Gold

[cute fuzzy bunny]

I wasnt looking for surrender or winning. Was just hoping to hear an explanation.

 

[Cool Dood]

I don't get why it's so complicated -- shouldn't it be easy to explain in a sentence or two why your gold thing is supposed to work?

I can easily say, "Raytheon sells things that blow sh** up to the US government for a lot of money, and as there will be lots more sh** to be blown up in future, they'll continue to make money." Or "bonds provide money to growing industries or other entities, and as there will always be people in a position to borrow money, bonds will continue to remain profitable." Etc., etc.

Surely if it's something people are staking billions of dollars on, there's at least a basic summary of the reasons for doing so, somewhere?

 

[sgeeeee]

I don't get why it's so complicated -- shouldn't it be easy to explain in a sentence or two why your gold thing is supposed to work?

I can easily say, "Raytheon sells things that blow sh** up to the US government for a lot of money, and as there will be lots more sh** to be blown up in future, they'll continue to make money." Or "bonds provide money to growing industries or other entities, and as there will always be people in a position to borrow money, bonds will continue to remain profitable." Etc., etc.

Surely if it's something people are staking billions of dollars on, there's at least a basic summary of the reasons for doing so, somewhere?

Owning gold makes people who are paranoid feel safer. Since there will always be paranoid people, there will always be a demand for gold.

 

[cute fuzzy bunny]

See how nice I am? I thought that, but didnt say it.

 

[brewer12345]

Owning gold makes people who are paranoid feel safer.  Since there will always be paranoid people, there will always be a demand for gold.   

So maybe we should talk about gold helmets instead of tinfoil?

 

[cute fuzzy bunny]

Better go with both, as a sort of "belt and suspenders" kind of thing.

 

[unclemick]

Soooo- where's my 4% dividend like the old days - when gold was actually worth something.

heh heh heh heh - hey! I'll take good old American paper $.

Show me the money.

 

[greg]

cfb: Ooops! I just remembered one point, but I think it's already been mentioned.
GATA says that gold has been manipulated by the government for quite some time, with over 1300 tons of gold (that portion is easily traced--plus alot more that is hidden) dumped into the market to suppress prices. This would go along with your idea that gov't is not bright (buy high-sell low): they sell into the market to drive the price down and then recieve less for their gold. Here's a site you can explore:

http://www.gata.org/

I'm not a big believer in conspiracy stuff, so I've never given much weight to the argument in determining what to do. It's just one of a number of other ones. But it seems to make sense.

I'll be happy to lose all the way to the bank.

--Greg

 

[greg]

Soooo- where's my 4% dividend like the old days - when gold was actually worth something.

heh heh heh heh - hey! I'll take good old American paper $.

Show me the money.

Unclemick: So, a semi-promisory note paying 4% from one of those reputable places such as the gov't or GM is more valuable than something that promises nothing (just sits in a hole in the gound--waiting) but delivers 20%+/yr over the recent past? Dividends will come. The mining companies have a history of delivering in the darker times (that's what they do, how they are sometimes set up), when it is needed most. It's not a perfect world though. RGLD pays now and should increase payments in the future. I'm waiting for a decent dip this year.

 

[cute fuzzy bunny]

cfb: Ooops! I just remembered one point, but I think it's already been mentioned.
GATA says that gold has been manipulated by the government for quite some time

Super. So the asset doesnt make money rationally, isnt particularly well correllated or uncorrelated from other assets, goes decades with no or negative return, and the government might be manipulating it to make matters worse.

Greg...dont ever go into a job in sales...

 

[mathjak107]

sounds like the perfect investment to me based on that criteria......
now if i can only unload my disney coins i bought in the 80's

 

[greg]

cfb: No, my contention is that you still don't have a clue. That still holds. But you are able to come up with a single question that requires too much work from me to prove, and it is something that I already know you don't care a wit about. It's all about the 'win' for you. See your previous posts for evidence.

--Greg

 

[cute fuzzy bunny]

Actually Greg, as I said, it was an honest question. My take was that you were a smart guy, you have some thinking on this, and I wanted to hear what it was.

Seems you are long on negative opinions and incorrect presumptions about me, and a little short on actual data about the benefits (or lack thereof, apparently) of investing in gold.

As far as I can gather, you have absolutely nothing, just a gut feel. Based on what I've seen, I think your gut feel is wrong. By that, I dont think adding an allocation of 5-10% (or more) of gold to a portfolio will provide much measurable benefit going forward, and I dont believe there is any evidence to suggest that it will. In fact, recent history appears to show that it underperforms any fixed income asset class in stability, income, growth of principal, or correlative features.

Maybe I should have spent my time trying to figure out your ulterior motives and intentions instead of asking the question. :

 

[greg]

cfb: You flit well.

 

[cute fuzzy bunny]

You dont.

And I dont know how I fit in the time to flirt, given my extensive meetings with top secret government officials to plan the supression of the price of gold and the CPI. Thats an awful lot of 'behind the scenes' string pulling, although I'm ably assisted by our marxist puppet leaders.

 

[d]

... extensive meetings with top secret government officials to plan the supression of the price of gold and the CPI. Thats an awful lot of 'behind the scenes' string pulling, although I'm ably assisted by our marxist puppet leaders.

CFB: that's the vast conspiricy to which I had earlier referred, but I am suprised that you are in on it!

 

[d]

gold has been manipulated by the government for quite some time, with over 1300 tons of gold (that portion is easily traced--plus alot more that is hidden) dumped into the market to suppress prices.  This would go along with your idea that gov't is not bright (buy high-sell low):  they sell into the market to drive the price down and then recieve less for their gold. ... it seems to make sense.

In earlier posts there is expressed concern that the central banks are not using gold ... then when they use it, there is concern that they do. Good thing we have GATA to keep us informed!

 

[Nords]

And I dont know how I fit in the time to flirt, given my extensive meetings with top secret government officials to plan the supression of the price of gold and the CPI.  Thats an awful lot of 'behind the scenes' string pulling, although I'm ably assisted by our marxist puppet leaders.

Darn, and I thought you were still with the Plunge Protection Team!

 

[cute fuzzy bunny]

CFB: that's the vast conspiricy to which I had earlier referred, but I am suprised that you are in on it!

I actually am the entire conspirary. Look at how brilliant I am. I can "bait" people in some attempt to "win" some sort of discussion on a low interest topic and in the process very nearly disguise it as a legitimate interest.

But drat and curses, I was foiled again.

 

[camberiu]

And the gold has just hit $604 on the spot market.

 

[d]

Re: G**d

And the gold has just hit $604 on the spot market.

... just another 40% or so and it will be back to a more than quarter century high.

 

[haha]

Somebody needs to get in touch with gold and gold stocks and explain to them how useless and irrational they are. Then they might be able to stop going up all the time. 

Ha

 

[cute fuzzy bunny]

The Stock Explanation People are still working with all the people who bought internet stocks, trying to figure out where all those investors money went.

 

[laurence]

pssst....read "The Creature from Jekyl Island" if you want some gold/fiat currency conspiracy theory fodder.

I have a friend who swears by this book, says people need to open their eyes to the truth....I said, "so let's say everything he says is true, what do you do then?" "uh.....". Came down to:

Reduce your debt and use liberty dollars or silver coins or some such with the half dozen other businesses that believe in this tripe....

 

[mathjak107]

gold reminds me of my divorce..i had loads of reasons why i thought we got divorced and why it was inevitable.....my smart dad ,not to be confused with my dumb dad,sound familiar here? ,,said son " the divorce happened because it was time "....
well there it is.....see we can have all the reasons why we think gold is going up but the real reason is "its time".......all things have their day in the sun and now its golds time..........forget economics forget world events its just time