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xpowderx
 Novice Member
Joined: 10/09/05
Science is the belief in the ignorance of experts. |
As of late I have seen a barrage of companies offering Gold for sell. When you buy I notice you receive only a paper saying you own"X" amount of gold. I am wondering if this is a set up similar to the Bond buyout in the late 1920ies and early 1930ies which caused the Great depression. What happens if everyone invests in Gold. Then at some future date due to perhaps a economic crisis decide to cash in all at the same time? This is what happened in the early 30ies and the result was"The Great Depression". I also notice a stream of companies wanting to buy anything of value to you that is made of gold. Strange coincidence? I remember reading how China bought bars of gold from certain Western banks and received only Gold plated Bars. With as much gold being sold I am surprised that such a large quantity exists. What is your say on the subject. Is this a good thing or a bad thing? Success is your proof; |
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1/14/10 4:38:33 PM#2
It's just trade. You can buy Oil, Silver, Plat, and pretty much every other highly valuable highly traded resource in the world through various different ways. Some day trading sites do it, some Forex companies do it, I know Interbank does it specifically. It's been going on for awhile. Not everyone is putting all their assets into Gold either. But, Gold does have a good history.... dates back about as far as civilization and further. |
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1/14/10 4:43:09 PM#3
I don't know why gold is even valuable. It looks cheap and reminds me of the 80s. |
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xpowderx
Novice Member
Joined: 10/09/05
Science is the belief in the ignorance of experts. |
Originally posted by Sabiancym
So far 1 out of every 3 commercials on both Tru TV and the History channel are a Gold commercial. Success is your proof; |
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1/14/10 4:48:43 PM#5
Originally posted by xpowderx
So far 1 out of every 3 commercials on both Tru TV and the History channel are a Gold commercial.
They aren't selling gold, they are buying it.... I've seen a few that sell it but not nearly as many that are buying it. They are buying it from morons, for dirt cheap. Gold is extremely high right now and has been since the economy went to shit, they are reselling that gold they bought from the morons for chicken scratch for a major profit.
Like I said, it's one of the safest forms of investment of assets. Notice, when the US and world economy was really good, gold wasn't worth much. Around the Dot Com boom. Now, since the economy has started to get worse, it's shot up. It's based on rarity of the gold, supply/demand it's all based around basic elementry school economics. There's alot more to it, but it's basically supply/demand. Gold will always be the king of currency, always has been too, even in cultures and societies that were half a world apart.
Edit: Also, if you know how charts and graphs work. You can make money on the up slope and the down slope. Most of the money I made, were on the Bear Markets. They are usually much easier to predict.
You can see there that the best time to sell gold was around December 1st @ 1218.25/oz. The best time to buy it was around the 22 or 23rd of December @ 1080.50/oz (on this graph anyway). You can make money both ways. If you would have sold, say $20k worth of gold December first for 1218.25 and dropped it around 22nd of December at 1080.5, you would have made about $2250. Not bad, considering you can get $20k of market control for about $50 @ 400:1. So, if you were smart you could have turned $50 in to over $2000 in less than a month, w/o losing it to margin call, on the down slope.
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xpowderx
Novice Member
Joined: 10/09/05
Science is the belief in the ignorance of experts. |
Originally posted by TheHatter
They aren't selling gold, they are buying it.... I've seen a few that sell it but not nearly as many that are buying it. They are buying it from morons, for dirt cheap. Gold is extremely high right now and has been since the economy went to shit, they are reselling that gold they bought from the morons for chicken scratch for a major profit.
Like I said, it's one of the safest forms of investment of assets. Notice, when the US and world economy was really good, gold wasn't worth much. Around the Dot Com boom. Now, since the economy has started to get worse, it's shot up. It's based on rarity of the gold, supply/demand it's all based around basic elementry school economics. There's alot more to it, but it's basically supply/demand. Gold will always be the king of currency, always has been too, even in cultures and societies that were half a world apart.
Edit: Also, if you know how charts and graphs work. You can make money on the up slope and the down slope. Most of the money I made, were on the Bear Markets. They are usually much easier to predict.
You can see there that the best time to sell gold was around December 1st @ 1218.25/oz. The best time to buy it was around the 22 or 23rd of December @ 1080.50/oz (on this graph anyway). You can make money both ways. If you would have sold, say $20k worth of gold December first for 1218.25 and dropped it around 22nd of December at 1080.5, you would have made about $2250. Not bad, considering you can get $20k of market control for about $50 @ 400:1. So, if you were smart you could have turned $50 in to over $2000 in less than a month, w/o losing it to margin call, on the down slope.
Hatter, that first chart is exactly the reason I am worried about Gold. This is almost a repeat of the late 1920ies Early 30ies. But instead of Gold it was Bonds. THE PENDULUM SWINGS! Success is your proof; |
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1/14/10 7:01:59 PM#7
Originally posted by xpowderx
Absolutely nothing to worry about. Count in Inflation and the horrible horrible value of the dollar today. That chart is nothing special, it's not amazing, it's actually pretty normal when you look at stocks and forex. Gold has never really changed value, it's what most of the world's currency is based on. The value of the currency has changed. If anything should worry you, it's the value of the dollar. It's pretty much gone to crap. The world currency is the Euro and has been for at least a year or two now. |
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1/14/10 7:03:37 PM#8
Originally posted by TheHatter
Absolutely nothing to worry about. Count in Inflation and the horrible horrible value of the dollar today. That chart is nothing special, it's not amazing, it's actually pretty normal when you look at stocks and forex. Gold has never really changed value, it's what most of the world's currency is based on. The value of the currency has changed. Why do you hate America? |
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xpowderx
Novice Member
Joined: 10/09/05
Science is the belief in the ignorance of experts. |
Originally posted by TheHatter
Absolutely nothing to worry about. Count in Inflation and the horrible horrible value of the dollar today. That chart is nothing special, it's not amazing, it's actually pretty normal when you look at stocks and forex. Gold has never really changed value, it's what most of the world's currency is based on. The value of the currency has changed. So would you recommend investing in it? A friend told me I should put 10-15% of my investments in Gold. Would you say that is a safe bet? Success is your proof; |
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1/14/10 7:17:40 PM#10
Originally posted by xpowderx So would you recommend investing in it? A friend told me I should put 10-15% of my investments in Gold. Would you say that is a safe bet?
Well, gold is always pretty stable. Idk if investment in it would be good, maybe on the bear market if anything. But, I wouldn't do it in anything but through a reputable trading website. Which means, you can either risk $10,000 - $20,000 of your cash or go a leverage of 100:1 to 400:1 which will essentially let you rent cash from the bank, but then you have to abide by a margin call which is dependent on the bank. If you reach your margin call, they will cut their losses before you lose their money, meaning they will just cancel the lot before they start losing their money. Your money is just basically the buffer zone when you're doing leverage, you take all the rewards and benefits as if you had put in $20,000 (minus transaction fees and the other minor fees) but you have less room for the market to drop before it goes back up.
Pretty much, if you don't know what you're doing. Don't have alot of cash and don't have a broker, I wouldn't suggest it. You could do a microlot of $25 @ 400:1 if you wanted, but you'll probably just lose it. Not bad if you're into this kind of stuff. They have demo accounts at most brokers, but you don't play with a demo account like you play with real money, even if it's just $25. (I seriously wouldn't suggest $25 btw. each bad pip hurts too bad) |
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1/14/10 7:22:53 PM#11
Originally posted by xpowderx So would you recommend investing in it? A friend told me I should put 10-15% of my investments in Gold. Would you say that is a safe bet?
I'd suggest you do more research. Over the long run Gold retains it's value. It does not appreciate in value as a good stock investment could. It is a hedge against losing value to normal inflation but it does not beat inflation. |
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1/14/10 7:23:28 PM#12
Originally posted by sif-lawd Why do you hate America?
The dollar is going to crap, all the world currency is going to crap but especially the dollar. I think you get the idea. |
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1/14/10 7:35:55 PM#13
I wouldent Buy it. I feel its to High a Price. http://goldprice.org/30-year-gold-price-history.html I think its at the High end of its Value... Unless the Second tumble comes along and it wont really matter then because we will all be fubar... Do some Research and Buy stocks right now. And if you want more than stocks (A good Idea) Id buy silver. But thats me. If ye love wealth greater than liberty, the tranquility of servitude; greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen. |
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1/14/10 7:39:37 PM#14
Originally posted by TheHatter Why do you hate America?
The dollar is going to crap, all the world currency is going to crap but especially the dollar. I think you get the idea. I was just busting your walnuts, dude. |
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1/14/10 8:06:51 PM#15
Originally posted by Ekibiogami
There's an old adage to investing. I don't know the exact phrase, but it's pretty much once the general public is talking about it, you're buying into the bubble, and will probably lose your shirt. I remember just before the real estate bubble burst. I'd be standing in line to get coffee at Starbucks and hear every other person babbling about investing in real estate. They were going to be agents, or mortage brokers, or buy and sell distressed houses, because everyone was making money in real estate. Well, the ones making the money were the ones that invested about 5 years before that. And now, it's gold. I think the market has already priced in the coming inflation, and now it's just a big bubble that's growing. Once the general public is talking about it, you've missed the bandwagon. If you bought gold 2 or 3 years ago, great! Now? I don't know. Maybe, maybe not.
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1/14/10 9:43:22 PM#16
The Price of Gold does Not Go up and down. And if you Buy Gold for a back up, for paper money. Make sure you are the one that holds the gold. What is Gold worth well its used in the making of computer parts. a lot of electrical switches. Nothing like holing 10 ounces of Gold. when you work hard and find it in your back yard its even better. Gold is always worth something. where paper money is not even good to wipe your back side with if.
www.DigitalMindz.com |
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1/14/10 10:14:34 PM#17
Originally posted by DeadDOG
You got gold up in Batesville? We aint got no damn gold down here in Arkadelphia. :( |
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1/14/10 10:43:25 PM#18
Originally posted by TheHatter
The Euro is certainly a major international currency and reserve currency, but the "world currency" is the USD. The Eurozone wishes to promote the Euro as the successor to the Dollar's position. Perhaps one day in the future it will be, but right now, it is still the American Dollar. |
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1/14/10 10:47:19 PM#19
Originally posted by DeadDOG
The price of gold goes up and down due to availabitiy and demand. Just like everything else.
The value of currencies only a few decades ago used to be directly tied to it's nation's gold reserves. This is no longer the caae. |
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1/15/10 12:41:49 PM#20
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