Argument against precious metals.

John_Doe · May 14, 2011

One argument against precious metals is that the rising price of precious metals will render precious metals useless. If the price of precious metals is to reflect the severity of the economic breakdown then what use is precious metals in a broken economy? To paraphrase a famous u.s. banker, it ain't the dip till there is blood on the streets.

trader3cnd · May 14, 2011

Silly argument. These people have no idea of what happend in WWII. Owners of gold were able to feed themsleves and purchase land cheap from starving owners.

During crisis times there is transfer of wealth to gold owners who become the next wealthy class.

peilthetraveler · May 15, 2011

Quote from John_Doe:

One argument against precious metals is that the rising price of precious metals will render precious metals useless. If the price of precious metals is to reflect the severity of the economic breakdown then what use is precious metals in a broken economy? To paraphrase a famous u.s. banker, it ain't the dip till there is blood on the streets.

I dont know...lets see...when zimbabwes currency first came out, it was about 9 Zim dollars for 1 gram of gold. Right before the collapse, it was about about 100 trillion Zim dollars for 1 gram of gold. Despite gold costing in the trillions, everyone was still buying it.

murray t turtle · May 16, 2011

Quote from John_Doe:

One argument against precious metals is that the rising price of precious metals will render precious metals useless. If the price of precious metals is to reflect the severity of the economic breakdown then what use is precious metals in a broken economy? To paraphrase a famous u.s. banker, it ain't the dip till there is blood on the streets.

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John D;

partly true. Not every one want to buy $44,444?+/ gold brick;
nor ask the store owner for change from a $44k gold brick.But thats what gold smaller pieces & silver pieces are for.

And since Mr W Buffet & Dave Ramsey[FOX] dont like gold bullion as an investment, it may trend with out them. Not a prediction.

John_Doe · May 21, 2011

Quote from peilthetraveler:

I dont know...lets see...when zimbabwes currency first came out, it was about 9 Zim dollars for 1 gram of gold. Right before the collapse, it was about about 100 trillion Zim dollars for 1 gram of gold. Despite gold costing in the trillions, everyone was still buying it.

That's because gold is used to buy bread

http://www.youtube.com/watch?v=7ubJp6rmUYM

antaram · May 21, 2011

forget gold, buy silver, even Jesus was priced in silver, not gold

newwurldmn · May 23, 2011

Problem is that everyone is now long precious metals. So it becomes a risk asset instead of a defensive asset. This is why when silver crashed, other markets followed suit. WHen there is a risk reduction, people will be forced to sell this as well.

murray t turtle · May 23, 2011

Quote from newwurldmn:

Problem is that everyone is now long precious metals. So it becomes a risk asset instead of a defensive asset. This is why when silver crashed, other markets followed suit. WHen there is a risk reduction, people will be forced to sell this as well.

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Another argument against gold;
silver gained better/parabolic/farther faster

Another problem [with some,LOL]with gold;
many of the gold longs like a good gold upTrend,
even though Warren Buffet & Dave Ramsey dont like gold ...

Forced selling usually comes from insane leverage/margin calls;
cash buyers may not pay much attention to ''forced selling''
especially long term trend followers

,
or even reasonable leveraged longs.................................

Another argument against gold;
an old prospector died, in the desert, wrote in the desert sand ''died rich'';, his donkey saddle bags filled with ''fools gold''