Holy ****.. gold hit $1,675 yesterday...
- Thread starter Xenomorph
- Start date
deal but it sucks. neither the markets nor the rating agencies were/are focused on the debt ceiling. they ar focused on the debt and untill the out of control spending is reigned in the whole situation is going to be ugly. i bought some gold at $728/oz. i wish i'd been bold or smart enough to buy more than i did.
debt is certainly a part of that, but a lot of it also has to do with the growth of the economy -- growth is how you pay back that debt. many banks actually wanted the US to continue to spend to help the economy, so you actually see where a lot of our debt continued to get better interest rates even though some were calling for the end of the world. (OT but just wanted to clarify)
...& none of the 5 reasons foster confidence....
http://www.blanchardonlin...investment/gold_rise.php
http://www.blanchardonlin...investment/gold_rise.php
It has no value. It is based totally on perception and fear.
The 'INTRINSIC VALUE' spin is total BS. It hold no intrinsic value. Intrinsic means it has some sort of basic valuethat makes it what it is. There is no intrinsic value in gold, it is simply worth what others are willing to pay for it.
Investing in gold is also barely better than investing in sand. Go buy a tube of sand and let it sit in your garage- that is what gold is...useless. It doesnt rise and fall off its own performance, it depends out outside factors to rise or fall. It is of no value and there is no actual performance for it to do. If gold prices fall, it cant correct itself in any way.
Now oil is the same way, but at least with oil it is a commodity that is needed. Gold isnt needed, its just desired. Sure, its been desired by extinct civilizations for thousands of years, but it simply cant do anything to raise its value.
The 'INTRINSIC VALUE' spin is total BS. It hold no intrinsic value. Intrinsic means it has some sort of basic valuethat makes it what it is. There is no intrinsic value in gold, it is simply worth what others are willing to pay for it.
Investing in gold is also barely better than investing in sand. Go buy a tube of sand and let it sit in your garage- that is what gold is...useless. It doesnt rise and fall off its own performance, it depends out outside factors to rise or fall. It is of no value and there is no actual performance for it to do. If gold prices fall, it cant correct itself in any way.
Now oil is the same way, but at least with oil it is a commodity that is needed. Gold isnt needed, its just desired. Sure, its been desired by extinct civilizations for thousands of years, but it simply cant do anything to raise its value.
yes they are concerned about the lack of growth, but they (the d**n) politicians of almost all stripes, have finally spent enough money and plan to spend enough more that there is really no way we can grow out of this mess. solid growth PLUS inflation will help and that's why i think the pols in their hearts of hearts would welcome a nice solid round of pretty high inflation. the problem is once they let that genie out of the bottle it is hard to control.
though i'm not sure that liberal pet ideas, and a whole bunch of tax cuts can really lead to growth in an economic downturn (at least they never have before). i'd rather see us investing in infrastructure (many americans greatly underestimate how much high speed rail would impact lives), energy, information systems, and providing better basic human services to rural areas than green energy (which has high employment rates as is), paying off state debts, job training, and tax incentives.
Houses, Currency, Commodities, etc... Gold also has many uses in high end electronics and medical equipment. For instance items viewed under electron microscopes can be covered in a micro layer of gold dust. Not exactly sure why but it sure looks cool to see a dragonfly covered in gold dust.
I don't own any gold, wish I did because then I'd be rich. I'm not advocating one way or the other. If I did have enough cash to really invest in anything it would be in rare earth metals.
I don't own any gold, wish I did because then I'd be rich. I'm not advocating one way or the other. If I did have enough cash to really invest in anything it would be in rare earth metals.
Currency, whether paper or otherwise, is based on the assumption that someone else will take it as value for something that you want or need, such as good or service. Trusting in gold is no different than trusting in paper money. It's only value is what people think it is worth, and it can only be used to purchase the goods and services you need to survive.<div>
</div><div>A house or a commodity, like all goods, are different. First, you can eat a commodity. It's intrinsic value is that it keeps you from dying. A house protects you from shelter and provides a safe haven for the rest of your things. Of course, a house's value is jacked up for the same reasons that gold's prices are jacked up, but a house is never worth nothing. The same thing cannot be said of gold.</div><div>
</div><div>People who invest in gold for the long term because they don't trust paper currency are essentially investing in one type of currency over another on the false assumption that one is somehow intrinsically more valuable. They are morons. However, those who are investing in gold because they know that when the economy gets bad, people turn stupid and jack up the price of gold are seeing it for what it is, a short term investment in a currency that is overvalued.</div><div>
</div><div>If you think people are going to continue to be stupid and invest in gold, then buy some gold and when the price starts to drop, sell it. If you are investing in gold because you think it's a safe long term investment that is "the only investment that is not someone else's liability", you're wrong.</div>
</div><div>A house or a commodity, like all goods, are different. First, you can eat a commodity. It's intrinsic value is that it keeps you from dying. A house protects you from shelter and provides a safe haven for the rest of your things. Of course, a house's value is jacked up for the same reasons that gold's prices are jacked up, but a house is never worth nothing. The same thing cannot be said of gold.</div><div>
</div><div>People who invest in gold for the long term because they don't trust paper currency are essentially investing in one type of currency over another on the false assumption that one is somehow intrinsically more valuable. They are morons. However, those who are investing in gold because they know that when the economy gets bad, people turn stupid and jack up the price of gold are seeing it for what it is, a short term investment in a currency that is overvalued.</div><div>
</div><div>If you think people are going to continue to be stupid and invest in gold, then buy some gold and when the price starts to drop, sell it. If you are investing in gold because you think it's a safe long term investment that is "the only investment that is not someone else's liability", you're wrong.</div>
Gold is in a bull market, at some point it will end. When i start seeing predictions of 1,800, 1,900 gold. People are buying b/c it is going up. Many hedge funds who have been long for years have been liquidating into the highs, it might go higher, but I would not buy it at these prices. Gold has been up 20 out of 24 days, that rate will not continue. Say what you will but the world is willing to finance us at 3%. China and Japan really have no choice but to buy our debt, there is no other market in the world large enough for them to put their money in.
I think most, I hope at least, folks investing in gold are doing it to hedge against other currencies. If you had bought 10k in gold 5 years ago and put 10k cash in a CD (at 5 years ago interest rates) you're gold would be worth more in USD today. There is no way to refute that.
Folks rushing out to buy gold are sort of late to the party. </p>
Folks rushing out to buy gold are sort of late to the party. </p>