buying gold?

Discussion in 'Economy' started by Fatality, Oct 11, 2009.

  1. Fatality
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    Fatality SunCrackedSoul

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    was it like 10-12 years ago gold was something like 300+ per oz, and now its what like 1200 or some such?

    has the high point been reached, or will gold contimue to rise? is it worth buying now or are all thos who bought it at 300 an oz selling it off now for the current value and making a killing?
     
  2. The Rabbi
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    The Rabbi Diamond Member

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    Hard to say.
    Look at the overhang of dollars in the money supply. The only way the price of gold will go down is for the Fed to start tightening and reduce this supply. The Fed has a terrible record of doing that, preferring to leave credit too easy until the bubble bursts. This was the entire reason for the current economic crisis. It had nothing to do with Bush, except that he appointed Bernanke.
    Of course Obama will make it worse. He will pressure Bernanke not to tighten until after the midterm elections. So I would say gold is a good bet through 2010.
     
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  3. Oddball
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    Oddball BANNED Supporting Member

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    My coin dealer recommends trading in your collectibe coins (St. Gaudens $20.00 etcetera) for bullion.
     
  4. Toro
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    Toro Diamond Member

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    Gold was $300 in 2002.

    I am up to my eyeballs in gold and think it could hit $1300 to $1500 some time by next March. I could change my mind tomorrow though, and sell every ounce I own.

    It would not surprise me if gold eventually hits $5000. I am not making that prediction, and I think the chances are small, but if it happened, I would not be surprised.
     
  5. The Rabbi
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    The Rabbi Diamond Member

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    Why?
     
  6. Midnight Marauder
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    Midnight Marauder BANNED

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    If you have money or assets that you don't mind being tied up for at least five years, Gold is an option.
     
  7. Oddball
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    Oddball BANNED Supporting Member

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    He believes the appreciation in the bullion will outstrip the premium for the collectible coin.
     
  8. The Rabbi
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    The Rabbi Diamond Member

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    Maybe. But is there that much premium i the collectible? The melt value in the coin itself will continue to rise with bullion.
     
  9. Oddball
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    Oddball BANNED Supporting Member

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    Right...But if you trade in a lot of Saints for bullion and it goes up to $2000 an ounce, you'll have a lot more money in the end.
     
  10. Toro
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    Toro Diamond Member

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    Coins can trade at 10%-15% above the spot price.

    The bid/ask spread, the costs of storage, and illiquidity all make owing the physical less desirable than holding exchange traded gold IMHO.
     

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