Published: Tuesday, Oct. 15 2013 9:20 a.m. MDT
Really.... were going to beat this worn out "scare" topic one more time?
What is the real value of gold... really? There isn't much you can do
with it. You can't eat it. You can't burn it for energy. You
can't trade it easily. Can't spend it. Ever since Glenn Beck
started hawking one of his sponsors wears, it has been on of the worst
performing investment classes.I really wish the DN didn't run
this stuff as front page investing advice. They need to stick to the news...
not being a promotional arm of some "investment" firm.
This guy doesn't seem to know about the free silver debate in the 1800s
when not enough gold was being mined and the money supply was declining. As a
result, we had a serious deflation and farmers (for one) were going broke as
they had to maintain their debt payments but the price of their crops kept
falling. We need responsible money growth but putting our money supply in the
hands of gold miners is nonsense. As for investing in gold, Google mad max
personal finance and scroll down to April 23rd.
Bizarre reasoning. He says a silver quarter will always buy a quarter's
worth of goods? Is he serious? And if I'm starving, would I swap a loaf of
bread for a silver quarter? I can't eat silver. When will these right
wingnuts learn that ALL value is relative, that gold/silver are no more magical
than any other asset, that they fluctuate in value as do all assets, and that
people who stuff their savings into gold never earn any interest. As a result,
their gold actually LOSES value over time simply because of the principle of the
time value of money.
It would appear that from the previous posts that many people are as happy as
can be with the inflation of our currency. I would guess that the lessons
learned as the world emerged from WWII to maintaining economic stability and
growth by holding steady currency values. We must be smarter than them because
today we like to print money to pay our nations debt, golly - that has never
come around and bit a nation in the butt historically.
Let's see, in 1971, an ounce of gold sold for $40 and today sells for
around $1400. So $100 worth of gold purchased in 1971 would be worth $3500
today. That's a lot of groceries. If you invested $100 in the stock market
in 1971 and it averaged 8% return, it would be worth around $2200. Still a lot
of groceries but not as much as the appreciation of gold. Conclusion? Diversify.
Gold is in the tank now that the tea party revolution failed. All of these gold
people were claiming gold would be at 3000.
UtahBlueDevilYou may have missed the point. Gold and silver are very
easily tradeable. Anybody who recognizes the value of them will trade for it. Of
course you can't eat it, but last time I checked you can't eay paper
money or copper pennies either - so your point is invalid. The article
isn't trying to make a prediction on whether it will go up or not, he is
stating that you will want to buy some just in case. And a quarter - that was
made before 1965 - is %90 silver, which is worth a gallon of gas by weight. So
whether you agree or not the math he presented doesn't lie.
It is true that you cannot eat gold and silver. It is also true that while you
can easily trade precious metals right now, you may not be able to in a time of
crisis. For that matter, you will not be able to trade anything easily in a
time of crisis for food, fuel, and other essentials. However, you will always
be able to trade food, fuel, and essentials for anything in that state.So, invest first in food and fuel storage. Then diversify and invest some of
your wealth in things that have intrisic value under regular conditions, such as
precious metals and energies. You should still invest in traditional bonds, but
not all of your investmenst should lie in one basket.The most
poignant part of this article is in the beginning... our government needs to
relearn how to spend within our means. Period.
If one is prepared, worry is of little concern. However, if we as a country
country continue to spend, or overspend, we will have a great deal to worry
about. The price of metals is nothing more than a reflection of the vaue, or
lack thereof, in our paper money. It's not brain surgery to understand
this, although it seems that Congress is in need of extensive cranial probing
and adjustment to so understand. To paraphrase Jeff Foxworthy, maybe a surgeon
(the voters) should open up the government's skull, take a stick and root
around in there to find out what is wrong. That makes just as much sense as
blindly trusting what it (the government) says about our national debt. Bottom
line, carry some food, metals, and zero personal debt in your portfolio.
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