Gold and Silver is the way to go

[ihopehefails]

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.

 

[Toro]

Gold and silver have been the way to go for the past decade.

 

[Neubarth]

Gold and silver have been the way to go for the past decade.

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.

 

[Mr. H.]

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]

 

[Truthmatters]

There is a precious metals manipulation going on right now

 

[geauxtohell]

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.

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".

 

[Truthmatters]

Precious Metals Manipulation: Lawyers Prepare for Battle -- Seeking Alpha

There is a reason people like Beck are hawking gold on TV folks.

it time to sell your gold and silver

 

[Toro]

Precious Metals Manipulation: Lawyers Prepare for Battle -- Seeking Alpha

There is a reason people like Beck are hawking gold on TV folks.

it time to sell your gold and silver

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.

 

[Truthmatters]

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?

 

[Toro]

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?

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.

 

[uscitizen]

Goild was good to buy when it was around $500.

Buy now if you like to buy high and sell low.

 

[ihopehefails]

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.

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".

The problem is is that the constitution demands that all states accept gold or silver as payment of public debts so it does not matter what any of us think but what the constitution says the states should do. Every state in the union can be forced to accept gold and silver by the constitution. Here is what it says exactly:

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

 

[Big Black Dog]

You can't eat gold. You can eat turnips. I recommend beginning to hoard turnips. Gold might have been a good buy back when it was much cheaper as uscitizen says. However, I would never buy it now because if you do you'll never recoup your money invested. The price of gold is eventually going to go lower. As far as our currency going to hell in a handbasket I think it will be devalued at some point but it will never be worthless.

 

[Zander]

Gold has essentially no industrial use. It is a nice, shiny, yellow metal. It is only valuable because we "say" it is. Remind you of anything else?

 

[tommywho70x]

Gold has essentially no industrial use. It is a nice, shiny, yellow metal. It is only valuable because we "say" it is. Remind you of anything else?

without gold, you wouldn't be able to use your computer to post to these forums.
pilots and astronauts would have an awful time with glare if it weren't for the gold plating on their face shields.

i'm sure there are more and if anybody squawks, i'll be glad to go find them.

 

[Toro]

Gold has essentially no industrial use. It is a nice, shiny, yellow metal. It is only valuable because we "say" it is. Remind you of anything else?

Yes, I agree with this. However,

On Gold and Intrinsic Value - Toro's Running of the Bulls Market Blog

 

[finebead]

Remember gold had a big run in the 70's during high inflation, it peaked in 1978 at $885 per ounce, then entered a 23 year bear market and went down to 265 in 2001, lost 75% of its value. You would have broken even from a purchase in 1978 after 30 years. That's a longer investing horizon than I have. I was taught "always buy good values". I bought some gold in 2003, sold it in late 09. The dollar has been moving up for months, which is usually bad for gold; although gold has been moving up with the dollar, that is strange.

After house prices have tripled in value in 10 years, are houses still a good value? That's the question with gold now. I understand buying near a 20 year low with the govt. running big deficits. Buying in at an all time high, with the govt. running big deficits is a different matter.

The case for gold to me is a lot weaker than it was 10 years ago, so I got out. Who wants to be holding the bag when it decides to take a 25 year bear market plunge? There is also a lot of risk holding gold you have overpaid for.

If you take the ratio of silver to gold price, silver is historically low right now compared to gold, and it has industrial use. I'm thinking of buying some SLV on a pullback, then put a trailing stop under it about 5% under the buy price. That's another way of saying, silver looks like a better value vs. gold at the moment, and you should try to buy good values.

 

[Paulie]

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.

Hmm, let's see...

Supply goes up x3, but somehow the price goes down x12?

Yeah neubarth, great math there.

And a really great understanding of supply/demand too

 

[Paulie]

Gold has essentially no industrial use. It is a nice, shiny, yellow metal. It is only valuable because we "say" it is.

This is simply not true.

Gold is one of the best conductors of all metals. It also has enormous heat retention capabilities, and radiation reflection capabilities too. And maybe most importantly, it last forever. It does not rust and rot away like most other metals do. Some day we will abandon it as any kind of monetary specie, jewelry, etc, and utilize it for its most important aspects.

 

[Zander]

Gold has essentially no industrial use. It is a nice, shiny, yellow metal. It is only valuable because we "say" it is.

This is simply not true.

Gold is one of the best conductors of all metals. It also has enormous heat retention capabilities, and radiation reflection capabilities too. And maybe most importantly, it last forever. It does not rust and rot away like most other metals do. Some day we will abandon it as any kind of monetary specie, jewelry, etc, and utilize it for its most important aspects.

How much of gold production is used by industry? Don't bother trying to tell me, I already know -70% of gold is used to make jewelery, 20% is used for investment purposes (bars, coins etc..) and 10% is for industrial applications.