GLD on sale LOL

Quote from PiratesSayARRR : Gold only has a value because we deem it to have a value same with diamonds. Gold can't feed your family. In the post apocalyptic world offering a piece of gold will get you no where.

Says the pirate with treasure chests filled with gold.


...i smell conspiracy

Quote from PiratesSayARRR : Gold only has a value because we deem it to have a value.

Just like paper currency, just ask the Japanese. Oh, what's that? Gold is at all time highs in the Yen? But, but, but...

But with gold, it's money. In the end, gold is money - it always has been. It has outperformed the CRB consistently for a decade. For thousands of years gold has concentrated wealth and power. Just because it's not monetized, doesn't mean it's not money. Gold is a hedge against government and all their schizophrenic ponzi scheme running nonsense. Gvments come and go, over and over. I don't see any gold disappearing.

In the mean time, it will be hated and traded like a commodity as it always has been. If you put all your labor in gold bullion thinking you're going to get rich, you'll probably get forced out at the wrong time because fear is stronger than greed.

It's interesting how this 'you can't eat gold' or 'gold can't feed your family' meme still has any life to it anymore. You'd think it would be dead by now because it's so stupid. "What's for dinner, dear? Should we have some stocks? Ugg, not stocks again!?!" Maybe when the bond "bubble" bursts, all the bond bulls can take their families out for a nice T-bill feast. Change it up a little.

Gold also has a lot of idustrial since it's highly conductive- such as plating. Sliver is widely used more though, which is why I like silver.

Quote from jumpinjohn1214 : Gold also has a lot of idustrial since it's highly conductive- such as plating. Sliver is widely used more though, which is why I like silver.

This statement, while technically true, has absolutely nothing at all to do with this conversation, gold as a wealth vehicle or anything at all related to finance.

This statement and the ones about feeding your family with gold are the two statements most used by those that have absolutely no clue at all about precious metals and finance on a global level.

Quote from dealgate : This statement, while technically true, has absolutely nothing at all to do with this conversation, gold as a wealth vehicle or anything at all related to finance. This statement and the ones about feeding your family with gold are the two statements most used by those that have absolutely no clue at all about precious metals and finance on a global level.

gold is also very shinny

Quote from dealgate : This statement, while technically true, has absolutely nothing at all to do with this conversation, gold as a wealth vehicle or anything at all related to finance. This statement and the ones about feeding your family with gold are the two statements most used by those that have absolutely no clue at all about precious metals and finance on a global level.

silver is MUCH more of an industrial metal than gold.


PM's aren't something that's going to provide consistent returns like a stock (and we all know how temperamental those are), but that's not to say you can't make money on them. As with everything, PM's can be a part of any portfolio.

Quote from Dr. J : PM's aren't something that's going to provide consistent returns like a stock

Another use-less idea.

I take the dollars the Nice Government Men force me to use and turn them in to metal, then I return back into dollars. Seems like a nice return on capital to me for doing absolutely nothing. That's why gold is hated, is because it's a use-less investment.

http://www.macrotrends.org/1378/d...ical-chart

These macro cycles have existed for hundreds of years. Why, because Man never seems to learn and their passions never change. The Dow/gold ratio will go to 1 again (probably below) and all the way down you'll continue to hear all the same noise. Incredibly boring. The return of ultimate boredom.

Quote from SociallyDynamic : Quote from PiratesSayARRR :Gold only has a value because we deem it to have a value same with diamonds. Gold can't feed your family. In the post apocalyptic world offering a piece of gold will get you no where. And that's not the case for what exactly? Oxygen and food. Good job pal, you really got the value of things down. Water should be priced at 1000 a bottle. You don't really need any of the other shit that you own. It only has the value that you're putting on it. When China is hoarding gold and Ben Bernanke is printttttttttttting. You can rest assured that in 10 years, gold will still be gold. USD will be less. Doesn't have to be post acopolytic, you can just have 5 years of 5% inflation. Compound that and see how much you like your bonds then.

What is the intrinsic value of gold? The price of gold 10 years ago relative to the dollar was much lower right? So at what point is gold worth anything? At some point someone decided to start trading for other items that were necessary using gold. As long as my investments are out earning the rate of inflation then i will be better off.

Buffett's quote on Gold below. Personally, I don't know why anyone would not take his advice when it comes to finance.

"Today the world's gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At $1,750 per ounce -- gold's price as I write this -- its value would be about $9.6 trillion. Call this cube pile A.

Let's now create a pile B costing an equal amount. For that, we could buy all U.S. cropland (400 million acres with output of about $200 billion annually), plus 16 Exxon Mobils (the world's most profitable company, one earning more than $40 billion annually). After these purchases, we would have about $1 trillion left over for walking-around money (no sense feeling strapped after this buying binge). Can you imagine an investor with $9.6 trillion selecting pile A over pile B?

Beyond the staggering valuation given the existing stock of gold, current prices make today's annual production of gold command about $160 billion. Buyers -- whether jewelry and industrial users, frightened individuals, or speculators -- must continually absorb this additional supply to merely maintain an equilibrium at present prices. A century from now the 400 million acres of farmland will have produced staggering amounts of corn, wheat, cotton, and other crops -- and will continue to produce that valuable bounty, whatever the currency may be. Exxon Mobil (XOM) will probably have delivered trillions of dollars in dividends to its owners and will also hold assets worth many more trillions (and, remember, you get 16 Exxons). The 170,000 tons of gold will be unchanged in size and still incapable of producing anything. You can fondle the cube, but it will not respond.

Admittedly, when people a century from now are fearful, it's likely many will still rush to gold. I'm confident, however, that the $9.6 trillion current valuation of pile A will compound over the century at a rate far inferior to that achieved by pile B."

What's really interesting when it comes to Buffett and gold is to consider his family history and what his Dad was and stood for as an American and an investor. You have to understand something, WB is an oligarch insider with with a massive PR and legal team scoring both deals and spin points for him 24/7. I mean, do your really think he's some old cotter sitting around playing his ukulele having divine ideas about novel investment ideas?

From Howard Buffett :

Quote : Convinced that Roosevelt was destroying the dollar, Howard gave gold coins to his children and bought pretty things for the house -- a crystal chandelier, sterling silver flatware, and oriental throw rugs -- all with a view that tangibles were better than dollars. He even stocked up on canned food and purchased a farm, intended to be the family's refuge from the hellfire of inflation.

What an idiot.

Quote from PiratesSayARRR : What is the intrinsic value of gold? The price of gold 10 years ago relative to the dollar was much lower right? So at what point is gold worth anything? At some point someone decided to start trading for other items that were necessary using gold. As long as my investments are out earning the rate of inflation then i will be better off.

When the actual value of printed paper becomes worthless, they shred it up and it becomes confetti or nice bedding for a hamster cage. I use it to stuff my pillow, actually.



How come old gold coins,from the Roman era or earlier, don't get shred up and discarded? And why would someone pay a premium for them over current spot price in dollars because they're old and worn out?

At some point, the faith in the currency will be lost...as it always has been...because the value of anything priced in it must come to an equilibrium with true demand. What's the value of oil? Just a bunch of dead leaves and organic matter pumped out of the ground which must be consumed/destroyed to have any value at all. Can you drink oil (despite in the petro-sourced chemicals found in garbage food, I mean)?

I'm not saying your arguments have no merit, I just think they're the ones most likely to be repeated because they lack context and the mental work necessary to give them very much traction. Look, I get it: the uber gold bugs are just as moronic as the uber paper pushers. If you can find somewhere in between that's fit into your own financial master plan, then get to work. Plenty of money to be made, here.

Quote from barnz008 : How come old gold coins,from the Roman era or earlier, don't get shred up and discarded? And why would someone pay a premium for them over current spot price in dollars because they're old and worn out?

This is a silly question and you know it.

1) Gold is still being valued at something and it is relative to currency. What is the value of gold if all currencies collapse (yes highly unlikely, but you have to be able to assign a value). Maybe an ounce will be worth 3 chickens and a bucket of water.

2) Someone would pay a premium because of the relative rareness. There is nothing different chemically between the Roman gold and gold I could dig out of the ground. There is however history tied to the gold, which is no different than a rare dollar bill going for a lot of money or a rare Honus Wagner baseball card.

The free market will dictate the value of gold and anything else. Gold intrinsically has no value.

Quote from PiratesSayARRR : Gold only has a value because we deem it to have a value same with diamonds. Gold can't feed your family. In the post apocalyptic world offering a piece of gold will get you no where.

Gold has value because it's precious metal that can be used in semi-conductors oppose to diamond, which is worthless except they are girls' best friend.

Quote from kyotuosa : Gold has value because it's precious metal that can be used in semi-conductors oppose to diamond, which is worthless except they are girls' best friend.

so diamonds have no industrial use?