8 Things Everyone Should Know About Gold

Just moved some gold last week before the drop and I was wondering where and how the price is really determined... NYMEX/COMEX, yadda yadda and so on.

So while I'm googleing this and thats I came across this ARTICLE. James Turk founded this pay for stuff with gold company. (guys a genius) He goes on to explain why gold is what it is and gives a great read on the subject. The article is a bit dated but gives great insight. The site seems legit too.




A picture is worth a thousand words.

Gold’s value comes from its usefulness, not from central banks. It is important to understand that the market gives gold its value, though central banks would have you believe otherwise. Central banks tell you what they want you to hear. They would like you to think that they control gold’s price, as that perception makes it easier for them to bolster the demand for the dollar. But the reality is quite different. The market determines gold’s price, just like it determines the price of a Picasso or a loaf of bread. Central banks intervene in the gold market – just like they intervene in many other markets. The reason for their attempts to manage the gold price is simple. By keeping the gold price low, central banks make the dollar look better. With their interventions central banks are trying to make the dollar look worthy of being the world’s reserve currency when in fact it is not. The gold price is a barometer that measures whether a national currency is being managed well (i.e., no inflation). So by trying to keep the gold price low, central banks artificially make the demand for dollars higher than it would otherwise be. Intervention is also consistent with the statist philosophy of many governments these days, namely, that they will usurp whatever power is needed to try maintaining the status quo that preserves the privileged position politicians enjoy at the expense of taxpayers.

Just a taste.

Might be a good time to start buying fractional coins etc... Don't forget the silver too. Who knows, some think this stuff is just some elaborate scam. Until I get scammed, I say not. Made a pretty penny flipping the stuff over the years and if folks can afford to dabble in it now and the next coming weeks might prove to be that time. That's all I got.

Thanks for reading.
-BC-

The recent drop in gold and silver prices is a buying opportunity. I think they will go lower yet. I'm going to sit tight for a couple more days then I'll start buying again.

reply to post by alonzo730


Absolutely. I feel it'll continue to drop over the next few weeks till it levels out.

Hopefully it goes well for you, unfortunately, a lot of people can't afford to tie up their finances, as they are already depleted.

1) Gold is a special, unique commodity

Duh..

2) Gold’s supply is its aboveground stock

Duh..?

3) Gold is money

No .. Gold can be exchanged for money.. and in some countries it can be used in place of money, and in some countries money is backed by Gold but Gold it's self is not actual "money" in any economy at the moment.

4) Gold is an alternative to the US dollar

No.. Dollars are still excepted at far more places and locations than Gold. Gold is a tool to hedge inflation of currencies, including the Dollar, but it's value is still relative to whatever currency it's being traded into..

5) Gold preserves purchasing power

True. It's main investment use is to hedge inflation.

6) Gold’s value is determined by the market

Sort of. In Western economies the price is still manipulated by both the Gold markets and the Central Banks. But in other areas of the World were manipulation and regulation is less, the market price is typically lower..

7) Gold is in a bull market

Gold is always in a bull market unless you are experiencing deflation. Hence it's a tool to hedge inflation.

But again, revert to rule 5: It retains it's purchasing power... it's value is relative.

8) Buy physical gold, not paper ‘gold’

If you don't buy physical gold.. you're not really buying Gold.

reply to post by BlastedCaddy


I would encourage you to look into Bob Prector's work at elliot wave international. He has a serious case for deflation and the initial collapse of gold and silver. His work is eye opening. get out of the metals and stay in cash, after the crash. then get your commodities for cheap.

Do the opposite of what the masses are doing.

reply to post by satron


Ya gotta do some legwork but its cheap and profitable and puts extra cash in your pocket. 6 months ago I bought 300 dollars worth of silver for 75 bucks at estate sale. Turned it pure, made bars and then made that into 500. Or even better yet, getting out on those beatin paths with a metal detector. Quarters, silver/half dollars and dimes prior to 1964 were all 90% silver. That's only inches down below in the dirt. Your out in the fresh air playin with dirt. If you don't like playing in dirt bring a kid with you. Kids like digging up treasures. Money to be made. Money to be had.

SHTF:

1) You come to me with gold/silver looking to buy food...
2) I say, keep steppin...

IT IS ALL WORTHLESS...

reply to post by jeichelberg


What'll 2 rolls of toilet paper and a wool blanket get me?

Gold will have its uses early on, but during an extended emergency, bartering useful items and skills will be worth more.

Originally posted by Feltrick
reply to post by jeichelberg

 

What'll 2 rolls of toilet paper and a wool blanket get me?

Gold will have its uses early on, but during an extended emergency, bartering useful items and skills will be worth more.

I believe those items would get more food than an ounce of gold....

reply to post by jeichelberg


I know when the shtf gold/silver will(briefly) be useless. Regardless that is not what i am on about. I am talking about the now as in today and Christmas being 10 days out or maybe some other expense. Not when the great flood,the sun farts or the Chinese, Iranians, Syrians, terrorists Lybians! Micheal J Fox, asteroids, aliens birds midgets, inner earth ppl etc happen.

Here is a piece you may not have been aware of in regard to Gold

Gold in food E175

E175 in Food

So is Gold any good for any of us in any sense? I'd say nope.


We fight over it,we struggle to get it, we wear it and we also eat it.
Wars? Illnesses? how much is due to our very expensive treasure?

I see

reply to post by Lee78


Whoa, that's crazy.