Gold and dollars

[calmloki]

We have some Austrian Philharmonics bought back at the last end-of-civilization point - Y2K. We check in now and again on their value, what a store will buy them for.
On 11/8/2007 their buy price was $685
On 10/19/2009 their buy price was $814
On 11/15/2009 their buy price is $1120 - Whooopah!
For some reason this does not fill me with joy - instead it makes me feel like people think our dollars are turning into Charmin.
Or maybe people think that they can use gold after the whole dang planet blows into itty bitty chunks next year?

 

[Maurice]

Next year? Come on, 2012 is still three years away.

 

[Gone4Good]

For some reason this does not fill me with joy - instead it makes me feel like people think our dollars are turning into Charmin.
Or maybe people think that they can use gold after the whole dang planet blows into itty bitty chunks next year?

Yup and Yup.

The entire world is printing money, not just the U.S., so it isn't surprising to see prices for gold go up. But we've been here before. And what followed several years of rapid gold price appreciation in the late seventies, was about two decades of pain. It's hard to tell whether this time will be any different.

 

[brewer12345]

Gold = tech stocks ca. 1999, IMO. Would not be wild about buying or even holding on.

 

[FIREd]

I sold my gold coins last year and made a very good profit (I had bought them in 2003). People get attached to gold (it's so shiny!) and often miss the chance to take a profit while they can IMO. To me, gold is just an investment. If the world ends tomorrow, I can think of many things more valuable than gold.

 

[calmloki]

Next year? Come on, 2012 is still three years away.

Sheesh - you're right - its one thing not to wear a watch or know what day of the week it is, but one really should try to keep track of the years.

 

[ziggy29]

Long term I think the reasons to own gold and be wary of the dollar are sound.

However, in the shorter term, the dollar is way oversold and gold is way overbought, which suggests to the contrarian in me that gold and the anti-dollar may not be the best places to load up in the near future.

When more than 90% of the people are bearish on the dollar, that's not usually the side you want to be on in the near term.

 

[Rustic23]

Out of curiosity, if you were going the gold route, would you own gold, ie the actual coins and such or a precious metals fund that has gold, silver, platinum and such?

 

[calmloki]

I own both - owning computer numbers isn't going to be worth much when the red chinee or space aliens unleash a massive EMP attack. Physical good. Owning physical gold will be pretty dumb when you want to sell Right Now and the local jeweler isn't interested or when the burglar rips off your gold stash. Fund good.

 

[Gumby]

In the event of massive space alien attack, I'd prefer to be invested in canned goods and firearms.

 

[Goonie]

In the event of massive space alien attack, I'd prefer to be invested in canned goods and firearms.

In the event of an alien attack, just try to act like a normal person, and they'll leave ya alone. Remember...they have only ever abducted weirdos and Jerry Springer rejects! So unless you're standing between them and their targeted weirdo....your safe! Therefore you can just continue to invest as you normally would!

 

[calmloki]

I liked the old scifi stories where all metal objects became massive stores of radioactivity - wonder if gold acts like lead and doesn't cause the holder thereof to glow in the dark.

 

[Gone4Good]

I own both - owning computer numbers isn't going to be worth much when the red chinee or space aliens unleash a massive EMP attack.

I wonder how long it will take most of us to starve to death once that happens.

BTW, can you eat gold?

 

[calmloki]

I wonder how long it will take most of us to starve to death once that happens.

BTW, can you eat gold?

have a bunch in my mouth right now.... Oh - not eat with gold...

 

[FIREd]

BTW, can you eat gold?

Gold colloids and gold foil are comestible. Some even claim it's good for you... Not much nutritious value though.

 

[Gone4Good]

Gold colloids and gold foil are comestible. Some even claim it's good for you... Not much nutritious value though.

I thought you could get heavy metal poisoning by ingesting gold?

I saw it on an episode of House, so it must be true.

 

[FIREd]

I thought you could get heavy metal poisoning by ingesting gold?

I saw it on an episode of House, so it must be true.

I worked with gold colloids for many years and I would not ingest the stuff. But colloidal solutions can be bought at health food stores and fancy restaurants and chocolatiers use gold foil as edible food decoration. Gold, as opposed to other heavy metals, is fairly inert (it does not react readily with other substances) and it is believed that gold, when ingested, travels through the GI track with no adverse (or beneficial) effects for most people.

See Gold's MSDS (Material Safety Data Sheet):
http://www.prism.princeton.edu/PRISM_cleanroom/MSDS/Gold.pdf

Gold has very little known toxicity.

 

[bigla]

Can anyone recommend a good gold or precious metals fund. I have the VG Precious Metals fund but Vg states it :
"Invests in the stocks of foreign and U.S. companies engaged in the exploration, mining, and distribution of gold, silver, platinum, diamonds, and other precious metals and minerals.
May invest up to 20% of its assets directly in precious metal bullion and coins."

Looking at it's current portfolio holding it has about 2+ million dollars in Platinum out of a 3 billion dollar asset value. I was hoping (my bad for not thoroughly reading prospectus) for a fund that held more gold, platinum, etc.
Thanks Larry

 

[Maurice]

Out of curiosity, if you were going the gold route, would you own gold, ie the actual coins and such or a precious metals fund that has gold, silver, platinum and such?

I own the GLD ETF. But I treat gold as an asset class, not a hedge against armagheddon.

 

[wompo]

$25,000 chocolate sunday

I wonder how long it will take most of us to starve to death once that happens.

BTW, can you eat gold?

If you are in New York you can try this:
http://www.reuters.com/article/domesticNews/idUSN0753679220071107

"The dessert, spelled with two Rs, is infused with 5 grams (0.2 ounces) of edible 23-karat gold and served in a goblet lined with edible gold. At the base of the goblet is an 18-karat gold bracelet with 1 carat of white diamonds.
The sundae is topped with whipped cream covered with more gold and a side of La Madeline au Truffle from Knipschildt Chocolatier, which sells for $2,600 a pound"

 

[HFWR]

food decoration. Gold, as opposed to other heavy metals, is fairly inert (it does not react readily with other substances) and it is believed that gold, when ingested, travels through the GI track with no adverse (or beneficial) effects for most people.

Hence the term "$hit a gold brick"...

 

[TargaDave]

Can anyone recommend a good gold or precious metals fund. Thanks Larry

Have a look at ASA.

It's the investment class everyone luv's to hate for very understandable reasons. Even I dislike owning the stuff, and yet I've been overweighted in coins and stock for some time and will hang on to both as long as the $ printing presses are screaming at warp speed. Who knows, maybe I'll end up eating crow in the end but for now I think there is quite a bit more upside to go. Either way it's going to be a volatile, unsettling ride.