[quote=Coronita]I want to sell some of my gold bullion and exchange it for barrels of oil….
It’s pretty amazing. One ounce American Eagle that was once $1100 is now over $1700 and can buy a shitload of barrels of crude oil..
Gold is nothing more than bling bling. It really doesn’t have that much utility except for some reasons, humans have assigned a remarkable value to it. Crude oil, on the other hand, is actually something useful….Without it, you can’t power machines to mine everything else, like gold….
I wonder how much it costs to rent a public storage locker….There’s probably a hazmat issue doing that though.
The other problem is, I can’t find a local dealer that is still open to sell the gold coins, lol….[/quote]
1100?
hell, the price of gold was $270.00 just 20 years ago.
As for it being useless bling bling, you could use it as money during biblical times and in every civilized society that has ever existed on planet earth for thousands of years.
so it’s not “for some reason” that it is assigned value.
it had value way before the DJIA was a glint in some capitalist’s eye, it will have value for the remainder of the current world order (of that i am certain, as certain i am that I exist) and if the world descends into some true post-apocalyptic hellscape, it will STILL have value.
i absolutely guarantee it.
no one will throw gold away with their old useless paper money or 401k statements of defunct corps.
it certainly would seem it has way more objective value than the wallet full of paper you carry around, esp if the gov. throws a few more trillion of those papers into the system next week. another thousand trillion of stimulus. sure. why not…
is it a good bet going forward? I have no idea. but the idea that it is “worthless” or a “barbarous relic” is just not true.
i am biased in favor of gold, sentimentally and irrationally, due to a good bet on a gold stock (a good gain on gold formed a sizeable chunk of the downpayment i made on a house in 2010,and because the timing of the purchase and the investment worked so well for me, gold melted into an irrationally soft place in my grubby little heart)), and also because it is so ancient and irritating to normal investors and contrary to growth and capitalism and modern economics.
that said, I have also been
way
way down on some gold stock price bets. it’s not like im starry eyed or optimistic or always a winner. I am definitely a loser too. win some, lose some. the reason i still defend it is perhaps because it just is.
so do not take any of this as bragging or advice.
. I think people can get burned with it if they jump in and out, or invest in gold mines, and i think the upside is not huge, but i seriously doubt gold is going to fall back down to 270 an ounce.
i dont know where the floor is. My gut says 1250, and my gut is always wrong, so it’s probably way lower than what my gut says, 900? 1000, 500?)? and the upside? gold bugs say 5,000, 10,000, but they’re nuts, even nuttier than me.
. To me, 3,000 sounds reasonable, so the correct answer is probably 9,000, or 25,000 an ounce.
would central banks really be filling their vaults with bling? are they that vain? does money in the bank really seem all that secure? if oil can be worth negative money, why couldnt gold be worth 10k an ounce? at least youc an carry it around. try carrying or even rolling a barrel of oil.
