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10/20/2017 1:01:18 AM
9/22/2017 12:11:25 AM
Posted: 9/2/2005 11:23:28 AM EDT
[Last Edit: 9/2/2005 11:23:45 AM EDT by MTUSA]
Based on sheer speculation, If I purchase 20K in gold
could it be worth 200K in 5 yrs.
Oil could continue to climb, is the real estate market going to pop in 5 yrs?
I need to shelter or "invest" 20K somewhere.
Should I buy Euro's... Chime in hiveminds
Link Posted: 9/2/2005 11:24:21 AM EDT
Hell, judging by whats going on around here....buy gas today, sell it tomorrow, you'll make a killing....
Link Posted: 9/2/2005 11:26:09 AM EDT
I gauge it by the number of ads I hear on the radio pushing gold as an investment. The more I hear, the more I 'm convinced it's not a good investment.

(If it were such a good investment, why wouldn't they keep it instead of trying to sell it to me?)
Link Posted: 9/2/2005 11:26:37 AM EDT
[Last Edit: 9/2/2005 11:27:40 AM EDT by EPOCH96]
Yes, invest in Gold right now!





Link Posted: 9/2/2005 11:26:47 AM EDT
[Last Edit: 9/2/2005 11:27:22 AM EDT by glklvr]

Originally Posted By MTUSA:
Based on sheer speculation, If I purchase 20K in gold
could it be worth 200K in 5 yrs.
Oil could continue to climb, is the real estate market going to pop in 5 yrs?
I need to shelter or "invest" 20K somewhere.
Should I buy Euro's... Chime in hiveminds



Nope. I have silver as a hedge against out-of-control inflation, but very few people have ever made any money on gold.

As someone in SF said, 150 years ago an ounce of gold would buy you a nice suit. Today an ounce of gold will buy you a nice suit.
Link Posted: 9/2/2005 11:46:33 AM EDT

Gold tends to go up when our economy goes down. For gold to double in five years is once in a liftime if you bought at its lowest and sold at its highest. IMHO if you don't intend to keep it long term its not worth doing. However, it would be good idea to keep some in your safe for SHTF scenarios.

money.cnn.com/markets/commodities/

Its gone up about $70 in two years.

Shok
Link Posted: 9/2/2005 11:58:15 AM EDT
Coins! The bright boys in Ohio bought coins....
Link Posted: 9/2/2005 11:58:47 AM EDT

Originally Posted By QShok:
Gold tends to go up when our economy goes down. For gold to double in five years is once in a liftime if you bought at its lowest and sold at its highest. IMHO if you don't intend to keep it long term its not worth doing. However, it would be good idea to keep some in your safe for SHTF scenarios.

money.cnn.com/markets/commodities/

Its gone up about $70 in two years.

Shok



I think about $4 in the last few days....<off to check>
Link Posted: 9/2/2005 12:00:09 PM EDT
No.

How is that for an answer..???

Gold can be a good way to protect and preserve wealth, but it rarely generates wealth. If you are worried about the inflationary aspects of a recessionary economy, or a devalued currency gold helps ensure your purchasing power tomorrow is similar to what it is today. Unfortuantely, buying actual gold (bars, etc) tends to be expensive, and a general pain in the ass. You pay a premium over the spot price, and its hard to get rid off. Ever see anyonw try to pay for $200 in gas with a 1/2 ounce of bullion? I didn;t think so...

Gold is an emotional thing. It's cold, hard and pretty, and its nice to fondle. But it is not a liguid investment. If you run out and buy $20,000 in gold coins, you are going to get stuck with those damned premiums. If gold prices are $440/ounce, you will NOT pay $440/ounce. You'll pay $440 per each one ounce bar, PLUS another $20 or $30 in premiums. Gold prices then have to run up over $460,$470 just to break even. And unless you plan on a bigtime barter operation, you'll have to find some way to reconvertt from bullion to money later.

If you want to capitalize on gold, consider gold "paper". Buy stock in a company that "makes" gold (a mine). For example, I have some modest gold holdings in one company. Share price has gone from $13 to 18 in three months. I get dividends. The compnay in question has a per ounce cost of about $120 an ounce, and gold sells for $440 and ounce. Its hard to NOT make money under those circumstances. If inflationary pressures tank the dollar, US dollar prices for gold will spike. That same company will be mineing gold it can sell for $550, 600 an ounce. My share price goes up....

Yup. You could buy $20,000in gold at $440 an ounce today. It's possible it could be worth $200000 in a decade. Its not likely. Gold was a $150-200 ounce commodity until it shot up $800 during the late 80's. It dropped and has stayed low since. Lots of people bought in at $500, 600, $700 and ounce back then (twenty years ago) and thought it could be worth $200000 in ten years. Their twenty year, twenty thousand dollar investment is still 'under water'.

Link Posted: 9/2/2005 12:00:20 PM EDT
Seems rather high to invest in. But who knows the real estatebubble was gonna pop a while ago
Link Posted: 9/2/2005 12:05:38 PM EDT
Link Posted: 9/2/2005 12:06:25 PM EDT
Link Posted: 9/2/2005 12:07:20 PM EDT
Not likely.
Link Posted: 9/2/2005 12:09:52 PM EDT

Originally Posted By glklvr:

Nope. I have silver as a hedge against out-of-control inflation, but very few people have ever made any money on gold.

As someone in SF said, 150 years ago an ounce of gold would buy you a nice suit. Today an ounce of gold will buy you a nice suit.



If you have a diversified investment portfolio, gold's main advantage is that it provides a hedge against runaway inflation (or at least it has historically). In real terms (inflation-adjusted), gold value has been pretty consistent since the middle ages.

The problem with gold is that it does not generate wealth, grow, or pay interest. In fact, you have to pay money to store it - at least if you have very much and want it in a safe deposit box. I personally don't invest in it. Like I said, it does have a role in a highly inflationary environment, but can't really do anything for you in a serious SHTF/TEOTWAWKI scenario - can't eat it, can't drink it, and bullets made out of it won't kill vampires or werewolves.
Link Posted: 9/2/2005 12:09:56 PM EDT
There are two reasons to buy gold. Neither of them are investments.

The first is if you believe that the $ is going to take a nose-dive in value. This is a distinct probablility with N.O. and the budget deficit. Gold will hold its value, and provided the $ falls enough to cover the buying premium you end up ahead.

The second is for SHTF scenarios when paper money has zero value. In this case you will need some smaller gold coins and some silver coins. The larger 1oz coins are nice to look at, but about as usefull as a $500 note when trying to buy something like a Big Mac.

If you want to cover both eventualities, you need to balance between a few larger coins/ingots where the premium is a little less, and a batch of smaller coins, such as the English soverign, which is currently about $100.
Link Posted: 9/2/2005 12:10:46 PM EDT

Originally Posted By frozenny:
Gold can be a good way to protect and preserve wealth, but it rarely generates wealth.




The most important thing you said.
Link Posted: 9/2/2005 12:11:58 PM EDT
Those commercials drive me crazy! If gold is such a good investment, and is going to be worth so much more tomorrow, then why are you in such a big hurry to sell it to me today?
Link Posted: 9/2/2005 12:13:51 PM EDT

Originally Posted By EPOCH96:
Yes, invest in Gold right now!

img.photobucket.com/albums/v216/Jbays/goldAK.jpg

img.photobucket.com/albums/v216/Jbays/gold_ak47.jpg

img.photobucket.com/albums/v216/Jbays/GoldPlatedAK-47.jpg



They should take that thing on tour, $5 a picture to pose with it.
Link Posted: 9/2/2005 12:23:59 PM EDT

Originally Posted By PhilipPeake:
There are two reasons to buy gold. Neither of them are investments.

The first is if you believe that the $ is going to take a nose-dive in value. This is a distinct probablility with N.O. and the budget deficit. Gold will hold its value, and provided the $ falls enough to cover the buying premium you end up ahead.

The second is for SHTF scenarios when paper money has zero value. In this case you will need some smaller gold coins and some silver coins. The larger 1oz coins are nice to look at, but about as usefull as a $500 note when trying to buy something like a Big Mac.

If you want to cover both eventualities, you need to balance between a few larger coins/ingots where the premium is a little less, and a batch of smaller coins, such as the English soverign, which is currently about $100.



In a depressed economy situation, with devalued currency - who is going to buy your gold?

And in a full-blown SHTF scenario - what intrinsic value does it have?

I'd invest traditionally for the sunny days, and invest your time and discretionary income in water purification, ammo, training (firearms, fieldcraft, medical, etc.), fitness, and generally being as self-sufficient as possible, for the bad days.
Link Posted: 9/2/2005 12:37:44 PM EDT
What is your tolerance for risk? IMO, oil, gold, & real estate are fully valued, however you might feel that they are undervalued or you may have some insight that I don't which makes you feel that way.

Remember that risk is nearly always equal to reward on a macro basis. That said, the market is imperfect on a micro basis. That is how people make money. However, for every person who makes money, there is someone who loses money. Your challenge is to make sure that you aren't the second guy.

Probably the best advice that you will get is to invest it in something fairly conservative like a diversified mutual fund.

Good luck and let us know how you made out.
Link Posted: 9/2/2005 1:18:47 PM EDT

Originally Posted By dbrowne1:
In a depressed economy situation, with devalued currency - who is going to buy your gold?

And in a full-blown SHTF scenario - what intrinsic value does it have?



Trading stock!

In a fullon SHTF, gold will still hold value due to the hope people will have in the return of narmal living.

CH
Link Posted: 9/2/2005 1:21:34 PM EDT
I am searching for options.
Mainly SHTF scenerios. If on paper can 20K be lost due to
system viruses, power outages etc. I'm thinking a good ammo box buried in the backyard filed with cash. I can only 'cash out" $9999.00 at banks without violating Patriot laws or avoiding
Federal Mafia attention. Man life in the US is getting more challenging by the minute.
Freedom is slipping out of our hands folks.
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