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keys
Penny Collector Member
383 Posts |
 Posted - 03/21/2009 : 14:37:50
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File this under
'You don't need to be Sherlock Holmes to see how clueless this author is.'
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Is Gold Really the Safest Investment?
By Ari J. Officer
*********(It has been for over 3,000 years plus, so I would have to say yes. )
....At such high prices, gold ceases to have much practical use.
......(I guess they will stop putting gold in electronics, computer chips, audio and video contacts, etc)
There is no theoretical rationale why anyone should even want to invest in it.
.....(Besides the fact gold has held its value since the days of the pharohs and ancient emperors.)
Gold has value only because we believe it is valuable. It is a collective hallucination.
........(we believe it has value, a collective hallucination, are we talking about gold or the US Dollar? )
......There is something else we use every day that, like gold, has no inherent value: cash.
.....(And at one time cash, as in dollars, were made of gold or silver, a detail writers still conveniently forget.)
Of course, there's a major difference between gold and cash: unlike the dollar, the nondollar value of gold won't be significantly impacted by the U.S. government — only its price in dollars via the government's impact on the dollar.
......And currency explains why gold has not yet made a clear jump above the historic high set a year ago — in U.S. dollars, that is.
......(Historic high, in post inflationarty dollars. Gold would have to reach $2,000 per ounce to reach the $850 price in 1980 dollars.)
.....The dollar has appreciated enormously during the global economic slowdown.
.......(Define enormously, the dollar has been losing value for years, last year it was in the 70 range. Now with the rush into Treasuries the Dollar has had a bounce up, but the bounce won't last forever.)
.........All else being equal, this lowers the price of gold for U.S. investors buying with dollars.
........(All else being equal, inflation makes gold more valuable and US Dollars less valuable.)
...Unlike oil, gold is not consumed, and even when it is used in products like jewelry, it is recoverable and thus maintains its value as the gold that went into it. In other words, the total supply of gold is increasing with gold mining.
....(Gold mine production is declining due to the worldwide recession and a decrease in gold being mined in south Africa, its mines producing less each year. Gold is also consumed in forms that are unlikely to ever be reclaimed, gold plated jewelry, 24K gold applied to plates and dishes, gold used in medicine, gold plated contacts on wires, etc.)
.......So is it time to put all your money into gold? That depends on your appetite for risk. The sheer amount of speculation in gold and uncertainty in the foreign-exchange market will keep gold prices as volatile and unpredictable (i.e., risky) as ever. Like any financial market, the gold market is susceptible to manipulation.
.....(Yet the talk of stock prices being manipulated is ignored, talked down or treated as if it could never happen. What is more, if a goldbug were to mention gold price manipulation they are ridiculed for such a notion, but it is fully acceptable for a writer of Time Magazine to mention gold price manpulation without fear of ridicule. Hypocrisy, thy job is investment advisor.)
***********
Let me guess, back in the 1970s Time Magazine was telling its readership that gold was a terrible investment, buy stocks or bonds, not gold, etc.
If nothing else, when Time is saying "don't buy gold" we will know it is time to buy gold, but when Time says "buy gold" we will know it is time to sell.
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I change with the times-
but like silver coins found in your change
I stay the same.
*****************
The United States of America started out as the new Republic of Rome.
Will The United States of America end up as the New Imperial Rome? |
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
Posted - 03/21/2009 : 18:00:35
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Keys....I'm shocked that you waste time reading Time.
These are the same dimwits (or they're idiot spawn), that told us we were heading into an ice age in the seventies due to pollution, and now global warming is going to kill us all!
Time is to dogsh!# as dogsh!# is to dogsh!#.
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"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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keys
Penny Collector Member
383 Posts |
Posted - 03/22/2009 : 15:46:32
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'Keys....I'm shocked that you waste time reading Time.'
No need to be shocked Delawhere Jack,
I just found this one story on coinflation and decided to
A) Point out the lack of intelligence of its author and the magazine itself for running such a foolish story.
B)Poke fun at said author and magazine.
If the story had not been posted in coinflation I would not have ever found it since I don't subscribe to Time Magazine.
The MSM (formerly the Main Stream Media, now the Mindless Stupid Meatheads) have lost nearly all credibility due to their lack of willingness to find real news and prefer to publish fluff peices to fill the heads of their fluffy headed sheeple readership.
As I said before, when Time and its ilk say "don't buy gold" then it is time to buy gold, when they say "buy gold" then it is time to sell gold. Time serves that one useful purpose in letting intelligent investors know when to get in (when Time says its a terrible investment) and when to get out (when Time says it is a can't miss investment).
(OK maybe there are two uses for Time, but almost nobody wraps up fish in newsprint anymore...) |
I change with the times-
but like silver coins found in your change
I stay the same.
*****************
The United States of America started out as the new Republic of Rome.
Will The United States of America end up as the New Imperial Rome? |
Edited by - keys on 03/22/2009 15:58:40 |
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fb101
Administrator
USA
2856 Posts |
Posted - 03/22/2009 : 16:16:17
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| Actually, there would be three if the ppaper would flush better. |
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psi
Penny Collector Member
Canada
399 Posts |
Posted - 03/22/2009 : 18:47:14
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I don't think it's really that bad of an article. It doesn't show much perspective on inflation as per some of your quotes but I don't disagree with the main point that gold prices right now are driven largely by speculation. I also don't think the article is necessarily arguing that this is a bad time to buy gold.
One point where I think it does make sense:
quote:
And currency explains why gold has not yet made a clear jump above the historic high set a year ago — in U.S. dollars, that is. The dollar has appreciated enormously during the global economic slowdown. All else being equal, this lowers the price of gold for U.S. investors buying with dollars.
Independent of the dollar, gold has actually increased considerably in value. Indeed, the prices of gold in euros, British pounds and Canadian dollars set their record highs, by a large margin, in 2009.
If you think about it this is actually a point in favour of buying gold right now if you make your money in us dollars, since you're effectively getting it at a discount. My feeling is that the us dollar is just temporarily overvalued. |
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
Posted - 03/22/2009 : 18:48:21
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Didn't mean to come across as condesending.
I sometimes read a MSM article just to see what he public is being fed. I cannot however watch ANY network news program for more than a minute without wanting to scream.
BTW, my dear sweet elderly mother told me a couple weeks ago that buying gold was a bad idea, they said so on the Tee-Vee.
I told her to shut her trap and finish splitting my firewood! 
(Just kidding, I never make mommy do that....she was shingling my roof).
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"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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El Dee
Penny Hoarding Member
USA
547 Posts |
Posted - 03/23/2009 : 13:59:24
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TIME magazine imagines the best investment for the lumpen is copies of its own magazine. IF they REALLY want to describe a collective hallucination, subprime loans and derivative securities make a superior example. Paper money, close behind.
Among other things, always check the page numbers of TIME for accuracy. Back when Reagan was shot, the next issue had a sidebar graphic of the bullet leaving the gun and traveling through the air.
The cartridge case was still attached. |
Trust the government? Ask an Indian. |
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
Posted - 03/23/2009 : 17:12:03
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quote:
Originally posted by El Dee
Among other things, always check the page numbers of TIME for accuracy. Back when Reagan was shot, the next issue had a sidebar graphic of the bullet leaving the gun and traveling through the air.
The cartridge case was still attached.
You mean like the animation you make on a notepad, and then flip through to make it move? |
"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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El Dee
Penny Hoarding Member
USA
547 Posts |
Posted - 03/23/2009 : 18:40:35
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Kind of sort of - more like a cartoon strip.
I recall that it showed a string of illustrations:
1)cross section of it in the gun unfired 2)fired, leaving the muzzle 3)passing through the air, 4)striking the body 5)shattering.
Like I said, the brass cartridge case was shown in each illustration still attached to the bullet. It would be like showing an arrow hitting a target with the bow attached. |
Trust the government? Ask an Indian. |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 03/23/2009 : 19:03:01
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quote:
Originally posted by psi
I don't think it's really that bad of an article. It doesn't show much perspective on inflation as per some of your quotes but I don't disagree with the main point that gold prices right now are driven largely by speculation. I also don't think the article is necessarily arguing that this is a bad time to buy gold.
One point where I think it does make sense:
quote:
And currency explains why gold has not yet made a clear jump above the historic high set a year ago — in U.S. dollars, that is. The dollar has appreciated enormously during the global economic slowdown. All else being equal, this lowers the price of gold for U.S. investors buying with dollars.
Independent of the dollar, gold has actually increased considerably in value. Indeed, the prices of gold in euros, British pounds and Canadian dollars set their record highs, by a large margin, in 2009.
If you think about it this is actually a point in favour of buying gold right now if you make your money in us dollars, since you're effectively getting it at a discount. My feeling is that the us dollar is just temporarily overvalued.
I too didn't think it was way anti-gold. The part where it said most of the gold ever mined is still around has a ring of truth to it. One reason I'm more bullish on silver over the long, long, and maybe even longer term. |
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Think positive. |
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vrbsroma
Penny Collector Member
394 Posts |
Posted - 03/23/2009 : 21:36:43
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| Isn't there a basic investment rule that goes something like: "Look at what everyone else is doing, and then do the opposite?" |
As far as I know, it is stated "In God We Trust" on the US dollar. How can I trust this currency if I do not believe in God?
Possession is nine-tenths of the law.
When I give my two cents, they're always copper! |
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Wrong TIME again
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