The Gold and Silver Thread

[KissMy]

Who Cares About Sterilization? The Fed Pretty Much Just Announced QE3

 

[TakeAStepBack]

A bear market this week. Down a bunch on FCX, PLG and MVG. Hoping for a bounce back in the coming weeks. If FCX keeps tanking, I'm going to buy more shares as it is sure to rebound.

 

[sparky]

my q here is what good is gold if the $$ crashes?

~S~

 

[KissMy]

my q here is what good is gold if the $$ crashes?

~S~

OPEC accepts Gold for Oil.

 

[TakeAStepBack]

my q here is what good is gold if the $$ crashes?

~S~

Gold is the real money. Which is why CBs keep hoarding it. It's the golden rule. He who owns the gold makes the rules.

"$$$" in this instance is just paper.

 

[sparky]

well correct me if i'm wrong, but one can't actually own gold

one is given a paper certificate

so, wuz da dif?

~S~

 

[KissMy]

well correct me if i'm wrong, but one can't actually own gold

one is given a paper certificate

so, wuz da dif?

~S~

Thats funny! I have lots of gold coins in my possession. I only use paper to short gold if I believe it is going down.

 

[sparky]

Executive Order 6102 - Wikipedia, the free encyclopedia

Executive Order 6102 required U.S. citizens to deliver on or before May 1, 1933, all but a small amount of gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve, in exchange for $20.67 (equivalent to $371.10 today[3]) per troy ounce. Under the Trading With the Enemy Act of October 6, 1917, as amended on March 9, 1933, violation of the order was punishable by fine up to $10,000 ($167,700 if adjusted for inflation as of 2010) or up to ten years in prison, or both. Most citizens who owned large amounts of gold had it transferred to countries such as Switzerland.[citation needed]

Order 6102 specifically exempted "customary use in industry, profession or art"—a provision that covered artists, jewellers, dentists, and sign makers among others. The order further permitted any person to own up to $100 in gold coins (a face value equivalent to 5 troy ounces (160 g) of Gold valued at about $7800 as of 2011). The same paragraph also exempted "gold coins having recognized special value to collectors of rare and unusual coins." This protected gold coin collections from legal seizure and likely melting.

~S~

 

[Toro]

Executive Order 6102 - Wikipedia, the free encyclopedia

Executive Order 6102 required U.S. citizens to deliver on or before May 1, 1933, all but a small amount of gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve, in exchange for $20.67 (equivalent to $371.10 today[3]) per troy ounce. Under the Trading With the Enemy Act of October 6, 1917, as amended on March 9, 1933, violation of the order was punishable by fine up to $10,000 ($167,700 if adjusted for inflation as of 2010) or up to ten years in prison, or both. Most citizens who owned large amounts of gold had it transferred to countries such as Switzerland.[citation needed]

Order 6102 specifically exempted "customary use in industry, profession or art"—a provision that covered artists, jewellers, dentists, and sign makers among others. The order further permitted any person to own up to $100 in gold coins (a face value equivalent to 5 troy ounces (160 g) of Gold valued at about $7800 as of 2011). The same paragraph also exempted "gold coins having recognized special value to collectors of rare and unusual coins." This protected gold coin collections from legal seizure and likely melting.

~S~

That's been repealed.

 

[Polk]

Gold, like paper money, is only worth what people are willing to trade for it.

 

[TakeAStepBack]

The difference is understanding correctly what worth, or intrinsic value, is. People don't print gold. But, certificates of gold are good in the event demand for payment can be met. Dollars are good as long as confidence is. Gold lasts forever.

 

[Toro]

The difference is understanding correctly what worth, or intrinsic value, is. People don't print gold. But, certificates of gold are good in the event demand for payment can be met. Dollars are good as long as confidence is. Gold lasts forever.

Gold can still go back down to $500 an ounce even if it does last forever.

 

[TakeAStepBack]

I don't see that ever happening.

 

[Toro]

I don't see that ever happening.

I don't know.

But a decade ago, when I first started buying gold, I didn't know anyone who thought it would be pushing $2000, me included.

 

[Polk]

The difference is understanding correctly what worth, or intrinsic value, is. People don't print gold. But, certificates of gold are good in the event demand for payment can be met. Dollars are good as long as confidence is. Gold lasts forever.

Gold doesn't have any intrinsic value outside of industrial applications. Any value beyond that is build on the same confidence fiat currency is.

 

[sparky]

Gold, like paper money, is only worth what people are willing to trade for it.

let's go with that Polk

if we're all hungry, and i have a chicken, how much is gold going to be worth?

~S~

 

[TakeAStepBack]

Incomplete question for a viable answer.

 

[TakeAStepBack]

I don't see that ever happening.

I don't know.

But a decade ago, when I first started buying gold, I didn't know anyone who thought it would be pushing $2000, me included.

I know. But it will take a major paper money correct in the form of deflation to get the price down to $500 again. Which I dont see happening. Gold is an excellent investment in that regard. It will continue to climb (save for some short term slides created by the CB wizards) unless something major changes in competing world paper money for that to happen. As you know, the price is so high due to inflation and debasement of the dollar.

 

[sparky]

I still question the validity of an investment based on a monetary system (the dollar) many of you expect to fail

what good will any gold certificates be then?

~S~

 

[uscitizen]

Gold certificates?

Have only physical in hand gold.