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 Replies: 19 / Views: 2,318 |
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Rest in Peace
United States
9104 Posts |
Even if you don't, you can still learn from it. Before US citizens were allowed to own gold in any form 12/31/74, there was a lot of speculation that when this huge new market of 200+ million was allowed to buy, prices would skyrocket.  That atom bomb turned out to be a firecracker with a wet fuse. The peak of $200.90 was met the day before, and it slid consistently until late 76, losing half its value. It took another two years to reach $200 again. It never occurred to the experts that anyone in the US who really wanted gold knew the loopholes, and had stocked extra for the new breed of gold buyers, which never materialized. |
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Valued Member
United States
302 Posts |
I remember when the gold cap came off.
This is the typical buy rumor and sell fact scenario. When the actual event occurs, you sell. Before the event you buy.
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Pillar of the Community
United States
2120 Posts |
Fredd,
I'm missing it. Can you please explain the lesson as it can be applied to todays situation? I definitely want to understand.
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Rest in Peace
 United States
9104 Posts |
Everyone assumed that when this tide of US buyers was released, gold would soar.
Today, they're saying the same thing about institutional investors: "If they only convert 5% to gold!" And what if they don't?
One thing for certain, with the possible exception of 1-2 ccfers (who prolly never post), our PM speculations are right up there with pee in the ocean and watch the tide.
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Pillar of the Community
United States
4008 Posts |
Do I remember 1974? Yes... and 1964... and 1954 too!  As to gold and the "new breed" of buyer... somehow, I don't think that there are as many new breed buyers out there as some folks anticipate. For one thing, a lot of the younger folks out there have never experienced nasty inflation like some of the older folks have. Not having had that experience could make them less interested in buying gold as protection from it. I can see the institutions being more interested in it, though. They are men on a mission and that mission is to make money for their clients. As soon as it becomes obvious that those who are buying gold are out-performing those who do not, we very well could see a surge of buying as greed overcomes fear. As you say, though, Fredd... maybe not too! Edited by Ed_B
09/12/2011 7:51 pm
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Pillar of the Community
United States
1064 Posts |
I wish I'd had some money back then, plus a little foresight, but it was not to be. Now I have little money, and lots of hindsight!  |
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Valued Member
United States
397 Posts |
10x return from 1975 till now? Nah
There are plenty of coins that have increased well over 10 times since '75.
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Pillar of the Community
United States
2120 Posts |
I dunno. The situation in 1974 and Now are a bit different.
I see the point youre making though. thanks for breaking it down for me. :D
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Rest in Peace
United States
9104 Posts |
Unless you have lived through a depression, it's hard to understand why many people save things they'll never use "just in case".
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Pillar of the Community
United States
4008 Posts |
Quote:
Unless you have lived through a depression, it's hard to understand why many people save things they'll never use "just in case". Having had parents and grand parents who did live through The Great Depression and who were a significant part of my life, and probably a lot of others in the mid-50s and up ages, was of considerable benefit to me in many ways. I learned a lot about life and about "making do" from these folks. Also about saving money and being careful not to squander it. Because of this, I never had very much debt and zero credit card debt. It is possible to learn from the experiences of others, although 1st hand info is usually the best. |
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Pillar of the Community
Canada
3692 Posts |
So what, today, can Americans not purchase? Cuban cigars? Wouldn't that lower the price if suddenly the embargo was lifted? How do liquor prices of today look from a 1920s perspective?
^ Not rhetorical questions, please educate me.
Edited by Libertad
09/13/2011 11:26 pm
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Pillar of the Community
United States
3670 Posts |
All I know is I was zero in 74, year of the hawk, lol....
Seems like Hank Aaron past Babe Ruth on the homer list (714) that year if memory serves me correctly....
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Valued Member
United States
493 Posts |
So gold was more or less dumped for the next two years. Who was dumping?
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Rest in Peace
United States
9104 Posts |
Quote:
So what, today, can Americans not purchase? Cuban cigars? Wouldn't that lower the price if suddenly the embargo was lifted? Don't see how that would lower prices. They'd be cheaper than black market (most of which are fakes anyway), but there would be a whole new demand from US smokers. |
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Pillar of the Community
United States
2120 Posts |
Quote:
Unless you have lived through a depression, it's hard to understand why many people save things they'll never use "just in case". My paternal grandparents were young adults during the Great Depression, so one thing my father still does to this day is refuse to drink water/milk/anything with dinner. He eats everything on his plate, and when hes done, if hes thirsty, he will have some water or milk. He always says he knew it was rediculous, but there is this little voice in his head saying "dont fill up on water, save room for your dinner, dont waste food" |
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Pillar of the Community
United States
4008 Posts |
I know exactly what you mean, Ian. My Mom will hoard a scrap of food like it was her last mouthful. I am careful not to waste things, including food, but do not get hysterical about it. I worked very hard for many years so that I would NOT have to live like a church-mouse. Having achieved that goal, it seems ridiculous to do as my Mom does. In fact, my wife and I have a "no dab rule" in our house. Any food smaller than a serving is tossed and not saved. Food quality matters too, so we're not saving a spoonful of this or that in the fridge until it goes bad... which they always seem to do.
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Replies: 19 / Views: 2,318 |
Posted 09/12/2011 04:20 am
