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 Replies: 30 / Views: 4,252 |
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Pillar of the Community
 United States
1450 Posts |
DBM,what if I offered you virgins and goats for food?Could we do business?
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Pillar of the Community
 Canada
9864 Posts |
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Pillar of the Community
United States
1450 Posts |
Actually,DBM,I have said many times on this forum that a years supply of food and adequate amounts of weapons and ammo came before silver and gold. I would never recommend anyone stack PMs ahead of food supplies and enough cash to get you by for several months.The PMs really serve the purpose of preserving wealth for emergence out of the collapses. A bunch of dollars laying around are of little value to me,but food,land,ammo and other storable goods are worth having around. As I follow the US weather news with drought in west Texas and flooding along the Mississippi,my food storage is literally money in the bank.I am buying rice and flour now because the price will go up in the next couple of weeks.
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Rest in Peace
United States
9104 Posts |
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if you arrive with more guns than I have ,I'll be polite and let you have the food for a steal. Would you like fries with that? Paper or plastic? Want help carrying that to your car? |
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Pillar of the Community
United States
4008 Posts |
As Pappy always said, "A smile and a .357 are a lot more impressive to some folks than a smile all by itself!".  |
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Pillar of the Community
United States
1450 Posts |
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New Member
United States
8 Posts |
hockingzig typed: Quote:
Like I said Fredd,value hasn't changed ,only the price!
 Value has changed, and it has changed everyday. Price is pretty much the value. If the value goes up the price goes up, and if the value goes down the price goes down. If your paying more, or less than the value, one could say that "the price is too low or high" compared to the value. Price is there, so we can trade our value for other value. The value is only what somebody will pay in "price". So therefore Price = Value Edited by Slvrcrazy
05/18/2011 8:44 pm
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Pillar of the Community
United States
1450 Posts |
The point you are missing is that the value of the dollar is the real fluctuation not the gold and/or silver. Just a different way of looking at the relationship but one that better reflects why many of us are buying PMs in the first place.If the dollar was not dropping like a rock(along with the euro and pound)we would be content to hold dollars. Since dollars are buying less everyday we buy a commodity that holds it's value(purchasing power)better than the medium of exchange we are buying it with. That said,if the dollar strengthens,the price of gold should drop in dollar terms because the buying power of the dollar has increased.So,price doesn't exactly equal value,it equals purchasing power. From that standpoint,gold is held as a store of wealth against fluctuation in fiat currencies. That is one of the "investor arguments"against gold,it doesn't generate wealth or pay dividends,it just retains it's value in terms of buying power. There is an old saying"An ounce of gold will buy you a good suit and a pair of shoes",that is an expression of it's value.So,whether gold is $35/oz or $1500/oz. it will still buy a good suit and a pair of shoes but the number of dollars required to buy the gold has changed because its purchasing power has changed. I realize we may be arguing semantics here but I think that it is a different way of looking at the dollar gold relationship. The reason I think it is important is because some folks are jumping into PMs to get rich quick but what they will find is,when they sell PMs down the road for dollars,those dollars will buy the same amount of goods as when the metals were bought,they won't really be wealtheir.
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New Member
United States
8 Posts |
Yes, I agree the changing value of the dollar, is naturaly changing the value of PM's. Edited by Slvrcrazy
05/18/2011 11:20 pm
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Rest in Peace
United States
9104 Posts |
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So therefore Price = Value  Nice to have someone new to pick on! The cynic knows the price of everything and the value of nothing. Price is the amount of government issued currency it will take to buy something. Value is the functionality of the item. The price of a gallon of gas changes daily. Its value remains constant: it will allow you to drive x miles. Prices, expressed in USD, have gone up considerably since we were kids. That's why a nickel candy bar now costs a dollar. The value of that candy bar is the same--the pleasure eating it provides. As in my earlier example, a gallon of gas and a pack of cigarettes both have gone up in price, but their value compared to each other hasn't changed. "Money" is simply a way to compare values, by expressing prices of different goods and services in the same term. Time = money. It takes a lot more nickels to get the same candy bar, but that's OK, because we get a lot more nickels for the same hour of work. |
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New Member
United States
8 Posts |
Biggfredd, thanks for the welcome.
But let me debate with you, price does not have to be in goverment currency. I could pay you in alot of things, as long as they have VALUE and you and I can agree on the PRICE of that VALUE. The price of Gasoline goes up daily due to the VALUE of crude oil going up daily (unless you're price gouging). The physical VALUE of that candy bar is not the same as it was when we were kids, and thats the way we have to pay for it, in it's physical VALUE.
Its pretty simple regarding precious metals, the market price is just a numeric measurement of VALUE.
Edited by Slvrcrazy
05/18/2011 11:29 pm
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Pillar of the Community
United States
4008 Posts |
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That is one of the "investor arguments"against gold,it doesn't generate wealth or pay dividends,it just retains it's value in terms of buying power. Funny how we do not hear a lot about this from investors whenever the stock market gets knocked for a 40-50% decline... and PMs just seem to be hovering or even rising.  Those of us who know a bit about PMs know that we CAN generate dividends from PMs via trading one for the other at certain times to generate more total ounces owned. Selling these additional ounces = the dividend. When the gold:silver price ratio is high, buy silver with gold. When the ratio is low, buy gold with silver. Yes, it takes a while for all this to play out but more money can be made this way than by simply holding the PM of your choice. Of course, if you do not do this correctly, you can end up with fewer ounces owned too. Not a big deal, actually, as ALL investments offer this "feature". :-/ |
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Rest in Peace
United States
9104 Posts |
There are lots of stocks that don't pay dividends, for example, ebay has paid a total of $50,000 in dividends, last I heard. Selling puts on your silver/gold or using them to provide immediate delivery while waiting for replacements can provide income. Right now, dealers are paying $3 over spot to get ASEs, even though they can get them for $2 from the gubmint, but later. They'd pay 50ยข a coin to borrow a few thousand, and replace them when their order comes in. The only problem is retail buyers aren't comfortable with that kind of arrangement, and other dealers are in the same inventory position they are. |
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Pillar of the Community
United States
4008 Posts |
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DBM,what if I offered you virgins and goats for food?Could we do business? Depends. Are the goats and virgins one and the same?  |
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Pillar of the Community
United States
4008 Posts |
Quote:There are lots of stocks that don't pay dividends, for example, ebay has paid a total of $50,000 in dividends, last I heard. That's right. Many stocks do not pay dividends. This is usually because the company management thinks that it can get a better return via share price appreciation if they invest that money in the company, rather than return that same money to the shareholders. Sometimes they are even right.  |
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Replies: 30 / Views: 4,252 |
First Page
Posted 05/17/2011 09:21 am
