Gold Reaches $1,500 For First Time In History

Originally posted by OnTheFelt

Originally posted by SirMike

Originally posted by OnTheFelt
Sigh and yawn....like usual you regurgitate rubbish! A bubble, hence the notion of something bursting must be over inflated. However, since less than 5% of the world population have holdings in gold or silver there is no bubble.

And less than ,1% of the population owned collateralized debt obligations ... how did that turn out for them?

Nice strawman, Mike...but hey you had to come with something right? But jesus almighty did you really just try to compare precious metals with toxic assets....I mean are you kidding me? I'll tell you what big guy, not sure if you own any precious metals, but if you do, I'll gladly buy them off you.

I will give you this though, you did just accurately describe what a true bubble is so much appreciated.

Sub prime mortgages - BUBBLE
CDO's - BUBBLE
Collateralized debt obligations - BUBBLE
Gold/Silver - NOPE

You base your arguement that there since less than 5% of the world population have holdings in gold or silver there is no bubble and you have the audacity of accusing "me" of using a strawman!

Critical thinking must not be one of your strong suits pal.

Commodities are in a bubble. Whether that bubble breaks in 10 days or 10 months .. its going to break. Whether the bubble appreciates another 5% or 500%, its going to break. People who buy in at the end of this commodity bubble are going to lose their a$$’es. By all means pretend this isnt the case and continue under the delusion that all trends, regardless of their sustainability, will continue indefinitely.

I plan on making quite a bit of money off my precious metals … although a portion of it will just shield me from my equity losses. But if you prefer to put all your eggs in one basket mindlessly droning on and on an infinite price ceiling even when you see the precipice of the bubble be my guest.

Guys, if I buy gold today at $2000 a troy ounce, and next year the price is $1500 per troy ounce, I did NOT lose any money.

All that means is the dollars at $1500 per ounce are worth more, with $500 greater purchasing power.

I didn't lose a dime.

reply to post by FarArcher


Agreed gold / silver in physical form is not a traditional investment. i.e to turn a quick buck. it is a store of true wealth, and inflationary hedge.

Fiat in you wallet will remain static and will not rise with inflation. Metals will.and they will fall. But you will not lose

IMO #1 rule with G & S, forget the concept of profit making and taking, if you want to do that stick to the Comex day trades. this is our way of monetising the debt, into real assets.

China isn't storing up this stuff, just to turn a quick buck. They know whats coming.

reply to post by KrypticCriminal

He bought them back at twice the price - not many people know about it either.

Originally posted by bekod
well hold on to hats folks the downward spiral has begun www.kitco.com... gold will now be on a out of control no stop free fall.It has begun.

Your joking right? Gold is $1505 and Silver just hit $44.63, and is heading higher, one blip in an hours trading means nothing..

Originally posted by WielderOfTheSwordOfTruth
Just a quick question to the gold buyers as I'm not one of them, when you "buy" gold do you actually receive the physical pieces of gold? Or do you just get a piece of paper that says you "own" gold that's somewhere in some vault that you can never see?

I'm pretty sure its the second, soo... what guarantee is there that you're actually going to get anything? What if sh#t really hits the fan, what is your piece of paper going to do? What if the gold just goes missing(like on 911)? What if the grid goes down and all the records of who owns what is lost? What if nobody wants to buy your gold(piece of paper) then what worth does it really have? If SHTF and we have a period of bartering, who's going to want gold? You can't eat it can't drink it and you'd need some lot of it to make a shelter out of it...

I don't trust the whole gold idea...

My wifes parents went through the Japanese occupation of Singapore during the second world war. When the occupation happened the old currency was worth nothing, and the people that got buy during the occupation were those ones who had physical gold and could use it to buy much needed medicines, food supplements, etc.. and to bribe there way out of an indiscriminate beating from the soldiers, and to pay the soldiers not to rape or beat there women.

This is why today still, many chinese keep physical gold and silver in small denomination bullion or coins, like 1/2 oz and 1oz silver, and smaller gold bars like 5 grams.

We have continued this tradition and keep some physical gold and silver for when the SHTF (which it will), but I agree, I would not buy any paper ETF in gold or silver, try and collect them when things turn to crap.

reply to post by searchforknowledge


Dear Searchforknowledge.
When TSHTF as you so succinctly put, gold and silver won't mean a thing. This is why I find man's obsession with gold and silver slightly ridiculous.

You think you're going to go out with your gold bars trading for food when the economies are shot? Heh. When everything does reduce to pure anarchy it isn't going to be gold and silver getting you anywhere, more food/water and other REAL commodities.

Keep buying the gold trading monkeys..

Regards,
T

Investing all of your assets you own now into gold is stupid. Sure the price of gold is rising, but the ship has sailed. You might be able to use it for a short term hedge, but buying it now at an all time high for future growth potential isn't wise.

Asset allocation is a proven method for long term growth with a proper diversification model. We talk all the time about the dollar becoming worthless, but the dollar is only one way to represent ideas and physical property. If you own 100 shares of Google, and the dollar becomes worthless, you still own 100 shares of Google; not $0.00. In other words, Google does not become worthless if the dollar fails. Your house will not become worthless because you paid dollars for it.

As mentioned before, if SHTF people aren't trading bars of gold for purified drink water. Like any investment, don't drop all you have into it. You need to diversify. This 1980's mentality of buying the hot stock isn't going to get you far.

Everyone worries about what's going to happen if SHTF, how much ammo and rice and water do you have? But what if the world continues to move on like it always has. How are you going to retire on a stockpile of dried goods and bottled water and ammo and gold? What's gold going to be worth 10 years from now?

Nobody knows. It's okay to hedge your investments with some gold, but don't drop your nest egg into one commodity. Diversify.

beware the bubble. i've said it before, when the general population is gung ho about an "opportunity of a lifetime" its too late. for crying out loud you can buy gold in a vending machine these days.
we are almost approaching the "mania" stage of this bubble. same thing happened with housing, tech stocks, oil a few years ago. etc. everybody always says it will go up forever and are always wrong.
it will deflate just be careful friends.

reply to post by FarArcher
i go and buy a car for 2500$ and sell it for 1500$ i did not lose any money where did you learn math? you and i lost 1000$ now if i sell that car for 2500$ i broke even if i sell it for 2501$ i made a buck them that bought gold at 1500 lost 15$ at close www.kitco.com...

reply to post by searchforknowledge
no i am not just like the housing market it is about to go bust. So yes by all means fall for this scam, just know when to sell and be ready for a big loss.

reply to post by bekod


You make the point (when they sell it), most people who but gold as in physical gold, do not buy and sell it the same day, Yes if your trading paper on the COMEX you may be and in and out day trader, and yes, if you bought at $1500 and it dropes by $15 then your out of the money. But in a rising commodities market, not to many day traders would take a $15 loss, when it could go up by $15 tomorrow, if they did they would not be day traders for very long, they would be broke.

Originally posted by searchforknowledge

Originally posted by bekod
well hold on to hats folks the downward spiral has begun www.kitco.com... gold will now be on a out of control no stop free fall.It has begun.

Your joking right? Gold is $1505 and Silver just hit $44.63, and is heading higher, one blip in an hours trading means nothing..

I find the people that talk bad about gold and silver are the the people that are mad they missed out on the gold and silver train. There aim is to scare you into selling your metals so you can feel as hopless as they do

Originally posted by camaro68ss

Originally posted by searchforknowledge

Originally posted by bekod
well hold on to hats folks the downward spiral has begun www.kitco.com... gold will now be on a out of control no stop free fall.It has begun.

Your joking right? Gold is $1505 and Silver just hit $44.63, and is heading higher, one blip in an hours trading means nothing..

I find the people that talk bad about gold and silver are the the people that are mad they missed out on the gold and silver train. There aim is to scare you into selling your metals so you can feel as hopless as they do

I'm not denigrating investing in metal but.....Remember the housing market? Remember the Hunt bros? G&S is much the same with speculation in overdrive. It's a bubble and when it breaks.....no whining ok. The secret is knowing when to bail.

This is the top of the gold spectrum, SELL, SELL, SELL!!! Don't BUY!!! This is a classic runup, all the people buying gold now are going to lose the money invested. This is all goes in cycles. The last time gold made a run like this people started buying when it was at it's highest. The money men are getting ready to cash out and laugh all the way to Wall St. They will then reinvest the money in real estate, because the real estate market is the place to reinvest your liquid capital and not take such a huge tax hit. Gold will sell off by mid May.

reply to post by Geronimeaux
you got it it! Gold is now on the down fall if you still have gold, get ready for a big loss in value.

reply to post by bekod


You have to be joking right? Open your eyes and look around whats is happening, the bloody Aussie Dollar hit $1.08 against the US$ today. The USD$ reserve currency has tanked, why the hell would Gold and Silver fall when the fiat backed USD is crashing faster than the dinner plates in a rowdy Greek resteraunt..... hold onto your hat, Gold and Silver will rocket...

Gold breaks 1550 with Uncle Buck struggling to hold a 73 handle.

This Kitco page shows what percentage of a metals price change is attributable to dollar strength/weakness versus investor demand/selling. When the price increase is weighted towards investment demand as it is currently...that's Gold trading as "money", i.e., the currency of choice.

Link