mikeylikesit

Gold as an Investment? Think Again

Then buy your gold... and when you are broke in a year, get a job and buy more stocks, foreign currencies and necessary commodities. Maybe you'll still be able to retire someday.

Gold as an Investment? Think Again

John,

Look around you... can you make enough bullets for the global crisis? I'd bet you can't even make 1 with the amount of lead you find in your neighborhood.

You also need to do some more research. There is much more gold than 2 or 3 football fields. Much much more.

Regardless, I would want bullets and farmland when the big one hits. Keep you gold and don't bother trying to trade me anything for it. I'll just laugh. What the heck am I supposed to do with a soft pretty metal when people are hungry and fighting for their lives.

Of course, if you aren't one of those doomsayer gold bugs then please refer to my earlier argument stating it's just a commodity that is used in luxury items.

Gold as an Investment? Think Again

I knew a few gold bugs 2 years ago at one of my client sites. I could never get them to understand that Gold is a commodity nowadays. It's used in electronics and jewelry.

If the economy gets bad, then people will buy less of each meaning that there will be more gold available for purchase thus driving the price down.

Sure, costs to mine it have increased but how do you figure that into a rising price for a commodity that isn't in demand for anything necessary to produce (luxury items) in a bad economy.

Lastly, I also mentioned I'd rather have a couple of HK MP5's and crates of bullets in their 'global war' scenario that they insisted was around the corner.

Picture it... global war. 'Hey buddy, got some food? I'll trade you some soft yellow metal that is real purty'. Blam**** 'Thanks for the gold you idiot'.

Do we need to mention that if we really have a global financial melt down, that gold they bought is ... somewhere.... so how would they trade it?

People just haven't figured out that we are off the gold standard yet. The only use of the shiny yellow metal is in production of certain products and the price should reflect the demand for those products.

I'm a gold bear because there is no way there is enough folks who still buy into the gold bug theories to really push the bubble it was any higher.

The recent volatility will force the weak minded folks who bought just because it was up to the sidelines and they will be fearful of buying back in. These are the folks who are investors and got fooled by the hype. They won't make that mistake again.

BTW, thanks to the author. It never crossed my mind to invest in those foreign currency indexes. I'm going to keep my eye on the economy and maybe put a few bucks into them.

JPMorgan Buying Bear Stock on the Open Market at $10+

It's because they want the deal to go thru and their $10 bid is almost fair. So, buy another 12 % of the company for a few pennies more and your $10/share investment is secure (and probably worth $20/share).

I wouldn't buy into this information though. If JPM is buying it all up at $11 then they want to ensure the prices stays at $10 by voting for the deal. So, you won't make money here.

If you own it right now... SELL it to JPM. They are bigger and stronger than you. They will get their way.

Hitting the Reset Button On Home Mortgages

Let's all be honest also... like the author, I can't wait for some folks in my neighborhood to be foreclosed on. Hoodlums that should have never been able to move here.

I've been saving money just to buy their foreclosed properties and now it won't happen.

Hitting the Reset Button On Home Mortgages

Hmmm... so the plan is to reduce the principal of the loan to the subprime borrower. Did I summarize that correctly?

Hey, what about me? I bought a home for $251,900 in 2005. I paid down $52,000 already. Yep, I got extra money and expected the stock market to tank someday soon... So, I kept making big lump sum payments to my mortgage figuring 5.875% return on those payments were better than the market beating I'd take soon.

So I guess I wasted my money. The government would have regulated my home to a principal balance of $200k without any help from me.

Man, do I feel stupid for being responsible.

No... seriously... I feel really really really stupid.