Buy gold

[Husky999]

those that cannot do… teach………"economists"

 

[White Dwarf]

Buy Bitcoins

 

[elduderino]

The only thing simple about economics is the hardest for most people to grasp, its a SOCIAL Science. Human interaction, fear and desire are the integral element. Once you realize that, you can eventually come to terms with the idea that there is no right and wrong objectivity. Simply put, if everybody sells and you buy, youre the one that blew up. It never mattered how sound the analysis and fundamentals. Thats how it works. Take it from a math and analytics guy whos had his A__ handed to him more times than he cares to remember.

 

[Northbound]

Gold, shmold. When the world's economies collapse, the most precious commodity will be drinking water. That's why I recently purchased Lake Superior. I'll need some of you to form a human barricade to protect it from marauders, of course - in exchange for "all you can drink" access. Just tell Bruno you're with the Boneyard and he'll hook you up with a bucket and some iodine tablets.

Sounds like a job for South Tampa Bill

 

[pnete]

As someone that was an options market maker at the COMEX / NYMEX for 10 years, this is incorrect. Commodities / hard assets are cyclical and they reached the end of there super cycle in 2008, metals around 2011. Metals in particular might catch a bid in the short term, but interest rates cannot go any lower. We are far closer to easing than people realize, and once that happens the rug gets pulled from the fallacy that is US equity markets. Also, if the end of the world happens… like it almost did in 2008… everything will collapse, like gold did down to 650. In that scenario the money flows to the place with the strongest army and thats why the play is to put your money in US dollars. Play is to short gold long silver. Spread has been out of whack for the past 2 years.

I have a friend who for years has been buying and stashing solid gold coins to the point where he has safe deposits boxed filled with gold.
Is buying gold coins, say hundred grand or so, and storing them away a stupid move? What are the draw backs other than getting hit on the head on the way out of the bank? Gold always seems to trend upward.

 

[RoderickSpode]

I imagine these gold stockpiles are going to prove about as useful as my Dad's Y2K cache of canned goods.

 

[Hoophound]

I imagine these gold stockpiles are going to prove about as useful as my Dad's Y2K cache of canned goods.

It is a good investment in general. However, stocks, real estate and even collectible watches and guns are good investments many times. The key is to sell when it makes sense. Too many people hang onto their investments when the gettin is good. When the price of gold doubled, I would have sold as much as half of mine. (I don't have any).

 

[intlzncster]

As someone that was an options market maker at the COMEX / NYMEX for 10 years, this is incorrect. Commodities / hard assets are cyclical and they reached the end of there super cycle in 2008, metals around 2011. Metals in particular might catch a bid in the short term, but interest rates cannot go any lower. We are far closer to easing than people realize, and once that happens the rug gets pulled from the fallacy that is US equity markets. Also, if the end of the world happens… like it almost did in 2008… everything will collapse, like gold did down to 650. In that scenario the money flows to the place with the strongest army and thats why the play is to put your money in US dollars. Play is to short gold long silver. Spread has been out of whack for the past 2 years.

The 10 year gold cycle is a bit of a myth; It's more complicated than that. Gold shouldn't be lumped in with other commodities (and therefore not be treated as such), despite what US financial markets attempt to do. Central banks all hold gold as a reserve, and they don't make a practice of holding other commodities. Most central banks are buyers right now, and none are sellers, especially in Asian countries.

I think you'll hurt your returns by going "short gold long silver".

One, there's very little institutional and private gold (contracts) held at this point when compared to 2008. There's very little then, in comparison, left to sell if there were to be a 2008 market style liquidation sale.

Two, the POG is largely driven by physical demand in Asia. China makes up 32% of world wide gold demand. India makes up 24%. The rest of the east. The WEST (including the US) only makes up 10% of world wide demand.

Right now, price discovery is made in the West, but that too is chaning. as major gold trading bourses are opening all over the East (along with Renminbi/Yuan trading hubs in the west) .

Long silver will likely be a good bet, but shorting gold will likely not. Silver should appreciate to a greater degree, so you'd make money, but you'd def hurt your returns.

jmo

 

[intlzncster]

The only thing simple about economics is the hardest for most people to grasp, its a SOCIAL Science. Human interaction, fear and desire are the integral element. Once you realize that, you can eventually come to terms with the idea that there is no right and wrong objectivity. Simply put, if everybody sells and you buy, youre the one that blew up. It never mattered how sound the analysis and fundamentals. Thats how it works. Take it from a math and analytics guy whos had his A__ handed to him more times than he cares to remember.

I'm a math/analytic guy too (former actuary), so I can feel what you are talking about. I'm a trader by profession, and have met few people who's made serious money in the markets who haven't gone bust at some point. I've yet to meet a retired (rich) day trader...though I'm sure there's some.

 

[intlzncster]

It is a good investment in general. However, stocks, real estate and even collectible watches and guns are good investments many times. The key is to sell when it makes sense. Too many people hang onto their investments when the gettin is good. When the price of gold doubled, I would have sold as much as half of mine. (I don't have any).

Exactly. Never fall in love with a trade/investment. Single hardest thing people can do, as the need to be right (self esteem/worldview/etc) is an incredibly hard thing to overcome. Investing/trading is often about getting out of your own way.

Though with respect to gold, people who trade in gold can get in and out when they please. People who are investing or buying gold as 'insurance', should hold on to it (for the most part). But that is with the caveat that you should only have 10% of your portfolio in gold anyway. 20% if you are the hyper aggressive type.