Gold new price & Dollar's weaknesses!!

And you are not the Average American than, so your specific example is mute to the greater argument at hand, for at the end of you career you were making the equivalence of 6.2 nationally min. wage workers which is far more fortunate than the average American gets to make today and try and live on. So yes, it is a personal pat on the back for you that you stayed ahead of inflation so well.. but that doesn't touch what the majority of Americans are trying to survive and stay ahead of.

 

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It's funny, from one's point of view, whether or not if the doctor is a bad guy or good guy.

Say you need life saving brain surgery and the doctor is willing to operate off the books for 5 gold ounces.

He saves your life but when people find out, they look at him as a mercenary.

But he's YOUR hero. His skillsets haven't changed whether it's the insurance company paying him or you directly.

edited - political commentary is not permitted

 

Threads like this represent why I keep returning to this forum... what an awesome discussion and debate... keep it up! :thumb:

 

Ethics aside, why would anyone doing a service insist on precious metals instead of cash. Even if gold is $2500 an ounce, it is still set at a price of exchange. So why would anybody besides a "horder" want gold instead. You are the one needing the service, whether it be from a doctor, lawyer, or whoever, so they would just charge the 10,000 or more( on or off books) and buy what they want, including gold if they desire.

If I was a doctor expecting doomsday, why accept gold, when antibiotics, insulin, oxycodone and other drugs would be a better medium of exchange in case of apocalypse. Gold can't replace antibiotics when your ( insert body part) is rotting off. If you need diabetes medication, even for type 2, you would trade at a steep exchange rate.

IMO,

Jim

 

Yeah, that's the wrong scenario for gold hoarding.

I think that's the wrong impression people get with gold. If things get to the point where the gov't doesn't exist and there's pure anarchy outside my house, gold will not help me.

We all have to pray it never gets to that point. We need to pray we don't have to even think about bartering. Because let's face it, the majority of us cannot barter for the life of us. It is not the society we have grown up on and we don't know how to do it.

And for those that have their own farms, that's great, but don't expect to be able to find THAT many people that can barter with you as well.

But to your point, gold is for the sole purpose (at least for me) to maintain purchasing power during turbulent times such as now.

While the gov't is endlessly stealing MY and YOUR money by printing 24/7, the PM's are used to store the current value and hopefully more down the road. Gold can be used anywhere in the world.

You can use it to exchange for Yuan's if you want. But your USD may not be accept for Yuans.

I think of it as financial shelter. My home is my security/safety shelter.

 

Exactly, Jim. Gold will be just another rock. Goods and services will be traded as currency, not shiny yellow things.

Though I understand your point, I still think gold is a very risky hedge in preserving wealth. Buy things that retain value. Gold will go up and down and all around. I've been fortunate to invest in land, especially when times are lean like now. They aren't making any more land these days, so the values do tend to stay constant if you buy right. I've never seen true property values decrease. What we see decrease is appraisal value, which never gets below asset value. People just buy high for some dumb reason.
Guy~

 

I have no problem carrying a low percentage of gold as part of my financial portfolio. But I have been through this cycle before and learned my lesson. As with stocks, when your "grandmother" wants to know where she can buy some gold, it is getting close to the peak and sell. Many of the gold supporters here probably have less than 30 ounces in their possession, yet may sound like it is their total portfolio, and although age and experience is sometimes over rated, it does temper one's outlook. :smile

It would be different if the US had inflation steadily and strongly increasing, but I do not see that in any commodities beside oil related and precious metals. Corn, wheat, non-precious metals are all relatively flat, even with money being printed as you say 24/7. If people are buying US goods with US dollars, it is fairly flat. The inflation will come after the unemployment and pay level per family returns back towards previous levels.

Jim

 

I haven't look into land. I know that is yet another asset to invest in. But it is also speculative, just like PM or any other investment. Also, with land, do you have to pay property taxes?

I live in NY, and there's simply no land in my area that is worth purchasing. There's some land that's for sale at $150K - $200K for a very very small amount. I simply cannot get a mortgage just to buy land.

For me, it's easier to purchase PM's.....

I am always interested in what people have in terms of PM holdings. (physical). Of course that's a personal question that many won't answer.

I can tell you that I am very new to the PM world. So with that said, I am playing catch up in terms of possessing silver/gold in a decent quantity.

Even high profile individuals like Peter Schiff who is constantly talking about PM holding, how many does he have? It's more out of a curiosity than anything else.

The timing is like a catch 22. If prices aren't moving you will have some say BUY now while prices are low. Some will say, why bother? There's no indication that you should buy.

Then as prices rise, you may find yourself unable to buy the quantities that makes the purchase worth it. So you wish they would dip again.

So at the end, I suppose it's really all speculative and timing is key.

 

Yes, property taxes are the drawback. I think gold is ok as long as you don't dump all your savings into it and can hang onto it for a while. My problem is I hang onto what little gold I have forever because it's numismatic gold and I like it too much. I guess if I were to buy some as a hedge I'd have to get gold bars. Of course, I do the same with silver. I don't even like silver eagles, but the few I have I just can't part with. I'm addicted to coins and can't kick the habit I'm afraid.
Guy~

 

ahhh so that is the difference in POV between you and me. I am not focused on the numismatic value at all. In fact, I force myself not to get interested because it can, in itself, take me to a different side of coin collecting.
If I even collect one coin of historical value, it begins to be a monster that feeds itself....

My only purpose is for the value of PM's themselves, nothing more.

If the USD ever changes to the Amero, the gold/silver in theory should equate the value of the Amero or whatever currency replaces the USD.

If no one wants to accept USD anymore, like say Canada, I can use my gold coins to get me some leaf's....

All I want to do is protect all my hard work. That's my focus.

As for land, I would LOVE to own land, maybe somewhere in Idaho where it's probably $100. LOL...

But in New York, forget it. Taxes are so out of control, they would cheer you on if you wanted to buy land, they would just see you as an ATM for taxes...

 

I've felt this way with a lot of talking heads.

All those guys on saturday talk shows saying, "I like this stock, I actually own some shares.."

To me, I'm wondering, is it 1 share so you sound legit? 1,00 shares? You never reveal how much you own.

Don't tell me in percentages either because that can be misleading.

I want to know the OUNCES.

If you've been telling me you've been buying silver since $3 an ounce like Robert Kiyosaki has said (cough cough), then you better have like 50,000 ounces by now.

I could probably bet my mortgage, these guys don't have as much as they are led to believe to own...

As for members here, since it's pretty anonymous, I would love to know what people have. But for personal and "security" (<--point of view) reasons, I don't blame anyone for not revealing their holdings....

 

I'm not afraid. Of course I only have just over 2 Oz of gold. But I'd like to have more, just not at todays prices.
Guy

 

You are absolutely correct.

 

And to make it worst... Gold continues its steady upward march, fueled by a weakening U.S. Dollar and fears of inflation. According to CNN Money, “There is speculation that the weak dollar will continue to depreciate as the U.S. budget deficit swells and investors flock to higher yielding currencies. The dollar index, a measurement against a basket of currencies, has tumbled about 14% from its March high.”