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Gold and Silver


eattingsnowflakes

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You guys are a riot. Beginners. Especially whoever compared the metals runup to the dot-com bubble. The precious metals will always be worth something, that's why they're precious. It is an investment subject to risk like any other, but there's no total loss when you hold metals unless they get stolen or the world ends. Not true for stocks, which can become truly worthless.

However, there's no need to hold the physical metal to make money on the market moves. You can trade futures contracts with as little as 5-10% margin. That means you can control 100 oz of gold for 5-10% of its actual value, but if the price goes up and you sell, you collect the full difference on the 100 oz. If the price goes down, you can lose your shirt in a day; but that's where options and stop orders come in. Which brings us to Commodity Futures Trading 101, something it will take me way too long to teach on this site, but if you're really interested in making money in metals markets, you have a head for charts and graphs and numbers, and you have $2000 with which to open an option buyer's account, you can participate. You should google "futures trading" in conjunction with key words such as "course", "instruction", and/or "Larry Williams" if you want to learn. There is a lot to know but you def do not need to be a pro or be rich or have a license to be involved in these and other futures markets. (It does help to already be rich, but that applies to almost everything.)

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  • 2 weeks later...

is it possible to get land for 20K that has a good use? is this good advice if land prices are still falling?

i'd say buy land if you get it cheap enough and can do something with it. like bug out to it, farm it, or live on it, but just buying it to invest is probably not a good idea.

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You have to look at fundamentals.

 

Gold is a commodity, and fundamentally it's price should be driven by supply and demand.

However, gold also happens to be the most popular hedge against the US dollar, exchange rates, inflation, political instability, war, etc.

As a result it's price is significantly affected investors hedging against political and economic uncertainty.

Recently this has been due to a lack of faith in the US economy and dollar. The big question is how long will this last.

Actual gold supply and demand levels have been pretty stable.

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i think it boils down to this.

the US government has been inflating the value of the dollar away since the inception of the FED. governments always grow. they never shrink without a dramatic revolution, either violent or non violent. the question then becomes do you think the government is going to stop borrowing, pay off their debts, stop bailing out failed companies, printing money without end/QE, voluntarily decrease its own size and regulatory apparatus, balance the budget at a spending level that is in accordance with the constitution? if you think any of these things are remotely possible, you shouldnt own gold. for the realist, owning gold is probably a very good thing.

 

will gold and silver correct? surely. will they dramatically lose value? they havent lost purchasing power in thousands of years.

the thing people have to remember is gold doesnt produce anything. it sits there. its not a stock, its not a profit seeking company. its a store of value. people dont own gold to get rich, they own it to keep what they have.

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It actually has no purchasing power.

By holding gold you are essentially betting on a spectacular collapse of the monetary (paper) system, which will lead to gold replacing paper money, and thus you being able to use your gold to purchase milk, gas, cars, etc.

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gold isnt able to be used as currency because it is illegal. i guess it never occurred to you that since transacting in anything but paper dollars is illegal, all you have to do is exchange your pm's for dollar bills.

 

what do you think about this?

 

when silver hit the recent highs, gas was 10 cents a gallon. gas actually hit an all time LOW. yup. 10 cents a gallon. in silver. if you had a silver dime, you could buy a gallon of gas. now since it is illegal to transact in anything but US dollars, you had to trade your silver for devalued dollars. the value of precious metals could purchase the same amount of goods it always has been able to. whereas the dollar has decreased in value by at least 95%.

which would you rather find? a package full of 20 dollar bills from 1900 or a package full of 20$ gold pieces?

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Just wondering what anyone thinks about Gold and Silver. (I didn't find another thread for it)

This week they hit high prices.

How do you feel about them as an investment?

How high will they go?

Do you have any?

 

au75-pres.gif

 

ag85-pres.gif

 

 

http://www.youtube.com/user/SilverGoldCoins?feature=pyv&ad=4960291907&kw=silver#p/u/0/Mc4ra8yvBmU

 

Discuss

 

 

 

Well, great work! You have helped me to improve my knowledge about this field. Thank you so much for sharing.

 

 

__________________

watch online movies

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You need to post tits Melissa!

 

Aod.....how do you measure (in numbers) how 'precious' something is?

Gold sits idly in the form of jewellery, gold bars, coins, etc. It does not earn interest, pay dividends, etc.

Supply, demand, the ability to dig it out of the ground have remained unchanged over the last decade.

But its worth has quadrupled. Why?

It hasn't suddenly become a usable commodity (compared to copper, oil, etc), we just have more of it sitting around doing nothing. The demand for jewellery has not exploded.

So why would the market continue paying so much for a commodity that does so little?

 

That's what I'm looking for discussion/insight on.

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"Aod.....how do you measure (in numbers) how 'precious' something is?

Gold sits idly in the form of jewellery, gold bars, coins, etc. It does not earn interest, pay dividends, etc.

Supply, demand, the ability to dig it out of the ground have remained unchanged over the last decade.

But its worth has quadrupled. Why?

It hasn't suddenly become a usable commodity (compared to copper, oil, etc), we just have more of it sitting around doing nothing. The demand for jewellery has not exploded.

So why would the market continue paying so much for a commodity that does so little?"

 

you are right. it doesnt earn interest, or pay dividends as i have said in this thread before.

its simply a store of value.

 

you can measure how 'valuable' something is a myriad of ways... the easiest way for americans is to see how much gold is in terms of paper dollars.

its worth hasnt quadrupled, the dollar has lost that much value.

an ounce of gold in 1900 bought you a nice suit. it still buys you a nice suit. in the depression a silver dime bought you a gallon of gas. in 2011 a silver dime will buy you a gallon of gas.

 

why are people buying gold? because the US is going to hell in a hand basket. the government is imploding the economy and the dollar is melting down. since its the reserve currency, its bringing the world down with it. since gold is a store of value and not much else, investors flock to gold as a safe haven.

 

as i stated previously.

would you rather hold a box of 20$ bills from 1900 or would you rather hold the same face value of 20$ dollar eagles from 1900? and in 1900, the value of these two things were the same.

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