Gold

Discussion in 'Hawaii Business Forum' started by simplyRed, Mar 19, 2011.

  1. simplyRed

    simplyRed Member

    Is it really that strong an investment as those infomercials say? I might buy some but I want some FH experts opinions first!
  2. RodneyR

    RodneyR Senior Member

    You've got to go back and learn about the history of fiat money and what happens to countries that over printed. Gold always wins.



    http://www.youtube.com/watch?v=xYD-ocYju70&feature=related

    http://www.youtube.com/watch?v=XW3jFfVtYSs
  3. RodneyR

    RodneyR Senior Member

    this video makes the most sense
    http://www.youtube.com/watch?v=nNtIsSWVJBI&feature=related
  4. RodneyR

    RodneyR Senior Member

    You better learn about
    1) the Gold Confiscation of 1933,
    2) the Bretton Woods act backing the dollar (world reserve currency) by gold after World War II and
    3) President Nixon breaking the gold Standard in August 15, 1971.
    ... to understand why the dollar is falling in value today



    8 April 2011 Youtube - "Peter Schiff on Bretton Woods 2 "

    http://www.youtube.com/watch?v=TANLRPEcG5U&feature=player_embedded
  5. RodneyR

    RodneyR Senior Member

    Read today's news



    http://www.bloomberg.com/news/2011-04-15/texas-university-endowment-holds-almost-1-billion-in-gold-bars.html

    Shortage Threat Drives Texas Schools Hoarding Bullion at HSBC
    Bloomberg, Apr 17, 2011 5:00 AM
    "Dallas hedge-fund manager J. Kyle Bass helped advise the University of Texas Investment Management Co. on taking delivery of 6,643 gold bars, worth $987 million on April 15, now stored in a bank warehouse in New York.

    Bass, who made $500 million with 2006 bets on a U.S. subprime-mortgage market collapse, said managers of the endowment, known as UTIMCO, sought board approval to convert its gold investments into bullion this year. A board member, Bass, 41, said he was asked to help with that process. "




    http://blogs.forbes.com/robertlenzner/2011/04/17/university-of-texas-endowment-holds-1-billion-gold-5-of-its-portfolio/
    University of Texas Endowment Holds $1 Billion Gold, 5% Of Its Portfolio
    Apr. 17 2011 - 3:01 pm

    "It should come as no shock to financial markets that university endowments have followed in the wake of central banks and hedge funds to become the newest major investors in precious metals like gold.

    Just as central banks in China, India, Russia and many other nations view gold as a monetary reserve protection against the falling dollar, major academic institutions are looking for new asset classes like precious metals and commodities to produce returns that can be put to work as a source of funds for a large portion of college operating expenses.

    Friday, as gold prices hit a new all-time high – $1486 an ounce($1500 is around the corner),the University of Texas Investment Management Co., revealed that 5% of its $19.9 billion endowment(it handles Texas A&M as well) was in actual bars of gold bullion in a New York bank vault owned by HSBC Holdings, the London based global banking institution. Not in any gold ETF or individual gold mining shares, or in gold futures;l Texas took delivery of 6,643 actual bars of bullion, or 664,300 ounces– a quite unusual transaction for a university."








    The price of oil, wheat, sugar, Gold and Silver is are not rising in price. It is the value of fiat currencies that are falling from over printing.


    Thanks for reading...

    ...
  6. RodneyR

    RodneyR Senior Member

    Utah already back on the gold standard
    Univ Texas chose to invest in $1 Billion in physical gold bars



    23 April 2011 Youtube - "A Return to the Gold Standard?"

    http://www.youtube.com/watch?v=oD_U3NJGKWk&feature=player_embedded


    Thanks for viewing...
  7. RodneyR

    RodneyR Senior Member

    23 April 2011 Youtube - "Univ. of Texas Takes the Gold"

    http://www.youtube.com/watch?v=3pbodP4HT74&feature=player_embedded
  8. scrillaz924

    scrillaz924 New Member

    bought a diamond cut 24k chain in 05 for 6bills sold it dec. 2010 for 1800....i didnt even know it went up i would of been happy with 5bills...
  9. RodneyR

    RodneyR Senior Member

    here's a scenario

    "Gold confiscation -
    Gold confiscation of 1933 will happen again but this time it will be voluntary because only 3% of the American people own gold. Silver to gold ratio 15:1."

    http://www.youtube.com/watch?v=0TkFnL0HtL4&feature=related
  10. RodneyR

    RodneyR Senior Member

    21 May 2011 Youtube - "Only Gold And Silver Can Be Real Money "

    http://www.youtube.com/watch?v=D230oNvuSkk
  11. Going Bald

    Going Bald Member

    I would never buy gold or silver. After looking into it how the hell are you going to sell it? Its not like you can take it to a bank. You can't buy food with it. If you take your gold to dealer he is not going to give you the full value. The dealer is the only one making money out of this.
  12. posrx7

    posrx7 Tony! Toni! Tone!

    ^

    No offense.

    But I find arguments like that amusing, just like the "you can't eat gold". Well, s*** I guess you could eat your dollar bills, but they wont be very tasty, would they?

    WHAT INVESTMENT ASSET IS THERE THAT DOESN'T ENTAIL SOME SORT OF COST? You buy a rental property, you're paying the closing costs. You sell the rental property, you pay the 6% commission. You rent the rental property, you're paying GET, prop manager costs, and many other costs. You hide your money under the bed or dump it in a savings account, the inflation cost will eat you alive. If you have a financial adviser, more costs.

    The price spread bid/ask ratio isn't that much different in concept than from stocks. About the only thing that's marked at fair value constantly might be bonds or open end mutual funds. But when you buy a mutual fund, you pay the transaction fee plus 1-2% yearly management fees.

    The only people that think it's "hard" is the people that have never done it before. If you've never went swimming before, guess what? SWIMMING IS HARD. Long story short, the metals are one of the few investments that actually increased in value by a decent amount in the past 10 years. From 2000 - 2010, the S&P 500 basically went nowhere.
  13. anton chigurh

    anton chigurh silver

    thank you.
  14. SirMontego

    SirMontego TV MA LSV

    Somebody once told me over the history of mankind, gold has generally retained its value. For example, 2000 years ago, an ounce of gold bought about 1000 chickens. Today, and ounce of gold still buys about 1000 chickens. Sure there are fluctuations, but generally speakings, gold has the same value.

    Over the last 10 years gold has really increased in value and I think that's partially attributed to the stock market sucking so hard. I also remember hearing about how gold is the greatest investment 5 years ago . . . and it did go up.

    [​IMG]

    The real question is whether gold is going to continue this dramatic rise for the next 10 years and I kinda doubt it.

    On a somewhat related note, one of my friends bought a silver bar and he uses is as a doorstop . . . that's gangsta.
  15. anton chigurh

    anton chigurh silver

    IDGAF what happens over the next 10 years, i just need the gold hype to stay high for about a year more and imma be in good shape. lol @ the silver doorstep. that IS gangsta.
  16. posrx7

    posrx7 Tony! Toni! Tone!

    Throughout time, gold has always retained some value. Might purchase more or less, but it was still worth something. I think land might be one of the few other assets that retained value throughout history. This type of tangible wealth tends to hold its value over the long term. If you look at hawaii, it's always the people/companies who own property & land that are thought of as wealthy. Similar concept.

    As your chart shows, from the 1980s - 2000, the value has been stagnant. I think gold was regarded as obsolete during this period for various reasons. the govt got inflation tamed, there was the stock market boom, and there wasn't a huge problem with govt debt as there is now. The UK central bank also dumped like 1/2 of their gold reserve around the turn of the century which is likely the main reason for the dip from 99 - 2002.

    In the 2000s, gold surged for a variety of reasons. You could probably refer to one of rodney's many videos... Do I think it will continue going up long term? I would say yes. I think price increases of 5-10% per year wouldn't be unheard of. Aside from the debt problems and money printing, I think there's a good chance that the US will lose its reserve currency status in the years to come. This would result in further devaluation of the dollar against other currencies and we'd see the prices of consumer goods rise quickly. Shorter term, anything can happen. If it's overbought or the govt decides to manipulate the market, it could drop quickly, similar to silver.

    Personally, I'm not looking to "make money". For me, it's simply a long term store of value that I hope will keep pace with inflation. If it just so happens that the metals rise in price is slaughtering the performance of my investment accounts and change in value of my property, so be it.
  17. Battery

    Battery JaVale McGee

    As an average cup of joe, I too have been fed w/ this 'BULL' run talk, and the easiest validation I always hear is 'inflation' and 'debt'. Jesus fking christ, since when did things not operate on borrowings and debt? The US is NO WHERE NEAR what the EURO ZONE is facing, so if you had to worry, then worry the EURO DOLLAR and the countries in the EURO ZONE. Do people even know how or what the GDP is? It's nothing more than a sophisticated benchmarket barometer.

    I've asked the same damn question to anyone believing in doomsday, why the fk would you hold US dollar, have a 401k, pay taxes if you believe the end of the world would be coming to an end? WHY ?! Why not just hold GOLD as they believe it's the universal currency. NO ONE could answer this. The same ones believing they buy gold due to doomsday are the same hypocrites funding their 401ks, buying GLD, ABX, and the holding the US dollar. I just LOL hard.

    The only fking reason people buy is because they believe what they buy will go up in "VALUE", not because it is to PRESERVE wealth. The fk is preserving wealth? People act like they know inflation and worry about costs, but are totally confused w/ the simple idea. ASSET + INCOME > EXPENSE + LIABILITY. Most are faced w/ DEBT themselves, and are confused w/ the cost of goods as opposed to inflation. Cost of goods are definitely affected by many factors, and the rise in price is 'blamed' entirely on debt and inflation. I continue to LOL.

    Spend more time on facebook, playing sims, farmville and cityvill, it'll teach you a thing or two about 'value' and 'inflation'. ;)

    Regardless, these are results of the fractional banking system, and these are the rules of the game. If you remain stagnant w/ your income/wages, you will forever live and believe that your inability to afford goods to be due to 'inflation'. We grow as a society, as more homes get built, resources get scarce, money dilutes itself. Fight all you want, once a return on your money opens up, that is through business ventures, real estate, commodities, you will definitely see liquidity chase it. As they say, by the time the bull run is sold to the public, it would have already passed. The most money is made by the least amount of people.

    First worry about covering your expenses and carrying a 'postive' net worth, as opposed to worrying about 'inflation' and preserving your constant 'salary' that does nothing but expose you to risk.
  18. RodneyR

    RodneyR Senior Member

    Really good discussion going on here. Consider this - gold *is* the world reserve currency ;-)



    quote:
    Thursday, May 26, 2011 "primitive civilizations remaining after a future economic collapse would still value gold

    Marc Faber, a longtime bearish investor and author of the newsletter the Gloom, Boom & Doom report. He argued that primitive civilizations remaining after a future economic collapse would still value gold, not gemstones. If you're in a jungle or a desert, people still value gold"



    26 May 2011 Youtube - "Gold and Silver is LEGAL Currency in Utah, the IMF Taking Over Ireland"

    http://www.youtube.com/watch?v=mu6R4cbbDzM&feature=player_embedded


    25 May 2011 Youtube - "Gerald Celente explains From The Titanic Onto The Lusitania. EU bailout crisis to worsen, while gold glitters on."

    http://www.youtube.com/watch?v=bD4JU9SsTQw&feature=player_embedded
  19. RodneyR

    RodneyR Senior Member

    "Gold to $3,000/oz. Silver $75/oz"


    http://www.youtube.com/watch?v=sTCI4b5QSlM&feature=channel_video_title


    Thanks again for viewing...
  20. RodneyR

    RodneyR Senior Member

    "Understanding FIAT Currencies"

    http://www.youtube.com/watch?v=rnp4HfH4Fzw&NR=1

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