Last week when I heard the news about “busting the buck” I thought “wow i gotta get back in gold”. After all, these things never happen in isolation. We are bound to have more money markets in that situation and who knows if it will spread to savings accounts. What would a run on banks do to the price of gold? This would be a much bigger story if the investment banks weren’t collapsing.
Of course I sat on my idea only to watch from the sidelines as gold exploded.
Gold may drift somewhat lower for a while, until people finally figure out what the Fed did when it agreed to swap TBonds for garbage. The Tbonds get diluted, which causes a run on the dollar, and gold will resume its upward path. Buy now and have patience.
[quote]Tyler23 wrote:
What’s the best method to buy gold anyway? [/quote]
To not buy gold in the first place.
If you invested in an ounce of gold in 1980, your ounce of gold has not gone up one bit. Yo would have been just as far ahead buy sticking that $1000 in a mason jar and burying it in the back yard.
[quote]Tyler23 wrote:
Fair enough. Although had you bought an ounce in 2001 it would now be worth three-and-a-half times what you paid.
Do you not believe inflation is going to be an issue in light of the current situation? (Serious question)[/quote]
But had you bought Apple at the same time, it would be worth over 13X what you paid for it in 2001.
The current situation is still in limbo as Congress has yet to act on the Fed’s proposal.
Gold is back up. Probably not a very good time to buy. Wait for it to pull back. But do not make the mistake of thinking gold is any type of long term play. 2-3 years at the longest.
People who worship at the alter of gold are the pessimists who see death and destruction at every turn,or eternal bears.
I am very bullish. To quote Cramer - “there is always a bull market somewhere”.
[quote]PRCalDude wrote:
Are there any ETFs or index funds that you like? You seem to trade mostly in stocks, which exceeds my risk tolerance.
[/quote]
You can lose your ass in a mutual fund just as fast as you can lose it buying the stocks yourself.
I have a friend who likes the ETF’s, but I am not a big fan of them.
I don’t really care for any type of mutual fund. Way too much expense and way too little control.
The only funds I would consider are very conservative income funds. I am not at that stage of my life yet but when I get to that stage, I imagine I would buy into some sort of tax-free muni fund, or something like that.
I do own an oil and gas trust, though. I am getting a yield of about 15%, which is way better than I can get in a CD.
[quote]rainjack wrote:
PRCalDude wrote:
Are there any ETFs or index funds that you like? You seem to trade mostly in stocks, which exceeds my risk tolerance.
You can lose your ass in a mutual fund just as fast as you can lose it buying the stocks yourself.
I have a friend who likes the ETF’s, but I am not a big fan of them.
I don’t really care for any type of mutual fund. Way too much expense and way too little control.
The only funds I would consider are very conservative income funds. I am not at that stage of my life yet but when I get to that stage, I imagine I would buy into some sort of tax-free muni fund, or something like that.
I do own an oil and gas trust, though. I am getting a yield of about 15%, which is way better than I can get in a CD.
[quote]PRCalDude wrote:
rainjack wrote:
PRCalDude wrote:
Are there any ETFs or index funds that you like? You seem to trade mostly in stocks, which exceeds my risk tolerance.
You can lose your ass in a mutual fund just as fast as you can lose it buying the stocks yourself.
I have a friend who likes the ETF’s, but I am not a big fan of them.
I don’t really care for any type of mutual fund. Way too much expense and way too little control.
The only funds I would consider are very conservative income funds. I am not at that stage of my life yet but when I get to that stage, I imagine I would buy into some sort of tax-free muni fund, or something like that.
I do own an oil and gas trust, though. I am getting a yield of about 15%, which is way better than I can get in a CD.
HOw’d you learn how to invest?
[/quote]
I am still learning. But I read about how Warren Buffet invested, and I also read as much as I could about dividend investing.
[quote]on edge wrote:
Tyler23 wrote:
What’s the best method to buy gold anyway?
I don’t know if it’s the best way but I buy symbol GLD. You can buy it through any on line broker.
PS. This is not 1980 and don’t plan on keeping it for 30 years.[/quote]
SPDR Gold Trust (the Trust), formerly StreetTRACKS Gold Trust, is an investment trust. The Trust holds gold, and from time to time, issues the SPDR Gold Shares (Shares) (formerly streetTRACKS Gold Shares) in blocks of 100,000 Shares (Baskets) in exchange for deposits of gold and distributes gold in connection with redemptions of Baskets. The Shares represent units of fractional undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion.
This is he description Google Finance has for the symbol GLD
[quote]rainjack wrote:
on edge wrote:
Tyler23 wrote:
What’s the best method to buy gold anyway?
I don’t know if it’s the best way but I buy symbol GLD. You can buy it through any on line broker.
PS. This is not 1980 and don’t plan on keeping it for 30 years.
SPDR Gold Trust (the Trust), formerly StreetTRACKS Gold Trust, is an investment trust. The Trust holds gold, and from time to time, issues the SPDR Gold Shares (Shares) (formerly streetTRACKS Gold Shares) in blocks of 100,000 Shares (Baskets) in exchange for deposits of gold and distributes gold in connection with redemptions of Baskets. The Shares represent units of fractional undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion.
This is he description Google Finance has for the symbol GLD[/quote]
So what? It trades at the price of gold. It serves the same purpose as owning gold with a lot more convenience.
[quote]on edge wrote:
rainjack wrote:
on edge wrote:
Tyler23 wrote:
What’s the best method to buy gold anyway?
I don’t know if it’s the best way but I buy symbol GLD. You can buy it through any on line broker.
PS. This is not 1980 and don’t plan on keeping it for 30 years.
SPDR Gold Trust (the Trust), formerly StreetTRACKS Gold Trust, is an investment trust. The Trust holds gold, and from time to time, issues the SPDR Gold Shares (Shares) (formerly streetTRACKS Gold Shares) in blocks of 100,000 Shares (Baskets) in exchange for deposits of gold and distributes gold in connection with redemptions of Baskets. The Shares represent units of fractional undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion.
This is he description Google Finance has for the symbol GLD
So what? It trades at the price of gold. It serves the same purpose as owning gold with a lot more convenience.[/quote]
I was giving Tyler23 some additional info. I meant no offense. I didn’t know what GLD was, so I googled it, and posted what I found.
There is no “so what”. Just trying to share what I found.
In 1913, debt became the basis for money. When debt was created, the Fed created the cash and gave it to the borrower. Debt = money.
This is coming to an end. An almost 100 year old balloon of debt is popping as we speak. There is no one left to borrow; everyone has massive debt. An economy created by and for debt can’t continue when no more debt can be taken on. Paper money will soon have more value as a paper napkin.
During times like these, people turn to a store of value that has been used for thousands of years. People choose gold. So, buy now when your paper promises can still convince someone to part with their gold for cheap. They’ll soon want a whole lot more paper for that real asset.
Note: buy the stocks of gold mines, except in South Africa. In the 1930’s, Homestake Mining (biggest in North America) had a dividend that was higher than its share price in 1929. A good mutual fund is the safest.
[quote]Headhunter wrote:
In 1913, debt became the basis for money. When debt was created, the Fed created the cash and gave it to the borrower. Debt = money.
This is coming to an end. An almost 100 year old balloon of debt is popping as we speak. There is no one left to borrow; everyone has massive debt. An economy created by and for debt can’t continue when no more debt can be taken on. Paper money will soon have more value as a paper napkin.
During times like these, people turn to a store of value that has been used for thousands of years. People choose gold. So, buy now when your paper promises can still convince someone to part with their gold for cheap. They’ll soon want a whole lot more paper for that real asset.
Note: buy the stocks of gold mines, except in South Africa. In the 1930’s, Homestake Mining (biggest in North America) had a dividend that was higher than its share price in 1929. A good mutual fund is the safest.[/quote]
Nothing is popping, HH. There may be a lot of correcting, but no popping.
Hopefully, congress will take a look around and see the damage the mere suggestion of a fed bail out is causing, and reconsider Paulson’s bullshit proposal.
