IS BUYING 10,000 dollars OF GOLD A SMART THING TO DO?
Submitted by Infospill.com on Fri, 12/05/2008 - 22:23
if you plan on selling it next year for a profit?
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I think not
There's no telling what's really going to happen. Gold is expensive now priced in terms of Fed Notes. Even if the dollar drops 50% and the price of gold goes to $2000, you'll have to find a way to sell it and at the same time the price of everything else might double as well.
I wouldn't buy for profit, but I think it's a good idea to have a little just in case.
I bought some silver dollars.
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That is a very good point
That is a very good point and I always tell people the best investment is food, land and then precious metals.
As for palladium the U.S. imports close to 91% and the US National Defense stockpile of uncommitted inventory has fallen to zero.
http://palladium-bar.blogspot.com/2008/08/russia-georgia-nat...
Robert Kiyosaki said
to buy silver as it is less expensive,there is less of it, and you can buy junk coins (pre 1964) in small amounts and then utilize for exchange, if necessary.
Anyhow, whatever you do, take physical possession of it, hide it - NO BANK safety deposit boxes!
There have been times in history when the govt. confiscated gold, but they can't if you pay cash and hide. Cash purchases under a certain amount, are NOT reported. You can use a fake name, if you like - no ID required - Yet...
In Brazil the price of gold
In Brazil the price of gold has doubled in the past 3 months. Production has increased as well as exports.
I retired from working for a gold mining company, so I know a little.
grant
While I concede that is probable,
since Brazil isn't even in the top ten producing countries, does it matter?
It cannot possibly hope to make up the shortfall from South Africa, the US, and Australia.
Bottom line, gold and silver are flying "of the shelves" and production cannot meet demand. Their is a significant dislocation in price between paper and physical metal and the COMEX is showing significant signs of "distress".
Ron Paul "Sign Wave Across the USA" -- November 5th!
In an average year
In an average year 54,880,000 ounces of gold are produced.
Meaning today it takes 41,577,088,000 dollars to buy up all the gold produced in one year.
In an average year 390,040,000 ounces of silver are produced.
Meaning it would take 3,724,882,000 dollars to buy up all the silver produced in one year.
In an average year 940,800 ounces of palladium are produced.
Meaning it would take 159,465,600 dollars to buy up all the palladium produced in one year.
The number of ounces of palladium produced in a year does not match the number of people who support Ron Paul.
Do you think it would be easier to convince every Ron Paul supporter to buy an ounce of palladium, 390 ounces of silver or 54 ounces of gold.
grant
The average annual
The average annual production of gold is 1400 tons.
The average annual production of palladium is 24 tons.
That is a differenct of 58 times more gold produced each year over palladium.
If every person who voted for Ron Paul bought an ounce of gold it wouldn't make a dent what was produced in gold in a year.
If every person took that same amount of money spent on an ounce of gold and bought palladium. How would that affect the palladium market?
We have to think outside of the box.
grant
I'm enjoying
all your posts about palladium. Most of us have about as much feel for palladium as we do for byzantium.
I am just trying get people
I am just trying get people to think outside of the box. In terms of ounces, there were more ounces of gold produced last year than all the palladium ever produced.
So as a currency, which it is, ISO currency code XPD 964, it is much rarer than gold, silver and platinum.
It is just that gold and silver have had perhaps 5000 year marketing headstart.
grant
Gold is in backwardation.
You are looking at production (which is in decline). Others look at what's available for delivery. Answer: not much.
Ron Paul "Sign Wave Across the USA" -- November 5th!
love that word
love that word backwardation!
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
Such a clumsy sounding word!
I'd never heard it until the past couple of days.
The wisdom of Ron Paul.
It comes from the word pallas, meaning wisdom. I guess we could market it as Paul's wisdom or Paul's pallas.
Backwardation
or palladium?
I meant that backwardation sounded silly.
Glad to hear about palladium's root, though!
Gold production and supply
The amount of gold produced annually from mines is a very small fraction of the gold supply. That's because very little gold is ever used up. Most of the gold that has been mined over the millennia is still available in the forms of bullion and jewelry. Gold is the only metal that is horded to that extent. Jewelry grade precious stones are horded, but they are not good money. They are not divisible, and their production is controlled by monopolies.
two questions arise
do you definitely plan to make money next year on your investment?
if so, gold/silver may not be your answer (risk is obvious)
do you definitely plan to use gold/silver as a short-investment?
by your question, the answer appears to be yes.
my advice is this: always buy gold/silver. but, apportion your purchase in a ratio that you can handle to all of your savings/investments. gold and silver should mostly be reserved as a savings plan, rather than an investment plan....UNLESS you are in a financial position to use it as both.
hold hold hold....and then sell only what you need to keep liquid in whatever debacle we have as a monetary system at the time.
if you can afford to save and invest in gold/silver, my answer is yes...buy the $10,000 and play it right. have your markets targeted now...it will be more tricky to liquidate gold as the NWO cracks down on freedom.
Another way to keep your
Another way to keep your money safe is to play the currency game. For example. There was a time when gold was selling for around $200 an ounce and silver was selling for $5 and ounce. This means that you could buy 40 ounces of silver for one ounce of gold. So it would have been wise to trade your silver for gold, since gold was selling at a discount. Today silver is trading for around 79 ounces for one ounce of gold.
The thing to look at is the palladium to platinum to gold to silver exchange rate.
Here is the system I use and suggest.
Palladium is twice as rare as gold in the environment
Gold and Platinum are about equal, but platinum is a little rarer.
Silver is about 70 times more common in the environment than gold.
So if we use silver as a currency then today it costs around 79 ounces of silver for an ounce of gold.
It costs around 85 ounces of silver for platinum.
It costs around 17 ounces of silver for palladium.
Palladium is at a very good discount
Silver has been used as money in more places and for a longer
period of time than any other metal in history.
Why are you trying to complicate the situation for people who have never bought a coin in their lives? Keep it simple.
If I try to sell a palladium coin in my ignorant neighborhood, people will look at me cross-eyed and scratch their heads (more so than they already do).
Ron Paul "Sign Wave Across the USA" -- November 5th!
That's why I am here, to educate and get educated.
I don't think it is too complicated. It is actually rather simple.
Palladium is a metal, a precious metal, a currency and real money.
It is the same reason many people are trading their FRNs for gold, because they believe there are going to be more FRNs on the market and the price of gold will go up accordingly.
Gold production however has also been increased over the past few years and with the increase in the dollar against other fiat currencies it makes producing gold in other countries attractive and gold will rush onto the market. The same goes for silver. Countries that produce silver will begin to take advantage of the exchange rate between their fiat money and the FRNs.
As for selling it in your neighborhood, I wouldn't buy gold from anyone unless I went and had it tested. The same goes for silver, platinum or palladium.
grant
Hopping in and out of metals is complicated
for people who have never made a purchase before. Ever heard of "Be right and sit tight". With both the gold and silver markets as tight as they are, you may find yourself locked out at some point.
Where has gold production been on the increase? South Africa? Australia?
You wouldn't buy gold from anyone unless you had it tested? I hope you have an assayer lined up.
Honestly, I think you mean well but you post like someone who doesn't have much experience or fundamental knowledge in this area. Sorry, but that's just my opinion.
Does that mean nobody should own palladium, Of course not.
Ron Paul "Sign Wave Across the USA" -- November 5th!
China has surpassed South
China has surpassed South Africa as the world largest gold producer. as world production has risen above 2500 tons.
grant
I post like someone who
I post like someone who doesn't have much experience or fundamental knowledge in this area. You mean "Be right and sit tight" is rocket science?
Why not everyone own a piece of palladium? What needs to be done is to create demand and sell people on an idea.
In a country where people buy pet rocks and cabbage patch dolls for outrageous prices, why not convince them to buy an ounce of palladium and by doing so increase it's demand and increase the value of their investment.
grant
It's called being in position.
While it may not be rocket science, it's the best advice in times of short supply.
I never said people shouldn't buy an ounce of palladium. You, on the other hand, are a fickle lover and jump from bed to bed buying silver and running to trade it for gold only to swap that a month later for palladium, and so on (those entry and exit fees must really bite after a while). One day you will run to swap your palladium for something that people actually want to buy and you'll find that the door to the bedroom has been locked.
While I wish you the best of luck and honestly hope you make a killing, to suggest this as a "newbie" play is poor advice. Those are the people I am concerned about -- I'll leave the "rocket science" to you.
Ron Paul "Sign Wave Across the USA" -- November 5th!
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duplicate post
Ron Paul "Sign Wave Across the USA" -- November 5th!
Grant... palladium has never
Grant... palladium has never been used as money! it is a metal used almost 100% in the making of catalytic converters in autos.. with car manufacturing down, I would not touch palladium with a 10 foot poll! silver is a much better investment.. not only is silver used as the primary source of money for 5000 years, it is also a metal used in thousands of more applications then palladium could ever dream of. it is also consumed.. this is why there are less ounces of silver then gold! silver is also an industrial metal.. it has 2 great things going for it!
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
Always time for change.
Palladium wasn't around when they wrote the Constitution, discovered 1803 had it been I imagine it would have been considered a candidate for money. On the other hand copper is money and so is paper. So I each case I think Palladium is better qualified.
grant
That's what Obama says.
You never know, palladium could be the next Obama.
Ron Paul "Sign Wave Across the USA" -- November 5th!
Not enought info
You didn't give nearly enough info. How much money do you have? How old are you? Do you have a really secure job? A family to support? A mortgage? Credit card debt? Even if you answered all those questions and more, taking advice off of the internet would still be a dubious move.
In normal times, financial advisers sometimes recommended 5 to 10% of a portfolio be in physical precious metals. But these are not normal times. De-leveraging has been hitting commodity prices really hard lately. I would not be astonished to see the precious metals prices fall by another 1/3 if the trend continues, or go up through the roof if deleveraging plays out and (hyper) inflation kicks in. I expect high inflation eventually - but when?
Real Question
Those answered questions will be the key. I think to many poor panic and think they need to put their life savings in gold or other metals. They need to take a look at Dave Ramsey before they want to invest in metals or the stock market.
you have to ask yourself another question to get your answer
will you actually make a profit when you sell your gold? when gold was over $1000 an oz gas was over $4 a gallon. now gas near me is around $1.44 and gold is at $754. so if next year gold goes over $2000 and oz it looks like gas could go over $8 a gallon if you look at it in those terms.
what i'm getting at is will you have anymore buying power? or will you simply need someone to give you more Federal Reserve Notes to part with your gold? this time next year will $2000 still buy the same amount of goods that $754 buys you now? if so then you didn't make any profit. you simply protected your wealth from inflation.
by no means am i an expert in these matters. i've read Economics In One Lesson by Henry Hazzlitt and that's about all i know. i actually need to read it again so i can better explain things to people. so please don't attack me if what i just said is way off. i've only been into this stuff for about 1 1/2 years.
No matter who you vote for, the government always gets in - Bill Hicks