Gold's Pending Collapse

Bullion gold has not exactly been a "safe haven" for investors over the long term as many would have you believe. It is a stagnant commodity at best and I agree is in for a small slide. My gold purchases are all based on numismatic value. I buy older lower denomintion gold coins in AU50 and better and have enjoyed a steady appreciation on these coins for many years.(Watch those low mintage $2.50's)Thanks, Mike

P.S Most, if not all of the major Stock Market Indexed Funds have killed gold as an investment since the 80's. [:0]

Good thing they offer graphs. It is always interesting to see what the world thinks. Thanks for sharing.

One has to keep in mind there are folks out there WHO must continue to degrade gold! Those of us who collect coins or buy gold, silver, palladium, or platinum are NOT putting our money into other investment opportunities which means someone else is NOT making money off of your money. I would rather take my chances at my own making than have a quick talking hustler do my investing for me. Looking back on the last 5 years my gold, silver and coins have been a much safer place for my money than the stock market and 401K where I lost a bundle yet my program manager, who gets their money up front every week, never lost dime and they had the gull to come to my employer and ask for meetings to basically pursuade us to buy more stocks. At my age the chance of getting rich off of anything is slim to none and if I decide to put back a dollar for retirement I would like for that dollar to be there when the time comes. Basically that would involve very safe investing and I feel precious metal and coin collecting offer me that and it keeps me in control instead of paying someone else to lose the money for me. And I must mention the ability, should need arise, you have the capability to liquidate (any amount) that you may need should an emergency arise and I DO like physical possession! They can and will KEEP predicting the fall of precious metal as more and more investors turn away from the stock market and brokers. And, one doesn't want to forget the major banks have attempted to control the price of gold for years, very successfully I might add, and who's money did they use to do it! OURS! And what did you make off of all the banks profits? NONE! I can honestly assume most of you don't even know your banks are involved in gold? They buy with depositors money and sell when gold rises another X-amount per ounce and if they (all the major banks) do it all in harmony they can vitually control the rise and fall of the market, which they have been doing for years! And at the same time they are literally messing with us all with outrageous interests rates on everything from loans to credit cards! And how low can rates go on savings accounts and certificates of deposit before folks will finally quit buying in to them? How many banks you seen going under in the last few years?

My first few thoughts to Chrstalk's response to this thread are as follows...Do you purchase all of your investment precious metals at cost? Are you factoring in inflation in your net investment gain? How have precious metals stood up to Stock Market indexed mutual funds over the last 30 years? Your in hand hard assets are only worth what someone is willing to pay at any given time. Are you suggesting the liquidity of such assets allows for the possibility of avoiding capitol gains taxes? If the wealthy banking industry controls the value of gold as you state, much like the stock market is manipulated, are you not still a pawn to the banking industry? If you deposit money into a tax deferred annuity and you are in the 27% tax bracket you realize an immediate 27% "gain" (It costs 73 cents to buy $1.00 of fund) on dollars invested even if it’s to a fixed interest account. This is hard to do with bullion! I don't know how old you are but I took the big hit on my Mutual Fund accounts just like most others. However at this point I have recovered about 85% of my "paper losses" I currently had to take an early retirement due to illness. I am thrilled to have made the investments I made into my Mutual funds. I was able to cash out my supplemental retirement annuities with no penalty due to permanent disability. It’s worked out great since only 22% of my pension is taxable! I love collecting and have made what I feel were good investments in gold coins that have numismatic value. They are largely unaffected by market swings in metals. Good Luck in your investing and I for one would be pleased to see a rally in gold, only I do not believe that is imminent. Sincerely, Mike

I have to go along with Longnine on this one. This is especially true after what I read in Coin World, April 4, 2005 issue.

Here is my evaluation for what it's worth. Gold and Silver have always been the best inflation fighter around. I always felt that a person should keep 5% of their investment portfolio in precious metals. I don't mean paper metals either I mean the cold hard metal in hand.

Right now the U.S. is spending like its never spent before. We are going to have to get the money somewhere. Inflation is just looming around the corner. Other countries are just starting to give up on the U.S. dollar in favor of the Euro. Mexico is talking about minting gold and silver coins again which will kill the circulation of the dollar there.

Add to that the thing I have been warning people about has started here. If you will read the article "Cent, Dollar Changes Loom" in the current issue of Coin World you will see something that is scary to me. Congress is giving the authority to the Treasurer to demontize the Susan B. Anthony coin without getting permission from Congress to do so. This means that in a 5 second decision the SBA can be declared invalid for normal montary transactions. A lot of people can lose a lot of money quickly.

What all this adds up to is that on a worldwide basis the U.S. dollar is losing creditability. If it keeps losing I would like to have the silver and gold rather than the U.S. dollar in my pocket. This is something that can spread very quickly.

catman

Like the others here, I'm a believer in holding the "actual" metals in hand. Gold & Silver and I also like Platinum. Not as an investment mind ya, but as a hedge against inflation. The dollar has been worthless since its was detached from gold in the early 70's. (I can't remember the president now I wanna say Nixon did it). But when you could not convert dollars into gold back then it started the dollars serious tailspin & decline back then. IMHO is has not recovered yet and probably never will. Altho you state gold is tied to our worthless dollars, I respectfully disagree somewhat, since the dollar comes no where near their values of real gold...It might be traded that way, like oil, but if the dollar continues its low value, it will be removed as the "gold" standard if you will--No disrespect intended sir---I of course could be wrong, I like others took a HUGE loss with my 401 back in late 98-99, early 2000, and have only recovered so far only about half of my papaer losses from that disaster. In fact when the internet bubble Burst, is when I seriuosly stared getting into "bullion" and old gold coins, Saints and Indians in decent grades--

quote:

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Originally posted by catman

CiScO,

I'm a little confused at your response. We went off the gold standard in 1933 and off the silver standard in 1968..?

catman

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Internationally the USA maintained the Bretton Woods agreement till 1971
That they forbade gold in 1933 internally has nothing to do with the gold standard I think

http://en.wikipedia.org/wiki/Bretton_Woods_system

Cisco,
Our currency has not been backed by gold reserves since 1933! Silver exceeded the intrinsic value of our coinage in 1965 and completely by 1968. All we have had since then is the U.S Governments backing of our currency. In 1933 President Roosevelt proclaimed that all U.S citizens were banned from private ownership of gold, with a few small exceptions for coins of numismatic value, and $100.00 in aggregate value of certificates and coins per citizen. Later that year another proclamation removed even the $100.00 per person limit! Then in early in 1934 the famous (or now infamous) ban on the production of gold coins was introduced. In the transition year of 1933 the government decided that collectors could hold the 1933 $10.00 gold pieces but entirely banned the holding of 1933 $20.00 pieces. In 1936 the U.S starting building Fort Knox in Kentucky to centrally house U.S. Gold Reserves. In 1954 the laws were relaxed a bit allowing collectors to own pre 1933 gold coins that had collector value. The law allowing unlimited private ownership of gold was passed December 31st 1974 during Richard Nixon’s administration. The introduction of American silver and gold bullion coins for sale to the public by U.S. mints was introduced by The Reagan administration in 1985. Mike