If you had $25,000 to invest....

[villain_the_foe]

The market went down today in gold terms!

Its up in dollar terms!

Someone see's through the bullshyte!

[villain_the_foe]

I realized that I never really answered the question to my own thread.

If I had $25,000 I'd purchase one gold coin at $1,350, and the rest would go straight to Silver bullion.

The one gold coin would simply be there so I can say that I have a "diverse portfolio"

[villain_the_foe]

I'll never understand why someone would day-trade. You have to pay taxes on dividends (you don't if you own the stock a year or more) and its much less stressful and safe to lump-sum invest and buy-and-hold. Even in the 1930's during the Great Depression years the stock market still went up well beyond inflation overall for the decade. The same will be true for the 2010's.

I have to disagree with you buddy. You have to remember, back in the 30's the US was still a manufacturing country. We "produced" our way out of the great depression. We're a consumer nation now, we dont make anything here...china does. This will not be inflation, but hyper inflation. We've printed more money in the past 2 years than we've done the prior 200, and we're about to print up another couple trillion for another dose of easing. The market is going to expand then implode because ultimately the economy is going to have to default on its debt because it cant pay back the money its borrowed. We're currently borrowing like 4 billion from china per day right now just to keep the economy afloat. We're living on borrowed debt. how long is that going to last?

[JetsFanInDenver]

I realized that I never really answered the question to my own thread.

If I had $25,000 I'd purchase one gold coin at $1,350, and the rest would go straight to Silver bullion.

The one gold coin would simply be there so I can say that I have a "diverse portfolio"

[villain_the_foe]

Gold will hit $3000 before it hits $800...you can bet your bottom dollar on that.

TV lies. I've learnt that a long time ago.

Let me quickly correct myself. Dont actually bet your bottom dollar on that. Gold will hit $3000, but you probably wouldnt want to own it during that time because of the 1099 rule coming in 2012.

Silver in my opinion is not only more powerful than gold, but is probably the most powerful investment in the world today if you really, really look into it.

[bitonti]

so you ask a question, don't like the answers and then answer it yourself.

thanks jim kramer

[villain_the_foe]

so you ask a question, don't like the answers and then answer it yourself.

thanks jim kramer

I didnt mean for you to take it like that. I didnt say that you buying stock was lame or that I didnt like it. You can buy all the stocks you like if you think its beneficial. What I responded to was your comparison between stocks and gold, as well as the herd following when there was simply no herd to be found and there's not a stock on planet earth that has had the type of run that gold has had the past decade. Thats all I was saying.

I didnt mean for you to feel that I pulled a jim kramer, I was simply making convo on what you said. I actually thought that you would have responded to my points, because I do respect your opinion. I say buy Silver and stay away from "paper", Mr. Kramer tells you to hold on Bear Sterns and that the bavarian illuminati are cool. I see a BIG difference there.

[bitonti]

sometimes the internet doesn't deliver a sarcastic message

for the record we are not in a recession and i haven't seen any bread lines. as hoover (?) said when your neighbor loses a job it's a recession when you lose a job it's a depression.

im just a little more optimistic than most. commodities are at the end of the day just metals. you can't eat em. gold seems to be tapped out, and had a nice run.

My point is if we are so concerned about recession/depression, the market is no place to put your money in any form. Might as well invest in shotguns and ammo. we are either in the game or we are not in the game.

if negative, buy put out of the money options against the S&P 500 they are cheap and if you are right about everything going to s--t you'll make a killing. it's better than buying 22 dollar silver and hope it makes it to 30.

[JetsFanInDenver]

sometimes the internet doesn't deliver a sarcastic message

for the record we are not in a recession and i haven't seen any bread lines. as hoover (?) said when your neighbor loses a job it's a recession when you lose a job it's a depression.

im just a little more optimistic than most. commodities are at the end of the day just metals. you can't eat em. gold seems to be tapped out, and had a nice run.

My point is if we are so concerned about recession/depression, the market is no place to put your money in any form. Might as well invest in shotguns and ammo. we are either in the game or we are not in the game.

if negative, buy put out of the money options against the S&P 500 they are cheap and if you are right about everything going to s--t you'll make a killing. it's better than buying 22 dollar silver and hope it makes it to 30.

Read this:

Bloomberg picked up an eye-opening statement made by the Wal-Mart CEO last week ...I have not seen this commented upon in the lamestream media, although they did manage to tell us (many times) that the recession apparently ended back in June 2009 ... try to tell that to these folks.

"I don't need to tell you that our customer remains challenged … you need not go farther than one of our stores on midnight at the end of the month. And it's real interesting to watch, about 11 p.m. customers start to come in and shop, fill their grocery basket with basics – baby formula, milk, bread, eggs – and continue to shop and mill about the store until midnight when government electronic benefits cards get activated, and then the checkout starts and occurs. And our sales for those first few hours on the first of the month are substantially and significantly higher."

Link:

http://www.investorvillage.com/smbd.asp?mb=3666&mid=9548265&pt=msg

[Greenranger]

sometimes the internet doesn't deliver a sarcastic message

for the record we are not in a recession and i haven't seen any bread lines. as hoover (?) said when your neighbor loses a job it's a recession when you lose a job it's a depression.

im just a little more optimistic than most. commodities are at the end of the day just metals. you can't eat em. gold seems to be tapped out, and had a nice run.

My point is if we are so concerned about recession/depression, the market is no place to put your money in any form. Might as well invest in shotguns and ammo. we are either in the game or we are not in the game.

if negative, buy put out of the money options against the S&P 500 they are cheap and if you are right about everything going to s--t you'll make a killing. it's better than buying 22 dollar silver and hope it makes it to 30.

The recession is not over. One group said it was and the liberal media jumped on it due to the impending massacre of Democrats in November. Numerous other economists and business people, including Warren Buffett and Turbo Timmy himself deny that the recession is over, but the MSM would not report that because it does not help the Dear Leader.

And bread lines are in a depression, not a recession, the depression has not begun yet.

[villain_the_foe]

sometimes the internet doesn't deliver a sarcastic message

for the record we are not in a recession and i haven't seen any bread lines. as hoover (?) said when your neighbor loses a job it's a recession when you lose a job it's a depression.

im just a little more optimistic than most. commodities are at the end of the day just metals. you can't eat em. gold seems to be tapped out, and had a nice run.

My point is if we are so concerned about recession/depression, the market is no place to put your money in any form. Might as well invest in shotguns and ammo. we are either in the game or we are not in the game.

if negative, buy put out of the money options against the S&P 500 they are cheap and if you are right about everything going to s--t you'll make a killing. it's better than buying 22 dollar silver and hope it makes it to 30.

how does it seem to be tapped out to you? I gave my explaination that it isnt. Im simply trying to pick your brain here.

My opinion is that Gold's run has just started...for the people who "understand" what these metals are. People who are buying for paper profit are going to sell when the economic manipulation crashes the metal which should be sooner than later, and while all those people who think that its just a metal starts to dump thinking that the run is over...i'll be right there (just like the govt's of the world) to pick it up at an even further undervalued price.

Basically im trying to get your reasoning on why you think gold is physically tapped when there's more "ETF paper gold owners" than physical. I've always said, if it isnt in your hands...you dont own it. And i think that if those folks were to read the fine print on the GLD ETF stock they'd know that physical gold does not have to be shipped to them...but money can be compensated for the paper holdings...which would be taxed by the way. With that said, Gold ETF's are not backed by gold as most think, same thing with the iShare SLV for Silver, and there's been no audit on the metals to prove that there is. The market is being manipulated, and there will be a pull back coming to shake loose those people who think that its just a metal and nothing more.

I'd rather sit, because I know that the markets have suppressed not only the real price, but they've sold atleast a hundred times more paper gold/silver ETF's than the underline physical available. Not only is silver and gold STILL undervalued, but to sell 100 people the same 1 oz of gold/silver through ETF's is fraud. The Comex here and the LBMA in london will not be able to cover those shorts. And as I said before, when push comes to shove...just sit back and watch the fireworks.

Now as for the recession part. Let me put it to you like this. To say that we're having a recovery is to also say that we're buildng capital. You cannot have capitalism without capital, you cant have capital without savings, and you cannot have savings without jobs. In otherwords, you cannot have a jobless recovery. You may not see it now...but you will.

[villain_the_foe]

The recession is not over. One group said it was and the liberal media jumped on it due to the impending massacre of Democrats in November. Numerous other economists and business people, including Warren Buffett and Turbo Timmy himself deny that the recession is over, but the MSM would not report that because it does not help the Dear Leader.

And bread lines are in a depression, not a recession, the depression has not begun yet.

good point.

And to add, you may not be able to "eat gold/silver" but I've never heard a of person on a bread line with an oz of gold/silver in their pocket either.

[bitonti]

Read this:

Bloomberg picked up an eye-opening statement made by the Wal-Mart CEO last week ...I have not seen this commented upon in the lamestream media, although they did manage to tell us (many times) that the recession apparently ended back in June 2009 ... try to tell that to these folks.

"I don't need to tell you that our customer remains challenged … you need not go farther than one of our stores on midnight at the end of the month. And it's real interesting to watch, about 11 p.m. customers start to come in and shop, fill their grocery basket with basics – baby formula, milk, bread, eggs – and continue to shop and mill about the store until midnight when government electronic benefits cards get activated, and then the checkout starts and occurs. And our sales for those first few hours on the first of the month are substantially and significantly higher."

Link:

http://www.investorvillage.com/smbd.asp?mb=3666&mid=9548265&pt=msg

that's 1 bad situation... another situation is that 20% of the nation controls 80% of the wealth.

Yes it might suck for many people but that doesn't mean there's no money out there, or that the stock market is not a place to make money. The rich are getting richer... right now. They always do. Those who sold in the panic lost more than those who held on for the recovery.

I don't like gold as a play right now cause I feel it's had a good run and isn't going to go much higher. If you do actually get gold what do you do with it? bury it in the back yard? Sell it for dollars? If not, then what's the point? Or do you wait for the world to end and break your coins into quarters for use in the "new" economy. Get a gun and ammo if you feel that's a realistic outcome. I don't think it is. I think this country and the dollar are stronger than advertised. If you don't believe me, go to Atlantic City on a Saturday night and tell me it's a depression.

there's money to be made in an ascending market as well as a declining market. if you really feel like a collapse is imminent you can make bets on that outcome using options, and it's got alot more upside than buying gold and never selling it. Of course chances are the sky doesn't fall, and those options become worthless. But if it ever does pay off you are swimming in it.

and for the record recession is defined as negative growth. We have small growth. it's not negative. double dip recession is a possibility. Depression is unlikely.

[JetsFanInDenver]

good point.

And to add, you may not be able to "eat gold/silver" but I've never heard a of person on a bread line with an oz of gold/silver in their pocket either.

You cannot eat gold/silver. But its not for eating purposes. Its so that you can buy what you want to eat.

In a world where we are hearing the first whispers of an international currency war people are dialing into the fact that currencies worldwide will be debased. The only currency that will maintain and add to its value is one that cannot be printed at the whims and fancies of any countries Federal Reserve. And that currency is....no prizes for guessing.

[JetsFanInDenver]

that's 1 bad situation... another situation is that 20% of the nation controls 80% of the wealth.

Yes it might suck for many people but that doesn't mean there's no money out there, or that the stock market is not a place to make money. The rich are getting richer... right now. They always do. Those who sold in the panic lost more than those who held on for the recovery.

I don't like gold as a play right now cause I feel it's had a good run and isn't going to go much higher. If you do actually get gold what do you do with it? bury it in the back yard? Sell it for dollars? If not, then what's the point? Or do you wait for the world to end and break your coins into quarters for use in the "new" economy. Get a gun and ammo if you feel that's a realistic outcome. I don't think it is. I think this country and the dollar are stronger than advertised. If you don't believe me, go to Atlantic City on a Saturday night and tell me it's a depression.

there's money to be made in an ascending market as well as a declining market. if you really feel like a collapse is imminent you can make bets on that outcome using options, and it's got alot more upside than buying gold and never selling it. Of course chances are the sky doesn't fall, and those options become worthless. But if it ever does pay off you are swimming in it.

and for the record recession is defined as negative growth. We have small growth. it's not negative. double dip recession is a possibility. Depression is unlikely.

Ever hear of HFT ?

Question i ask is the markets(i refer to S&P500) have gone up like 10+% in the past month alone.

On main street do we feel like we are 10% more prosperous in the last month ?

And add to the fact that for 22 straight weeks (near unprecedented levels) there have been mutual fund outflows to the tune of $80 billion dollars and the market in the last 22 weeks has stood right there one wonders whats how the equation of supply and demand was tilted.

In September alone there were outflows of 20 billion. And market went up 10+%.

The outflows represent that most people have lost confidence in the markets.

This is just a souped up market inflated by the largesse of the Fed Reserve. We are way past the existence of normal functioning markets where prices represent organic supply and demand.

The problem is when you have a sick bird you can make it jump but it cannot fly. This market and this economy is inflated by powers that be. They have made it jump. And jump higher. But that only guarantees the fall down will be that much more painful.

In this scenario i would stay out. I have one small short position. Besides that i am all cash and some PM's.

[villain_the_foe]

Ever hear of HFT ?

Question i ask is the markets(i refer to S&P500) have gone up like 10+% in the past month alone.

On main street do we feel like we are 10% more prosperous in the last month ?

And add to the fact that for 22 straight weeks (near unprecedented levels) there have been mutual fund outflows to the tune of $80 billion dollars and the market in the last 22 weeks has stood right there one wonders whats how the equation of supply and demand was tilted.

In September alone there were outflows of 20 billion. And market went up 10+%.

The outflows represent that most people have lost confidence in the markets.

This is just a souped up market inflated by the largesse of the Fed Reserve. We are way past the existence of normal functioning markets where prices represent organic supply and demand.

The problem is when you have a sick bird you can make it jump but it cannot fly. This market and this economy is inflated by powers that be. They have made it jump. And jump higher. But that only guarantees the fall down will be that much more painful.

In this scenario i would stay out. I have one small short position. Besides that i am all cash and some PM's.

It doesnt take much to see that we're still in a recession, you're right. To think that everything's alright because money is still flowing is beyond me. Digital currency isnt worth the paper its "not" printed on lol.

[Greenranger]

good point.

And to add, you may not be able to "eat gold/silver" but I've never heard a of person on a bread line with an oz of gold/silver in their pocket either.

Neither have I. Maybe thats why FDR stole everyones Gold in 1933. Wouldn't surprise me if that happened again very soon.

[villain_the_foe]

Neither have I. Maybe thats why FDR stole everyones Gold in 1933. Wouldn't surprise me if that happened again very soon.

What was crazy about that is when the US confiscated gold it was only the people who handed in their gold that lost. There was a good percentage of people who didnt hand in their gold, funny thing is that there were no arrests for the holding of gold.

Whats sad though is that most of the people who handed in their gold were doing it because they felt that it was the patriotic thing to do. Its messed up when you convince people to hand over their wealth by playing on their love for their country/countrymen.

History has revealed too much for me to ignore it. Thats why if I had $25,000 to invest, it would be 18,000 silver, 2,000 gold, 5,000 in cash at arms length and $0 in the bank.

[villain_the_foe]

that's 1 bad situation... another situation is that 20% of the nation controls 80% of the wealth.

Yes it might suck for many people but that doesn't mean there's no money out there, or that the stock market is not a place to make money. The rich are getting richer... right now. They always do. Those who sold in the panic lost more than those who held on for the recovery.

I don't like gold as a play right now cause I feel it's had a good run and isn't going to go much higher. If you do actually get gold what do you do with it? bury it in the back yard? Sell it for dollars? If not, then what's the point? Or do you wait for the world to end and break your coins into quarters for use in the "new" economy. Get a gun and ammo if you feel that's a realistic outcome. I don't think it is. I think this country and the dollar are stronger than advertised. If you don't believe me, go to Atlantic City on a Saturday night and tell me it's a depression.

No one said that there's a depression. However, we are in a jobless recession.

The "accumulative" Federal Reserve Note debt of the US is between 60 to 75 Trillion Dollars. The Gross Domestic Product (GDP) of the entire planet is less than that. In other words, we owe more money than what the planet can produce. The dollar is actually "weaker" than advertised. Atlantic City isnt depressed "today"...today being the operative word.

[THE ILK]

the dow is up 200 points today. but don't listen to me.

maybe you should buy 25,000$ worth of shotguns and canned beans.

Bit, what great news happened to spark this rise?

Let me guess the new jobless claims were at a 3 month low.

Maybe that has something to do with how many people are already unemployed.

Pass the shotgun shells, and open another can of beans!

[bitonti]

History has revealed too much for me to ignore it. Thats why if I had $25,000 to invest, it would be 18,000 silver, 2,000 gold, 5,000 in cash at arms length and $0 in the bank.

i dont have a problem with a negative out look. the delivery method is questionable.

So you've got 18,000 worth of Silver... let's say it appreciates 35% (the 22 going to 30 in your prediction) then you've got 24,000 worth of silver. pretty good. Very good actually for a long position.

but let's say you bought an out of the money option on the S&P collapsing. You could spend 1000 dollars on the option and get back 10x that if it hits. 20x, 50x if it hits huge. Every option is different, based on how much time is left on the contract, and it's way riskier (cause if it doesn't happen you have a worthless contract)...

but my point is if you have a _certainty_ that something bad is going to happen, there's way more upside in the market than in commodities. These black swans make money going down than going up. http://www.fooledbyrandomness.com/

this position that everything is f--ked and the markets, currency, government all can't be trusted isn't a way to make money. it's a way to build an expensive bomb shelter.

[villain_the_foe]

i dont have a problem with a negative out look. the delivery method is questionable.

It may seem like my outlook is negative, but its actually more positive than anything. I've learned how to see the opportunities in situations like this.

So you've got 18,000 worth of Silver... let's say it appreciates 35% (the 22 going to 30 in your prediction) then you've got 24,000 worth of silver. pretty good. Very good actually for a long position.

but let's say you bought an out of the money option on the S&P collapsing. You could spend 1000 dollars on the option and get back 10x that if it hits. 20x, 50x if it hits huge. Every option is different, based on how much time is left on the contract, and it's way riskier (cause if it doesn't happen you have a worthless contract)...

Okay, I finally understand what you're thinking, so let me explain. Silver is money, currency is debt and only has power given that its legal tender. I wouldnt jump into Silver for the short term, it'll be for the long term and in physical form. Why you ask? Because it hedges against inflation, and because of that very fact alone it will in the long run out perform any stock in the market.

but my point is if you have a _certainty_ that something bad is going to happen, there's way more upside in the market than in commodities. These black swans make money going down than going up. http://www.fooledbyrandomness.com/

this position that everything is f--ked and the markets, currency, government all can't be trusted isn't a way to make money. it's a way to build an expensive bomb shelter.

I understand that totally, however, the market doesnt hedge you against inflation no matter how many x's a particular stock flips because legal tender is DEBT. REAL assests such as real money can do that for you. Now the 35% you spoke of is very isolated and you gave the impression that thats all Silver would do.

Question, what will Silver's worth be when it becomes public knowledge that we have less than 600 million oz of above ground to spread out to over 7 billion people including industry? What will Silver's worth be when it becomes public knowledge that there's more paper silver than physical? What will silver's worth be when people realize that the paper game (whether currency or stock) is false because you're not dealing in a free market and people begin to flood out of markets and paper ownership and into physical?

You must understand Bit that the dollar currently has strength for two reasons. 1. domestically its legal tender, and 2. because the "free market" has been manipulated to artificially prop up the dollar to keep the world populous faith in the dollar. It has to end soon because the dollar is practically worthless. Once people realize that then you'll see that market of yours flip 50 times given hyper inflation. Dont believe me? How about asking those "multi-trillionaires" in Zimbabwe who couldnt even buy bread with that money.

Whats the point of having 50x's the money you invested when no one has faith in it? I never once said that I would "cash" out of silver, If i would get out of silver it would be for another tangible asset like land...once its undervalued.

Long term Bit....long term.

[THE ILK]

Bit, what great news happened to spark this rise?

Let me guess the new jobless claims were at a 3 month low.

Maybe that has something to do with how many people are already unemployed.

Pass the shotgun shells, and open another can of beans!

Bit wants no part of this, anybody?

[bitonti]

Bit wants no part of this, anybody?

there's no one reason why the market does anything. it rallied this afternoon on news of Fed involvement.

villian i guess my problem with your outlook is that all paper money will not collapse. the dollar is an idea and it's alot stronger than we realize. In many countries around the world it's the dollar that's the reserve currency, there are billions and billions of dollars that never see our soil. They call em eurodollars but they are really everywhere. if not the dollar than what? the euro? Bah. The yuan? Not while they have a corrupt and information controlled society. Who replaces the dollar? There is upside in American economy, believe it or not.

Buying a crate of silver to put in your basement doesn't seem like an investment strategy it seems like an inventory item for a panic room.

by the way a little inflation would actually be great right now. It would raise wages and heat up the economy a little. deflation is a more dangerous outcome.

[THE ILK]

there's no one reason why the market does anything. it rallied this afternoon on news of Fed involvement.

Glad to see you don't have me on ignore, yet.

This Fed involvement thing is a joke, they simply state they will be doing something to help the economy.

Yet they don't state what it is they will be doing.

Sounds like they are just going to turn the printing press on and leave it running!

What better way to destroy the dollar and collapse the economy, that is their plan right?

I mean how else could they usher in a socialist regime? What else could possibly make sense here?

Not too mention the Bush tax cut extensions were about to be voted in, so Pelosi that shill decides to adjourn for a month.

That's like going to work on a collapsing bridge, setting everything up underneath it, and then leaving it for a month, before you got anything done.

Where is the urgency to get people hired?

There are all kinds of businesses in a hiring freeze waiting to see if they are going to be able to keep these tax breaks, before they will go out and hire anybody!

So Bit, please tell me how long do you think the message the government is sending is going to float the market for?

Thanks!

[Greenranger]

i dont have a problem with a negative out look. the delivery method is questionable.

So you've got 18,000 worth of Silver... let's say it appreciates 35% (the 22 going to 30 in your prediction) then you've got 24,000 worth of silver. pretty good. Very good actually for a long position.

but let's say you bought an out of the money option on the S&P collapsing. You could spend 1000 dollars on the option and get back 10x that if it hits. 20x, 50x if it hits huge. Every option is different, based on how much time is left on the contract, and it's way riskier (cause if it doesn't happen you have a worthless contract)...

but my point is if you have a _certainty_ that something bad is going to happen, there's way more upside in the market than in commodities. These black swans make money going down than going up. http://www.fooledbyrandomness.com/

this position that everything is f--ked and the markets, currency, government all can't be trusted isn't a way to make money. it's a way to build an expensive bomb shelter.

The U.S. Dollar will be worthless. Gold and Silver will never be worthless. You are better off sinking some money into that because when (not if, but when) the dollar collapse's, the Gold will still be worth what it is now, just adjusted for inflation.

Say $1 today is equal to $100 a year from now. Gold is $1,346.26 an ounce right now. A year from now the gold would be worth well over $134,00 an ounce. Gold can't be inflated, paper can, there is nothing backing it.

[villain_the_foe]

villian i guess my problem with your outlook is that all paper money will not collapse. the dollar is an idea and it's alot stronger than we realize. In many countries around the world it's the dollar that's the reserve currency, there are billions and billions of dollars that never see our soil.

Your point would be valid, if we were an industrial nation. Remember, dollars (no matter the nation that its from) is simply an IOU. Question, if we're a consumer nation, and we're not making anything then where is the backing of those IOU's floating all around the world? Remember in my last quote I said that whats the point of making 50x's more money if no one has faith in the money? Well guess what? China has been dumping US tresury bonds for some time now. You dont think other countries see whats going on here? Where do you think that "Money that never seen this soil" is going to flow to? Back to where it originated. Thats the hyper inflation that Im informing you about. Fiat money fails 100% of the time. And when I say that im not saying that "every" currency will collapse at the same time. What I am saying is that whatever world currencies that are still coupled to the us dollar are going to feel the pain when industrial nations (India, China, Japan etc) begins to dump. Thats not my opinion, thats the truth. So yes, you convert your dollars into currencies that you think will remain strong. I just dont get why people think that the US dollar is so indestructible yet its collapsing right in front of you.

They call em eurodollars but they are really everywhere. if not the dollar than what? the euro? Bah. The yuan? Not while they have a corrupt and information controlled society. Who replaces the dollar? There is upside in American economy, believe it or not.

lol...we have probably the most corrupted economy in the history of the world...are you kidding me? As for an "information controlled society" China has been encouraging their citizens to buy silver "at spot price"...no premiums. I see factories in china popping up everywhere producing products for the world...just lift up your couch and you'll know where it came from. We're too busy being told everyday in the media that the economy is fine and to continue to play your xbox360. Information control??? As for the currency that will replace the dollar, I cant predict the future...I dont know. What I can tell you is that the Yuan will be here because it has industry to back up its IOU's. What do we make here bit? We dont even make the iPods that we love so much.

Buying a crate of silver to put in your basement doesn't seem like an investment strategy it seems like an inventory item for a panic room.

Panic is for people not knowing what they're doing...like keeping your money in a bank.

by the way a little inflation would actually be great right now. It would raise wages and heat up the economy a little. deflation is a more dangerous outcome

You're looking at inflation 1 dimensionally. hyper-Inflation (this includes digital money) has already happened, you dont feel it because the money circulating the world has not come back home. But with China having a population of billions, why would they need a conusmer nation of "millions" with worthless IOU's to import to when it has its own home-based factories and "billions" to sell to right in their own country? Are you now starting to realize why they're slowing unpegging their dollar from ours? Silver isnt solely the answer, I think investing in agriculture is awesome. Agricultural commodities went up more in September than both the Dow and S&P (percentage wise). The DBA went up 10% today alone. The world has to eat.

Inflation doesnt heat up the economy if there's no production to create the purpose of the inflation of currency in the first place (where are the jobs????). "Fiat" currency is an IOU...not money Bit.

[villain_the_foe]

Bit wants no part of this, anybody?

What'chu Talkin' bout Willis??? lol

[THE ILK]

What'chu Talkin' bout Willis??? lol

You Tim Dog, you!

[JetsFanInDenver]

Neither have I. Maybe thats why FDR stole everyones Gold in 1933. Wouldn't surprise me if that happened again very soon.

I do not think they will confiscate gold.

But what is most likely to happen is they start taxing the purchase of gold.

[JetsFanInDenver]

This amount of money buys you.....wait for it.....a sandwich (probably quite literally).

Maybe you get some extra onions on your sandwich. But that's about it!

At the end of the day question is what is a piece of paper worth ?

Just because it has some denomination printed on it. Or what you can buy with it.

Now what if people who sell wares and services start treating that piece of paper as not worthy for a transaction.

[THE ILK]

I do not think they will confiscate gold.

But what is most likely to happen is they start taxing the purchase of gold.

The magic words.

[villain_the_foe]

I do not think they will confiscate gold.

But what is most likely to happen is they start taxing the purchase of gold.

The bill was already passed and will be implemented Jan. 1st 2012. Any purchase/sell of items $600 or more has to be reported to the IRS. Im not going to get into details because I dont want to get too political, however, if you search the net you'll find the info. If gold is selling for $1300 then thats more than $600. I guess they beat you to it lol.

Also, The "futures" contracts are up come this december for people who have long holdings on Gold ETF's. The problem with gold is that people generally own "Shadow" gold...meaning that they dont own the physical, but they own the paper version.

Point being, Once these futures contracts are up this december people are going to come to a crossroad. Either enter a new contract and pay new premiums on their gold if they believe that Gold will continue to rise in price, or simply take the profit that they made during the time locked in and sell their contract.

I believe most of the people are going to sell their longs to reap that $300-$500 profit per coin that the held control on and the price of Gold is going to drop. Thats going to hurt the new physical buyers DEARLY who just now jumped into the game and bought at $1300+.

Gold is simply too easy to manipulate because whoever holds the gold makes the rules...and right now no one wants to own the physical just yet. The gold market is still a "paper" market. I still think gold will hit highs, but the manipulation is still there domestically. I think once China population is in a position to really purchase gold in the physical, thats when you'll begin to see the true potential. There's just too much phantom gold out there for me to really invest $1300 per coin.

I'd stick to Silver because I know for a fact that for the past 18 years demand has outweighed supply, and since supply has to always equal demand all of the stockpiles of silver from 1990-2005 is pretty much dried up to help meet that demand.

The only person holding a great portion of Silver is Warren Buffet with 130 million oz that he bought back in I believe 97. He said that he sold it but there's speculation that he actualy leased it to the LBMA in London to cover their short position on the market.

[villain_the_foe]

This amount of money buys you.....wait for it.....a sandwich (probably quite literally).

Maybe you get some extra onions on your sandwich. But that's about it!

At the end of the day question is what is a piece of paper worth ?

Just because it has some denomination printed on it. Or what you can buy with it.

Now what if people who sell wares and services start treating that piece of paper as not worthy for a transaction.

The sad this is that the zimbabwe dollar is slowly catching up to ours lmao!

This is the perfect reason why you need not just a dollar that's backed by real assets, but you also need "true" free markets. Free markets allows competition...which in turn keeps everything honest. For example, We have the US Dollar index. We hear everyday how the US dollar went up or down against other "fiat" currencies. Given the lack of a free market people dont get to see that ALL of the fiats are losing value against real money like Gold/Silver or Commodities like Soybeans and Wheat. Then people wonder why food is so expensive. Its because they're not getting the entire picture.

The economy has cancer, but instead of cutting the cancer we print more of it.

[villain_the_foe]

You Tim Dog, you!