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OT - Buy Gold?? (as Stock Market Tanks)

Discussion in 'Off Topic Threads' started by mdk3280, Mar 3, 2009.

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  1. mdk3280

    mdk3280 TS Member

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    As the stock market continues to tank I'm reading that some favor buying gold as a hedge against the dollar shrinking under Obama Nomics. Any investment gurus here with an opinion??
     
  2. JBrooks

    JBrooks TS Member

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    Well, walking into Safeway with gold ain't going to buy you any groceries. At $1000, gold would have to go up $500.00 to generate a 50% return. $500 is a lot of money.

    OTOH, by example, American Airlines is at $3.25. To get a 50% return it only has to go to $4.87 which would still only price it at 1/3 of its 52 week high.
     
  3. Jamesquinn

    Jamesquinn TS Member

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    I bought gold @ $500 and sold half of it last year when it hit $1000. I'll sell the other half when it hits $1000 again. Will it go higher than $1000? I don't know and don't care because to me $1000 is too high.
     
  4. waterhouselake

    waterhouselake TS Member

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    Want to take chance???? Buy Mosquito Consolidated Gold Mines MSQ. They have a claim in Idaho that appears to be one of the riches deposits of Molybdemum/copper in the world. Possible buy out candidate. Will it happen? Who knows!
     
  5. Finprof

    Finprof TS Member

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    Gold and oil have historically moved in tandem with one another, except that their paths diverged last year when oil went down. Eventually, they will both get together again, probably when oil rises rather than when gold falls. If you are worried about inflation, oil might be better than gold long term. Oil did very well during the Carter inflation.
     
  6. Bruce Specht

    Bruce Specht Well-Known Member

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    JBrooks is correct, gold is not a good buy right now. Your better served to buy shares in new comapines and one you already own to bring your cost per share down. To much bad media coverage is a part ot the problem with the market. Our media is a bunch of whore moungers looking to get a headline of some kind!
     
  7. KENENT1

    KENENT1 Active Member

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    the time to buy gold is when it is way down.......not when it's high.

    this is the time to sell!!!



    tony
     
  8. halfmile

    halfmile Well-Known Member

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    Youse guys are right but you're wrong.

    Everyone is fleeing to Treasuries now as the market tanks. And this is no market for weaklings.

    But we are roughly tripling or more so our money supply with all the new spending.

    The spending is done by government borrowing.

    Government borrowing is done by issuing Treasuries. This is pummping the dollar to new highs.

    When no one wants to buy our debt any more there will be a run on the dollar.

    Like the German Mark in the period between the wars.

    The REAL shit storm has not come yet.

    Wait till China cashes in their 800 billion of our debt.

    And Japan cashes in theirs which is almost as much.

    I could be wrong, but 900 dollar gold will look pretty good when it's 2 thousand, and bread is 8 bucks a loaf.

    This is a good time for hard assets. Guns, cars, houses, land, machine tools.

    Forget the Rolex watches and any toys like Harleys or jet skis.

    Every time the Mulatto speaks the market tanks some more. He has destroyed more wealth since November than a lot of war spending did in the past.

    Got enough "Change" yet?

    I have shot 3 TV sets already.

    HM
     
  9. Bisi

    Bisi TS Member

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    halfmile, hey there is nothing wrong with having a jet ski. LOL. A jet ski sure would have brought me a lot more enjoyment than my Citigroup stock did in the last year!!!
     
  10. halfmile

    halfmile Well-Known Member

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    Bisi, I understand and approve. My point is protecting assets is not well done by purchasing items which will not be salable.

    The market for toys is already on a slide, as job losses necessitate unloading of these discretionary items.

    Guns are a little different, I would purchase 1911's, AR-15's, and other useful items like 870s for their usefulness and future salability. there is danger of losing them to legislation, but by that time all will be virtually lost anyway. SCO Perazzis are pretty but they won't be salable in tough times.

    This recession/depression shares with the 30's a few similarities. Stocks dropping like a rock, job losses, banks failing, etc. The government meddling in the markets and tinkering with the financial system.

    But there are some important differences here, too. There was not the avalanche of forclosures we are experiencing, nor the massive throwing out of money (obtained by borrowing) which has to be paid back in the future, and the industrial base has been all but lost.

    Our Fuehrer, in the face of economic disaster, proposes even more burdens on the people with the nationalization of healt care.

    Meanwhile, the rats are still grabbing at the cheese, and bailout money is a prize for the greedy at the top who refuse to give up. Not surprisingly, mortgage relief is available for vacation homes and speculative investment properties.

    No, gold should have a place in your holdings, but not a large stake. I would say 20% to a third. Commercial property will be an albatross around your neck, who is going to be starting in business now? People boxes and multi family units are where the folks losing their homes are going.

    If you have been wanting a Harley or a jet ski, hold off a little while. There will be some great deals in the future.

    HM
     
  11. shannon391

    shannon391 Active Member

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    No one has the crystal ball on Gold, we can read expert reports and graphs until the cows come home but no one really knows.

    It is at close to historic highs currently and one thing is certain it will go up and down.
     
  12. halfmile

    halfmile Well-Known Member

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    The price of gold has always been relative to the value of the dollar, exept for short term panic spurts, and the bubble of the Hunt Silver Fiasco, when a whole bunch of people became uneducated fools, pushing it to 800.

    At this time the amount of dollars in circulation is going to be much more due to the present state of affairs in our leadership.

    There will be no increase in GDP to match the larger supply of dollars. In essence, the soup is being watered down.

    More soup, less nourishment per bowl.

    Figure it out. Obama's soup will be highly touted and less nutritious.

    HM
     
  13. Mismost

    Mismost TS Member

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    I'm investing in canned goods, dried beans, rice, garden seeds, and ammo.....right now, if I can't hold it in my hand, i don't want it.
     
  14. Mr.M

    Mr.M Supporting Vendor Supporting Vendor

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    Gotta finally say something to the nay-sayers. The issue with gold and silver and other affordable precious metals is not their prowess as an investment, but rather how well they protect your purchasing power. The purchasing power in any fiat currency - US Dollar - is constantly diminishing from the moment you acquire it. Not so with the precious metals.

    I've been in the business since November, 2002 and have had people refuse to hear me every year because "gold is at an all time high". That is a load of "Pelosi" (a new word for BS). If gold were at an all time high, measured in US Dollars, adjusted for their loss of purchasing power, you couldn't buy an ounce for anything less than $3500.00.

    Stuff has no more value today than it ever did. The fiat currency we use to buy it is just worth that much less.

    In 1968 I traded a Morgan Silver Dollar (.9 ounces of silver) for 4 gallons of Sunoco 260 to put in my 68 GTO. Yesterday I traded one Silver Eagle (1 ounce of Silver)for 7 gallons of gas for the Cadillac. That's real protection of my purchasing power. When gas was at $4.00/gallon, I still would've gotten the same amount as 41 years ago.

    Food for thought. Put a little of the fruit of your labor into something tangible and portable that is not suffering the pain of inflation every second.

    Respectfully submitted,

    Mike Mann
     
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