows God's high opinion of gold as a store of wealth for our short fleshly existence.

48 posted on 06/28/2002 4:34:02 PM PDT by #3Fan
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To: mindprism.com
Gresham's Law: When two currencies are in circulation, the worthless currency will drive the valuable currency out of circulation.
49 posted on 06/28/2002 4:35:10 PM PDT by edger
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To: demlosers
If gold is the suppose to be the un-fiat, natural, currency of choice by man, then why is its worth based in dollars and not the other way around; by measuring the dollar against a weight in gold, the supposed natural standard? .

You are writing tautology. The "price" of gold is spoken of rather than the "price" of currency because it is easier to say $320 an ounce than to say 1/320 of an ounce.

50 posted on 06/28/2002 4:35:22 PM PDT by arthurus
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To: Lazamataz
thanx d00d...
51 posted on 06/28/2002 4:37:21 PM PDT by TomServo
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To: #3Fan
My favorite verses in the Bible, and weeks after reading them I went out and bought $3,000 in gold coins (in 1999 for $315/oz).
Today, those coins are still worth about the same.
I love real money. It holds its worth over the long term.

Gold is real wealth. Fiat paper currency is only to use for buying and selling day to day goods.
Save your profits buy buying gold.

52 posted on 06/28/2002 4:39:02 PM PDT by Chewbacca
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To: #3Fan
Gold owners are doing better than dollar owners

Gold owneers are, in fact, losing value because of the transaction costs and the storage costs of owning gold. But they are losing far less than those who are holding currency or whose investments are performing at less than the rate of inflation (real probably 15-17% or so). The only way to "invest" in gold, to aim to increase your capital by gold investment is to buy gold mining stocks because they ctend to rise much faster than does the nominal price of gold in an infflation.

53 posted on 06/28/2002 4:39:37 PM PDT by arthurus
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To: Lazamataz
unless you personally move out of your gold positions, in the long run the market will outperform you.

Timing is everything and even moreso when the commodity one is dealing with has a fleeting value - and stocks can be considered a commodity of value as well as gold.

The best time to get out of "whatever" is just before the top of the market, and the best time to get in is just after the market has bottomed. That said, getting in/out is one of the hardest things to do perfectly. Often one gets tied in emotionally as well as financially. Ask any of the bagholders who own Worldcom stock.

However, the astute investor can usually see when there is a bear or a bull market occuring.

For most (not all) stocks it is now a bear market (just check the overall numbers since March, 2000). The bottom of this stock market massacre seems a long way off, and probably is. When that bottom is reached, THEN is the time to get back into the stocks - unless you have a really good reason to buy into a particular stock.

In silver and gold, they appear to be postitioned stongly for a bull market, and therefore buying the actual commodity or associated stock is a more prudent thing for the investor who wants to maintain value or even come out making a profit on his risk. One is playing the percentages which one always does in any market. The analysis can be wrong, and in any case it will be a gut-wrenching ride because of the opposition!

Timing and positioning are everything.

Some day - IMHO still quite a long ways off - it will be time to get out of the precious metal and back into telecom stocks. But not today. Gold still seems to be in a bull market despite the recent setbacks.

That said, the precious metals markets have been subject to a lot of manipulation by large traders as well as governments (for their own purposes). This can put you on the wrong side of the boat really quick even though you are on the correct side of the market fundamentals. Therefore, there is a risk involved - especially if the government policy is to hold down the price of gold, which it seems is the case.

Uncle Sam likes his own dollars. He does not like gold - except that stored in his own vaults, if indeed it is still there. Besides, Ole Sam can print dollars cheap and by the ton and foreigners will give us their hard-earned goods for them. Imagine that! Nice trade, as long as they will accept that arrangement.

But the scam can't last forever. As the world gets more awash in the green stuff, they'll demand either more of them or something of equal value. One thing we have going for us is the rest of the world is busy printing their own pretty paper and the big juggling match distracts everybody from the game.

But investing in Worldcom, et al, carries it's own risk too. Therefore, you pays your money and you takes your chance. Or, you can just stick your greenbacks in the bank as electronic digits and let the inflation rate slowly, slowly (and sometimes quickly) eat their value up. Or, you can spend it and let depreciation on your hard goods eat it up. Or, you can take a nice vacation and have a good time and eat it up yourself.

Whotta Country! You have the choice. You can lose your money any way you wish if you have it in excess. Who knows? You might even make a little if you're smart (or lucky).

One thing is sure: you can't take it with you. And somebody is always after it besides you.

Cheers!

54 posted on 06/28/2002 4:40:44 PM PDT by Gritty
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To: arthurus
How about a currency backed by 10% gold for starters? Our currency used to have at least some backing by gold and silver where now there is none.
55 posted on 06/28/2002 4:41:42 PM PDT by dennisw
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To: Gritty
Nice post!
56 posted on 06/28/2002 4:43:14 PM PDT by dennisw
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To: Chewbacca
Gold is real wealth.

I've read every post in this thread and all I can think of is the movie, "Kelly's Heroes." Anyone remember what the price of gold was when Don Rickles priced it?

Richard W.

57 posted on 06/28/2002 4:43:25 PM PDT by arete
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To: Chewbacca
My favorite verses in the Bible, and weeks after reading them I went out and bought $3,000 in gold coins (in 1999 for $315/oz). Today, those coins are still worth about the same. I love real money. It holds its worth over the long term.

99% of all fiat currencies have failed through history. Our dollar will be tested severely. Revelation says there will come a time when no man may buy or sell unless he has the mark. Will this "mark" be valued in U.S. currency, I doubt it. Something's going to happen to make people want to replace fiat currencies with this system.

Gold is real wealth. Fiat paper currency is only to use for buying and selling day to day goods. Save your profits buy buying gold.

Gold will make it till the end, I believe, and may save many people from being forced to participate in the one-world system for it's duration, which I believe will be a few months. People will continue to trade goods for gold, no need to register. :^)

58 posted on 06/28/2002 4:52:29 PM PDT by #3Fan
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To: dennisw
Actually the amount of "backing does not matter. A 100% system would be impractical because there are so many dollars in the system that the dollar would have to be reduced in value to the point that dollar bills would have to have a second sheet for the zeroes. The Fed has only to guarantee the price of an ounce of gold at a set amount with no deviation permitted. If the price of gold does not change then calculation becomes wonderfully less complicated and costs are reduced thereby. Interest rates go way down because the value of the money that will be returned to a lender will not be arbitrarily reduced, etc.
59 posted on 06/28/2002 4:54:57 PM PDT by arthurus
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To: Lazamataz; Poohbah
It is a matter of faith. I am moving this thread to the religion forum.

-- Goldbar Moderator.

60 posted on 06/28/2002 4:56:09 PM PDT by dighton
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