Is now the right time to buy Gold ?

With every passing day I am feeling more and more uneasy about having all my currency wealth in the bank. I have been contemplating buying physical gold for some months now but thought that the market price was artificially high, so delayed it.

I have made the decision to convert 90% of my spare currency into physical gold on Tuesday. I am fearing a NYSE crash as soon as Aug/Sept and assume the USD will crash with it causing other world currencies to follow.

I am no expert on financial matters but am of the opinion that the FED needs this to happen in order to introduce a new world reserve currency and or chip implants. I am not doing this as an investment, but am merely trying to protect my limited wealth. Does anybody else feel this way or am I over reacting??

Any advice, no matter how critical is most welcome

PEACE,
RK

I dont think you are over-reacting. If you want to stay in the "grid", buy gold to use as a stable, non-volatile means of currency.

Its value will only go higher and higher.

Personally, I think that any kind of money, currency, or precious metals is a waste of time. You cant eat gold, or shoot it, or use it for anything but bartering and buying things. If there is no way to get to the grocery store, because gas is $100 a gallon and your truck is broke....then what are you going to buy?

Time will tell if these predictions come to light. I say stock up on survival skills, and read up on how to live without the "grid".

reply to post by havok


I agree, I bought a few 10's of oz. of silver just in case but the previous poster's comments are right on the money.... you can't eat it or shoot it and it is only as valuable as what you can get for it.

Food on the other hand is always needed and seems to double in value / price every few years. It doesn't go down in value for sure, unless you throw it away.

Also ammunition, lead and brass are my two favorite precious metals nowadays.

Anytime is a good time to have an abundance of food!

Remember the 5 physical basics:

Food

Water

Shelter

Community / companionship

Defense - (Very important because without defense someone will take your other 4!)






[edit on 19-7-2009 by infolurker]

Originally posted by Rigel Kent
With every passing day I am feeling more and more uneasy about having all my currency wealth in the bank. I have been contemplating buying physical gold for some months now but thought that the market price was artificially high, so delayed it.

I have made the decision to convert 90% of my spare currency into physical gold on Tuesday. I am fearing a NYSE crash as soon as Aug/Sept and assume the USD will crash with it causing other world currencies to follow.

I am no expert on financial matters but am of the opinion that the FED needs this to happen in order to introduce a new world reserve currency and or chip implants. I am not doing this as an investment, but am merely trying to protect my limited wealth. Does anybody else feel this way or am I over reacting??

Any advice, no matter how critical is most welcome

PEACE,
RK

The right time to buy gold was 4 years ago when it was under $275 an ounce. Buying gold now at roughly $900 an ounce is more risky as the price will most likely fall after the invent of a world currency, which will most likely happen before 2012.

I don't know if buying gold is the way to go, but has anyone else seen all of these cheesey commercials from local companies (jewelry) advertising that they buy all your old gold jewelry?

I have seen countless commercials on TV regarding this lately. This indicates to me they know something.

Gold is way too high to buy right now....

rest assured it WILL go higher but not by much...LAST 2 yrs was the time to buy when gold was near $400 a oz

Gold WILL go over $1000/oz but by this time, unless you are investing 100,000+ the profit you make wont be worht the hassle...

The reason gold is so important is that its earth's great electromagnetic conductor...

Space sends us frequencies....

Theres a reason the vatican is paved in gold, especially the dome ceilings..

Same with ancient pharoahs...

To us its bling bling...to them it was a download accelerator if that makes sense to anyone...

If you OWN gold in the tiniest amount, keep it on your body these next couple of yrs...

reply to post by havok


Thanks for that advice, much appreciated, I have already started filling a dry larder and have an emergency diesel generator, but also want to try out some solar panels in the near future.

My wife thinks I am a nut job....

PEACE,
RK

reply to post by Rigel Kent


No prob. Most people think I'm crazy too. But, I'd always rather be safe than sorry. Im sure alot of people here can vouch for that.

I'm 100% sure about my skills in the woods. Maybe because I was raised hunting, fishing and camping. I am not afraid to live alone, in the wilderness, if I have to. Well, I will lead a group of people too. I fell as though one of my roles in life is to do that particular thing. Weird, huh?

I also agree with a previous post about the price dropping. Its probably too late to get good deals anyways. I think we put the value on gold. Why do you think there 344,544,200 commercials about buying gold on TV? Somethings happening and TPTB know it.

reply to post by OpenYourEyez


I couldn't agree with you more, trouble is, 4 yrs ago I would never have imagined I would be sitting here now in such troubled times and in this frame of mind. I know the price seems high right now but if the SHTF I think most or all currencies will fall through the floor.....

Thanks for your advice,

PEACE,
RK

Originally posted by PowerSlave
I don't know if buying gold is the way to go, but has anyone else seen all of these cheesey commercials from local companies (jewelry) advertising that they buy all your old gold jewelry?

I have seen countless commercials on TV regarding this lately. This indicates to me they know something.

Yes I had heard that the pawnbrokers were advertising aggressively to buy.
If the demand is high then the price will rise, that was another reason I was thinking now is the time to buy,

My wife buys her jewelry from one local dealer and just the other day he was asking her if she wanted to sell any back to him. I too think they know something.

Thanks,

PEACE,
RK

reply to post by Rigel Kent


No, the government would take your gold for a "national emergency". They would probably pass new laws like EO6102 to take your gold and give you useless paper for it. 90% is too much anyways.

As the others have said: buy defense items, non-spoiling food, water, and basic necessities, maybe even camping gear. You can't eat or protect yourself with gold.

Originally posted by Krystian
Gold is way too high to buy right now....

rest assured it WILL go higher but not by much...LAST 2 yrs was the time to buy when gold was near $400 a oz

Gold WILL go over $1000/oz but by this time, unless you are investing 100,000+ the profit you make wont be worht the hassle...

Thanks for that,
My reason for buying gold is to protect the wealth that I presently hold in cash as If all the world markets crash, so will the currencies. so by holding gold, the price will rise a) due to high demand for it and b) to keep its value stable due to the falling dollar, i.e if the dollar halves in value, theoretically gold should double (in dollars) hope that makes sense,

PEACE,
RK

10 to 15% of your investments in gold and silver won't hurt, if you lost only 10 to 15% you are still doing okay, but certainly diversify your investments and holdings, however you can't beat land for a real ROI especially from the survival point of view.

reply to post by BenIndaSun


I hear you,

I can not own a weapon, but my wife has an application being processed now so fingers crossed. I appreciate that 90% seems to be a high holding but my reasoning for this is that these are extremely unusual times so the normal % distribution of wealth in property, currencies, equities, gold and cash don't apply. I live in Asia so not sure about the government seizing gold, I will look into that. Food and water etc is being taken care of.

Thanks for your advice,

PEACE,
RK

Originally posted by Rigel Kent

Originally posted by Krystian
Gold is way too high to buy right now....

rest assured it WILL go higher but not by much...LAST 2 yrs was the time to buy when gold was near $400 a oz

Gold WILL go over $1000/oz but by this time, unless you are investing 100,000+ the profit you make wont be worht the hassle...

Thanks for that,
My reason for buying gold is to protect the wealth that I presently hold in cash as If all the world markets crash, so will the currencies. so by holding gold, the price will rise a) due to high demand for it and b) to keep its value stable due to the falling dollar, i.e if the dollar halves in value, theoretically gold should double (in dollars) hope that makes sense,

PEACE,
RK

I mean if we are talking anything under 10k it wont be worth it for you because you will trade all that $ in for a credit card sized piece of metal...

If you have substantial money invest half of it in gold, wait until the end of the yr or next yr when it reaches that 1000+ mark and sell...

But @ 900/oz you are running a risk if you dont sell it fast enough because it WILL later subside and go down in price again, below even what we see today.

Originally posted by Krystian
Gold is way too high to buy right now....

rest assured it WILL go higher but not by much...LAST 2 yrs was the time to buy when gold was near $400 a oz

Gold WILL go over $1000/oz but by this time, unless you are investing 100,000+ the profit you make wont be worht the hassle...

OK - you have asked a question on a topic on which I consider myself to be extremely well informed.

The problem I am facing is that I have so much information, but I'm lazy to make a huge post - so I am going to condense it - and you can go and verify it yourself. After all - its your money we are talking about.

Personally I hold about 50% of my wealth in silver, and about 45% in gold, and the remainder in multi-national resource stocks (not listed on the US stock exchange - Canada, South Africa and Australia are probably the best).

Firstly - the current gold price is CHEAP - at around $940/oz as it is right at the moment. In fact, if gold were to be revalued properly against inflation as a precious metal - a realistic price would be around $6,000/oz.

What an outrageous statement I make? $6,000/oz. Obviously you can stop reading - because I am unhinged. In fact, that is the reason why many forecasters tell you $1,500/oz. Because if they told you what they really think - then people would discount it on pure incredulity.

So if gold is so valuable, you might ask - why is the price so far off my estimate of its value, especially considering we are in a climate of economic fear and hardship.

If you had thought to ask me that question - then kudo's to you - it is a question with a fairly simple answer, but how to interpret it is extremely difficult.

The gold price is low, because the market is relatively small and it is being artificially manipulated downwards.

So a few questions, how is it being manipulated, by who and why?

1) Who.

Some international banks, specifically Deutchse Bank that I know for sure, and the BIS (Bank of International Settlements) are selling paper gold and silver in the form of ETF's. They are doing this on many markets at the same time.

They are receiving fiat currency from sponsoring governments managed in offshore (hard to trace, but not impossible) accounts. The sponsors are the Federal Reserve and the Bank of England - there are sure to be others participating also.

2) How.

They sell gold and silver paper at low prices (dropping the price) - then allow the market to appreciate. Now, many people simply sell the ETF and take the cash - because the profit is quick, and its easy to do. This costs them money - hence the sponsoring governments are footing the bill for them - the Bank of England, Federal Reserve to name two for sure.

How is it manipulation you ask. Well, the law dictates that they must hold 9 oz of gold, for every 10 oz they sell as an ETF. However, they know that 99% or more of people are simply going to take cash (especially when they are basically guaranteeing a short term profit) - and not delivery of the physical metal - this percentage goes up the more profit that people can make by reselling the paper. So in fact they hold very little gold - so the gold market is flooded with paper - meaning it is in apparent over supply. The reality is that there just isn't that much gold - but it does have the effect of keeping the price down.

3) Why.

Gold is an international currency and has been so for the history of mankind. It is also a competing currency with every fiat currency. The scum who control the western governments know this, and they really hate gold. The reason is because when paper money goes down - gold goes up - it is an inflation hedge. So if you push down the gold price - it makes all your paper currencies look a lot better. If they let gold appreciate normally at the moment - it would probably crash a few important international currencies very quickly.

Thats the simple reason - but there are complexities to it. Are they going to stop doing it to crash the rest of the worlds currencies? Or are they going to keep it down and then use a bank holiday and implement a new currency so gold holders never see a profit? It really depends on where the gold is - and its a question that I can't really answer. Central banks hold only 10-15% of reserves in gold at this time - but the gold that is missing is gold they have leased. Does this mean that they have a legal hold on the gold that is leased? Perhaps - if so, then we can expect the gold price to spike. Its also possible that these guys have privately bought gold off market, and no-one would know they have it.


SILVER - THE NEW GOLD

As a last statement I would say the following. Over the last 100 years silver has been used as an industrial metal - and its price has reflected that. Silver occurs in nature at a ratio of about 17 oz of silver to one oz of gold. Historically, silver was usually priced at about 1/15th to 1/20th of the gold price - today it is 1/70th the value of gold.

Silver stocks at the start of the last century were around 15 times as plentiful as gold, today there is actually slightly more above surface gold than there is silver - so silver today is more rare than gold, but it is priced at 1/70th of the gold price.

If the gold price surges - thrifty buyers will tend to shy away from it, as silver will look cheaper and more available. Of course it isn't more available - it is rarer. Today silver is priced as an industrial metal - if gold goes up, it will be viewed as a precious metal - an alternative to gold, if that happens - all hell will break lose with the silver price.

The short answer is - whatever happens, you will make money buying silver at todays prices. If you are lucky, you could receive incredible returns on silver within months.

Gold is still a very solid investment at this time - at times I regret holding so much, as the market is volatile and predictable - I made 9% in two days recently on the stock market (Leveraged at 75%, means I actually made 36%). When I think about how much that would have translated to if I had all my money on the market, I want to cry - on the other hand - gold and silver might move like a runaway train at any time.

Originally posted by Rigel Kent
reply to post by OpenYourEyez

 

I couldn't agree with you more, trouble is, 4 yrs ago I would never have imagined I would be sitting here now in such troubled times and in this frame of mind. I know the price seems high right now but if the SHTF I think most or all currencies will fall through the floor.....

Thanks for your advice,

PEACE,
RK

I think we all saw this coming, no one wanted to believe it would be a reality...not concerning gold but the downfall of the economy here

We are experiencing the next shift right now, think of all the things people dont expect to happen in the next 3 yrs... - they will

reply to post by Amagnon


You have given me some food for thought there.
I was aware of the ETF method of owning gold but to be honest, I just don't trust those operating it so as I stated I want to buy "physical gold" that I can keep at home. The present price does not phase me at all as If the markets and currencies crash I am pretty sure gold will hold up well.
You present a very strong argument for Silver so I will start my research immediately.
Many thanks for your time and detailed advice,

PEACE,
RK

China produces a lot of gold annually, and are keeping it all at home. In addition, China is buying masses of gold.

Saudi Arabia just bought an assload of gold.

Right now the price is certainly high compared to a few years ago, but with the US Government printing dollars like they are, we'll likely see double digit inflation within the next ten years, which will further boost the price of gold.

While not as liquid as cash money, it holds its value whether you have inflation or not.

In bad times, gold will get you things that money won't.

A moderate investment is a security in this very depressed economy.

As another poster stated, other good investments would include staples, ammunition, and firearms. I note they only grow in value as well. Especially ammunition and quality firearms.

Just think of the things you'd really need if tomorrow you were dropped on a deserted island, and it is these things that will always be precious.