Inflation. Here is a really good video on the subject.
It is a long video but worth the time.
If you can understand why quarters despite not having any silver content in them are still produced with reeded edges you will understand all you need to know.
Hey Dmaddox, here is a question for you. Do you think precious medals are undervalued right now? Silver is trading close to 20 an ounce, gold around 1350. Just seems like with all the funny money pumping the market right now, alot of money has moved out of metals to make a quick buck. Interested on your take on it.
I wonder how much an ounce of gold will buy you once this house of cards finally falls.
[quote]Waittz wrote:
Hey Dmaddox, here is a question for you. Do you think precious medals are undervalued right now? Silver is trading close to 20 an ounce, gold around 1350. Just seems like with all the funny money pumping the market right now, alot of money has moved out of metals to make a quick buck. Interested on your take on it.
I wonder how much an ounce of gold will buy you once this house of cards finally falls. [/quote]
Sorry can not help myself. I do not invest in precious medals. I do on the other hand have some precious metals. The thing about Gold and Silver is that it is not an investment, but a store of value. The price in US Dollars will go up and down, but the value is steady.
Just so you know I am contemplating buying some more pretty soon.
[quote]Waittz wrote:
I wonder how much an ounce of gold will buy you once this house of cards finally falls. [/quote]
If the house of cards actually falls (which I don’t think will happen) ammunition will be exponentially more valuable than gold.
[quote]dmaddox wrote:
[quote]Waittz wrote:
Hey Dmaddox, here is a question for you. Do you think precious medals are undervalued right now? Silver is trading close to 20 an ounce, gold around 1350. Just seems like with all the funny money pumping the market right now, alot of money has moved out of metals to make a quick buck. Interested on your take on it.
I wonder how much an ounce of gold will buy you once this house of cards finally falls. [/quote]
Sorry can not help myself. I do not invest in precious medals. I do on the other hand have some precious metals. The thing about Gold and Silver is that it is not an investment, but a store of value. The price in US Dollars will go up and down, but the value is steady.
Just so you know I am contemplating buying some more pretty soon.[/quote]
I agree with you. Just seems like right now is a good price point to trade in some fiat currency for some real wealth. Although I still buy into the belief that in my lifetime we will have a silver shortage from consumption that will lead to a rapid bubble in its price.
[quote]countingbeans wrote:
[quote]Waittz wrote:
I wonder how much an ounce of gold will buy you once this house of cards finally falls. [/quote]
If the house of cards actually falls (which I don’t think will happen) ammunition will be exponentially more valuable than gold. [/quote]
Serious question, how could it not? Aside from the fed burning piles of money and actively reducing the monitary supply how will we ever get to a point where our currency doesnt devalue itself exponentially?
[quote]Waittz wrote:
[quote]dmaddox wrote:
[quote]Waittz wrote:
Hey Dmaddox, here is a question for you. Do you think precious medals are undervalued right now? Silver is trading close to 20 an ounce, gold around 1350. Just seems like with all the funny money pumping the market right now, alot of money has moved out of metals to make a quick buck. Interested on your take on it.
I wonder how much an ounce of gold will buy you once this house of cards finally falls. [/quote]
Sorry can not help myself. I do not invest in precious medals. I do on the other hand have some precious metals. The thing about Gold and Silver is that it is not an investment, but a store of value. The price in US Dollars will go up and down, but the value is steady.
Just so you know I am contemplating buying some more pretty soon.[/quote]
I agree with you. Just seems like right now is a good price point to trade in some fiat currency for some real wealth. Although I still buy into the belief that in my lifetime we will have a silver shortage from consumption that will lead to a rapid bubble in its price. [/quote]
Think about this:
The price of gold has doubled since 2008, and did so in a relatively sharp incline that tapered off to a slight overall upward trend.
Do you really see that trend continuing upward for long term, or correcting eventually and coming back down at least near the pre-meltdown price?
[quote]countingbeans wrote:
[quote]Waittz wrote:
[quote]dmaddox wrote:
[quote]Waittz wrote:
Hey Dmaddox, here is a question for you. Do you think precious medals are undervalued right now? Silver is trading close to 20 an ounce, gold around 1350. Just seems like with all the funny money pumping the market right now, alot of money has moved out of metals to make a quick buck. Interested on your take on it.
I wonder how much an ounce of gold will buy you once this house of cards finally falls. [/quote]
Sorry can not help myself. I do not invest in precious medals. I do on the other hand have some precious metals. The thing about Gold and Silver is that it is not an investment, but a store of value. The price in US Dollars will go up and down, but the value is steady.
Just so you know I am contemplating buying some more pretty soon.[/quote]
I agree with you. Just seems like right now is a good price point to trade in some fiat currency for some real wealth. Although I still buy into the belief that in my lifetime we will have a silver shortage from consumption that will lead to a rapid bubble in its price. [/quote]
Think about this:
The price of gold has doubled since 2008, and did so in a relatively sharp incline that tapered off to a slight overall upward trend.
Do you really see that trend continuing upward for long term, or correcting eventually and coming back down at least near the pre-meltdown price?
[/quote]
It already has corrected itself by around 500$. Gold hasnt changed in value over time, it has stayed static while the dollar has lost buying power due to a vast increase in supply and perhaps even greater in scope, loss in the beleif of the US government’s ability to pay its debt. The latter is the only thing a dollar is.
Gold climbing to its 2012 highs trading around 1950 was a bubble, yes, and has been corrected when those looking to make quick money realized the market was inflating faster than gold and the money moved.
To answer your question, Gold will always rise in the long run when compared to the dollar. Not because it appretiates, but because it stays the same while our unpegged currency loses purchasing power over time.
Silver is different because silver is a consumable metal. But Gold is not. Gold is gold. Just yellow fucking metal that has very little use outside of orniment.
Hey Waittz, I personally like both metals. I am trying to have about a 30:1 ratio of Silver to Gold. I don’t know why but I have always wanted 1,000 pieces of gold and in a treasure chest. Maybe I am a pirate at heart and want me booty. Argh!!!
[quote]Waittz wrote:
Gold will always rise in the long run [/quote]
Then stop over thinking it and buy it. Just be prepared to hold.
[quote]countingbeans wrote:
[quote]Waittz wrote:
Gold will always rise in the long run [/quote]
Then stop over thinking it and buy it. Just be prepared to hold.[/quote]
Not overthinking it, just wanted to know what Dmaddox’s opinion on the current value relative to the dollar was. I have been holding for a while. Thought it a relative topic when dicussing inflation.
[quote]dmaddox wrote:
Hey Waittz, I personally like both metals. I am trying to have about a 30:1 ratio of Silver to Gold. I don’t know why but I have always wanted 1,000 pieces of gold and in a treasure chest. Maybe I am a pirate at heart and want me booty. Argh!!!
[/quote]
Too funny. I remember my first time buying some bulk silver American Eagles. I poured the 50 coins on my bed and Scroodge McDucked them.
[quote]countingbeans wrote:
[quote]Waittz wrote:
Gold will always rise in the long run [/quote]
Then stop over thinking it and buy it. Just be prepared to hold.[/quote]
This
[quote]Waittz wrote:
[quote]dmaddox wrote:
Hey Waittz, I personally like both metals. I am trying to have about a 30:1 ratio of Silver to Gold. I don’t know why but I have always wanted 1,000 pieces of gold and in a treasure chest. Maybe I am a pirate at heart and want me booty. Argh!!!
[/quote]
Too funny. I remember my first time buying some bulk silver American Eagles. I poured the 50 coins on my bed and Scroodge McDucked them. [/quote]
lulz. I got to try that.
[quote]dmaddox wrote:
[quote]Waittz wrote:
[quote]dmaddox wrote:
Hey Waittz, I personally like both metals. I am trying to have about a 30:1 ratio of Silver to Gold. I don’t know why but I have always wanted 1,000 pieces of gold and in a treasure chest. Maybe I am a pirate at heart and want me booty. Argh!!!
[/quote]
Too funny. I remember my first time buying some bulk silver American Eagles. I poured the 50 coins on my bed and Scroodge McDucked them. [/quote]
lulz. I got to try that.[/quote]
Works with 50. 1000? I dunno… be warned.
Waittz, to be perfectly honest my goal right now is passive income, so precious metals do not meet that goal. I might by a half oz of gold and 20-25 oz of silver twice a year, but that is going to be it for right now. Once I get my passive income in the $100-250k range I might start to buy more, but right now not so much.
[quote]dmaddox wrote:
Waittz, to be perfectly honest my goal right now is passive income, so precious metals do not meet that goal. I might by a half oz of gold and 20-25 oz of silver twice a year, but that is going to be it for right now. Once I get my passive income in the $100-250k range I might start to buy more, but right now not so much.[/quote]
Makes perfect sense. Create cash flow. Increase Cash flow. Preserve and protect earnings for long term. In that order.
[quote]Waittz wrote:
[quote]dmaddox wrote:
Waittz, to be perfectly honest my goal right now is passive income, so precious metals do not meet that goal. I might by a half oz of gold and 20-25 oz of silver twice a year, but that is going to be it for right now. Once I get my passive income in the $100-250k range I might start to buy more, but right now not so much.[/quote]
Makes perfect sense. Create cash flow. Increase Cash flow. Preserve and protect earnings for long term. In that order. [/quote]
exactly.
[quote]Waittz wrote:
[quote]dmaddox wrote:
[quote]Waittz wrote:
[quote]dmaddox wrote:
Hey Waittz, I personally like both metals. I am trying to have about a 30:1 ratio of Silver to Gold. I don’t know why but I have always wanted 1,000 pieces of gold and in a treasure chest. Maybe I am a pirate at heart and want me booty. Argh!!!
[/quote]
Too funny. I remember my first time buying some bulk silver American Eagles. I poured the 50 coins on my bed and Scroodge McDucked them. [/quote]
lulz. I got to try that.[/quote]
Works with 50. 1000? I dunno… be warned.
[/quote]
Everyone knows that only Scrooge McDuck can do that because his affinity to gold is such that he can move through it like it was water.
He loves gold, gold loves him.