dslreports logo
site
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


Search Topic:
uniqs
7
share rss forum feed


dirtyjeffer
Anons on ignore, but not due to fear.
Premium
join:2002-02-21
London, ON
reply to Warez_Zealot

Re: Buying some USA nickles for the intrinsic value.

gold is really high right now...not sure if now is the time to buy gold...getting into gold in 2000 would have been a good idea...now, likely not so much.

the price of one ounce of gold 2000-2012:



--
People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

- George Orwell


EUS
Kill cancer
Premium
join:2002-09-10
canada

But the central banks are buying on the dips because?



dirtyjeffer
Anons on ignore, but not due to fear.
Premium
join:2002-02-21
London, ON

it really depends on what you are doing with it.

for example, if you buy it at $1690 and sell it the next day at $1700, it might not sound like a big deal to make $10...however, if you bought 1000 ounces, you just made $10,000 in one day, doing nothing more than "shuffling paper"...as well, if you bought it at $1700 and hope to sell it in 5 months for $2000, that is also a pretty large chunk of money.

it wouldn't surprise me to see people buying and selling and riding the small gains to show numerous incremental payouts.
--
People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

- George Orwell



EUS
Kill cancer
Premium
join:2002-09-10
canada

1 edit

Trading paper gold (short term) has nothing to do with buying metal for wealth protection (long term) which is what the OP seems to be looking to do.
--
~ Project Hope ~



dirtyjeffer
Anons on ignore, but not due to fear.
Premium
join:2002-02-21
London, ON

said by EUS:

Fair enough, but trading paper gold (short term) has nothing to do with buying metal for wealth protection (long term) which is what the OP seems to be looking to do.

i don't see $1000 worth of nickels being worth much in 10 years...10 year old nickels today, are still worth a nickel...i am sure there are likely much better ways to "invest" your $1000.
--
People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

- George Orwell


Wolfie00
My dog is an elitist
Premium
join:2005-03-12
kudos:8
reply to dirtyjeffer

In one sense it's "really high", but I wonder what a technical analyst would make of the fact that, like I said, it's been relatively flat since last fall (2011).



dirtyjeffer
Anons on ignore, but not due to fear.
Premium
join:2002-02-21
London, ON

no one can predict the future (otherwise we all would have bought $100k in Apple stock 10 years ago)...but i think it could be similar to how people are claiming "peak Apple", in that there is likely a plateau where it reaches its peak value.



Wolfie00
My dog is an elitist
Premium
join:2005-03-12
kudos:8

said by dirtyjeffer:

but i think it could be similar to how people are claiming "peak Apple", in that there is likely a plateau where it reaches its peak value.

I'd say that's probably the one thing that will NOT happen. Companies can peak, decline, and even fail eventually, but as long as gold remains a measure of monetary value, economic fundamentals will inexorably push it upward. It's just a question of timing, and how it compares to other investments. After it peaked at nearly 800 around 1980 or so, it declined and remained flat for many years and took nearly a quarter of a century to regain that price point. No one wants to be holding the bag in that situation. An investment that returns exactly 0% after 25 years isn't too cool! I'm sure many speculators in the commodities market lost their shirts. OTOH, many got rich just before 1980, and in recent years.


Gone
Premium
join:2011-01-24
Fort Erie, ON
kudos:4

said by Wolfie00:

I'd say that's probably the one thing that will NOT happen. Companies can peak, decline, and even fail eventually, but as long as gold remains a measure of monetary value, economic fundamentals will inexorably push it upward. It's just a question of timing, and how it compares to other investments. After it peaked at nearly 800 around 1980 or so, it declined and remained flat for many years and took nearly a quarter of a century to regain that price point. No one wants to be holding the bag in that situation. An investment that returns exactly 0% after 25 years isn't too cool! I'm sure many speculators in the commodities market lost their shirts. OTOH, many got rich just before 1980, and in recent years.

The value of gold is a direct indicator of economic stability. When the economy sucks, gold value goes up. When the economy is booming and there's plenty of credit and money to go around, the value of gold plummets. The value of gold now, and the lead-up to it, were direct results of both the economic mess the entire world is in now, and the fact that most people started to realize the jig was up in 2006-2007.


WallyThacker
The Central Scrutinizer

join:2002-02-12
Canada
Reviews:
·Start Communicat..
reply to EUS

said by EUS:

But the central banks are buying on the dips because?

The oil bourse is breaking apart. Iran is dealing in gold exclusively to sell oil to others.

The BRIC are floating the idea of a currency basket excluding the dollar

If/when the petrodollar is no longer needed all currencies may see a sharp revaluation. Gold may be money again that nations trade in.

The people as usual get useless toilet paper called FRN's or CAD.
--
"Our criminal institutions are full of little creeps like you who do wrong things, and many of them were driven to these crimes by a horrible force, called MUSIC" Frank Zappa, Joe's Garage


EUS
Kill cancer
Premium
join:2002-09-10
canada
Reviews:
·voip.ms

2 edits

China, Japan, Vietnam, Russia, Iran, and a couple more countries I do not recall are already up and running trade that does not require USD to enter the buy/sell transactions at all. Australia has joined.
Confidence in unbacked fiat is decaying quicker than I thought it would.
AUS and CAD have recently been upgraded to reserve currency status. Yet still not backed by anything.
Central banks buying tells me we're no where close to a top in gold (long term).
That, and "WE BUY GOLD" stores are increasing in numbers.
+ low interest rates
+ deficits
+ continual gov't stupidity
--
~ Project Hope ~



Wolfie00
My dog is an elitist
Premium
join:2005-03-12
kudos:8
reply to Gone

said by Gone:

The value of gold is a direct indicator of economic stability. When the economy sucks, gold value goes up. When the economy is booming and there's plenty of credit and money to go around, the value of gold plummets. The value of gold now, and the lead-up to it, were direct results of both the economic mess the entire world is in now, and the fact that most people started to realize the jig was up in 2006-2007.

I'm no expert, but I would suggest that there are two basic components to gold prices: the fundamentals that determine long-term value, and the speculative market forces that determine relatively short-term value (which can be many years) that are driven by things like gold as a "safe" haven from inflation and financial instability. I was talking about the long term fundamentals, which are driven by things like population growth and increased demand for scarcer resources.
--
"Everyone is entitled to their own opinion, but not their own facts."
Daniel Patrick Moynihan


Gone
Premium
join:2011-01-24
Fort Erie, ON
kudos:4

Fair point, but the increase in gold prices since about 2006 or so would be part of that short-term speculative purchasing that you mentioned. I would suspect that the long-term value, at least to relative to fiat money, would have more to do with inflation than the actual scarcity or supply and demand.