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 Replies: 31 / Views: 3,326 |
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Pillar of the Community
United States
3670 Posts |
The events from the housing market you speak of above is a good point, and one should realize it can fall way fast when things turn south, way faster than it took for all that time to climb up to where it was before the fall, and something we should always remember and keep in the back of our minds....
But gold or Pm's is totally different or at least I would compare silver first to the housing market due to its volatility, but gold over time has proven to be the long run winner. Sure it has had its downs as well, but like the wise always say, if you are not selling in those times, it matters not you....
Edited by Silverhawk74
07/16/2011 3:09 pm
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Pillar of the Community
United States
830 Posts |
Quote:
yeah, and alot of people were saying about real estate in late 2006 - it always goes up. Yeah I'm hearing you, I'm not going to predict its always going up. But I think it will hold its value better than the dollar. Remember in the 60s you could buy gas for 25 cents/gal, well today if you have a quarter minted before 1965 the silver is worth more than a gal of gas.  Edited by GoThunder
07/16/2011 4:50 pm
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Pillar of the Community
United States
1450 Posts |
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Valued Member
United States
299 Posts |
The housing market was manipulated UP by making easy "money" available to continue that run up.
I don't see anyone forcing that easy credit into the gold pricing. As a matter of fact, Comex's taking away margin credit from Silver is what manipulated that price DOWN recently
ergo - when the manipulators fell off from behind housing, the real price/value of housing came into play. We can conclude that when the manipulators fall away from trying to hold PMs down in price, the true value will exert itself.
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Pillar of the Community
United States
830 Posts |
Another point on the housing market, over the long term, even with the real estate crash, houses are still higher than they were 20-30 years ago. So weighted against holding dollars just about any investment looks good lol. I remember when I was a kid my Mom talking about this really big new house that was built in our neighborhood and that it cost them $70K to build it. Now there isn't anything but a run down shack in town for that price. There was a good segment on CNBC's "Currency in Motion" this week. The traders were talking about their best currency trades for the week and one was liking (I think it was) buying the Canadian dollar VS the US dollar and Peter Schiff was asked if he liked the Canadian dollar. He said yes, you can pick any currency against the US dollar and make money. Edited by GoThunder
07/17/2011 10:11 am
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Pillar of the Community
United States
3294 Posts |
I am not convinced that gold has intrinsic value. Other then making jewelry, there really isn't all that much useful stuff you can do with gold.
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Pillar of the Community
United States
4008 Posts |
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We can conclude that when the manipulators fall away from trying to hold PMs down in price, the true value will exert itself. Indeed it will... and that is more likely to be higher... perhaps MUCH higher... than it is today. Quote:
I am not convinced that gold has intrinsic value. Other then making jewelry, there really isn't all that much useful stuff you can do with gold. 5000 years of human financial history indicates otherwise. People have valued gold for a VERY long time, both as a store of value and as a medium of exchange. Sure, it's always possible that this will change someday but so far it hasn't. You can say that gold has no intrinsic value to you, of course, but that doesn't necessarily hold true for the rest of humanity. |
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Pillar of the Community
United States
4333 Posts |
Gold has much use in the dental industry. I've got more gold in my mouth than I do in my bank safe-deposit box.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Pillar of the Community
United States
3294 Posts |
Intrinsic means contained within the item itself. The use of gold for the last 5000 years is extrinsic to the gold itself (aside from jewlery or dentistry) and intrinsic to the mindset of people. Just like fiat currency is. The big difference between them is that there is a limited supply of gold and increasing that supply is a fairly slow process (new mines) whereas fiat money can be created out of thin air.
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Pillar of the Community
United States
830 Posts |
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The big difference between them is that there is a limited supply of gold and increasing that supply is a fairly slow process (new mines) whereas fiat money can be created out of thin air. Exactly, which is a main thesis of the "The Secret of OZ"** as I see it. It doesn't really matter what backs your currency, its who is controlling the quantity that matters and right now the US has helicopter Ben flooding the US with more more more which makes it worth less less less. When there are as many dollars on earth as there are grains of sand, dollars will be worth the same. **"The Secret of OZ" documentary here: http://www.youtube.com/watch?v=7qIhDdST27g |
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Pillar of the Community
United States
3294 Posts |
Fortunately we aren't there yet with the sand thing. There are around 63 billion grains of sand in 1 cubic meter so the entire supply of US dollars would be about the same a s the grains of sand in a good sized sand dune.
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Pillar of the Community
United States
830 Posts |
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Fortunately we aren't there yet with the sand thing. There are around 63 billion grains of sand in 1 cubic meter so the entire supply of US dollars would be about the same a s the grains of sand in a good sized sand dune. Yeah I might have picked a bad analogy there , but its come about as close as I care to ride it. I'm mostly out of dollars except what I need to pay the bills. And when I say out of dollars I mean by choice thankfully. |
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Rest in Peace
United States
9104 Posts |
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I am not convinced that gold has intrinsic value. Other then making jewelry, there really isn't all that much useful stuff you can do with gold. So you would have us believe that wars have been fought and new countries found so that junior can have a class ring? |
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Pillar of the Community
United States
3670 Posts |
http://www.ebay.com/itm/2011-AMERIC...refresh=trueHere is a link to an AGE 1 10th that just ended five minutes back, and about 1 dollar over 200. I saw a line of proof gold eagles about to end with buy it now only option still setting at $259.99. Same old story, when the major dips kick in, these ebay dealers are reeeeeaaaaaal slow about dropping prices, and I can't really blame them, as who would even want to sell right now.....
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Pillar of the Community
United States
3294 Posts |
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So you would have us believe that wars have been fought and new countries found so that junior can have a class ring? Why not? Wars have been fought for less purposeful reasons then that. |
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Posted 07/16/2011 3:12 pm
