paxjds

Bankers, Economists Say Gold Is a Bubble: Here's Why You Should Ignore Them

Great article Mr. Kim.
Gold is best and safest investment for last 40 years or so.
Since Nixon took us off the Gold Standard in 1971, Dow was about 900 and has grown to 10,500 or 1166% gain.
Gold was $35 and now is around $1100, or a 3142% gain.
With all the massive money being printed around the world, Fiat currencies is where the Bubble is growing. Gold will just go up in price to keep up with the debasement of fiat currencies.
A $dollar in 1971 has lost its purchasing power at least 75%. Gold is up 3142%. Any sixth graqder should be able to understand this. For shame to anyone who touts gold and precious metals as a bad investment.

Where's Gold Going from Here? Part 2

There is so little physical gold for a planet with almost 7 billion people, the total mined gold is like 65 ft cube. Anyone who buys gold should take physical possession, not a GLD trust. You can trust a bankster if you want, but I won't. Do not worry about statistics on physical gold, just worry about yourself taking possession.

An Unbelievable Investment Opportunity in Gold

See paxjds article about 8 articles before your response on gold. Gold has gone up more than 3500 percent since coming off the
gold standard in 1971. That's 92% per year average return. A George Washington dollar is still a dollar, that's a 0% return in my book. My offer goes to you as well, I will buy the same amount of gold from you in exchange for $200,000 of this precious fiat money with George Washington on it. So don't show up to sell me the gold and keep blowing smoke, and do continue to defend the fiat currency that will be worth toilet paper in ten years. Gold bugs know the difference between gold and fiat currency, and the holder of fiat currency BEWARE. You have been advised and prefer to follow the Barnum and Bailey salesmen in Washington and Wall Street. The street savvy people and investors keep working and accumulating more gold.

On Dec 15 02:30 PM Brian McMorris wrote:

> SE, your initial point is very well taken: gold and paper are in
> the same boat, they are only worth what people think they are worth.
> Then you divert off into opinion-land where you make statements that
> the time of paper is over. Really?? Where is your crystal ball? I
> would like a look.
>
> Here is a fact you will never hear from a goldbug: there were severe
> economic cycles in the 1700s, 1800s, and 1900s up to the Great Depression.
> All occurred when the world was on the Gold Standard.
>
> Gold does nothing to insure a strong economy, controlled government
> spending or investor / consumer confidence. Gold is a severe master
> that punishes its servants. There is no accomodation with a gold
> standard for anything that goes wrong in an economy (and it has and
> will). The idea behind a fiat currency standard is that responsible
> governors (our Congress in this country), would increase money supply
> in times of stress and tighten money supply in times of plenty. The
> problem is our elected officials, not the idea of fiat currency.
>
>
> On the other hand, if we had a debt panic (and there is still plenty
> of debt under a gold standard), and people could not come up with
> the gold to trade in for their debt should it be called, there is
> NOTHING any one can do about it. That is when you have the kind of
> cataclysmic debt deflation that was common under the gold standard.
> Study your history and you will change your mind about the value
> of gold as a currency.

An Unbelievable Investment Opportunity in Gold

You can purchase Gold bullion and coins(non Collector) from a lot of dealers. I prefer Monex in California. It is a matter of building trust and personality building relationships. Always take possession IMHO. Start with a small order and build up as you develop trust.
You can also buy "Collector Grade" historic gold and silver coins from gold dealers all over the country. PCGS #1 and NGC#2 are the top rating system. IMHO a PCGS rating is usually 1 coin rating lower as NGC tends to over rate slightly. You can buy these MS rated coins also at Coin shows, sometimes I find one at a flee market, ebay sell them, and sometimes large coin dealers have them for sell on ebay in the 20-$50,000 price range.
Kitco is another great source. Many mints around the world sell them direct, some sell them thru a short list of approved dealers. China sells gold at the banks. Europe has gold in ATM machines.
Start Google searching.
Buy and take possession for the long term.


On Dec 15 03:00 PM manigambler wrote:

> J.S. Kim A truly great article. Thank you for the valuable opinions
> and information.
>
> In your eyes (and others here on the board), what is the best way
> for a common investor like myself to purchase gold for the long term?
> I have visited different websites, etc. and was hoping you could
> give me some thoughts on this.
>
> Thank you.
>
> -Julian

An Unbelievable Investment Opportunity in Gold

If there is no intrinsic value of gold:
1 then why did the US build the depository on Fort Knox
2. Why are central banks around the world buying gold to add to the Gold they already have in there safes.
3. If Gold has no value as you say, I will buy from you all the worthless gold from you that you have or can secure and pay you $10 per OZ for the worthless gold. I will buy from you $200,000 worth of Gold from you on December 29th, 2009 and meet you at noon at any Fifth Third Bank in Columbus Ohio to complete the transaction. I will gladly trade you my fiat $200,000 for your 20,000 OZ of gold that has no intrinsic value. I hope you dont mind my bringing TV cameras along to record my getting this worthless gold why you are ripping me off for $200,000 of that valuable fiat money known as the US Dollar.

On Dec 15 04:07 AM jrainspe wrote:

> EVERY HISTORICAL PIECE OF EVIDENCE indicates that adhering to a gold
> standard worsened the worldwide depression of the 30s and delayed
> the recovery of those countries that held to it.
>
> How many times does it have to be said. THERE IS NO INTRINSIC VALUE
> IN GOLD. IT IS A MERE DELUSION AND ANTICIPATION OF PEOPLE THAT MAKES
> IT VALUABLE.
>
> Absolutely nothing has any value as a means of exchange for goods
> (money) unless it is perceived as valuable by both parties. It is
> like the fairy tale of King Miser, left to sit on his pile of gold
> with nothing to do but count it again. You can't eat it, drink, smoke
> it (although I guess your mind can get "high" on the idea of it)
> or have sex with it. It has no value, except making pretty baubles.
> It's too soft for construction, not as conductive as silver, and
> is basically inert as a chemical agent.

All That Is Gold Does Not Shine

Do your analysis at the most critical point for gold in the last 50 years, when Nixon took us off the gold standard in 1971. Gold comes out much better. And with forward looking to 2020, Gold will be $6,000 or more. The Dollar and government bonds very well could be out of existence. Very Troubled times like these mandates the worlds best hedge against failing world fiat currencies, PHYSICAL Gold

Gold: Despite Recent Rise, It's Still Under Water

Sometimes people whom are young do not look very far back to learn from history, and what dates are immensely important. 1971 is the most important date for gold in the last 50 years. Gold was $35/oz when Nixon took us off the Gold Standard and last week it was $1218. This dumb old retired Texas Engineer calculates on the average gold is up about 89% a year since 1971. You young fellows over at Global Investor should go back to school to learn about the best long term investment in the history of the world. You just keep knocking Gold lower, so us Texan Boys can keep raking in the POTS.

What Does Bloomberg Have Against Gold?

The only significant reference for gold analysis in the modern world is from 1971 when Nixon took us off the gold standard. Gold up 3500% the other day compared to 1971. That is 92% per year over the past 38 years.
With Obama telling us another 10 Trillion or so in deficits over the next 10 years, not counting the money to be spent on the government takeover of health care, Gold will easily go to $5,000 by 2020. For heavens sake, the dollar will not be around then, or if it is, it will only be worth 10 to 20 cents in buying power compared to today. The only thing we seem to manufacture is $money in the form of printing press dollars. Trouble with that is fewer and fewer people and nations want anything to do with the dollar. Buy gold, that is what other nations are doing. Buy Gold, that is what other nations are telling their people to do. Is America now the only nation on the planet with idiots who think the dollar is not going to default?

What's Up with Gold Inventories?

Tim, I love your articles and I am a follower. But GLD in my opinion has no Tonnes of gold. Many articles have been writen that articulate that. Perhaps you shoud write Ficticious or Created Gold Tonnes till GLD opens its Vaults quarterly to prove it has Tonnes and the Corret Tonnes there. I believe GLD is no more than Ancient Mythology.

Canary in the Gold Mine

Banks are shorting gold while buying a new canary every day, not telling the public that the bird just died. Market manipulation continues. Meanwhile central banks and many governments are increasing their gold holdings. Some governments, ie. China, are encouraging and TV advertising for their citizens to purchase gold and silver. Germany has vending machines for citizens to purchase gold and silver.
You better bet your last bottom dollar buying Gold and Silver,that either a new world currency or regional currencies are in the works to replace existing and reflate world assets, or to just let existing currencies devalue by the continuation of running the printing presses. Watch the New G20, the new World Order. Currency Change will come as soon as september 20, or no later than 2011 to bail out the world governments and central banks.
Protect yourself with Gold and Silver. Guns and Bullets might be a great secondary investment plan. Just dont sit there a stack of dollars that will be worth a stack of dimes in five years.

The U.S. Mint Again Suspends Gold Coin Sales: Is It Really Out of Gold?

Either Fort Knox is out of Gold and therefore the government can not provide Blanks from their bars in Fort Knox, or..........

They want to hold the Gold for the government as the expect gold to go through the roof in the near future.

G20 and IMF Gold: A Late April Fools'

I agree with Nova above and China and have personally gone to 40% gold. Still trying to figure out what to do with the rest of this silly monopoly fiat money. The S&P 500 will tank this quarter on very high PE ratios. That is unless the GOV allows new accounting to artificially fake out the market as to the true PE ratio's. Price Inflation due to trillions of $, #'s, etc,being printed as we write, will make fiat currencies take a DIVE in real value. When the mucic stops, who is going to be left holding worthless fiat currencies or worthless S&P stocks that have a PE of 80.