I think getting investment or medical advice off a blog is foolish. Go to a professional or a library and learn how to invest. Till then, throw the excess in a savings account.

quote:

Originally posted by mrapp:

Gold is just another crap product for fear mongers.

You don't plan on getting laid very often, do you? Tell that to the young lady and see what you get this evening.

Gold has its place. Don't ever doubt it. Its just not as a great place to stick your money when its at all time highs.

Silver has its place, too. Makes very nice eating utensils. Old estate silver can often be purchases at less than spot price, too. Enjoy it, then sell it.

quote:

Originally posted by Atomic Chicken:
Greetings!

quote:

Originally posted by KWKSLVR:

Food for thought:
$1 invested in stocks in 1801 = $8.8 million today
$1 invested in gold in 1801 = $14 today.

I don't know where you get your numbers.

He cherry picked them, so we can too. Lets see how good they look if he invested his stock $ in Enron, Worldcomm, or even GM, regardless of how good they looked 10 or 15 years go.

Lets say we invested our $1 in silver, not gold in 1801. Maybe we found and kept a 1796 silver dollar, just for fun. Or any number of lesser coins with spectacular modern results. Even copper pennies from that era, each newly minted.

The very fact that gold has shot up so much recently shows what a volitile investment it can be. There are periods in recent past where it has gone up rapidly and there are an equal number of periods where it has dropped dramatically. It has a place in most people's portfolio but these breathless proclomations that it is the best and only investment anyone should hold are just plain foolish. The goldies never thinbk it's a bad time to buy it but look back over te years...it has been a horrible investment just as often as it has been a great one. It is a commodity...not some magical "real money' any longer. Nobody "needs" gold the way we need air, food and water.

rburg - what horrible advice! Why would you invest in something when it's at a high? It has no where to go but down. Buy low, sell high.

This is similar to someone currently purchasing or refinancing their home on an ARM (Adjustable Rate Mortgage). You should never take an adjustable rate, but if you take one when interest rates are the lowest they've been in 30 some odd years, what do you think rates are gonna do when they adjusts? Go down further? No! It's going to go up.

My example is not selective, it's the broadest example available because it represents the maximum investment time frame possible. In contrast, I could have picked a comparison from March of 1947 to April of 1947. The point of the example is that putting you cash in a volatile investment with a long recovery time is a good way to be 80 years old eating off brand tuna out of a can.

If gold was this great and amazing investment, every financial planner would be pushing it as the foundation of your investment portfolio.

Also, there is a difference in owning some collectible gold coins and owning bars of gold. The rarity of how the coin is stamped is what gives it value and that value is only backed by it's desirability to collectors, NOT the gold in it. This is similar to a Babe Ruth rookie card, the cardboard it's printed on has no inherit value. It's not cardboard that is rarer, more durable or better than any other cardboard. It's what's printed on it that makes it rare and its the desire to own it that gives it it's value.

A gold coin doesn't have the same fan base as a mutual fund. I can unload my investments in under 24 hours. There's always a buyer. I've had baseball cards that I've tried to sell for a year before.

Gold is super fascinating, and gold bugs are WAAAYYYYYYYY kookier than gun nuts, in my opinion!!!

If you want to learn lots of interesting and questionable information about gold, fiat money, the Federal Reserve, etc., you must cruise the gold and silver forums at www.kitco.com.

Also, if you were going to buy gold, be smart. Go to www.tulving.com (sells almost at spot prices - I assume based on volume?!), www.usmint.gov (the REAL US Mint FYI), or some similar reputable national outlet and don't overpay for precious metals.

With all that said, gold coud be a good hedge if you truly believe inflation is going to hit big time. Be cautios with metals backed Exchange Traded Funds (ETF) such as GLD, SLV, etc. unless you read the entire prospectus. These ETFs may or may not actually have the gold or silver - seriously! That seems pretty risky.

If you must trade in gold via stocks I would look at something like GDX which I think is a mining stock index, or SGOL which allegedly alleges it might actually have the gold to back the shares you have.

I do not see gold or metals as that great a place to put money at this point, but I am probably wrong. I don't have any better ideas so I won't neg gold. The pros at Bloomberg.com and FoxBusiness.com say commodities are the place to be, so what the heck do I know.

WARNING: I am not an investment adviser and I know nothing about investing. Do not follow my advice because it is not well informed. Do your own research, take your own chances.

I think pre-lock Smith & Wesson revolvers would likely be a much better investment than gold in terms of scarcity, appreciation and utility. The only downside is you can't cross borders with a sack full of revolvers! But who the heck wants to live anywhere but the US of A?!!!!

Mark

I have no interest or connection to any of the forums or businesses I posted about. I was long gold for last few years and have sold all gold positions as of last week or two. GLD's prospectus made me too nervous! Have fun!

To make money you have to know the fundamentals and understand technical analysis. Markets go in cycles and there is a time to be in market and a time to be out (cash account) or go short. Technical analysis is like a road map and tells you what other investors are thinking about the investment. Some investors that are good in TA, can make money without knowing the fundamentals of a company.

While you won't get in at the very bottom or out at the very top, TA prevents you from taking a big lost so you can come back and play another day. That is where 50 and 200 day moving averages help as well.

Also today with the corruption of the bankers in the market...JPM, etc, and computer trading, the long term means six months or longer while short term means this week.

W.D. Gann was one of the best market traders and he recognized cycles which helped him determine when to be in the market. All his work was done on paper at a time before we had computers. It took a tractor trailer to move all his accumulation of data and charts.

The bible to technical analysis is the book "Technical Analysis of Stock Trends" by Edwards and Mcgee.

http://www.amazon.com/Technica...id=1178391495&sr=1-1

Another good book is by William O'Neil of Investors Daily newspaper, "How to Make Money in Stocks":

http://www.amazon.com/How-Make...id=1178390763&sr=8-1

And as you get deeper into TA, candlesticks give a better picture of what is happening in a chart with Steve Nison's book, "Japanese Candlestick Charting Techniques" being a good book:

http://www.amazon.com/Japanese...id=1178391278&sr=1-1

41

Yes Mark, we know you're not well informed!

(Just razzing you man)

quote:

Originally posted by 41:
To make money you have to know the fundamentals and understand technical analysis.

Really? Because most of the millionaires I know aren't particularly investment savvy, they invest slow and steady and for the long term. What you are talking about is essentially day trading which has a poorer rate of return than slow, steady long term investing.

I'm just saying....

quote:

Originally posted by KWKSLVR:

quote:

Originally posted by 41:
To make money you have to know the fundamentals and understand technical analysis.

Really? Because most of the millionaires I know aren't particularly investment savvy, they invest slow and steady and for the long term. What you are talking about is essentially day trading which has a poorer rate of return than slow, steady long term investing.

I'm just saying....

From what you have just said tells me you have never invested any money in the market or you would not have that frame of mine.

41

I've been investing in the stock market since I was 20...I'm almost 30 now. I keep my investments in a mix of growth stock mutual funds and my portfolio has averaged a nearly 19% Total Return since my inception. Please keep your gold to yourself.

I have family members that are multi-millionaire's, gold has never been a part of their portfolio's. Neither have single stocks or annuities. So you go be "sophisticated" in your investing, champ, and we'll meet back in 30 years.

I might not be here in 30 years...that would make me 97.

Last year with the crash, the average portfolio lost 40 percent...mine included because of my not paying attention and not taking time to sign up for Stockcharts.com.

41

Yes, it did, last year. And since last year if you only had a measly index fund you'd be hovering around a 35% rate of return. Those that pulled out when they "lost" 40% have truly lost their money. Panic, and listening to "experts" (who all have a horrible track record) lost people more money than the sharp dip we saw.

Losing 40% did not destroy my principle investments. Thankfully I leave my investments alone and I've made my money back much, much more quickly than I would with a 40% crash in gold prices on a historical basis.

Gold is more a hedge and less an investment.

Perhaps a few percent into precious metals but do NOT concentrate your assets into ANY one thing. Diversify - Cash, stocks, bonds, & property. Pay off debt and have at least 6 months cash reserves before making any investments.

Bubbles burst, gold had one in the 80's. It's having one now.

Well...I guess India's purchase of 200 tonnes of the IMF gold turned the correction around. Gold just broke the 1060 area and is looking to make a new closing high.

Not uncommon for a breakout to pull back towards the breakout point before moving higher.




41

This is throwing a real wrench in the markets. The dollar's diving as gold climbs. The dow's down too. This is another signal of the international markets moving away from the dollar as a reserve currency. India's purchase will have many ripples.

After many years of leasing or outright sales of gold, Central Banks are quietly buying gold again. They're finally wising up to the socialist trend. The Central Bank of India's purchase of 200 tonnes of gold from the IMF is probably just the beginning. From here on, the sky's the limit!

Yep, gold is crap. Thats why it keeps going up, the smart money is ignoring it.

GLD and GDX. Quick tip, when the GDX declines, then gold will follow. The miners drop a little bit before the metal. Then it starts back up, the dollar strength is ephemeral.

As we continue to inflate the money and monetize the debt, I defy anyone to offer a better substitute. Gold increases because of the incredibly delicate dance Behrnacke must tango. Bonds are poised to roll over next.

As we issue ever more dollars & debt, the interest payments alone can bankrupt us. Some people are actually seriously talking about the US defaulting if we don't thread the needle correctly. Do you really think this government, that has to spend to buy votes, that has not the political will to raise interest rates, will actually get it right? You will trust your future to Obama and Behrnacke?

Under Carter we inflated the Money Supply by 12% now its 10x that. It took 20% interest rates to sop up the excess liquidity under Reagan. What will 10x take to straighten it all out? We have been sold out by Obama for his power and there is no one to redeem us as of yet. We can recover, especially if we get control of spending ASAP. Thats why NY 23, NJ and VA elections matter. We can slow things maybe if we scare the far left. if not, Gold looks pretty good.

Do your own due diligence~ Consider GLD, GDX, KRC, ABX, ASA, VALE. Its said silver can accelerate even faster. I'm looking into that as well. I have no recommendation as yet.

Take a close look at the debt clock. The Dems want to raise the ceiling. Behrnacke will keep the spigots on postponing the reckoning as he is desperate to avoid depression. Ask yourself, how will we ever pay back 12 trillion dollars that we have today and the clock keeps adding?

http://www.usdebtclock.org/

"In 1909, the US federal government had an annual budget of $US 0.8 Billion. With this it governed a population of just over 90 million people. The cost of government was about $9 per capita. In 2009, the US federal government has an annual budget of $US 3,550 Billion. With this it governs a population of just over 300 million people. That's a cost of about $11,675 per capita. Are we really 1200 times better off?"