close

Privacy guaranteed - Your email is not shared with anyone.

Why do so many people think gold is a good investment?

Discussion in 'The Okie Corral' started by sheriff733, Feb 21, 2013.

  1. certifiedfunds

    certifiedfunds Tewwowist

    54,937
    7,149
    Apr 23, 2008
    Houston
    I don't have a basement. Can I store some guns in your basement?
     
  2. Atlas

    Atlas transmogrifier

    12,512
    12
    Oct 1, 2001
    north of the equator
    http://en.wikipedia.org/wiki/Herman_Francis_Mark
     

  3. What if Saudi Arabia says they want gold for oil? From every country on the planet. Every country then needs gold for oil. When nations balance the books at the end of the year, the deficit/surplus has to be paid. Right now, that is done in dollar. Soon it will be gold.

    Every day purchases will be made in the local currency, but gold will be used for international transactions. Currencies will all then float against gold. That is freegold.




    You are used to countries devaluing their currencies whereby one day you buy a car for $10,000 and the next day it costs twice as much because the currency has been devalued by 50%. The same can happen but in reverse. That is what I am talking about. Again, it is foreign to most logic, but it is coming. It is called freegold. Read fofoa and you will understand it much more.
     
  4. I'M Glockamolie

    I'M Glockamolie

    1,055
    0
    Jun 23, 2006
    Houston
    http://www.hulu.com/watch/1389#s-p14-sa-i0
     
  5. DoubleWide

    DoubleWide

    3,968
    154
    Sep 3, 2008
    Thankfully, someone around here is thinking.


    Do you really want to trust a guy telling you to sell your gold for 25-35% of value to a company that's no better than payday loans?
     
  6. NIB

    NIB

    2,173
    528
    Jul 26, 2002
    Lost Angeles
    I've always wondered how someone is going to get exact change back for a 4-pack of toilet paper when using a 1oz gold coin.
     
  7. devildog2067

    devildog2067

    16,322
    1,116
    Apr 20, 2005
    Chicago
    What would they do with the gold?

    Well, they'd use it to purchase imported goods.

    So, they'd turn around and ship it right back.

    And then someone would say, "hey, rather than shipping these gold bars back and forth, why don't we just store them somewhere and have someone we trust keep track of which one of us owns how many of them at any given time?"

    The idea that any modern economy would depend on shipping physical gold bars anywhere is ludicrous.

    A car is a car, and a nugget of gold is a nugget of gold.

    You are arguing that the gold has intrinsic value and the dollar does not.

    If that were the case, then "some amount" of gold would be equal to one car. It would not matter what the nominal price of gold was in dollars. If gold were arbitrarily repriced in dollar terms, your purchasing power would not change. That's why fundamentally, the idea of "repricing" doesn't make any sense.
     
  8. certifiedfunds

    certifiedfunds Tewwowist

    54,937
    7,149
    Apr 23, 2008
    Houston
    Same way they did it throughout 5000 years of civilization.
     
  9. NIB

    NIB

    2,173
    528
    Jul 26, 2002
    Lost Angeles
    You know those teenage cashiers at Walmart and McDonalds look at me funny whenever I hand them a $2 dollar bill or a 50¢ coin. I doubt they are set up to take 1 oz gold coins at Walmart.

    You really think you will get exactly what your gold is worth in an economic crisis when you try to trade for goods?
     
  10. HollowHead

    HollowHead Firm member

    24,426
    2,004
    May 16, 2005
    Where the buffalo roam
    I'll bet the vast majority of people do not know what gold closed at today, and if the SHTF tomorrow I can only imagine what it would be considered to be worth by just about everyone. "Hey man, this coin was worth $1,600 the day before TEOTWAWKI" ain't going to cut it. HH
     
  11. Atlas

    Atlas transmogrifier

    12,512
    12
    Oct 1, 2001
    north of the equator
    That does not mean that there are not people out there who would know the closing price on the day of "TSHTF", and also the present price, at least to the extent of the local market.

    Notice, it has always been thus.

    It does not mean that there would not be people who already have for themselves an abundance of food, water, ammo, liquor, toilet-paper, and everything else...
    People who will want the one or two gold coins you may be holding.

    To believe otherwise is silly...
    Not everyone lives just one or two grades above the "hand-to-mouth" level.
    All of human history tells us this.

    People of modest means (and I am a member of that group) almost always see the world through their own lens, even as they are standing on a pier gazing at a 25-million-dollar yacht.
     
    Last edited: Feb 22, 2013
  12. Atlas

    Atlas transmogrifier

    12,512
    12
    Oct 1, 2001
    north of the equator
    How would you get "exact change" back from 5 shares of Apple stock for a 4-pack of toilet paper?

    If you really, really needed toilet paper and all you had was 5 share of Apple stock, do you think it possible you could find a way to manage to obtain toilet paper?



    You really think anyone who holds gold in such times will be attempting to use it at the Walmart checkout line?

    Your premise is just silly, childlike even...
    The last sentence especially so.


    Yeah, Walmart MAY still have goods you need in such extreme times..
    And you WILL ALWAYS find people with dollars who will take your gold. Dollars that you can then spend at Walmart or with the blacksmith down the street.

    When or where in all of human history, the eastern world or the western hemisphere, has it EVER been different?
     
    Last edited: Feb 22, 2013
  13. Atlas

    Atlas transmogrifier

    12,512
    12
    Oct 1, 2001
    north of the equator
    And why would you assume that the Saudis would resort to shipping physical gold "back and forth"?

    What would keep them from shipping it ONCE, from you to them, and then coining/printing their own currency?

    Doing exactly that is the story of money and banking throughout all of recorded history.

    How is that fundamentally different than what the U.S. did?
     
    Last edited: Feb 22, 2013
  14. certifiedfunds

    certifiedfunds Tewwowist

    54,937
    7,149
    Apr 23, 2008
    Houston
    I bet even fewer know the dollar's current forex value.....or even understand it.

    Most people don't know the value of their mutual funds......or the securities held within.

    How many know the value of their home on any given day?
     
    Last edited: Feb 22, 2013
  15. certifiedfunds

    certifiedfunds Tewwowist

    54,937
    7,149
    Apr 23, 2008
    Houston
    Neither are they set up to barter or accept Treasury Notes or shares of MSFT. What does that have to do with anything?

    :rofl: Yes, actually I do. I can do it now and in an economic crisis. Its quite easy.

    Let me ask you though: When you purchase toilet paper at Wal Mart and pay in dollars -- do you look consider the price of paper pulp and the forex value of the dollar and then make a purchase decision?
     
  16. certifiedfunds

    certifiedfunds Tewwowist

    54,937
    7,149
    Apr 23, 2008
    Houston
    HH - not directed at you but its amazing the people here who say, "Hey man, that AR was worth $900 the day before Sandy Hook."
     
  17. Atlas

    Atlas transmogrifier

    12,512
    12
    Oct 1, 2001
    north of the equator

    .....
     
  18. Joshhtn

    Joshhtn The eBay Guy Silver Member

    12,817
    9,442
    Mar 31, 2009
    Middle Tennessee
    Amen.
     
  19. Dennis in MA

    Dennis in MA Get off my lawn

    42,700
    2,811
    Aug 16, 2001
    Taunton, MA
    I would say they would sell considerable less oil. . . . because there isn't that much gold around to run an economy of 6-8billion people.


    I always love the "A good custom suit cost an ounce of gold in 1920 - and it costs an ounce of gold in 2013" radio gold sellers argument.

    Of course, buying into the stock market at the same time - INCLUDING THE CRASH OF 29, 73-74, 1986, 2000-2002 and 2007-2012, you'd still have enough to buy a local dry cleaning establishment. . . or about 20 suits.
     
  20. tehan2

    tehan2 NRA & GOAL

    2,962
    440
    Mar 14, 2006
    Breaking the law in CT
    my father has said for years that when the SHTF, the rich man will be the guy that has the control of

    aspirin
    penicillin
    Vicodin