Gold is a commodity, not money?

[Jim Brubaker]

There are two perspectives here that are as different as oil and water. The speculator and investor who are in the market to make a dollar and then there is the person who buys it for its store of value. Either perspective works for the individual.

If you want to flap bed sheets at the moon and claim that thats what made gold drop, its OK with me. The M3 money supply probably has just as much effect as bed sheets. The reason–the market is driven human psychology. Common sense and logic don’t even stand a chance. Remember the Bunker Hunt corner of the silver market in the 70’s when it went to $50? The only guy I ever knew that shot the moon and lost.

Now, if you purchase gold as a store of value, you’re looking down the road 20, 30 years. This is an insurance policy against the government pissing in the whiskey.

A few of you mentioned to go with a currency backed with gold. That sort of system protects people saving for retirement and the banks that loan out money. That works fine until you want to increase the money supply, say to finance a war or some sort of government sponsored health care.

Roosevelt during the depression had to ban gold ownership, people knew what was real and wanted gold. Nixon in 1972 had to take us off of the gold standard, because foreigners wanted to redeem their dollars for gold.

There is some post script to this on my blog

To add to the confusion, there are two different viewer profiles, those that have had an economics course and those that haven’t. If you have the chance, take just one course, I guarantee you will take all they offer, it’s the best path to a successful future.

[rseiser]

PD asked about bullion versus coins. I use the following ladder: mining stocks > futures > gold depository > physical bullion > popular coins.
The more to the right, the safer, but also more expensive in transaction cost and storage. Coins are easier to exchange in a crisis, but also slightly more expensive now than bullion.
I am planning to shift my assets to the right (sell from the left) as the bull-market in gold unfolds. I am looking for the signs of speculation in small mining stocks (sort of started) or shortages on physical deliveries on futures.

[LookoutBelow]

When I was in “Fear” mode of retaining some wealth in diversification so I coudnt be “wiped out” by one thing or another, I bought gold krugerrands and canadian loons. I also had some bullion. I hung on to that for a very short time and didnt really lose anything or make anything either, but the logistics and security required to physically hold that stuff was more than I could bear. No wonder we went to a paper monetary system BACKED by gold rather than actually possessing that stuff. The fiat crap we use today is nothing other than a scam…but as long as we all agree to be scammed, its money we use.

I was getting creative with trying to hide it too, in fact, it got ridiculous, I finally wised up and dumped it. My lovely wife pointed this out to me whilst I was in my “Rambo” stage of agressively protecting MY wealth !!! I didnt quite get to the point of dressing up in camo fatigues and wearing headbands with skulls and bones on em, but I was headed there !! Hahaahaaa

Things to remember:

1. Gold can be made illegal just by possessing it. Its been done before, will be done again if times get tough enough and people revert back to gold without the govt’s consent.

2. I determined it takes 8 times its actual weight in firearms and ammo to secure it….minimum.
Plus you stand the chance of turning into a paranoid gun nut trying to protect it. Even then….its still not really safe.

3. Holding “Gold or Silver certificates” is just exactly that, a “Certificate” not actual gold or silver. That defeats its purpose as an alternate store of wealth because it is channeled, controlled and traded through the avenues that originally are not trusted for their current stability….The Money Markets. Its volatile and “spendy”, …too rich for my blood.

In the end, gold is not the answer, there is no answer, but if more people want something like the economy to work than those who DONT want it to work, we might have a chance.

This economy is like a huge “rudderless” ship that goes in whatever direction the majority of the passengers lean towards. People like Bernanke are holding the wheel that is not connected to any rudder, they only think they are.

Right now, everybody is and has been leaning towards the “greed” side of this ship…for the last 5-6 years anyway.

I say, quit living your life worrying about the future you cannot control, the politicians are paid to do that, they suck at it I know, and they are mostly all crooks but you’ll spend your whole life worrying about stuff that you cant do anything about.
I gave up and went back to living my life doing the things that make me happy, I fully intend on dying broke a long time from now, whatever is left is going to the kids (they’re older) but I have no unsubstantiated BS, currently trendy notions that it is MY responsiblity to make their lives easier, the fun is making YOUR own life easier, not having it done for you. If I can with whats left GREAT ! If not, sorry.

Believe it or not, I had more fun “trying and planning” to make my life easier than I do now !

Life is not a destination…its a journey, try to get enough moola to do what it is you want to do and live the life you want and your automatically a huge success with minimal regrets.
chase the almighty dollar in obscenely large quantities and you quickly become a slave. Only the slaves wear rolexes in this camp.

Enough of this “simple surfer philosophy” Surfs up !… gotta go make some cheap memories.

Cheers,

[powayseller]

Great comments! You cannot ever protect or guarantee your wealth! The more you have, the more you obsess, the more fearful you become. Like those Millionaries next door, who hoard…

As far as leaving stuff to the kids, that was just recommended in biblical days, when people died at age 30. At the parents’ death, presumably the kids would be 15 – 20 years of age, just getting started on their own. That is the time in life you really need a good handout! Furniture, house, business capital…

In today’s society, parents live to age 80-90, and by the time they die, their kids are over 60 years old, and don’t need mom and dad’s handout anymore. The whole “leave stuff for my kids” mentality is really screwed up. People don’t realize who made the rules, at what time.

My husbands’ parents saw both sets of parents die in the last 5 years, and received their inheritances. They are over age 65! They didn’t need that money by then. Those grandparents should have just spent it on themselves, taken a few trips, etc. Or set up a college fund for the grandkids. Now there’s a good idea: old people leave their inheritance to the college fund of the youngest descendants.

It’s kind of like telling people not to eat pork. Back in biblical times, this made sense,because there were probably cleanliness or disease issues with pigs. Not today! And I am a vegetarian, so I do not want to defend eating meat. My points is, let’s use common sense!

[lostkitty]

This is why they say:

“Possesions are a prison.”

[powayseller]

I felt more financial security before I sold my house. Now I constantly worry about my money. Can anyone else relate?

[Author]

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