huskerbob

It's 'Hammer Time' for Gold

CJJ: Where do you get the idea that gold investors are all expecting the apocalypse? Do you judge all of your investments by "how easily can I exchange this for food if there is a complete breakdown of society"? Your questions are not answered because they're not important to gold investors. Why would I ever trade gold for groceries? Do you expect to trade shares of GM for groceries?
The appeal is that gold will always be worth something. I simply expect (as do most gold investors) to trade gold for fiat which I can use for other things. When I see that gold is very high relative to the price of something I want, I will sell gold and pay for that item in currency. Currency is a medium of exchange which varies in value according to politics, policy, debt, wars, etc.
Money is a store of value. Gold is money. I'm not worried about the apocalypse, I want sound money and the dollar ain't it.
Maybe I should ask you: "Do you expect to exchange those $2 for a gallon of gas in 10 years?"
You mention gold lasts. When was the last time you heard someone say "the almighty dollar"? I don't mean sarcastically.

Silver Remains an Essential Diversification with Extremely Strong Fundamentals

Another point on the cash for scrap - I have read various articles using the ubiquity of cash for scrap advertising and participation to make the point that we are near the top of the pm market. These places are offering to BUY, not sell, and they are not paying full market price. People are rushing to sell jewelry for less than the legitimate scrap value, which is a better indicator of the general sentiment towards precious metals. The buyers are a relatively miniscule segment of the overall investment universe.
At least these companies are waking up more people up to the connection between gold, silver, and money, as opposed to viewing them as merely ornamental.

It's 'Hammer Time' for Gold

More than an indicator of inflation, gold is a measure of confidence in paper money and the economy. Most were lulled into comfort by the performance of the economy after gold's peak, which became the greatest economic expansion in world history.
Now the blinders are off and people are forced to see that the economy has been built on a foundation of sand. Governments have not inspired confidence with their reactions. Gold is a an assurance of something with tangible value. Paper promises have lost the seeming solidity they had in the 90's.
Gold buyers fear inflation, but more so lack confidence in the management of our currency and the promises of the equities market.

Why Oil and Gold Are Headed Much Higher

Yipes! Killing millions of people and throwing money away on bombs and bullets will not lift us out of a recession. In case you forgot, we are fighting multiple wars all over the world and here in the "homeland". The war in Iraq, the war in Afghanistan, the war on Terror, the war on Drugs, the war against the Constitution, etc.
Billions and billions are poured into these wars every day. So far, not helping America one bit.
What helped from WW2 was a lot of GI's coming home ready to make families, buy cars, dinette sets, lawn mowers, go to the movies, etc. The money spent for destructive purposes (beyond wages) really didn't do much for the economy. Like the pallets of money flown to Iraq. How will that help America?

Why Oil and Gold Are Headed Much Higher

There are a lot of comments which tie the need to own gold with an apocalyptic situation, the breakdown of society, etc. Things needn't be so grim to benefit from owning gold.
The price went up during the deflation of the 30's, and the price will go up in the future for one reason. Gold is a store of value, and has been for thousands of years. Gold looks attractive relative to currencies and equities, due to massive fraud, manipulations, and various market interventions which confuse the markets.
I hope you don't believe that the dollar will continue getting stronger in the years to come! How will we service our trillions in debt? When we default, you would do well to own some gold!
Own some equities(some great deals out there now!), some cash, and some gold. You don't need to be able to exchange gold for goods directly. Someone will always be willing to pay cash for gold. The appeal lies in the idea that an ounce of gold will buy roughly the same amount of goods at any point in time, while the amount of cash needed varies greatly. And with a few small hiccups, the amount of cash needed to buy goods and services has always gone up.
You can't count on the dollar, you can't count on the markets, you can't count on your government, but gold will always be worth something.