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Old 11-26-2009, 04:53 PM   #21
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Maybe it could have something to do with governments printing and borrowing huge sums.Some believe this will lead to a decrease in the purchasing power of currencies of countries with no fiscal responsibility.
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Old 11-27-2009, 07:16 AM   #22
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I have a question for all those people who are buying gold and expect to use it during a very bad depressed time. How are you going to use a one ounce coin to buy any of the normal staples, like food, gas, etc. ? Would you expect change for a tank of gas, loaf of bread ?
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Old 11-27-2009, 08:17 AM   #23
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Originally Posted by frayne View Post
I have a question for all those people who are buying gold and expect to use it during a very bad depressed time. How are you going to use a one ounce coin to buy any of the normal staples, like food, gas, etc. ? Would you expect change for a tank of gas, loaf of bread ?
Plenty of dealers out there that pay cash for bullion. ?? On larger quantities you can deliver directly to a smelter, for cash, if previously arranged. Hundred dollar bills still work in the grocery store. Besides, what I have been reading in this thread is not about depressed times, but rather about inflated times. Hard assets which store value vs paper assets which lose value when currencies are being "cheapened".
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Old 11-27-2009, 10:03 AM   #24
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NBC Nightly News had a story on gold last night, which is a good bubble indicator.

The best part of the story was a shot of the reporter holding a block of gold in his hands. The block had a value of 1.5 million dollars.
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Old 11-27-2009, 12:34 PM   #25
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I have often told the story of how some of my Libertarian friends (I am an independent) were so sure of economic doomsday in the early 90s. They even went as far as withdrawing their 401k, taking a big tax hit in order to buy physical gold to keep at home. This was before the advent of various gold ETFs which would allow them to transfer the 401k to an IRA and buy these gold instruments from there.

Perhaps they were 15-20 years ahead of their time. Paying more than $400/ounce back then, they sold lower to buy stocks in the late 90s when the doomsday scenario did not play out. Oops...

Here's my total gold possession: a wedding band on my finger, two American Eagle coins bought at $400 in 94 as a lark from my friend when he was selling some to pay taxes, and more recently as another lark 100 shares of GLD in Jan 2008 at less than $88/shares (roughly same as $880/oz).

Can't sell my wedding band. The two coins, I intend to give to my children later on as keepsakes. The 100 shares of GLD, I will sell at some point, but not yet. I have had only 31% gain on it. Want to see more... Greed is good...
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Old 11-27-2009, 05:08 PM   #26
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...I will sell at some point, but not yet. I have had only 31% gain on it. Want to see more... Greed is good...
That seems to be a common sentiment: Bullishness among gold timers very high

Quote:
The average gold timer is now more bullish than on each of the past four occasions in which the gold market has topped out. This suggests to contrarian analysts that the yellow metal has more than the usual amount of vulnerability to a significant decline.
OTOH...
Quote:
The final blow-off stages of a rally, which are usually accompanied by high levels of enthusiasm and excitement, often last longer, and go further, than most would have imagined.

At the same time, however, markets in which there is such a high level of enthusiasm tend to drop precipitously at the first sign of trouble.
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Old 11-27-2009, 06:34 PM   #27
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As said, I only have the equivalent of 10 ounces worth in GLD to sell, so have got to get the most out of it. Perhaps I want to see some gold-less people kick themselves for not getting in (not many on this forum surely), and people loaded with it gloat some more. Heh heh heh...

Having seen the tech mania of 2000 and a couple of housing bubbles in my life, my experience is that these things last longer than most could imagine. Yes, the drop is swift and much faster than the rise, but with the relatively small holding that I have, I can afford to live closer to the edge. Heh heh heh... I cannot even buy a good used class C with the proceeds, so how big a deal can this be? It is just another challenge in life or a small gamble that I like to take on for fun. It is only money, and not a whole lot at that. I never fool around with slot machines or poker tables in LV. This is a lot more fun.

By the way, I still remember in late 1999, the media talked of people selling their jewelry to scavenge some funds to get some dot-com stocks. Heh heh heh...

Why do I sound more like Uncle Mick all the time? If he demands royalty for his trademark, I would be broke.
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