Why Are People Buying Silver And Gold?

Earlier in this thread:




Not only did it go to $50, it's still over $36, and climbing.

If you'd quit listening to the "experts" and trust your own judgment, you'd prolly have that 2-5 thousand you're talking about.

When you get up in the morning, look in the mirror (use a bag if you're ugly) and remind yourself:

No one, no matter how well paid, will ever be as interested in my financial success as I am.

The most valuable stock in the world reflects application of simple rules by one man, not sophisticated programs and rooms full of experts with Piled Higher and Deeper degrees.

The average fund run by experts doesn't perform significantly better than just buying an index and going fishing, despite them spending billions of dollars trading in and out.

In the end, "the market" consists of the collective buying and selling decisions of millions of people just like you, and the market is never wrong, it just "is".

When someone suggests helping you with making money, insist on proof of their net worth. If they don't have at least millions, why should you listen to them?

If wbankers were so smart, they wouldn't be begging people to borrow at 3-4%, they'd have far better ways to get much higher returns on their money.

An expert is someone 500 miles away from home. Become your own expert--move.

Actually, Fred, bankers did manage to do the carry trade thing with the Feds by borrowing money at near zero interest rates and then buying US Treasuries that paid +3% interest. That gave them billions in interest income at near zero risk. Unfortunately for the Feds, they assumed that the banks would loan out that money to small businesses and individuals... but they didn't. Nope, that would be... risky... and the "r" word is dirt these days.

If bankers were smarter than a bowling ball, they would not get an "attack of the stupids" about every 20 years. 1986, S&L Crisis... 2008, banking system near-collapse. Most of the time, these occur because of some new whiz-bang financial product that will make everyone rich but that virtually no one really understands. Can we say loans to people whom the bankers KNOW cannot repay the money but it's OK because Uncle Sugar will cover all bets, no matter how idiotic? Can we say "derivatives"? You can bet money that if banks had to buy private depositor insurance, they would be FAR more careful with the kinds of risk they would be willing to take on. If not, then I guarantee that their premiums would skyrocket and that would definitely get their attention.

The pendulum is swinging back and forth in the banking industry and we have gone from "any clown with no assets can get a loan" to "nobody who actually NEEDS the money can get a loan, even if they have good a credit rating". We just can't seem to find that happy medium. Perhaps if the Feds would just quit messing with the banking system, it would do just fine on its own?

I'm still trying to figure out why the FDIC coverage maximum was unlimited. What are they preparing for?

Bernanke was once asked about this and his reply was that there was not enough gold or silver on Earth to be used as money in a $13T economy. Funny thing is, he is right if one only considers gold as being worth $35/oz and silver as $1/oz. In light of the current cost of gold and silver in rapidly shrinking paper dollars, however, there ARE enough PMs to use as money once all the paper money induced inflation is removed from the economy. If this was done, then a new car, for example, might cost $800 or so in gold or silver instead of $35,000 in FRNs. As Einstein might have said, It is all relative.

Depends what that 60¢ will buy. IIRC, they eliminated polio by everyone going to school and getting a 25¢ dose of vaccine.

There is a new movie made by HBO (and HBO usually makes pretty good accurate movies) about the events in 2008 called..."To big to fail", James Woods one of my all time favorite actors plays and forgive me if I am wrong, one of the Lehman brothers, or someone way high up in the company, and it basically is a case of the Gov saying....Nah, we are not gonna bail you out, file bankruptcy....

I have just watched a 15 minute special about the movie, and not seen it yet, but they said at the end if the Gov did not pull a few strings and got involved, no telling what kind of wide spread mass panic may have happened, basic total collapse of the stock market I suppose was way closer than many may have ever realized to a Great depression type environment....

Nothing is to big to fail, both the mongol and british empires were the biggest the world had ever seen and they fell. If a nation that controls a quarter of the earth can collapse than any company or industry can.