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 Replies: 18 / Views: 2,212 |
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Valued Member
United States
164 Posts |
I've been wondering, Gold coins seem to be all the rage nowadays. It's impossible to watch most television shows without seeing multiple commericals for gold coins. If you turn on you radio station in the car to any popular political talk show, You hear such names as Glen Beck and Sean Hannity openly endorsing gold coins, Saying that their value will be timeless. That and they sell everywhere like crazy, even the ones without signifigant numismastic value.
I was curious though, How long is this going to last? The next 10 years?, the next 100 years?, forever?
I don't know, maybe it's just me, But it seems like gold is starting to be somewhat phased out (Or at least not as popular as it used to be.), with the economy tanking and less and less people buying jewelry, it seems like gold is really only being used in specialty electronics and the like.
Or perhaps gold is timeless, and what the ads say is true, That gold is, has been, and always will be, a valuable and precious commodity. Though what I have to wonder is how long the price of gold will go up before it (If it ever does) starts to drop. Or maybe gold is at one general fixed price, for which it will only flucuate slightly within our lifetimes.
I'd like to hear your thoughts on the future of gold, also. Edited by JOE
01/18/2009 11:03 pm
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Pillar of the Community
Australia
3831 Posts |
There are always times when there is a high and low. There has been a time when gold fell from 600usd/oz to a low 400usd/oz after the Bank of England sold their massive gold reserves. Rhodium had the most absurd pricing ever, from a shocking high of 11,000usd/ounce to a mere 1000usd/ounce. Do you have any power against such drama? No, not at all. You become a victim.
People refuse to acknowledge that gold or any other metals are continuously mined on a daily basis in terms of MILLIONS of ounces annually compared to what's traded in the market on a daily basis. Pricing is nothing more than supply versus demand. The higher the value of gold is, the more mining companies are happy to operate at a higher cost and gain their fair share of profit.
Is gold a good investment? No, I don't think so, in fact, you MAY be losing money if you don't understand how it works. It may be a good value if the value of everything else falls but otherwise, if you are looking to profit, make sure you understand the metal market before you even attempt to buy / sell. The returns of gold is not very spectacular. I think a better investment is education. No one else other than you can devalue the value of your education.
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Valued Member
United States
405 Posts |
Before this economy plunged into oblivion,I would have agreed with gxseries,but,with all the uncertainty in the world,I would think that everyone should own at least "some" gold and silver?
I think the value of our US dollar is is certainly going to nosedive at some point in the future,because of all the bailouts etc.,causing a very bad case of inflation,if not hyperinflation...In times like those gold becomes a very good store of wealth...If I'm wrong,its better to be safe than sorry..JMHO!
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Pillar of the Community
Canada
598 Posts |
It ain't rocket science. Know the market. *Buy low, sell high. ... know when to hold 'em, know when to run...  This goes for any investment. For God's sakes, people have made out with massive profits in precious metals... in the long term. (see above *) Some people were wise enough to hoard the last of circulation silver... at face, and are now getting 10x face in this(very low) silver market... so what's that... a 1000% profit.  See below for more on this forum VVV. https://goccf.com/t/40582&whichpage=1 |
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Pillar of the Community
United States
1083 Posts |
When the price of gold is low, buy old US mint issue gold coins with numasmatic value and you will cut your risk. Provided of course that you educate your self first on the various series and how to grade and authenticate them.
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Valued Member
United States
124 Posts |
I recently purchased my first gold coin. My budget isn't the biggest, however I was able to acquire a 1945 dos pesos for 40$. I kick myself almost everyday, 15 years ago when I was in high-school, gold was 350$ an oz. I wish I would've had the foresight to purchase some back then.
I have a feeling that gold will break the 1k mark, and that silver will go past 15$ an oz. this year. What goes down has got to go back up. I also think even that most economists say that the bottom cannot accurately be determined, I think we are very close to it now. My main reason for thinking that we are at the bottom is that we don't have to much more to lose.
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Pillar of the Community
United States
3098 Posts |
Quote:
I have a feeling that gold will break the 1k mark, and that silver will go past 15$ an oz. this year Maybe.... maybe... maybe... Quote:
What goes down has got to go back up. Yes, but probably not this year. In any recession, cash is king and dollar is its emperor. As long as there's no demand, gold, silver, copper and nickle and everything else will still be pushed down by absence of demand. However, as soon as we get out of recession, I think there's going to be a boom in gold prices because of what the governments and cent. banks are doing: printing like hell (pardon my language). So, gold still has a long ways to go before eventual inflation sets in. So... until then in the short term, I see gold at somewhere in the low 800s, high 700s. And hey, gold was $35 an ounce for a good 30 years. What makes you think the government won't confiscate all of it again and reset it at about $500? My humble opinion...... And the gold I have I bought in middle school with money other kids go play with... so at least right now I have a gain  |
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Valued Member
United States
462 Posts |
I look at it this way, if I had $1,000 to invest, would I buy gold? No! If I had $20,000 to invest, would I buy $1,000-$2,000 worth of gold/silver? More than likely. Back when gold was $350, I bought a house in Southern California for $30,000. Today, that house is worth around $200,000, down from $350,000. Plus, it brings in monthly rent. Precious metals will NEVER accomplish that. BUT, precious metals have one thing RE doesn't, LIQUIDITY. So precious metals is not a bad thing to have, especially if our monetary system collapses. We may need it just to trade. But for long term investments and return, there are much better investment vehicles.
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Valued Member
United States
124 Posts |
I agree that buying 1 ounce of gold wont make a person rich. I however dont have the 300K to invest in anything. For me personally small amounts of gold and as much silver as I can get is a safe long-term low-risk low-reward investment.
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Pillar of the Community
United States
3294 Posts |
If our entire monetary system collapses, ammunition will be the new currency, not precious metals. At least for the first 20 years, so I hear.
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Valued Member
United States
462 Posts |
I am plenty good on ammunition and firearms. But it would be hard to find a grocery store that would accept a case of ammo for a cart of groceries. LOL
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Pillar of the Community
United States
3098 Posts |
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I am plenty good on ammunition and firearms .22s will be the new chump change! 500 for $12!  I wonder what will be higher denominations? .700 Nitros? I mean I have gold and silver not that much as an investment vehicle. And especially in this time, you don't really know where the price is going to go and you might have to sell it for a loss when you need the money. Sure, a few bars here and there is good as a small hedge, but it's not the hedge that's going to save you from an economic collapse or anything like that. |
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Pillar of the Community
United States
1130 Posts |
Diversity and balance is always the key in any investment plan. I have positions in PMs, rare coins, stocks, mutual funds and CDs (cash). I own my own place but don't have any investments in property.
Hindsight is always 20/20 and it's always easy to say "I wish I did this" but in reality, we really don't know which way the market will turn so you have to plan for different scenarios.
Edited by 1sikevo
01/19/2009 2:25 pm
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Moderator
 United States
188213 Posts |
Quote:
I look at it this way, if I had $1,000 to invest, would I buy gold? No! If I had $20,000 to invest, would I buy $1,000-$2,000 worth of gold/silver? More than likely... But for long term investments and return, there are much better investment vehicles. I agree. Precious metals should only be a (small) percentage of your portfolio; if only for emergency liquidity. Real estate is the best long term play because it can earn money in other ways besides appreciation. Quote:
But it would be hard to find a grocery store that would accept a case of ammo for a cart of groceries. LOL I hope this never happens, especially at the hand of any of our members, but it is something to consider when discussing "end of civilization" scenarios: the grocer would "take it" and not in a good way.  |
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Pillar of the Community
United States
1231 Posts |
I am starting to think I should invest in MRE's. At least I will be able to eat
Edited by onejinx
01/19/2009 7:13 pm
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Pillar of the Community
Australia
3831 Posts |
If you said gold prices have never been this high - please think twice before typing. Factoring in the inflation back in 1980 when gold was about 800usd, it could be easily over 1000usd in today's dollars. If you happened to buy gold and silver back then, you haven't break even. Tough luck.
I repeat, gold is mined globally at around 80 million ounces per year. And when gold prices go absurdly high, central banks and the mining companies are more than happy to sell at over 800usd/oz. Mining production cost per ounce of gold is just about 300usd. In short, it's absurd. It's only because of the fear that the dollar will collapse which drives up the gold demand temporarily. When people start to be confident of the dollar, I can assure you that gold prices can't possibly go any higher.
Honestly, how high do you want to see gold prices going up to? 1000 dollars? 2000 dollars? Yes, it would be nice to dream on but this is what brings down a massive collapse - figures aren't sustainable. Someone wins, someone loses out and that someone can be you.
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Replies: 18 / Views: 2,212 |
Posted 01/19/2009 03:27 am
