Next Level: GOLD $1,350.00

I did pretty good in the stock market in 2009. I happened to buy a lot of stocks back in March '09, which proved to be Prime Time to buy.
I've got the feeling the stock market rise may be short lived, and just as I wrote that, they are talking about it on Bulls and Bears. I guess time will tell.

 

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Give me a couple onces of Platinum please!!

 

Talk about a rollercoaster! I think you may have the right idea. I have never owned it, but wish I had bought some a year ago November when it got around $800!

 

Platinum changes prices like a car races down the road, Very fast!!
And not little changes either "Big Swings" North and South!

 

Well it seems much of the discussion around buying gold is either as a hedge against inflation or significant drop in buying power due to a weakening dollar. If the dollar drops by 10% and you only have 5 % to 10% of you portfolio in PMs, it's not going to make much of a difference. Gold doesn't generate income, but rather protects currency/investment positions so you need enough to protect your portfolio.

 

I read an article yesterday how the USD faired in the last decade.

It basically declined around 23.5%. So if you were fortunate enough to be a goldbug the last decade and stocked up on gold/silver, you would be sitting pretty good right now.

I don't see any evidence of anyone in Washington turning things around, especially with Cali just about ready to default anytime now, in which perhaps the Fed may need to print even more money to bail them out. NY state doesn't look too good either.

So there is still time to pick up on PM's for the next decade????

I forgot where I saw this, but someone mentioned that gold doesn't provide you interest, but hey, neither do banks now, so might as well buy gold!!

 

Understood. My point is that if you had a million bucks on Jan 1, you 'lost' $235K (in buying power). With a 280% return on gold over the decade, you would have needed to invest slightly less than $100K in gold to break even. These are round numbers, but its clear that you would have needed to invest 8% - 10% of your net worth in gold in order to break even (just in Gold).

 

I look at it a bit different. If the dollar drops by about 15-20% from here, institutions and hedge funds are likely to pile into gold and silver. But the sector is so small that this could result in a double or triple in gold prices, and perhaps much more in silver. So a 10% weighting of gold and mining stocks could provide significant protection. Other stocks will also, as well as other commodities that can be purchased through ETFs and ETNs. I've been a long time investor in the energy sector also and oil has many of the inflation hedge characteristics of gold.:thumb:

 

The bottom line "Its a crap Shoot"

 

I think we are in agreement...a 10% weighting will help. My original question was meant to ask...how many of us are willing to invest 10% into Gold. Yankee (IIRC) had at least a couple of rolls invested -- others, are they buying a couple/several or taking bigger positions? Me, I am about 5% in GOLD.

 

If you buy gold because the dollar is crap and will be even worse in the future why would you ever trade it back into dollars? Gold fills a need. The need to have gold. Selling gold just aint natural. LOL look out gold bug!

 

Because the supermarket doesnt take gold.

 

I am more than 10% invested in gold and silver. My quantity of silver over gold is much higher since it's so much cheaper to own. But I'm slowly trying to build up my gold deposits. I'm definitley more than 10% though in just gold alone...

It really depends on your purpose for obtaining PM's. Everyone has their own reasons right? It's hard to beleive that the dollar will ever get stronger than gold/silver down the road, but anything can happen. My plan to hold onto these gems as long as I can, and convert them to USD only if I really have to.

You still need USD for everyday transactions so I suppose it is up to everyone's own financial judgement as to how much cash on hand you need.

 

Can you imagine the day a supermarket would prefer gold? I bet the government would outlaw gold before that day. If you really think about it you can not get around a total collapse. Just enjoy what you have and know the gold will out last us all. Hey anybody besides me see G Gordon Liddy dropping the AGEs together and not want to buy from that company? Keep them scratchy coins.

 

Oh yeah, it would absolutely be outlawed!! The CC companies would also lobby to outlaw it since it would cut them out of daily transactions.

I've said this many times before, a Mad Max scenario is bad for everyone!! I do not wish that kind of scenario at all for my fellow friends and family. Investing in PM's is just my way of making life a little easier down the road, but I know that we all will still have to pay for it no matter what. High inflation will get the best of all of us since we will still need to pay in cash.

Yeah I was thinking just the same thing when Gordon Liddy drops those coins together. Sure they sound nice, and who knows how many times they've had to retape that part....

 

PM markets to begin reopening in Asian within the hour, beginning of 2010.

Last close Gold ask price on 12/31 was $1,098.50/oz.

 

so, how influential would the Asian market be on the entire global market?

 

My understanding is that all the central banks of the world are following the lead of the Federal Reserve which is printing paper currency to cover the enormous debt and growing deficits generated by the Congress year after year. Consequently gold and other PMs are going up against all major paper currencies.
The US does not have enough reserves to cover the amount of money it would take to pay off the deficit and the rolling debt which approaches 4trillion. Thus they will print even more paper.
I have seen predictions of $2000, $5000 and even $10,000 for an ounce of gold before the currency collapses altogether. Bullion coins will go up as will numismatic coins.
Not to mention that all the silver mined each year is used up by industry in tiny unrecoverable amounts. Not enough is mined (700M ounces)to meet the demand (900M ounces) Silver prices are being artificially held down, manipulated by a few naked short silver futures holders such as JP Morgan. Silver prices are going to go up as a consequence especially once industry enters the market to assure their own supply to keep their production lines going.
Read the articles on www.investmentrarities.com
The US dollar is heading the way of all paper currencies throughout history. The politicians are irresponsible and have been failing to adhere to the Constitution which holds that only gold and silver coin will be legal tender Article 1 Section 10.
There is no authorization within the Constitution for much of what the Congress does. Most of them are ignorant. They may be aware that what they are doing is not enumerated in Article 1 Section 8, but one even said that there is no prohibition on what they do!
Actually any powers not granted to the Congress is reserved, if not prohibited to the States, to the States or to the people. There is no wiggle room. The Congress does not have the authorization to do whatever they manage to get enough votes to pass, if it is not listed in Article 1 Section 8. IF it is not there they cannot do it, unless they amend the Constitution.
ALso see www.givemeliberty.org for a list of petitions asking Congress to admit or deny that they have done many things not authorized in the Constitution. Like King George III they ignore such petitions
That is why it is up to all of us to learn about such matters and to elect men and women who will take the oath of office seriously and replace those who do not keep the oath.
www.campaignforliberty.com
www.YALiberty.org

 

Excellent post above. I do agree that the printing of money has gotten out of hand and that eventually we will not be able to even pay the interest on the debts we owe. On a related note I have this little bit of info to add. I see oil as well as gold, sliver, etc.. going up as well. I work for a major oil/chemical company and the market for our products has started to come back. Demand is picking up and we are starting to ramp up production to meet our customers needs. Another thing to consider is terrorism's eggect on gold and oil prices. Just look at how close we came on Christmas Day to having another full blown terrorist attack. I predict that oil prices will be on the rise again very soon.

Edit: Gold is trading over $1100 per oz. this morning in early trading. Source: www.kitco.com

 

Some believe peak oil is here. As oil consumption went up prices went up because production is in decline. People needed to get to work ect. so they let other things laps like mortgages to pay for gas. Thats the real start of the crisis. Now the crisis cuts demand and oil drops. So if peak oil is true its going to happen again and again. BTW I predict gold 2000.00 usd this year