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Why is Gold so high priced?

Discussion in 'Off Topic Threads' started by Bruce Specht, Oct 12, 2009.

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  1. Bruce Specht

    Bruce Specht Well-Known Member

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    You've all seen commercials for people wanting to buy Gold, you can bet your not getting what it's worth when you sell to these places. That doesn't alter the fact that last week gold was over $1K per ounce. Why this rush to buy and whats holdidng the price so high? Opinions???
     
  2. BigM-Perazzi

    BigM-Perazzi Well-Known Member

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    Because the dollar sucks... and Gold will buy anything...
     
  3. tinylo

    tinylo TS Member

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    Question should be, in light of what Obama and the Fed are doing to dilute and devalue our currency, what's holding it down to just $1050/oz ?
     
  4. g7777777

    g7777777 TS Supporters TS Supporters

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    Safety
     
  5. BrowningPotato

    BrowningPotato TS Member

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    tinylo, I have wondered that, I think once people start having some money to spend again, we are going to be in for hyper inflation (due to high govt spending) Once this happens Im guessing Ill wish I would have purchased at $1050 an ounce.
     
  6. Bisi

    Bisi TS Member

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    Don't forget silver.
     
  7. JasonH

    JasonH TS Member

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    I agree with tinylo... With the dollar worth about 3cents compared to the dollar of 1914, why gold isnt already near 2k an oz is a good question. Bruce, Ron Paul gives some good lectures on youtube of gold value. In turn he also gives the reasons why the dollar should be again backed by gold and silver. Peter Schiff also gives a good explination as well..............Good Luck
     
  8. 221

    221 Banned User Banned TS Supporters

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    Gold is for speculators.......If it ever gets to the point you have to trade it to survive you will find it to be worthless......Take your gold and go on vacation with only your gold.....see how hungry you get.

    Demand for survival immediately will out weigh your gold as it will be worth no more than a rock.

    If you want to try to get rich then you can trade in gold, guns, land, oil, most anything needed for commerce in stable times..... but surviving on a bar of gold will take some tough teeth. It's like ammo.....you only need what you can carry.
     
  9. tinylo

    tinylo TS Member

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    Gold is the metal of choice for a scenario between now and TEOTWAWKI.

    China will dump dollars, oil will trade in Euros, bums on the street will be getting titanium hip relacements and cochlear impants under Obama's plan, and the dollar will plummet further. Then we can cash in gold for dollars or Euros or yen or what ever to purchase goods. Better than holding on to dollars as they fall.

    I fully agree that in end of world as we know it, i.e., survival mode, that ammo, gas and perhaps even cans of pork&beans will be the "coins of the realm"...
     
  10. Big Heap

    Big Heap TS Member

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    The price of anything goes up when there are more buyers than sellers.
     
  11. Bluzman98

    Bluzman98 Member

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    Have you any of considered the possibility that the price of gold is being driven up much like the price of oil was last year?

    Jim C
     
  12. Jerbear

    Jerbear TS Member

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    Bullets will soon be the currency of the USSA.


    Jerbear
     
  13. birdtracker

    birdtracker Active Member

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    there is also some cancer research going on right now with gold. It is made into nano particles and injected into the cancer cells and then exploded with a laser. No chemo. Birdtracker
     
  14. 221

    221 Banned User Banned TS Supporters

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    I think what get's painted over when it comes to gold fever is, you better get whatever you think you need to have, long before it comes down to trading your gold for chickens.

    Remember the little boy and girl cartoon that said...."With one of these I can get all of those I want"

    "BE NICE"....%~)
     
  15. wireguy

    wireguy TS Member

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    So you buy 1000 federal reserve dollars worth of gold today. In a year it's worth 2000 federal reserve dollars. Congratulations, the 2000 dollars are only worth 1000 of last year's dollars. You haven't gained a thing. Gold is useful to preserve a certain amount and kind of wealth, nothing more.
     
  16. halfmile

    halfmile Well-Known Member

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    But, wireguy, you can buy just as many loaves of bread with the gold as you could have before with 2009 dollarsas stated , only half as much bread when the gold is at 2000.

    That might be very meaningful in the future.

    HM
     
  17. wireguy

    wireguy TS Member

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    Being a man of means I like to keep my gold as jewelry on my mistresses, more fun to look at that way, but frankly I think silver is a better day to day medium of exchange - unless one is purchasing a high end trap gun of course. Then you will need a lot of gold.
     
  18. shannon391

    shannon391 Active Member

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    Gold has always been worth something-never been worthess anywhere on the globe throughout History, Every few hundred years or less, a country chops down a $200 dollar tree, makes some printed paper and says it's worth a billion... All paper currency dies at some point and our very own USD seems to be falling like a rock.

    I bought Gold at $275 some years back, I like it.

    If I had a set of crystal balls I might buy more.

    221, Most gold bugs plan to cash before it turns to Mad Max to pay off debt or buy that farm, food, ammo or other tangibles.

    Some might use it to flee to the most stable Country, wherever that may be.
     
  19. ou.3200

    ou.3200 Well-Known Member

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    If it comes to pass that the U. S. Dollar is dropped as the standard of exchange for trading oil as is being discussed now we could see prices of oil and other imported goods jump 30% over night. I just saw a statistic stating that if we paid off $1 billion per day it would take 385 years to pay off the national debt. We are in deep trouble. Investors/traders are looking at gold as a hedge against the devaluation of the dollar.
     
  20. bigdogtx

    bigdogtx Well-Known Member

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    You really shouldn't think of it as being a mode of exchange. In order for you to buy your bread, the storekeeper has to want your gold, if he doesn't want your shiny metal, and the currency of choice is something else, it will not do you any good. Currently which monetary standard will become the choice of the world is anybody's guess.

    You should look at is a part of your overall portfolio. Any conservative to moderate portfolio should have only 5-15% in commodities.

    If you remember, gold hit a "high" of $850 in 1980, you now have a gain of $150 in almost 30 years. That is about .5% simple per year.

    When you look at what else is going on; people are still somewhat fearful of the equity markets after what happened in the last couple of years, with safe money rates at about 1%, munis at about 6-7% with concern of the underlying issurers' solvency, etc., it is a place for hope of greater return with less risk.
     
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