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Some right wing people cherish the idea of societal collapse, and think they can prepare for such a thing by owning  guns, ammo and gold...Other right wing "leaders" are more than happy to sell these things to their foolish followers...Mr. Beck's Goldline comes to mind.
But when you buy gold remember you are spending a premium over the market price to get it, and will get a minimum price should you decide to sell it...You lose.

But wait...the price of an ounce of gold has gone up dramatically, right? Well, it has, over the last several decades...but it has been going down for the last several years, and  THAT trend seems like it will continue...this article is from April, 2013, when the lower gold prices were becoming impossible to ignore...

http://qz.com/...

Gold prices have been FALLING since 2011, although you would not believe it if you saw the ads, blogs and "reports" on the right wing "news" or on various "patriot" online sites...Gold prices did increase in early 2014, but predictions for the year look bleak if you disregard the sales talk...

http://www.thestreet.com/...

Evidently, buying gold as an investment is seen as a political thing...but regardless, it is a  bad idea. Nice for jewelry, not good for investment.

Note - I am NOT a stock market or investment "expert"...I am an old flea market buyer and seller who learned about buying metals by losing money at it starting 40 years ago. In my humble opinion, places such as "Goldline" are nothing but bullshit aimed at fools.

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Comment Preferences

  •  Tip Jar (18+ / 0-)

    FEMINISM encourages women to leave their husbands, kill their children, practice witchcraft, destroy capitalism and become lesbians...Pat Robertson, failed lawyer, worth over $100 million.

    by old mark on Sat Feb 22, 2014 at 11:47:01 PM PST

  •  Really? (14+ / 0-)

    I think it is reckless not to have precious metals as part of your investment holdings.

    And so does every central bank in the world, including the Federal Reserve.

    Markets always go up and down, but many of them negatively correlate, thus protecting the overall value of your portfolio.

    •  I don't thing he's referring to that as much as (6+ / 0-)

      buying gold coins from the gold sharks that Limbaugh, et al, promote.  Although Goldcorp (GG), which is a stock we hold, has fallen from a high of about 55 in 2011 to the mid-20s currently, so that aligns with what old mark is saying.

    •  So buy jewellry that you can sell on eBay? (4+ / 0-)
      Recommended by:
      akeitz, Phoenix Woman, worldlotus, roberb7

      I've bought bullion before, and the only time it was really worth my while was when I used it to cast custom pieces for jewelry classes.

      If you want to get into metals as investment, I'd go with publicly traded mining companies.

      •  Well, you've got to buy at the right time, (5+ / 0-)

        and that train done gone.

        Gold was certainly worth buying back when it was only a couple hundred dollars an ounce.  Buying now at $1300 an ounce doesn't sound like such a great deal.  Granted, the international monetary system will eventually collapse, and gold may well go stratospheric, but hitting that nice sweet spot between big profit and armed survivalists at your door is, well, tricky.

        And besides, our government has confiscated gold before, and determined unilaterally the rate of "compensation" with fiat paper.  (FDR, remember?)  It could happen again.  So finding the sweet spot before any possible confiscation is, well, another challenge.

        Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

        by corvo on Sun Feb 23, 2014 at 06:22:30 AM PST

        [ Parent ]

        •  Classic libertarian BS (3+ / 0-)
          Recommended by:
          worldlotus, roberb7, Odysseus

          The government is not going to confiscate anyone's gold.  If we get to the point that US dollar is so devalued against precious metal, we will have far larger social problems and ammunitions and dried food will have more value as currency (and you won't want to live in that mess either).

          Wow.  I feel like I'm reading RedState, not dKos.  Gold is an investment for bankers, nation states, and suckers.  It has no intrinsic value.  That is the illusion.  It is a metal like iron or zinc.  It comes out of the ground.  It is a modestly better electrical conductor and is more easily worked than some other metals.  And it is relatively rare.  But in a societal collapse, it can do almost nothing for you.  And if fiat currency were to inflate to the point that it became worthless (in the US or Europe), no one will want your gold either.  

          The illusion of gold's "intrinsic value" is a con played on the ignorant.  If you want intrinsic value, go full out Prepper and buy as many bullets and MREs as you can afford.

          •  Wow, that's about 95% of what I said (1+ / 0-)
            Recommended by:
            lightarty

            and you lay this "libertarian BS" BS on me.

            Class act you are.

            Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

            by corvo on Sun Feb 23, 2014 at 08:03:19 AM PST

            [ Parent ]

          •  Societal collapse (1+ / 0-)
            Recommended by:
            Pluto

            Forbes, of all places, suggested a better choice for trade goods in a total breakdown.

            Miniature airline-sized bottles of Scotch are instantly recognizable to anyone, sealed for authenticity, more useful to more people than gold, and a more convenient size for trade than gold coins.

            After World War 2, bombed-out Europe used cigarettes as currency, so much so that you could buy a Volkwagen with enough cartons and the factory stayed in operation. Same principle. Scotch is less perishable and more compact than cigarettes.

            About all you could do with your gold coins is to take them to the informal money-changers who will spring up (they always do) and trade them for something the grocery store will accept (often paper money from a nearby stable country).

            Anyone considering a dog for personal safety should treat that decision as seriously as they would buying a gun.

            by Dogs are fuzzy on Sun Feb 23, 2014 at 11:55:47 AM PST

            [ Parent ]

    •  That' absurd (2+ / 0-)
      Recommended by:
      roberb7, Odysseus

      For the average individual investor, there is absolutely nothing "reckless" at all about avoiding owning precious metal or related stocks.  The market for those investments is dependent on things an investor cannot possibly discern on an individual level.  And in the last 50 years there has never been a time when precious metals held value against currency inflation in any sustained way.

      Only true suckers, or very knowledgeable globally informed investors, play precious metals.  Everyone else in that market is a chump or a dupe.

      •  The truth there is it's an opaque market (0+ / 0-)

        As RocketJSquirrel said in the second sentence.

        There's a surprisingly poor correlation between gold and inflation. A more solid reason would be a hedge against low real interest rates.

        Anyone considering a dog for personal safety should treat that decision as seriously as they would buying a gun.

        by Dogs are fuzzy on Sun Feb 23, 2014 at 11:58:05 AM PST

        [ Parent ]

    •  yes, but (2+ / 0-)
      Recommended by:
      Odysseus, Pluto

      in 2008, there were no 'non-correlated' assets.  Everything we thought we knew turned out to be a lie.  The money flowing to the theoretical safe haven of the dollar decimated the prices of dollar-denominated commodities like gold and oil.  

      I agree that portfolio diversification is important, but as the world gets smaller, it seems there is really nowhere to hide from the banksters.  

      That said, I continue to hold my ever-dwindling assets in a variety of currencies and alternative formats, including metals.  Because--paranoia?  Caution?  History?

      There is no snooze button on a cat who wants breakfast.

      by puzzled on Sun Feb 23, 2014 at 07:37:13 AM PST

      [ Parent ]

    •  Gold is a wonderful investment... (1+ / 0-)
      Recommended by:
      Pluto

      as long as it isn't your only investment. You always hear about having a balanced portfolio and that is what you should have. Precious metals, foreign stocks, a little oregano and basil - you definitely need a mixture to be successful.

  •  Some things never change-or so it seems to me. (13+ / 0-)

    Your diary gave me a flashback memory.  Mid to late 70s, buying gold (and silver) suddenly was "the" thing.  Whether for investment (get rich quick!) or as a resource to have on hand when the dollar became worthless.  

    Was back in my "back to nature-mother earth" days.  Peers seriously discussing the need to have certain things/skills on hand for bartering & pondering whether all the talk about buying gold/silver should be part of the mix...

    Some that could, did buy gold.  I bought worms & seed & adopted a wild horse from the BLM....

    Still not sure who made the "right" investment, but I like to think that my kinda gold was just as shiny....

    Old hippies, early eco warriors, mother earthers.  Heh, today would probably be called survivalists or something.

    Funny, I had forgotten all that '70s "buy gold & stock up stuff" until your diary.

    •  A guy I knew in the 80's sold everything (7+ / 0-)

      he owned, including his house and store, to buy gold  convinced it would make him a fortune because he was a "smart investor"...last I saw of him, he was working driving a limo for big Atlantic City gamblers...not his own limo, either...

      FEMINISM encourages women to leave their husbands, kill their children, practice witchcraft, destroy capitalism and become lesbians...Pat Robertson, failed lawyer, worth over $100 million.

      by old mark on Sun Feb 23, 2014 at 04:51:01 AM PST

      [ Parent ]

      •  If he sold EVERYTHING... (13+ / 0-)

            ...then that wasn't very smart. Rule One of investing is to have a diversified portfolio.

            Gold is more a store of value than an investment. If we get Bankopalypse II, the value of gold relative to other instruments will soar -- as will the value of, say, farmland. (As long as it's physical gold and not a "note" saying you own some supposedly locked in a faraway vault.)

           It's a perfectly sound component of any portfolio. If it goes down in value, that usually means the economy is sound and stable, and your other investments should be performing well. Just find a reputable dealer and stay away from Beck's hucksters.

           

        "Le ciel est bleu, l'enfer est rouge."

        by Buzzer on Sun Feb 23, 2014 at 05:07:37 AM PST

        [ Parent ]

        •  Diversifying isn't magic. (0+ / 0-)

          If you diversify into a more risky asset, your portfolio isn't magically more sound.

          For some people, the volatility of gold is an acceptable risk. For others it isn't. There are plenty of ways to diversify and reduce risk without including precious metals in your portfolio.

  •  I agree, but got a different reason (8+ / 0-)

    That piece of paper that shows you have 108 ounces of gold?  Might as well be toilet paper if the market tanks...

    ''The guarding of military and diplomatic secrets at the expense of informed representative government provides no real security for our Republic.'' - Justice Hugo L. Black of the Supreme Court

    by geekydee on Sun Feb 23, 2014 at 12:32:01 AM PST

    •  The sales pitch is for actual gold coins (4+ / 0-)

      Part of the right wing sales pitch is the collapse of the mighty $$ will result in significant losses based on paper currency.  The gold investors are not selling paper they want you to by gold coins.  Not gold ingots (they will scare you away from those as they can be seized by "the government" but actual physical gold coins.  the advantage of this is that the quantity of actual gold is highly variable and hence the margins can be astronomcal.

      The interesting thing to me is the prepers who buy gold, the assumption is that once the world economy has collapsed and paper money is of no value for some reason people will still value gold.  Gold can do little other than make really good electrical connectors for high tech equipment and some very nice jewelry.  Why would I want to trade food or fuel for gold when the world is starving gold is of no possible use and hence no possible value.

      As an overall investment strategy, owning commodities including precious metals is a component of a portfolio (probably no a major component either).  as we have all seen the commodities market including the metals exchanges are rigged, highly rigged and Goldman/JP Morgan have been inflating prices for some time (read Matt Tiabi in rolling stone for the best coverage).  Any one who thinks they are going to make money on gold coins sold via a radio show is a fool, anyone who is investing in commodities, including paper shares in gold should be very careful in their investments, and trusting your broker is not a solution.

      there is only one reality, republicans just forget at times

      by Bloke on Sun Feb 23, 2014 at 06:17:12 AM PST

      [ Parent ]

      •  Just to highlight your great point (6+ / 0-)

        I was going to write this myself but I'll just quote you:

        Gold can do little other than make really good electrical connectors for high tech equipment and some very nice jewelry.  Why would I want to trade food or fuel for gold when the world is starving gold is of no possible use and hence no possible value.
        That's why buying gold because you think the world economy is going to collapse is absolutely freaking moronic.  

        If you think it's going to collapse, buy solar panels and windmills so you'll have power, and learn to grow plants and raise animals for food!

        "It was clear that any research would be in the nature of a post mortem." - Rachel Carson

        by todamo13 on Sun Feb 23, 2014 at 07:12:47 AM PST

        [ Parent ]

      •  And a rainwater cistern system (3+ / 0-)
        Recommended by:
        worldlotus, corvo, myboo

        Corvo's comment below reminded me of that.  With all the fracking aquifer contamination, drought, coal ash in rivers, etc, clean drinkable water will be worth far more than gold!

        "It was clear that any research would be in the nature of a post mortem." - Rachel Carson

        by todamo13 on Sun Feb 23, 2014 at 07:29:22 AM PST

        [ Parent ]

        •  That's why Bushes (2+ / 0-)
          Recommended by:
          myboo, todamo13

          and corps are buying up aquifers and public water utilities wherever they can lay their grubby paws on them -- to the point of making it illegal to collect rainwater.  They're evil, but not stupid,

          Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

          by corvo on Sun Feb 23, 2014 at 08:05:06 AM PST

          [ Parent ]

          •  Can you explain what you mean here? (1+ / 0-)
            Recommended by:
            todamo13
            to the point of making it illegal to collect rainwater
            If you're referring to Western US water law, those laws long predate any living cabal.

            "First in time, first in right" to use water is pretty easy to understand.

            -7.75 -4.67

            "Freedom's just another word for nothing left to lose."

            There are no Christians in foxholes.

            by Odysseus on Sun Feb 23, 2014 at 11:12:11 AM PST

            [ Parent ]

            •  I'm referring to Bolivia, actually. (1+ / 0-)
              Recommended by:
              todamo13

              Fortunately, the new anti-corporate government killed that restriction.

              Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

              by corvo on Sun Feb 23, 2014 at 06:20:10 PM PST

              [ Parent ]

  •  Better to put your savings in the bank (6+ / 0-)
    Recommended by:
    corvo, Johnny Nucleo, Buzzer, JVolvo, Lujane, grover

    Where one is guaranteed to lose value to inflation.

  •  I'd certainly be wary of investing in Paper Gold (9+ / 0-)

    (ETFs, Options, and so on). For one thing, the provider or bank supposedly holding the physical gold could go bust and you lose everything.

    On the other hand, the idea of a small pile of Double Eagles stashed under the mattress makes me feel all warm and fuzzy inside. As grandpa used to say "if ya can't bite it, it ain't real money".

    We're shocked by a naked nipple, but not by naked aggression.

    by Lepanto on Sun Feb 23, 2014 at 01:07:03 AM PST

  •  Couple of comments. (15+ / 0-)

    1. Investing in gold is like investing in anything else: if you can buy low and sell high, you win.
    2. If society collapses, you won't be able to use gold for barter.  Gold will always be worth too much to buy food with, and people will shoot you first if they find out you have any. If you're looking forward to postapocalypse, buy old silver coins such as dimes and quarters.
    3. Paper gold is valuable only as long as the institutions issuing it can make good on it.
    4. The Chinese are buying up real gold like crazy, and we apparently don't have enough to return to the Germans the gold they own that's supposedly in our vaults.  Hmm.
    5. Most of the left-of-batshit-insane-RW-nutjob anti-gold sentiment is based on the fact that Rush and Hannity regularly hawk gold from dealers who charge pretty predatory rates.  But so do Thom Hartmann and Randi Rhodes. Oops.
    6. There are better and worse gold dealers. If you want to buy precious metals, don't use the companies that Rush and Hannity and Thom and Randi are shilling for; use golddealer.com or Kitco. Much better buy/sell rates.

    Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

    by corvo on Sun Feb 23, 2014 at 04:12:29 AM PST

    •  Chinese have been buying less of it over the last (1+ / 0-)
      Recommended by:
      Phoenix Woman

      several years, but production has not slacked off, and prices have declined since 2011.

      How much gold are you selling?

      FEMINISM encourages women to leave their husbands, kill their children, practice witchcraft, destroy capitalism and become lesbians...Pat Robertson, failed lawyer, worth over $100 million.

      by old mark on Sun Feb 23, 2014 at 04:52:45 AM PST

      [ Parent ]

      •  oooh, an accusation of shilling! (2+ / 0-)
        Recommended by:
        Phoenix Woman, grover

        gotta love it. :-)

        Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

        by corvo on Sun Feb 23, 2014 at 06:14:29 AM PST

        [ Parent ]

      •  The Chinese would rather buy land (1+ / 0-)
        Recommended by:
        Bluefin

        Especially farmland, and especially US farmland, which they can get much cheaper now than was possible in the 1990s.

        They need it because between human-caused drought and human-caused pollution, much of their once-arable land no longer is arable.

        Visit http://theuptake.org/ for Minnesota news as it happens.

        by Phoenix Woman on Sun Feb 23, 2014 at 07:30:43 AM PST

        [ Parent ]

        •  China is also one of the few large countries (1+ / 0-)
          Recommended by:
          Bluefin

          with food safety standards even lower than ours, so they're happy buying our Smithfield pork (hell, they just bought Smithfield) and GMO crops.

          Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

          by corvo on Sun Feb 23, 2014 at 08:00:21 AM PST

          [ Parent ]

        •  You're joking, right? (0+ / 0-)
          which they can get much cheaper now than was possible in the 1990s.
          US farmland prices are in the middle of a ridiculous bubble.

          -7.75 -4.67

          "Freedom's just another word for nothing left to lose."

          There are no Christians in foxholes.

          by Odysseus on Sun Feb 23, 2014 at 11:17:49 AM PST

          [ Parent ]

  •  If they really think society is going to collapse (15+ / 0-)

    Canned food and antibiotics would be a better investment.

    If the pilot's good, see, I mean if he's reeeally sharp, he can barrel that baby in so low... oh you oughta see it sometime. It's a sight. A big plane like a '52... varrrooom! Its jet exhaust... frying chickens in the barnyard!

    by Major Kong on Sun Feb 23, 2014 at 04:15:00 AM PST

    •  alcohol, guns, and ammo too. n/t (2+ / 0-)
      Recommended by:
      todamo13, worldlotus

      Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

      by corvo on Sun Feb 23, 2014 at 06:25:30 AM PST

      [ Parent ]

    •  Solar panels and windmills! (3+ / 0-)
      Recommended by:
      worldlotus, roberb7, Odysseus

      And a chicken coop and chickens, a milk cow, seeds for vegetables, tools...

      Actually, those are all things we all should be doing anyway if you think about it.

      "It was clear that any research would be in the nature of a post mortem." - Rachel Carson

      by todamo13 on Sun Feb 23, 2014 at 07:15:54 AM PST

      [ Parent ]

      •  I live in a condo (1+ / 0-)
        Recommended by:
        todamo13

        Not much room for all that stuff.

        Not everyone lives on a 5 acre lot in a rural area.

        If the pilot's good, see, I mean if he's reeeally sharp, he can barrel that baby in so low... oh you oughta see it sometime. It's a sight. A big plane like a '52... varrrooom! Its jet exhaust... frying chickens in the barnyard!

        by Major Kong on Sun Feb 23, 2014 at 08:35:27 AM PST

        [ Parent ]

  •  Gold as an investment option (7+ / 0-)

    Gold is an investment vehicle, and when you bought the stuff at $300 an ounce, you made a killing.

    I have seen so many people being scammed, but they dont understand the gold fundamentals.

    It takes miners $1200 an ounce to get the stuff out of the ground, and that should be your starting point, how much does it take to get out of the ground.

    Also miners have to use expensive diesel generators to mine so far underground. We all know energy costs are only going way.

    Investment should be for the long haul, and always consult people who have a proven track record in investing.

  •  here come some opinions! (7+ / 0-)

    Investing in metals may or may not make you some money, assuming that society and speculation continue, On the other hand, unless you sell, they produce no income, and the whole concept adds nothing to the economy. It isn't investing in growth, it's just stashing coins in your mattress. The people who are guaranteed to profit are the brokers, and aren't they always?

    If there really is a collapse, what good is gold? It's not that useful a metal except for dental and high tech purposes, and it seems an odd collapse of civilization that leaves those particular things intact. It was treasured for its scarcity, its beauty, and for jewelry making. not really that much as a survival tool.

    If the fear mongers are talking about a very specific kind of collapse, where civilization is intact, but the banks are a shambles, but gold is still accepted as money, well, I'd still rather have a bit of land with a good garden, some chickens or rabbits, and a nice store of intoxicants, which would, I bet, have a much higher value for trade than a chunk of cold soft metal.

    Oh, yeah, and since Old Mark wrote this diary, I'd stock up on guitar strings too! I'd hate to run out of those.

    •  Great point about guitar strings!!! (2+ / 0-)
      Recommended by:
      worldlotus, roberb7

      You could always learn to make your own wine and beer (and moonshine, if that's your thing).

      But gold, pretty useless.

      The Limbaughs etc who are hawking gold are like those scams  trying to get you to buy some unknown penny stock.  You buy, raising the stock price, then they sell, making the money.

      "It was clear that any research would be in the nature of a post mortem." - Rachel Carson

      by todamo13 on Sun Feb 23, 2014 at 07:24:55 AM PST

      [ Parent ]

      •  if you're younger than 50 (2+ / 0-)
        Recommended by:
        The grouch, todamo13

        you will see the end of wine, at least the drinkable varieties made from vinifera grapes.  They're too sensitive to climate . . . and we've got quite the climatological roller coaster ahead of us.

        Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

        by corvo on Sun Feb 23, 2014 at 08:07:58 AM PST

        [ Parent ]

        •  That's why I drink them now (2+ / 0-)
          Recommended by:
          todamo13, corvo

          I agree about wines. Of course, this may lead to Canada being the new France, or at least the new California. I fear the Australian industry is in for hard times.

          To an extent, we are in a great danger for a lot of our favored plants, be they grape vines or food crops. I will continue to reduce my carbon footprint, as best I can, but have little hope that it will help. The next 20 years or so are probably livable, but I would put no bets after that. I am often glad I didn't reproduce, but my friends and family have, and they are hostage to a hostile future.

        •  During the medieval warm period or whatever (0+ / 0-)

          it was called (Maunder Minimum or something like that) I think they were growing wine grapes up in England.  So maybe the grapes will be able to grow further north.  But we'll probably have much bigger concerns on our hands than which wine to drink.

          I guess I was thinking about wine more generally, for instance a customer I had one time in central Texas gave me a bottle of dewberry wine that was pretty good.

          "It was clear that any research would be in the nature of a post mortem." - Rachel Carson

          by todamo13 on Sun Feb 23, 2014 at 11:45:02 AM PST

          [ Parent ]

        •  Good California wines could be more valuable (1+ / 0-)
          Recommended by:
          corvo

          than gold. Sea rise will obliterate much of wine country. Those excellent California (especially Carneros) wines may become more rare than T-Rex fossils.

          © grover


          So if you get hit by a bus tonight, would you be satisfied with how you spent today, your last day on earth? Live like tomorrow is never guaranteed, because it's not. -- Me.

          by grover on Sun Feb 23, 2014 at 06:50:46 PM PST

          [ Parent ]

  •  When you buy gold, you lose money (7+ / 0-)

    on day 1. Gold has no carry - there is no dividend yield, there is no interest payment. Plus, physical gold has a healthy bid/ask. And every year that goes by, you fall further behind those investors who bought bonds. You need gold prices to rise, faster than inflation, in order to get back the bid/ask and make some money. It goes up and down, so there are always winners and losers. But the historical record demonstrates that gold has been a sucker play.

  •  I did a gold focused mutual fund for a bit (5+ / 0-)

    I'm old enough to remember the gold craze of the late 70s early 80s, and I dabbled in jewelry design in my younger days which required following the spot metal markets because they drove the prices for materials.

    I noticed how crazy folks got after September 11, 2001 and decided to put some of my "gambling money" into gold settling on a gold focused mutual fund.  This was at most 20 percent of my portfolio.  I held onto that investment until 2012 when I realized it was time to exit,  though I pondered exiting even earlier in 2010 or 2011 having seen way to many scummy ads for gold coins as well as an SNL skit lampooning them.  My theory, the smart money gets out when the fools rush in.

    Hindsight yeah, I should have exited in 2011, not late 2012 but still I made very, very good money on that gamble!

    So I agree with the diarist, investing in gold itself is fool's errand right now.  The magic inflation fairy isn't happening and won't be for a good bit.

    •  There won't be inflation again (2+ / 0-)
      Recommended by:
      The grouch, akeitz

      until the banking system either collapse or figures out a way to profit like bandits on inflation.  The latter is highly improbable, and the former won't happen until governments collapse.  We already know that governments value saving the banks over saving, well, us.

      Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

      by corvo on Sun Feb 23, 2014 at 06:28:15 AM PST

      [ Parent ]

  •  What good is gold (4+ / 0-)
    Recommended by:
    The grouch, corvo, todamo13, worldlotus

    in the event of societal collapse? Who is going to give you something you need, something THEIR life might depend on having, for a chunk of shiny metal that really isn't good for much of anything?

    It is society that gives value to gold, and without that economic system no form of currency will hold value. It will be strictly barter of useful items for other useful items.

    However, WITHIN our society there are certainly ways to make money with gold. First of all, you can buy gold coins at auction (from reputable dealers!), often getting old gold coins at or below bullion value, which can be resold at a premium.

    Far better is to buy unwanted jewelry, as it seems someone on every corner is doing around here. Typically they pay about 60% of bullion vale, then resell to refiners in the high nineties, depending on quantity and purity. A 35% profit margin has potential, especially if you can turn it over once or twice a month!

    You can make good money investing in gold. But not with a buy and hold strategy, as gold (supposedly) just tracks inflation, so you just hold value while losing the buy/sell margin. The key is to buy low and sell high, with a quick turnaround so you don't lose your profit to market shifts.

    And buying as a hedge against societal collapse? There are a LOT of things that will be far more valuable than gold if it comes to that!

  •  Gold stopped being a worthy investment... (1+ / 0-)
    Recommended by:
    worldlotus

    ...in 2008, and anybody who buys in now is catching the tail end of a wave that will eventually crash into the rocks.

    Real Estate is back in vogue, buy cheap for cash in a location with a stable economy, and rent it out with a plan to break even on the property in 5-7 years.

    I've seen some hardboiled eggs in my time, but you're about twenty minutes

    by harrylimelives on Sun Feb 23, 2014 at 06:31:27 AM PST

    •  stable economy and . . . (3+ / 0-)
      Recommended by:
      todamo13, worldlotus, Dogs are fuzzy

      a decent water supply.  But maybe that goes without saying?

      Dogs from the street can have all the desirable qualities that one could want from pet dogs. Most adopted stray dogs are usually humble and exceptionally faithful to their owners as if they are grateful for this kindness. -- H.M. Bhumibol Adulyadej

      by corvo on Sun Feb 23, 2014 at 06:44:51 AM PST

      [ Parent ]

  •  Is buying gold really an "investment"? (4+ / 0-)

    The whole idea of investing in economics is to use resources today to create more wealth tomorrow.  But for society as a whole, buying gold cannot create any new wealth, only move existing wealth around.  If everyone used all their savings to buy gold, everyone would be poorer.

    Gold is not inherently valuable.  Any money is only money if people agree it's money (see Bitcoin).  Gold as money is a social convention that has lasted a long time for various reasons, not a fundamental law of the universe.

    But in modern times, gold does have a very useful role in industry,  It is the perfect material for electronics.  It is a very good electrical conductor, a good conductor of heat, and can more easily made into very small wires and connectors.  It never corrodes (see King Tut's coffin after 3200 years).  If it was cheap enough, it would be used for soldering electrical boards, it is much less toxic than lead.  Much too useful to waste as money.

    "The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt." Bertrand Russell

    by Thutmose V on Sun Feb 23, 2014 at 10:00:00 AM PST

  •  There is a ton of B.S. out there (1+ / 0-)
    Recommended by:
    Bluefin

    and the fact that they market toward paranoid, end-of-times survivalists makes me sick. There are many people who think that gold will be the only fungible asset (along with ammo and food) in a post apocalyptic dystopian future.  There's also been enough collusion between the government and gold sellers during the last 25 years  to make the case that there's a conspiracy to keep the price of gold suppressed.

    But there is another kind of gold buyer who also sees a type of economic collapse occurring. Because we have a trade imbalance of a half a trillion bucks a year, and a central bank that buys its own bonds with new currency hot off the presses, etc., the dollar is "cruisin for a bruisin."

    Fundamentally, investing in gold is a horrible practice because it is meant to only keep up with the price of inflation.  But we have an unusual situation of our own creation here. That's not to say we are doomed to go over the brink, but when one party in Congress would rather score political points by seeing the economy fail than to let the other party get credit for fixing it we're in real, serious trouble.

    I wonder how far the GOP would let the economy fail in order to inflict a coup de grace on all the Democratic programs and economics?

    You will not rest, settle for less • Until you guzzle and squander whats left • Do not deny that you live and let die - MUSE

    by bondibox on Sun Feb 23, 2014 at 11:19:18 AM PST

  •  Just don't (0+ / 0-)

    After watching the Discovery Channels gold mining shows I have become convinced that gold bug fever positively correlates with paranoid personality disorder.....

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