Gold within a hair of new record high in $s (Metal of Kings)

Discussion in 'Bullion Investing' started by fatima, Jul 11, 2011.

  1. fatima

    fatima Junior Member

    Gold has now crossed the $1700 mark.


    I continue to stand by the points I made in this topic less than a month ago. In this time, Gold has continued it's rise, up $150. Silver has barely moved in comparison and is still a long way from its previous high.

    It's Gold that is directly affected by central bank and government spending, not silver. I recommend reading through this topic again.
     
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  3. dadc

    dadc New Member

    I would agree with the original post. Gold is for investors, and silver is for speculators.
    Silver is much more volatile than gold and in my opinion more easy to manipulate. I would say that silver is not something you can just buy and forget about, you really need to watch silver more closely or you run risk to major losses.
     
  4. fatima

    fatima Junior Member

    Yes indeed. All the bullishness of Silver, that we saw here a few months ago, has died like a potted plant outside with no water in the South.
     
  5. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    This sort of comment [and there have been several so I'm not picking on anyone] doesn't make sense to me. Nothing is inherently an investment or speculation except that price will make it so. Silver was a very good investment at $5 because it was selling below the cost of production. Gold was a very good investment at $400 for similar reasons. Most of the producers were losing money, so it was obvious that either prices had to move higher or the world would have to do without new production. But when gold is at $1700+ and silver at $35+, both are speculations. If you believe there is safety in buying gold at present prices, and think you are investing when you are really speculating, there is a tremendous risk that you won't react properly to future price changes.
     
  6. fatima

    fatima Junior Member

    "doesn't make sense to me"

    What part of the explanations, given above by me, don't make sense to you?
     
  7. desertgem

    desertgem Senior Errer Collecktor

    We talk about investors and speculators, but I think that both of these definitions have to include an exit plan in order to preserve any profit made. Many here buy and will still have it all years from now when prices may be great, but may instead be just a portion of current. So many people think that the future will never be better, the world finance will never heal, and PM will always go up year to year. The idea that the $USD becomes actually worthless is really ignorant of the underlying resources of the US and the resources of the rest of the world comparatively, IMO.

    Thus many should be classified as Accumulators or Hoarders, those who buy with no intent of selling, and will clink the bullion coins like a talisman awaiting the elimination of "fiat" money, and those who like "Midas" likes the look, sound, and feel of PM.

    There is nothing wrong with being any of the three types ( Investors, Speculators, or Accumulators), but it is financially dangerous to think you are one of the first two without an exit plan for reaping profit.
    IMHO.
    Jim
     
  8. fatima

    fatima Junior Member

    This would assume the USA's underlying resources are being used as collateral for the $s being printed. So we know in the last couple of weeks, the USA has decided to borrow another $2.5T. Where did the $2.5T in collateral come from? (and this is but yet one example)
     
  9. InfleXion

    InfleXion Wealth Preserver

    I think you may be overestimating our underlying resources left after the onset of globalized capitalism decimating our manufacturing base. I sincerely hope things turn around, but I have yet to see any indication of job growth or of unemployment abating. I have yet to see any indication of fiscal responsibility and even the most minor effort to pay off our debts as opposed to borrowing more. While these things do not necessarily directly impact purchasing power, they do increase the need for further dollar devaluation to keep things on the up and up.

    I didn't get into metals for profit. I did it for self preservation and protection against any possible scenario. As such I don't have an exit plan, because such a plan would defeat the purpose of why I started.
     
  10. desertgem

    desertgem Senior Errer Collecktor

    Slightly out of context. I said
    My point was that I think all currency of any country is "Fiat currency". I do not think that any major currency is asset based at this point. Not in gold, silver, grain,oil, beans, etc. , so the health of a fiat currency is generally by comparison with the other fiat currency. When one looks at CDS ratings ( soverign credit default swaps) you can see the opinions with money backing, not just talking heads who have no money in the game.
    http://www.cnbc.com/id/38451750

    I am not saying that the economy is getting better as far as jobs, etc. but major US and Multinational companies have trillions of dollars in cash, waiting like us. What I am saying is that in the kingdoms of Fiat kingdoms, the US is close to the least risky financial system. The dollar may well be devalued more, but so might the euro and other currencies, which our strength is measured against.
    Yes, I agree, and it is most irritating and I will be taking action in elections toward it, but to discuss it would be Political and that is not allowed :)

    Jim
     
  11. InfleXion

    InfleXion Wealth Preserver

    Ah I did take you out of context. Sorry about that. As long as the USD is the world reserve currency I do agree with you on it being less risky than other currencies, although the Swiss Franc is pretty good too. However as long as money is being printed at the current rate I will seek out metals as a hedge.
     
  12. fatima

    fatima Junior Member

    Gold is just shy of $1800. It continues to whip "conventional wisdom" concerning the USD, aka the $, aka the FRN.
     
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