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GOLD QUESTIONS...

Discussion in 'Off Topic Threads' started by blkcloud, Dec 4, 2010.

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  1. blkcloud

    blkcloud Active Member

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    I have a few questions about buying and owning gold.. some people call me a fruitcake.. my wife thinks im nutty..but I guess alot of people called Noah a fruitcake also.. go ahead.. I dont care.. I'm one of those types who has a few thousand rounds of .223, gallons of water, dried and canned food stored in my basement.. now about the gold.. if you were to buy gold instead of stocks, land, or having money in your savings account.. what would you buy..coins or bars..?? where or who would you buy from...where would be the safest place to keep it? a lock box and hope the bank doesnt go under.. bury it?? a hidden safe in your wall?? thanks!
     
  2. shannon391

    shannon391 Active Member

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    So you are asking where the gold is hidden?lol

    Monex or Kitco is a supplier, might want to try some local coin shops. Try to avoid overspending on premiums, bullion coins like K-rands Maple leafs and Eagles are common.
     
  3. tumbleweed

    tumbleweed Member

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    Here is the chart from 1975 to 2010.

    <a href="http://s75.photobucket.com/albums/i296/3miles/?action=view&current=gold.jpg" target="_blank">[​IMG]</a>

    It's at an all time overbloated overbought high. Which way do you think it's going to go from here.

    I have been watching everyone buy on the hype and I'm just about ready to "sell short" and ride this baby back down.
     
  4. otnot

    otnot Active Member

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    If your buying as a survival tool. I would buy coins and silver coins as well. Don't keep it in a bank just in case the bank goes under or the government confiscates it like they did in 1933. With China and Russia buying gold as fast as they can get rid of U.S dollars I would guess it's got a ways to go before drops. Also they have oversold gold certificates so there isn't enough gold to fill them. But then again the Fed may go back to a gold standard and set the price at $20/oz.
     
  5. skeet_man

    skeet_man Well-Known Member

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    I would think your .223s would be just as valuable in a SHTF situation...
     
  6. Mapper

    Mapper Member

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    I was part of a group that participated in the last gold rush. We waited a bit too long to sell, but still made money. Possibly silver might be a better bet, unless you have quite a bit of money to speculate with. Silver coins will buy bread and milk and will probably be more readily accepted. Keep it at home, in a safe, unless, as I said, you plan to get a bunch of it.
     
  7. oldgahchamp

    oldgahchamp Active Member

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    I would advise you to buy 1964 & older silver coins. Also you might be able to pick up some pure (.999) silver medals or tokens. Silver coins/medals will be easier to exchange for needed items such as food or gasoline or ammo. Just imagine you have some 1/2 ounce or 1 ounce gold coins or bullion. Who is going to give you change when you make a purchase? If you have different denominations of silver coins you can use nickels, dimes, quarters, halves or dollars depending on how much you barter for. Canned food, bottled water, propane gas and ammo are also high on my list. Larry Evans
     
  8. TOOLMAKER 251

    TOOLMAKER 251 Active Member

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    If your squirreling items away just in case there is a financial collaspe or civil unrest, food, water, clothing, guns & ammo, booze and cigarettes are high on lists. Even if you don't drink or smoke.
     
  9. otnot

    otnot Active Member

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    As I type gold is at $1414 and silver at $29.23.
     
  10. Texshooter

    Texshooter Member

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    Buy fake gold coins for when the end comes, probably work just fine on the suckers. The real ones won't be worth much... "Do you have change for this gold $20 piece I'm trading for bread?" Make a map of all your Mormon friends homes; they will have a year supply of goods, just hope they don't collect guns. Better yet, store up your own one year supply of goods and ammo. AJ
     
  11. shannon391

    shannon391 Active Member

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    I'm hoarding Chocolate brownie mix only, I'll trade for everything else.
     
  12. likemybrownings

    likemybrownings Active Member

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    Blkcloud, I have been watching copper markets immenseley, being an electrician, with a little scrap here. I watch LME (london metal exchange) and CNBC commodities, they will be 10 minutes behind actual markets. I am defintely not sure how to understand ALL of it BUT it is a very up to date market value watch. KITCO is also a good watch, they have articles we can see to see what the "expoerts" thin is going to happen from trends etc.
    Hope this might help Dave B
     
  13. Brian in Oregon

    Brian in Oregon Well-Known Member

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    .22 LR, .223, and 12ga will be the new coins of the realm.
     
  14. PerazziBigBore

    PerazziBigBore TS Member

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    I have a 24kt gold bracelet.. 7" long.. a little over 1 oz.. A christmas gift and an investment.. all in one.. $1375 delivered
    [​IMG]
    All Good.. Mike
     
  15. Dr.Longshot

    Dr.Longshot Banned Banned

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    There is much FAKE stuff around right now, GOLD is fluctuating right now from $1300+ to $1450 day to day. Speculators say $1500 will be reached.

    China is buying GOLD BULLION right as a hedge against the US Dollar.

    I recently sold some Silver Pure Silver Dollars for $38.50 each. But they are not the Silver Dollars from years ago as they are only worth maybe $18.00 each for their Silver Content.

    Now selling 14Kt Gold take the going price of Gold and divide by.5338 to get actual worth of your 14 Kt Gold rings, bracelets, chains Etc.

    Weight should be in Grams some are using Penny Weight I don't know the difference but will find out.


    Gary Bryant
    Dr.longshot
     
  16. PerazziBigBore

    PerazziBigBore TS Member

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    There are 20 dwt. to the oz.. that's the school I grew up in..
     
  17. bjk1972

    bjk1972 Member

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    20 dwt(penny weight)=1 ounce troy =31.10 grams
     
  18. BrowningPotato

    BrowningPotato TS Member

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    Anyone have any gold or silver coins they want to sell please PM me...
     
  19. three dram

    three dram TS Member

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    This will help the sellers of gold scrap etc
    Step 1
    First, separate your gold pieces according to their level of karat fineness. Do this by looking for the jeweler's stamp that tells you the karat fineness of the piece. Most pieces of jewelry are 10k, 14k, or 18k gold. The higher the number of karats, the more gold the piece contains, and therefore the more value it has for sale as scrap gold.

    Step 2
    Look up the current price of gold. Gold is priced per "troy ounce." A troy ounce is a unit of measure equal to 31.1 grams. The price of gold varies from day to day, and even throughout a single day, so you'll want to make sure you're using the current price to determine the value of scrap gold. As of the date of this article, gold prices are fluctuating near $1,100 per troy ounce.

    Step 3
    Next, you'll need to convert the price of gold per troy ounce to the price per gram. Do this by dividing the gold price by 31.1. For example, if the price of gold is $1,100 per troy ounce, divide this figure by 31.1 grams ($1,100/31.1 grams = $35.37 per gram).

    Step 4
    The next step in determining the value of scrap gold is to weigh your gold in groupings according to its karat fineness. You can use a postal scale or a gram scale for this purpose. If you are only able to weigh your gold in ounces, you will need to convert the value to grams.

    Step 5
    Next, you'll need to determine how many grams of gold each grouping contains. Gold jewelry is mixed with other metals to strengthen and reinforce it, since pure gold is too soft and pliable to be worn as jewelry. To determine the actual number of grams of gold contained in your pieces, multiply each grouping by the following factors:

    10k - multiply by .4167
    14k - multiply by .5833
    18k - multiply by .7500

    For example, 10 grams of 10k gold really only contains 4.167 grams of pure gold (10g x .4167).

    Another way to think of this is that 10k gold is really only 41.67% gold, while 14k is 58.33% gold, and 18k gold is 75% gold.

    Step 6
    Once you've determined how many grams of pure gold are present in each grouping of scrap gold, add the values together and multiply the total by the price of gold per gram.

    Here's an example to help you see how this works. Let's say you have 10 grams of each of 10k, 14k, and 18k gold. Determine the total amount of pure gold present as follows:

    For 10k gold: 10 grams x .4167 = 4.167 grams of pure gold
    For 14k gold: 10 grams x .5833 = 5.833 grams of pure gold
    For 18k gold: 10 grams x .7500 - 7.500 grams of pure gold

    Add these together: 4.167 + 5.833 + 7.500 = 17.5 grams of pure gold

    To determine the value of your scrap gold, multiply this total weight of pure gold by the current price of gold in grams, which we've set at $35.37 for this example:

    17.5 x $35.37 = $618.98
     
  20. three dram

    three dram TS Member

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    Financial Time on December 3.

    China is key to next rally in gold prices
    By David Hale

    The recent gold price rally is the first stage of a multi-year bull market that will drive the gold price to at least $2,000 an ounce by 2015. A mixture of economic factors and innovations in how institutions can purchase the metal have moved prices. But the biggest driver of gold prices is yet to come.

    First, a recap of the factors that have taken gold prices to current levels.

    The economic causes center on monetary policy and the risk of inflation. Some industrial countries are striving to devalue their currencies and will use monetary policy to support the goal. Japan recently spent $24bn on unsterilized intervention trying to weaken the yen. The policy succeeded, albeit briefly. In 2003-04, Japan spent more than $350bn on intervention and could easily do so again. This policy would increase dollar liquidity while nurturing more monetary growth in Japan itself.

    The Federal Reserve has been dropping ever-bigger hints that it will embark on further quantitative easing. A significant policy move will trigger immediate selling of the dollar, and could set the stage for competitive devaluations elsewhere.

    The gold price has also benefited from the introduction of exchange traded funds five years ago. These funds allow investors to purchase gold bullion as effortlessly as a share of stock. In the second quarter of 2010, investors bought more than 274 tonnes of gold through ETFs. Their holdings now exceed 2,000 tonnes, and are the sixth largest in the world after the official stocks at the International Monetary Fund and the central banks of the US, Germany, France and Italy. At current growth rates, these ETFs could rank third by the end of 2012.

    After a long period of selling gold, central banks are re-emerging as buyers. China revealed last year that it had purchased 450 tonnes. India bought 200 tonnes last October. Russia has bought 71 tonnes of gold this year while there have been small purchases by Mauritius, Thailand, Bangladesh and Sri Lanka. South Korea announced last week that it might use some of its $290bn of foreign exchange reserves to buy gold. During the previous two decades, central banks sold nearly 4,500 tonnes.

    But potentially the most important new factor in the gold market is China. China now has more than $2,400bn of foreign exchange reserves, but only 1.7 per cent of this is invested in gold. The IMF is projecting that China will run a current account surplus of $2,600bn during the next five years. If it does, its forex reserves could rise to the $5,000bn-$6,000bn range. Even if it keeps the gold share of its reserves constant, it will have to buy a further 1,000-1,500 tonnes. Yet the odds are high that China will want to expand the gold share of its reserves in order to lessen its vulnerability to dollar devaluations and strengthen the renminbi’s status as a global currency.

    As with the US 100 years ago, China will probably regard large gold holdings as a way to project financial power. In 1913, before the dollar had emerged as a global currency, the US had 2,293 tonnes of gold compared with 248 tonnes for Britain, 439 tonnes for Germany, 1,030 tonnes for France and 1,233 tonnes for Russia. The Americans’ large gold reserves made the dollar a natural replacement for sterling when the first world war crippled Britain’s financial position.

    The US is now running a fiscal policy that has parallels with Britain during wartime, which could undermine the dollar’s global role at some point.

    Some Chinese officials have publicly called for the central bank to purchase 10,000 tonnes of gold. The central bank has declined to comment on these proposals, but they will become increasingly attractive if the US pursues a policy of dollar devaluation while the renminbi emerges as a global currency.

    It is also possible that the massive expansion of China’s foreign exchange reserves could spawn faster monetary growth and increase China’s inflation rate. If it does, there could be a sharp rise in Chinese private demand for gold.

    China has deregulated its gold market since 2008 and private demand is increasing rapidly. It totalled 143 tonnes during the past 12 months compared with 73 tonnes in 2009 and 17 tonnes in 2008. It could easily rise to several hundred tonnes if investors perceive that China’s monetary growth is going to produce higher inflation.

    The US government has been critical of China’s policy of pegging the renminbi to the dollar, but it would abandon this criticism if China pursued a policy of unsterilized currency intervention and allowed inflation to accelerate. The renminbi would then appreciate in real terms, and make Chinese goods less competitive.

    There is no way to predict the timing of China’s future gold purchases, but there can be little doubt they will create a demand for gold that will dwarf all other factors during the next quarter-century and guarantee large price gains irrespective of what happens to Federal Reserve policy.

    ....................................................

    people who refuse or seem incapable of understanding the difference between intrinsic (tangible) wealth and wealth created by government command (fiat currency). Tangible wealth must be a product of search, risk, capital expenditure, or artistic creativity. Wealth by government's command (fiat) is a product of government edict and government command.

    Without thinking or analyzing its short-comings, most people now passively accept fiat money for trade and as a store of value. Fiat money (although I think it's immoral) might work if politicians were disciplined, far-thinking and patriotic. Alas, they are not. Greed and the lust for power seems to be built into the DNA of mankind and particularly into the souls of politicians.

    Scoreboard percentages for 2010 so far --

    Dow..........+9.15%
    S&P..........+9.83%
    Gold..........+28.3%
    Silver..........+73.8%
    Palladium..........88%
    Coffee..........+50.4%
    Cotton..........+88.3
     
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