The price of gold and what it's telling us?

And yet it's fiat currency you currently use to buy your PMs... it's fiat currency your sellers and dealers accept and it's fiat currency that is used to express the value of your PMs...

True

And when you sell you will be doing so in trade for fiat currency, the fiat currency you suggest no one have faith in, because despite your advice against it you stated you will still accept fiat currency when you NEED CASH because of an emergency... not PMs for an emergency. Funny how you guys work.

You might make some money, some fiat money, a profit taken in fiat currency. Risk is a huge factor in PMs. It can and often is greater than risks in other investments, especially long term value investing. It appears you are looking to profit in the form of fiat currency from this run up above the reason of using PMs for wealth preservation. I'd say you run a serious risk of failure attempting to capture such profit before the peak and this risk is huge because you will find it exceptionally difficult to find buyers when the time comes, especially if you are only willing to do parking-lot style transactions hoping avoid fees and taxation on selling PMs.

You can sit tight and you probably will. Do you have 20, 30 or more years of life left in you to do so? You may need to wait another 30+ years to get back to the point you got in, in which time you have a loss of TIME not just the value you paid for those PMs in fiat currency. You may need that lost value in the form of cash in an emergency while you are waiting to regain your loss. Should you be forced to sell in that time in case of emergency, you will loose, plus you get the reminder of how much you lost, in fiat currency.

It's easy to say 'if PMs drop to a certain price you'll buy like mad', and again this implies you will do so in fiat currency, but there's no certainty you will have access to the fiat currency needed to so at that future time any more than you can now rationally say why PMs would again drop that low... but one thing it would suggest is that the currency you disdain, had incredibly gained in strength from its current value.

It's easy to hate on fiat currency but ironic how all of your comments are contradicted by your very need for that same currency.

 

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So what's your point, Krispy? That our economy is tied to a fiat-based system? You have a keen sense for the obvious.

So I guess you are 100% cash, then? Interesting how such a champion of our debased currency spends so much time on a bullion related chat-board.

"I'd say you run a serious risk of failure attempting to capture such profit before the peak and this risk is huge because you will find it exceptionally difficult to find buyers when the time comes, especially if you are only willing to do parking-lot style transactions hoping avoid fees and taxation on selling PMs."​

Ahhhhhh....so that's what your rant of a reply is about. A chat we had months ago about buying a 100 oz bar? Seriously? Boy, you sure hold a grudge when you lose an argument....and by the way, when did I ever say I was hoping to avoid fees and taxation on selling PM's? Pathetic. Grow up.​

 

Quoted from above
"Frankly, if silver went down to $10 oz I'd buy like crazy......"


I remember less than 10 years ago - waiting to pull the trigger the moment silver went below $4.00. Of course it never did - I believe $4.02 was the low.

 

Farmer - I'll bet you regret it now!!!

 

I made my point, and yes, it was easy to do so by stating the obvious, which was pointing to the fallacy of your thinking as expressed in your negative tone towards the value and worth of the USD. You contradicted your own commentary and falsely projected dis-belief in currency, but went on to comment by way of implication that you were dependent upon that same currency which you would sell you PMs for in an emergency. I said it all earlier, so there's no need to rehash it again when you fail to see the broken logic informing your comments.

I also see someone who cannot take criticism well and who comments with a predisposition that suits an uninformed bias. Your unwillingness to consider other perspectives on these boards is evidenced from the many challenges you've faced almost every time you have stated such ironic things. It also shows in the reactionary responses you fire off to comments made in challenge of your posts, be they on bullion or on starting a new collection of half dollars. This is not really about you though, it has more to do with the effect your contradictory comments may have on other readers and I seek to challenge the falsity and heavily biased nature of said comments you are putting forth here for the consideration of others who may be reading this.

Not at all. My investments are diversified. I recommend everyone do the same. I am not a 'champion' of any one thing, nor is out currency "debased", at least not fully, yet. And this has nothing to do with quantity of time spent here or elsewhere, again, that's more of your poor reasoning in a withering self defense of your overall statement and attitude.

My reply was far from a rant. The 'parking lot' scenario you related to us a while back was one I referenced here for a precise illustration that you may be unable to find a buyer at the peak and at the time when you are seeking your profit from your PM investment. That was all.

You favored that method of risky buying, which we previously discussed as a 'potentially dangerous' way of buying PMs. In order to (hopefully at some future point) capture the most profit, to avoid dealers low buy prices, online selling options, fees and the taxation for another cash transaction when you are finally ready to sell, I suggested you may try to do the same thing as a seller by finding a parking-lot buyer willing to go along with your under-the-radar sales methodology. I said this because I think you will find it very hard to find buyers at the asking prices you seek, anywhere, when you try to sell while prices are elevated or peaking/peaked.

From Post #15, you stated:

"The best deals are through local dealers/sellers. I cannot believe the premium some people pay when they buy from Goldline, Rosalind, or even from advertisers in coin magazines. In April I was buying rolls of ASE's at the local coin show for under $400. Brick and mortar guys wanted $450 a roll. Magazines advertised for the same amount if you included shipping. If you buy gold from one of the companies advertising on television it will have to hit 2k an ounce for you to break even. Give me the weekend coin dealer/private collector with no overhead any day. I'll also take the risk of paying cash locally over having some big company, or the government having my name and address in a database. The fewer people who know about what I own the better."


There's nothing wrong with seeking the lowest price for your investments, collectible, sundries, and so on. Your statements reiterate over and over your tendency to avoid the government which implies taxtion. You avoid online dealers' "overhead" which brings with it those taxes on PMs and the other surcharges the levy for the convenience of the service of buying PMs online or from a B&M dealer trying to make their hard earned profit in bullion trading. "Weekend coin dealers and private collectors" are likely to operate in cash to your liking and not fully report the transaction when doing paperwork. You plain as day said that you don't want the government to know what you are buying... and you are an amateur to post such a thing on a public forum.
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No need to be insulting just because you disagree or others don't accept your attitude, approach and stance on issues.
​

 

Good luck with whatever personal problems you are clearly struggling with, Krispy. Sad.

 

Like I said, "No need to be insulting just because you disagree or others don't accept your attitude, approach and stance on issues."

​

 

By stating that I "implied" something means I didn't say it. You simply lied in your fervor to "one-up" a stranger on a chat board. Ironically, you then accuse others of misleading statements. Hello, projection? Its me, Krispy......

 

When you look at the inflation adjusted price of gold from the 1980 peak value of $800

To match the 1980 "peak" gold value of $800 ,
gold would need to trade up to $2,251 (in 2010 dollars) an ounce

It's interesting how much room there is to run for gold, just to match the 1980 peak.

 

The 'implication' is there in your own words. I created no lies, but seek to uproot the false nature of your comments made earlier in the thread, comments which are fueled by personal biases and outright contradict themselves. It was as simple as that, but you resist that argument or to disprove my earlier rebuttal by seeking to defame by way of trivial character insults. I didn't buy your spiel before and I remain unconvinced that you know what you are talking about.

 

You make a quantum leap from me not wanting the government knowing what I own to me trying to cheat on my taxes. Then you insist that I'm the one throwing around "character insults". Isn't that a bit "contradictory", Krispy?

 

you continue to resist disproving my earlier rebuttal by seeking to defame by way of trivial character insults. I didn't buy your spiel before and I remain unconvinced that you know what you are talking about.
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Stop digging, Krispy.

 

There has always been enough of the doomsayers out there, but I ask You this......What and when is the end?

The end is a matter of perspective. I know people in my town who warned of a mass exodus of Our manufacturing jobs. To them, THAT was the end. Most could not fathom Our town not providing over 10,000 various manufacturing jobs, but ffw to 2010 and We now share the same aesthetic appeal as a Gary Indiana, Utica New York, and Flint Michigan to name a few. Most of those jobs left the state, and eventually the country. Here`s a news flash....They`re not coming back.

Some doomsayers are not as drastic as others. Everyone sees the "end" in a different frame, but some of them are right, as they`re just observing the slow decaying of their society....either morally or physically. I`m sorry if I may seem like a doomsayer, but I don`t see things reinventing themselves for the better regarding America`s economy. Observing things turn for the worse does not constitute being a doomsayer, as I`m very thankful for everything that I have, and try not to be materialistic.

 

Me Cloud? Lol. Well I will contend that more gold mines ARE in the pipeline now. I have talked to people looking into old mines, restarting old mines, buying options on gold bearing land. There is MUCH more gold to be mined than is currently being mined, just at what price. Its just like oil, they predicted in the 70's a dramatic dropoff of US oil production, but it hasn't happened. Why? because the price went up. Long term higher prices WILL bring online more production. How do you explain silver production going up 7 years in a row now?

 

I think the poster was talking about the "doomsayers" in the PM industry. I have listened to their spiel for decades now, since I always thought some money in PM was prudent. However, they have "predicted" major upswings in PM every year for decades now. I could do the same thing, predict a dramatic crash in PM's every year, and then the one year it happens trumpet loudly my "proof" that I am a genius. This is an old game in Finance, much akin to pyramid schemes. The doomsayers will predict upward PM movement EVERY year, so they have no validity my my view. Please everyone, remember that when they "prove how they were right, and now gold will go to $2500" spiel they now spout. They are in the business to SELL YOU PM, just like any salesman.

 

Well as far as the mass exodus of our jobs, things couldn't be any worse than they are now! Hell most of our jobs are in India, (Bangladesh), Mexico etc. The problem is we are not only giving our jobs away as in out sourcing them but we are also allowing free trade to continue to rob us of jobs by allowing so many products to be imported into our country at extremely competitive prices so that even the most devout (made in America) purchaser has given up and you seldom hear anyone say that they will only buy an American made car anymore. Furthermore, I think everyone needs to step back and quit moaning about Obama-care as that seems to be the only idea that is gonna produce any kind of jobs for the American public!! We are pushing the envelope towards the end daily and somethings gotta give!! Any ideas, besides collecting gold and silver??

 

It's good to know theory, but annual gold production has been declining during the entire bull market in gold. People keep saying that there is a giant wave of gold about to crash over us, but it remains to be seen whether the new deposits in the pipeline can overcome the decline curve. In the case of silver, a 4X increase in price has resulted in a 20% increase in production. But what you always miss is that the increase in the metal prices is proof that supply is not keeping up with demand, which is the most important statistic for investors.

 

M3 can be anything you want it to be since there is no way to verify. The raw data doesn't really give a true picture.

 

what people forget is many governments are buying gold to diversify away from paper currency. countries like india and china are buying gold, and china is pushing it's population to buy gold as well. gold is probably the last best reserve currency.