Poll: Gold vs. Paper Money

[The Joker]

One more , here is a graph showing the historic price of gold since 1971.

http://goldprice.org/30-year-gold-price-history.html

You can see that gold hasn't been this high since the last bad recession...early 1980's. And... if you bought at the previous peak, you wouldn't have made any money until... now. A worthless investment ( known as buying high and waiting 20 years to break even).

However...if you bought in 98-99 during a very bullish stock market when people were taking their gold money and putting it in stocks you would be standing on a neat little bundle now.

*Using the graph in the link above you can see that the statement made by boxturtle is not historically accurate.

Again, a simple search will show you the historical value of the dollar.... http://mykindred.com/cloud/TX/Documents/dollar/

I used 1998 , the peak of the stock bubble as a reference. You can see that in 1998 , when the dollar was at it's height of value, gold was at an all time low.
The price of gold has to do with the value investors give it depending on their choices of investment at that time. It has nothing to do with the value of any currency.

When investors have better options they choose that over gold. When they panic, they buy gold. What happens to the price of gold when the economy is strong? Do a little research and see.


As far as trading currencies , I know nothing about how profitable that can be and the amount of research needed to make an informed decision. Nor how often one needs to trade and what the cost of commission is

Probably too much info for a pot site.

 

[hubcap]

yes, way too much info.
and will take WAY too much time to explain it.

an we'll all still have our original opinions anyways....
its sort of like arguing religion.
theres no end to it because you arent going to "change" anothers beliefs.

all imma say is.....

ask the people who bought a home or real esate 5 years ago if theyd make the same move or put all that same investment into gold.


plain and simple?
timing is everything.

also i wanna thank whomever corrected me.
spot prices are in oz not grams.
dkwtf i was thinking, but, thanks. yeah, i stand corrected.


-cap


timing is of the essence.

 

[hubcap]

One more , here is a graph showing the historic price of gold since 1971.

http://goldprice.org/30-year-gold-price-history.html

You can see that gold hasn't been this high since the last bad recession...early 1980's. And... if you bought at the previous peak, you wouldn't have made any money until... now. A worthless investment ( known as buying high and waiting 20 years to break even).

However...if you bought in 98-99 during a very bullish stock market when people were taking their gold money and putting it in stocks you would be standing on a neat little bundle now.

like stated......

timing is everything.

also....id hardly say it would have been a "worthless investment" ....simply because it took one twenty years to triple (likely more) said investment.
actually, thats a pretty sound return.
and MUCH less risky in this climate than homes and real estate.

rationale:
gold isnt something thats widely day traded on the public level by the "common folk" like us........
until, of course, economies collapse.


did we happen to notice gold went from $350/oz to what it is now, in the basic same time frame as this whole global collapse?
and the people that saw it coming (like has happened in the past, as evident in the link you posted in the "spikes") SOME people learned the lessons of history and dumped money into gold.
it simply strengthens the dollar, which, in turn, strengthens any other investments they have down the line.

like it or not....


GOLD RULES.


-cap

 

[lollipopman]

i would never buy real estate just land, land never goes down in price only if you have a house on it, just say i have 10 acres worth $2,000 a acre thats $20,000 total but now i have a home on it worth $100,000 if i tried to sell everything for $120,000 it would never happen, what I'm trying to say is you will always get your money back plus more but if you build on it you will lose your ass....

 

[hubcap]

real estate, in the right locations, is still a sound investment.

 

[SSHZ]

I would never buy anything that is at it's historically highest level........ my MBA in Finance and Investments tells me there are better buys out there that are at there historically lowest point.......... buy low, sell high. Not buy high, sell higher!

 

[pimpin]

i rather have diamonds and gold you cant ever lose

 

[hubcap]

I would never buy anything that is at it's historically highest level........ my MBA in Finance and Investments tells me there are better buys out there that are at there historically lowest point.......... buy low, sell high. Not buy high, sell higher!

i will just simply say, that, this is not always true.
and
"buy low, sell high" is what they teach in macro 101....
and, in most cases, its sound advice.
but not in all...

ill give you a brief example.
say hubcappium (this new metal mining company) releases news they have found a revelation. their metals can create energy with NO harmful side effects to the planet. no radiation.....no CO2 emissions......etc etc.......
this will cause a stir will it not? this will generate a mass exodus from oil and nuclear to hubcappium, will it not? (nod head "yes" for both questions)

So....
with everyone out there KNOWING this is the next coming of christ, per se, logic has it, the stock will continue to rise until it peaks. or caps out, if you will.

now....say we bought it at the close of the day right after the news was released....

following me?

so,
the news is released....stock makes a rally to close at a new 52 week high, on the news. say $400 per share.
now......this news is still life and world altering.....so, to have a stock at $400/share with this kind of powerful technology is a steal.
so we buy in some more.....(when it was already at its peak, or 52wk high, of $400. so in essence we "bought high" or at its peak...)
now....
market opens the next day and the stock rallies more.
say to $450.

now....
we bought high and sold higher.

i know hubcappium is a bit far fetched....
but this is a very feasible application. we all know the next "big thing" is only a matter of time away.
you pretty much missed the major run on gold......from what most data is saying......
so youre going to hafta wait for another 15ish years for the next gold spike. (might even take a lil longer but when the next generation gets this credit card bill mr obama is going to hand over to them......watch the gold run again. mark my words. id chisel it in stone if i could.

do you have the timing it takes to maximize your investments????

time will tell.
;)


k..
back to the bong.

economics bored me years ago.