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 Replies: 12 / Views: 1,565 |
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New Member
United States
42 Posts |
The trend of the rising price of gold over 1000 bucks perhaps indicates that our economy is not doing as well as the government says. Do you hold on to it? Do you buy it? Do you wait? What do you all think?
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Pillar of the Community
United States
532 Posts |
Ditch it with a quickness IMO
Might go up, probably will go down. Most likely will do both within the next few months. If playing the markets then sell high and wait for a dip to get back in.
A lot of running around if you are talking about 3 ounces. but if you have a good stock hold then the small movements change quick and can leave you happy or crying depending on your timing.
I am much more fond of the silver wagon personally.
Edited by RFB
09/16/2009 04:42 am
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Pillar of the Community
United States
532 Posts |
Sorry if this is a highjack but silver is now at 17.30, so both are getting silly these days.
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Pillar of the Community
United States
3294 Posts |
Gold is a hedge against inflation of the US$. Considering the amount of money the government seems it wants to spend, there is going to be some pretty hefty inflation of the US$ over the next few years, so there is pretty good chance that it's price is going to continue to rise. Same deal with silver, only silver has more industrial uses (and in my opinion, more potential value because of that).
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Valued Member
United States
53 Posts |
Personally, I would go ahead and harvest the profit. But, I don't have a very high tolerance for risk.
r
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Valued Member
United States
245 Posts |
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Pillar of the Community
United States
2520 Posts |
I have to agree with Nod2003 on this one!
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Bedrock of the Community
United States
10982 Posts |
The risk of high inflation is growing each day. The longer the Fed keeps the flood gates open, pouring USD into the system to prop up our economy, the more likely serious inflation becomes. I believe gold broke the "psychological" 1,000 USD barrier this month. $1,200 gold seems very probable in the next 18 to 24 months. I'll be holding out for $1,200. I've got about $24K in this batch and want $35K out of it:  |
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Bedrock of the Community
United States
20753 Posts |
It's happened before. What goes up will for sure come down.
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Valued Member
United States
147 Posts |
I remember in 1980 gold almost hit $900 oz, with all the same talk of inflation and fears with the economy. Jimmy Carter had the reins since 1977 and created some of the worst inflation this country has ever seen in modern times. Similar to our current president very liberal and a tax and spend philosophy. For the next 20 years we had Reagan, Bush Sr, Clinton and Bush W. Gold bounced between $300 and $500. Towards the end of Bush II gold again began to rise to the current $1000 + So my point and my question.  Silver in 1980 was $50 oz, so my question is which is the better buy. Doesn't silver have much more potential at this point, isn't silver under valued. Or am I missing something? Just a thought. The 1980's is what got me into coin collecting. You could buy 90% silver in bulk and find many uncirc Franklins and some Walkers that were sold for spot. Then would sell back the bulk after the price went up a little, just to break even, but pulled some nice coins. Thanks for looking  Edited by adco1149
09/18/2009 12:10 am
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Pillar of the Community
United States
2734 Posts |
Quote:
adco1149 "Doesn't silver have much more potential at this point, isn't silver under-valued?" If silver were valued at the "16-to-1" price ratio that was used for hundreds of years (because approximately 16 ounces of silver is mined for every ounce of gold that is mined), $1000-oz. gold would have silver valued at $62.50 per troy ounce. It is estimated that 95% of all the gold ever mined in the history of mankind is still accountable for. The reclamation rate of gold over the centuries is far, far higher than for silver. The high survival rate of mined gold means that lots of gold that has been held for long periods of time can quickly hit the market under the 'right' conditions. This can cause the price of gold to drop quickly. $1000 an oz. frankly isn't enough to get gold out of the 'strong hands', but if gold hits $2000 an oz. or more, things would start to get really interesting! Silver also has far more industrial applications than gold, and much of the silver going to these applications is never reclaimed. Less reclamation = less existing stockpiles = more mining needed! Edited by DNA
09/18/2009 12:32 am
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Valued Member
United States
147 Posts |
Silver also has far more industrial applications than gold, and much of the silver going to these applications is never reclaimed.
DNA are you supporting my argument? Not sure |
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Pillar of the Community
United States
2734 Posts |
Yes, I'm very much supporting adco1149's position.
Since physical silver seems to be in short supply nowadays, the only
way to get more silver into the market is by mining it.
Mining takes time and money, unlike selling an existing stockpile.
Less reclamation = less existing stockpiles of silver that can be sold quickly when the price is high
(which is gold's main 'problem').
Edited by DNA
09/18/2009 12:43 am
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Replies: 12 / Views: 1,565 |
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Posted 09/16/2009 04:44 am
