Funny how some run from bubbles flying to gold

i'm thinking gold is 3/4 through its total move up before it heads down.....one thing i find funny is that all these people are saying buy gold because fiat money will be worthless, but if that were the case i don't think you would want to be alive, reason being do you think your supermarket/gas station/utility has gold also in small enough amts to exchange services up and down their supply chains to continue to provide their services?
 
Quote from aradiel:

Well, could you point me a reason why investing in gold is a safer investment than, lets say, going long on some SPYs?
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The value of spy has to be backed by the strong economy. The value of gold does not have to.
 
Quote from aradiel:

What event has a higher chance of happening:

a) the default of a major bank upon its clients cash accounts
b) you having your property stolen

?
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Its a good thing it only costs about 1/2 of 1% to insure your property in your home.

20 oz of gold(about $25k dollars) under the mattress can be insured for about $125 per year. You put 25k dollars in your bank, you pay about 3-4% per year in inflation(or more!)

So basically it costs you $750-$1,000 per year to keep $25k in the bank.
 
Quote from otcstockfund:

i'm thinking gold is 3/4 through its total move up before it heads down.....one thing i find funny is that all these people are saying buy gold because fiat money will be worthless, but if that were the case i don't think you would want to be alive, reason being do you think your supermarket/gas station/utility has gold also in small enough amts to exchange services up and down their supply chains to continue to provide their services?
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Supermarkets didnt exist 100 years ago. I'm sure food will still be for sale, we will just have more small business owners.(How about that! Walmart and food4less will lose market share to mom & pop)

People who are addicted to internet/TV/driving their car will have a bit of adjustment, but I would hardly think thats worth killing yourself over if you dont have those things. In the end, they will probably be happier.
 
Quote from gkishot:

The value of spy has to be backed by the strong economy. The value of gold does not have to.
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And the gold value is backed by what? And why it is more volatile than the SPY itself?
 
Quote from peilthetraveler:

Its a good thing it only costs about 1/2 of 1% to insure your property in your home.

20 oz of gold(about $25k dollars) under the mattress can be insured for about $125 per year. You put 25k dollars in your bank, you pay about 3-4% per year in inflation(or more!)

So basically it costs you $750-$1,000 per year to keep $25k in the bank.
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So a bank represents a counter-party risk but a insurance company does not? How is that? :confused:
 
Quote from aradiel:

And the gold value is backed by what? And why it is more volatile than the SPY itself?
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Gold is backed by it's commodity value. The most important is that it preserves it's value independently of paper assets. It's as volatile as the risk itself.
 
Quote from gkishot:

Gold is backed by it's commodity value. The most important is that it preserves it's value independently of paper assets. It's as volatile as the risk itself.
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HAH!!!

Dude, did you miss the ENTIRE crude bubble, or what?
 
Quote from gkishot:

At least it does not carry counterparty risk.
Besides better gold than cash under the mattress.
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I'd like to see you re-evaluate that statement once all of these people try to take physical delivery of the gold at once, only to realize that the counterparty cannot deliver. That would be counterparty risk.
 
I am a coin collector, so I certainly don't mean to sound like I'm bashing gold, but I think it is funny that all these guys trying to sell gold talk about how great gold is and how horrible US Dollars are, yet they will happily trade their gold for your US Dollars! Just something to think about.

JJacksET4
 
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