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(Telegraph)   Gold hits record high on news that people prefer assets that are not created by pressing zero on a keyboard. AU NOES   (telegraph.co.uk) divider line 64
    More: Obvious, gold prices, recession shapes, quantitative easing, economic reports, ECB, hit records, World Gold Council  
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977 clicks; posted to Business » on 20 Jun 2010 at 5:27 AM (4 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2010-06-20 05:37:06 AM
I picture myself as Zoidberg.

I cautiously look in and see no one else around.

Giddy, I yell RON PAUL and then run away.
 
2010-06-20 05:38:23 AM
Gold is a terrible investing instrument. It earns nothing, doesn't experience growth, and you can't eat it. Plus, you don't really even get the physical item, just a piece of paper that claims ownership. It is no better than stocks, and has much worse negatives.

Also, if the apocalypse comes, it won't be useful for barter. Guns, bullets, whiskey, and water will be. Suckers.
 
2010-06-20 05:46:45 AM
Unless truly high levels of inflation hit, I don't think current prices can be sustained. Sure, having a bit of it as a hedge isn't a terrible idea, but buying into gold right now is a really asking to lose money.
 
2010-06-20 06:06:17 AM
Ah, Gold, the first fiat currency and the first metal refined by man.

Everyone acts irrational about it until they get hungry, and suddenly it is just a heavy and somewhat decorative metal that doesn't corrode. Perhaps a coin is inherently worth a couple sandwiches or a bowl of stew.
 
2010-06-20 06:39:14 AM
We're over 450 gallons of gas per ounce of gold. The highest it's ever been was 600 gallons an ounce in the early 80's. The average is around 300, so gold has to come down or gas has to go up a fair bit.
 
2010-06-20 06:46:30 AM
I guess I'm gonna break down and sell some old rings n shiat if people are going to be stupid enough to pay that much.

What's up with diamonds? They going up too?

/lazy
 
2010-06-20 07:08:45 AM
BadAnalogyGuy:

Also, if the apocalypse comes, it won't be useful for barter. Guns, bullets, whiskey, and water will be. Suckers.

reason.com

Lord Humungus agrees. "Gazzoline" will also be quite valuable.

//image is hot-linked.
///btw, BAG, everything you've posted lately has been gold. you're on my favorites, dude.
 
2010-06-20 07:11:47 AM
thedeadshallwalktheearth666: ///btw, BAG, everything you've posted lately has been gold. you're on my favorites, dude.

Gold is a worthless commodity. But fame... I like that.

/I'm going to live forever.
 
2010-06-20 07:35:12 AM
I'll give you an ounce of gold to touch your fame!
 
2010-06-20 07:40:50 AM
bigfatdave: I'll give you an ounce of gold to touch your fame!

At these prices, it's very tempting.
 
2010-06-20 08:02:38 AM
BadAnalogyGuy: Gold is a terrible investing instrument. It earns nothing, doesn't experience growth, and you can't eat it.

You can't eat dollars either.

People like you again miss the point of gold. People don't buy gold looking to make money. (If they do, then that's just gravy.) They buy gold/silver to avoid loosing purchasing power. The government can print dollars, they can't print gold.

If someone buried $100 in Federal Reserve notes in 1913, they have the equivalent purchasing power of a $5 bill.

If someone buried $100 in gold in 1913 (5 ounces of gold.) They have over $6000 today in purchasing power. That is how much value our currency has been stolen by the government for it to spend on whatever it wants.

Gold has not increased in value. It is Fiat currencies that are loosing value. The increase in the price of gold simply reflects that declining purchasing power. People see this and they don't want to be left holding the bag.

Stocks tend to do poorly in a high inflation environment, see the 1970's, though they are better to own than cash or bonds.

BadAnalogyGuy: Plus, you don't really even get the physical item, just a piece of paper that claims ownership. It is no better than stocks, and has much worse negatives.

Then buy physical metal. All the people I know who are buying gold/silver either buy into the Perth Mint or buy physical.

You also forget that the US has gone through periods where owning stocks was a very bad idea, the 1970's was one decade. The 00's another decade. Stocks were flat for the decade and lost significant value to inflation. Gold/silver rose in value over that time.

Sure the price collapsed in the 80's when Volker raised interest rates, but that is not an option in the US today.

In high inflation times, gold and silver have always been the safe bet. Governments can't print them and unlike stock, their value can't drop to zero. It is also rather easy for governments to seize stock assets. (Don't think it can't happen. Who would have thought 10 years ago that the gov would be getting away with what it is now.) It's much harder for the government to seize physical metal. It is also much easier to leave the country with physical metal.

Right now, the metal to buy is silver. It still has not taken out its highs and is seriously under-priced vs gold. Get out the phone book and call around to find a local dealer that charges a reasonable markup over spot for junk silver.
 
2010-06-20 08:10:56 AM
I should also mention that I agree in that a 100% gold/silver strategy is not a good idea.

You should diversify and have some money in dividend paying stocks. That of course means not buying US stocks and looking outside the US. US stocks are still overpriced and pay poor dividends. I'm getting 10% cash dividends on a couple of my foreign stocks. The price has risen, but even at today's prices they still pay about 8%. These aren't junk quality companies either. Try finding that in the US.

Your stock of physical gold/silver is your safety play.

This way you get the best of both worlds. You get some investments that are producing a return and you have some safety and guarantee that you won't lose everything.

Whatever you do, don't own bonds or TIPs. Especially don't own cash beyond your immediate living needs. Unless of course you like losing purchasing power.
 
2010-06-20 08:20:12 AM
Crosshair:

What would 100 dollars put in an S&P index fund in 1913 be worth now?

What would 100 put into average real estate be worth?

What would a 100 dollar used 1911 Model T be worth?

What benefit would 100 spent in 1913 on electricity distribution, roads, or education have yielded by now?
 
2010-06-20 08:34:40 AM
I am sure that when anarchy, chaos and catastrophe befall the nation I will be able to drive into the city in my fully fueled automobile and simply redeem my gold certificate for actual tangible bars of gold that I will be able to carry home unmolested where I will be able to put in on a plate and eat it.

Fun fact Gold is classified as a food additive under the name E175 in the Codex Alimentarius by the European Union. The certificates might still be more nutritious though depending on whether they are printed on regular paper, recycled paper, parchment or high-quality hemp paper.
 
2010-06-20 08:54:25 AM
Gold salts were once a treatment for severe RA.

So there's that.
 
2010-06-20 09:32:17 AM
BadAnalogyGuy: Gold is a terrible investing instrument. It earns nothing, doesn't experience growth, and you can't eat it. Plus, you don't really even get the physical item, just a piece of paper that claims ownership. It is no better than stocks, and has much worse negatives.

Also, if the apocalypse comes, it won't be useful for barter. Guns, bullets, whiskey, and water will be. Suckers.


The gold is for buying those things. Coins are easier to carry around than those other things. That is why we use money.
 
2010-06-20 09:37:38 AM
yakmans_dad: Gold salts were once a treatment for severe RA.

So there's that.


I think they still are, it's just not as common since there are several other options available.
 
2010-06-20 09:42:06 AM
BadAnalogyGuy: Gold is a terrible investing instrument. It earns nothing, doesn't experience growth, and you can't eat it. Plus, you don't really even get the physical item, just a piece of paper that claims ownership. It is no better than stocks, and has much worse negatives.

Also, if the apocalypse comes, it won't be useful for barter. Guns, bullets, whiskey, and water will be. Suckers.


Yes, but those sheets of paper you have claiming that you own a portion of a corporation can be consumed.
 
2010-06-20 09:45:21 AM
Crosshair:
Right now, the metal to buy is silver. It still has not taken out its highs and is seriously under-priced vs gold. Get out the phone book and call around to find a local dealer that charges a reasonable markup over spot for junk silver.


What makes you so sure it's not gold that is overpriced vs silver? And silver isn't cheap. The comparison just makes gold look all the more ridiculous.
 
2010-06-20 09:51:46 AM
BadAnalogyGuy: Gold is a terrible investing instrument. It earns nothing, doesn't experience growth, and you can't eat it. Plus, you don't really even get the physical item, just a piece of paper that claims ownership. It is no better than stocks, and has much worse negatives.

Also, if the apocalypse comes, it won't be useful for barter. Guns, bullets, whiskey, and water will be. Suckers.


I think you are forgetting Bottle Caps, DUH!
 
2010-06-20 10:05:12 AM
The Billdozer: BadAnalogyGuy: Gold is a terrible investing instrument. It earns nothing, doesn't experience growth, and you can't eat it. Plus, you don't really even get the physical item, just a piece of paper that claims ownership. It is no better than stocks, and has much worse negatives.

Also, if the apocalypse comes, it won't be useful for barter. Guns, bullets, whiskey, and water will be. Suckers.

I think you are forgetting Bottle Caps, DUH!


And back copies of Pugilism Illustrated.
 
2010-06-20 10:08:34 AM
If I had an ounce of gold for every time someone on Fark wrote that gold is worthless I'd be..(gets out calculator)..HOLY SHIAT!!
 
2010-06-20 10:24:27 AM
Its kind of pitiful that any human being actually wants gold, but there are times in which, given that stupid interest in shiny things already exists, people can buy gold to take advantage of said interest.
 
2010-06-20 10:25:23 AM
Crosshair: I should also mention that I agree in that a 100% gold/silver strategy is not a good idea.

You should diversify and have some money in dividend paying stocks. That of course means not buying US stocks and looking outside the US. US stocks are still overpriced and pay poor dividends. I'm getting 10% cash dividends on a couple of my foreign stocks. The price has risen, but even at today's prices they still pay about 8%. These aren't junk quality companies either. Try finding that in the US.

Your stock of physical gold/silver is your safety play.

This way you get the best of both worlds. You get some investments that are producing a return and you have some safety and guarantee that you won't lose everything.

Whatever you do, don't own bonds or TIPs. Especially don't own cash beyond your immediate living needs. Unless of course you like losing purchasing power.


Uh huh. You just believe that.

How is that house flipping from four years ago working out?
 
2010-06-20 10:28:40 AM
DogBlack: What would 100 dollars put in an S&P index fund in 1913 be worth now?

100 dollars put into the S&P 500 in 1957 would result in ~6.5k today. If you purchased a similar index earlier, it would be worth even more.
 
2010-06-20 10:33:58 AM
Crosshair: Whatever you do, don't own bonds or TIPs. Especially don't own cash beyond your immediate living needs. Unless of course you like losing purchasing power.

The only advice I'd take from you is if polishing the feed ramp on my 1911A1 will help with my hollow-point feeding problem (Damn Ranger SXT's). Everything else you seem to know about is bunk, and/or misinformed prattle. Stick to what you know and shut up about the rest.
 
2010-06-20 10:34:23 AM
Gold and silver have always been highly profitable moneymaking investments for me - but for most people, they are best resticted to a predetermined (and modest) percentage of one's portfolio, as a hedge investment. and yes - take possession of the actual metal. For both people like me, and the hedge investor, futures are bullshiat.
 
2010-06-20 10:35:22 AM
BadAnalogyGuy: Gold is a terrible investing instrument. It earns nothing, doesn't experience growth, and you can't eat it. Plus, you don't really even get the physical item, just a piece of paper that claims ownership. It is no better than stocks, and has much worse negatives.

Also, if the apocalypse comes, it won't be useful for barter. Guns, bullets, whiskey, and water will be. Suckers.


Amazing. You are the smartest person in 6,000 years of human history to see through all the hype about gold. Everyone else everywhere and when has been jobbed, but not you!
 
2010-06-20 10:42:21 AM
badhatharry: BadAnalogyGuy: Gold is a terrible investing instrument. It earns nothing, doesn't experience growth, and you can't eat it. Plus, you don't really even get the physical item, just a piece of paper that claims ownership. It is no better than stocks, and has much worse negatives.

Also, if the apocalypse comes, it won't be useful for barter. Guns, bullets, whiskey, and water will be. Suckers.

The gold is for buying those things. Coins are easier to carry around than those other things. That is why we use money.


The entire economy has collapsed, what can I do with gold, what can anyone I know or do regular business with do with gold? If you want to counter with 'innate value' yes, there are some industrial processes that use gold, but this a tiny fraction of the actual demand for gold. The price differential between people buying gold to use industrially and the people buying gold to hoard it is huge. In a disaster situation all that value disappears and you have to rely on the fact that whatever the disaster is hasn't shut down the few people who actually use it for anything useful, and that they are not sated by all the other fools who bought into your not so cunning plan.

Whats more gold does not actually store value in any real sense. Lets say you had boom times in an isolated economy in the nation of Alpharia and they decided that the government was going to store the value of those boom times and it was going to refine and store gold. Decades later Alpharia goes to war with Betavia and loses horribly, lots of its citizens are killed, its factories are blown up and its economies in shambles. So the country of Alpharia dips into its gold reserves in order to rebuild the economy. But the gold can't suddenly make more people work, nor can it miraculously build factories. Alpharia's problem is not a lack of demand, but a lack of supply, increasing demand with gold does the same thing that increasing demand with fiat currency, the gold deflates just like cash would and has no appreciable effect on the economy.

If Alpharia had instead invested the money rather than hoarding it they would have been much much better off.
 
2010-06-20 10:52:00 AM
Kozakman: Amazing. You are the smartest person in 6,000 years of human history to see through all the hype about gold. Everyone else everywhere and when has been jobbed, but not you!

No, most people don't invest in gold, most of the growth post WWII throughout the world was possible because we stopped relying on gold. Most economists take a dim view of purchasing gold as they see it as hoarding which is considered essentially a cardinal sin. Whats more golds uselessness has been driven home before, e.g. when spain deflated the price of gold substantially after the discovery of it in the new world, and the exact same realization was made. You can't eat gold, you can't plow your fields with gold, the discovery or release of more gold into the market did nothing to help Spain over the long term because it didn't actually give them any more wealth, it was just more currency chasing after the same goods.
 
2010-06-20 10:52:31 AM
BadAnalogyGuy: thedeadshallwalktheearth666: ///btw, BAG, everything you've posted lately has been gold. you're on my favorites, dude.

Gold is a worthless commodity. But fame... I like that.

/I'm going to live forever.


Dude, that is funny. You are on my favorites.
 
2010-06-20 10:54:08 AM
Crosshair: Right now, the metal to buy is silver. It still has not taken out its highs and is seriously under-priced vs gold. Get out the phone book and call around to find a local dealer that charges a reasonable markup over spot for junk silver.

Anyone, with half a brain, realizes that buying gold (unless you plan to hold onto it for 100 years) is going to cost you wealth. The inevitable boom / bust cycle may mean that your great-grandchildren might have more if you bought them gold bars before they were born. The average person, metaphorically, however is just lighting their money on fire.

The problem with gold is that people only buy it when they are worried about "fiat currency" which is when the guys who held onto it for 20+ years look to sell it. Gold, and indeed other precious metals of little industrial value, are the sucker bets of the commodities markets. Would it surprise you to know my friend has sold half his physical gold because he's thinking it peaked? That, if the economy keeps slowly improving he's likely to sell the rest? He won't buy it again until the gold market has crashed again.

He's laughing all the way to the bank with his diversified holdings. He wants the price of gold to continue to go up, and not just so he can sell the other half either. As he puts it, "the bigger the bubble, the further the crash." He laughs at the suckers buying gold right now. The suckers are about 10 years too late.

Tanqueray: If I had an ounce of gold for every time someone on Fark wrote that gold is worthless I'd be..(gets out calculator)..HOLY SHIAT!!

Gold isn't worthless, but it's pretty pointless unless you can hold onto it for:

A) Decades, but a century or so would be better. Otherwise you'll lose wealth (on average) in the average person's "spending" lifetime. Gold's only use is as a long-term hedge against inflation. Emphasis on the "long-term" aspect.

B) You know when to buy from, and sell to the suckers. Gold is typically the sucker bet people make when the economy is down, when they should have bought it years before. Timing is a b*tch.

C) It's the end of the world as we know. Actually, then gold will be worthless. You can't eat it, et al. You'd be better off with spices, in particular black pepper. For some reason that spice was worth (ounce for ounce) the same as gold. Oh, and you can grow more pepper.

Most people would be better off buying industrial metals (platinum, palladium, et al.) as they usually have real reasons for appreciating or depreciating in value. (Like, you know, manufacturing reasons) This is in stark contrast to gold whose value is generally only high when people are panicking because some fear-monger is telling them their world is going to end. Gold also has this nasty tendency to drop when the ponzi-scheme of suckers figures out that things aren't going to devolve into chaos, therein causing gold prices to implode faster than a star collapsing past the schwarzschild radius.

Gold isn't worthless, but now is about the worst time in the 10 years to buy in.
 
2010-06-20 11:02:47 AM
Why can't we use something for money that isn't one of the lovely, most conductive elements?
 
2010-06-20 11:14:11 AM
Gold is worthless. I wouldn't pay good money for gold. I wouldn't pay bad money for gold. Gold's value is entirely imagined. Its supply may be relatively static, but it's still valueless (except for industrial use, of course).
 
2010-06-20 11:47:31 AM
media.sbs.com.au

Stocking up on these will probably be useful in the apocalyptic economic crash, right?

I mean, a bro's gotta fark still, right?

Guys?
 
2010-06-20 11:58:42 AM
Got pesky gold items laying around the house? Tired of moving that heavy gold everytime you dust the dresser top?

Send it to us in a FREE prepaid mailer we provide. After we receive your go....wait, sorry, you did not send us gold, this is some kind of, well gold colored metal, I guess. Looks like it might have some silver in it. Here's your $10. Thank you.
 
2010-06-20 12:27:17 PM
Problem with gold is it's value is dependent on 2 things. Most people only looks at the first factor: gold is finite and it's good to buy during inflation. These people see the price of gold against the USD and think 'wow, so much inflation, I should buy gold'

However another factor affects gold: Hype and capitalism. There is so much media attention to things like this that millions of people have been rushing in to buy Gold. They hear "invest in precious metal" and they buy gold. No one buys silver, no one buys platinum, everyone just piles on gold. So now the "safe" investment based on precious metal is now mostly based on market demand. If gold hits 2000$ an ounce it pretty much means it's worth 800$ an ounch and then 1200$ an ounce of market hype on top on that. Meanwhile if silver hits 200$ an ounce, it's pretty much worth 200$ an ounce.

This is why people here laugh at gold buyers who think gold is an awesome and solid investment.
 
2010-06-20 12:35:15 PM
Get yer Gold Now!

If you don't buy high how can you sell low?
 
2010-06-20 12:44:50 PM
If society breaks down, painkillers will be your friend.
 
2010-06-20 01:30:50 PM
news.bbc.co.uk

SELL
 
2010-06-20 01:49:46 PM
Record drop in gold prices on news that you can't eat it or build a house out of it.
 
2010-06-20 01:51:16 PM
Crosshair: they can't print gold.

Even better, gold mines can. You can also have the price destabilized by any idiot with a large amount of gold.
 
2010-06-20 02:11:10 PM
When the shiat really hits the fan and you farkers wind up having to survive by being offering yourselves up as biatches to local gang members turned warlords, I'll be living like a king thanks to my vast stockpiles of Astroglide.
 
2010-06-20 02:14:03 PM
i had no idea my gold jewelry was worth so much money
 
2010-06-20 02:31:53 PM
i like money. we should be friends.

why would you fools buy physical gold? try selling that when lord humungus is outside your compound telling you to walk away.

/just walk away, you will be spared. he only wants the gazzoline.

www.inch.com
 
2010-06-20 02:32:26 PM
I am going to Europe this summer, so right now would be an AWESOME time for the us dollar to surge up, Gold to collapse, China to free its currency, and Spain to to bankrupt. I'd love to pay 50$ for a 4-star hotel room in Paris.
 
2010-06-20 03:14:46 PM
I don't understand why gold is so polarizing among investors.
 
2010-06-20 03:41:51 PM
justinguarini4ever: I don't understand why gold is so polarizing among investors.

Goldbugs have this obnoxious attitude, like they know something the rest of us don't.
 
2010-06-20 04:12:29 PM
Yes, flock to your gold as I build my considerably more useful copper empire

/cackles against a backdrop of lightning as he rubs hands until they chafe
 
2010-06-20 08:37:24 PM
Might not be there yet but it's getting close

digiphile.files.wordpress.com
 
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