Gold and Silver is the way to go

Discussion in 'Economy' started by ihopehefails, May 15, 2010.

  1. ihopehefails
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    I believe our currency will bust in the next few years and I believe our constitution has a solution to the problem. In it their is a mandate that all state accept gold and silver as payment for all public debts. In other words, by law, they are required to only accept gold or silver as payment and can only pay other people in the same currency. Forcing each state government to do this will drive out FRNs and in that state for a sound solid currency system that won't inflate, deflate, or be manipulated by international organizations.

    Their is already a movement to do this in some state and it is called the constitutional dollar in where states will only accept gold and silver backed currencies as payment for taxes. The link for the site is The Constitutional Tender Act in case anyone is interested.
     
  2. Toro
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    Gold and silver have been the way to go for the past decade.

    [​IMG]
     
  3. Neubarth
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    Neubarth At the Ballpark July 30th

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    As I have posted thousands of times before, Gold is a pretty yellow metal. People will pay for it what they will. Most of us expect a massive inflationary spiral some time in the future and Gold should increase in price further more, though it is quite inflated now.

    Since there is not enough gold to support any major country's currency, it can never be used to back currency, but it can be used as a separate currency. That has been my contention for thirty years now.

    Short of the inflationary price falling, the only other thing that could hurt Gold investors is the uncovering of that tremendous gold seam on the edge of the Rocky Mountains (I made this up years ago, too). There is enough gold in that seam to triple the world's gold reserves over night. That could easily drop the price of gold to under a hundred dollars an ounce.
     
  4. Mr. H.
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    How do you measure its worth?
    Just by the pleasure it gives here on earth.

    [ame=http://www.youtube.com/watch?v=oMlqn_Hjyi8&feature=player_embedded]YouTube - Rudolph the Red-Nosed Reindeer "Silver and Gold"[/ame]
     
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  5. Truthmatters
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    There is a precious metals manipulation going on right now
     
  6. geauxtohell
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    geauxtohell Choose your weapon.

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    Gold and silver is the way to go if you are an idiot that likes buying commodities when they are high.

    As for the doom and gloom, I like Dave Ramsey's take on it. "If it ever gets that bad, you are going to want livestock and not gold".
     
  7. Truthmatters
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  8. Toro
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    The arguments that prices are being manipulated in the precious metals markets are overwhelmingly that prices are being manipulated down, not up. I don't necessarily agree with those arguments but it is far more likely than prices being artificially boosted.

    There are a lot of nutbars making this argument, but some are legit, this being the most credible.

    Gold Anti-Trust Action Committee | Exposing the long-term manipulation of the gold market

    A former metals trader once told me that he never believed that the price of gold was being repressed, but after being in the pits for a decade, he now swears it is. I still don't believe it, but it isn't crazy either.
     
  9. Truthmatters
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    They are saying that they are selling more metals than actually exsist .

    What will that do for people who hold gold on paper?

    If you dont recieve a hunk of metal what have you bought?
     
  10. Toro
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    Yes, that is the argument.

    For example, gold is traded on the NYMEX. Something like $140 billion on gold futures are outstanding but the exchange only has $3 billion for delivery. The reason for this is because most people who trade futures don't want gold delivered to them when the contract expires. The argument is that one day, people are going to want to hold the physical gold, and there isn't enough supply to meet the demand when owners of gold futures contracts start demanding physical gold. When this happens, the price of physical gold will soar as the exchange has to scramble to buy at any price to deliver the gold it owes to the futures holders.

    Think its not possible? There has been a scramble to buy gold and silver in Germany and Austria over the past week as Germans and Austrians fear monetary chaos from the collapsing euro. The Austrian mint had record demand for silver coins, and may have run out of supply (I can't remember).

    The gold price you see traded on the TV is a futures price, not the actual price of physical. The physical price of gold actually trades above the futures price by 3%-10%.

    I am not one of these black helicopter/guns/canned food end-of-the-world nutters, and I'm not prone to panics, but for the first time ever, I am thinking about buying physical gold. Not only that, but I'm thinking about buying it up in Canada and keeping it in a safety deposit box in Canada, just in case the US government decides it wants to expropriate your gold like FBR did. I'd put the odds of that happening at 5% or less but there is 0% chance of that happening in Canada.

    I probably won't do that as there are easier ways to play the physical gold market. There are two traded ETFs which hold physical gold, the Sprott Physical Gold Trust, ticker PHYS, and the ETFS Gold Trust ETF, ticker SGOL. The Sprott ETF has audited bars in Canada. The ETFS ETF has audited bars in Switzerland. Both are out of the reach of the US government. The PHYS trades at a 12% premium to the spot price of gold whereas the SGOL trades pretty much in line. I'd be inclined to buy the ETF without the premium. I own calls on the most popular gold ETF, the GLD. It too claims to own physical gold but many investors question this claim.
     

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