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Thinking in Gold — 8 Comments

  1. The past five years has been the biggest wealth transfer from the poor and middle class worker to the super wealthy in history. And they aren’t done with us yet. Your illustrations have occurred over the course of fifty or so years. That has been accelerated ten fold.

  2. Yeah, Chris. Imagine where gold would be at absent the phony ETF’s, so-called ‘paper gold,’ which have no value whatever in the real physical world. Like derivatives, they are merely casino chips for the high flying gamblers, designed to keep the lid on the price of gold, so as not to expose the utter worthlessness of fiat currencies. If you are interested in a fascinating interview explaining how the manipulations work, read:
    …most people who think they are ‘investing’ in gold, rather than holding it as a hedge against inflation as their cash, are just patsies for the sharks in this big casino. ◄Dave►

    • It is pretty obvious that the little guy has no chance in equities and is vulnerable if trying to preserve their capital by putting it in real estate, gold, silver. It all can be manipulated and is. I am getting out all together as my tax situation allows with some targeted real estate purchases and gold. After I retired I set aside funds to play the market myself. After a year I made a bit but it became clear to me that I could not effectively participate in an investing world where insider trades and market manipulation trumped any effort I made to be informed on specific stock/bond choices. Just crazy and no place for a small timer.

  3. Add to that the world central bank moves and government policy impacts it is simply impossible. I did find a fund which I put some money in that is broadly diversified and seems to be balanced with equities, gold, bonds that it weathers the ups and downs PRPFX. Even so, the current market conditions are causing it to show poor results even tho the stock market is doing OK. Tough choices all.

    • Larry, the secret to holding gold is not to think of it as an investment, but as inflation-proof cash. Ignore the volatility in price swings caused by the traders manipulating the market. It is unimportant how many worthless little pieces of green paper, someone is willing to trade you for your physical gold from day to day. The only time that will matter in the least, is on the day that you actually want to spend your cash.

      Even in normal times, the value of cash held in a bank depreciates by about 10% per year. Therefore any investment that is not returning at least that amount of profit yearly, is losing money. Physical gold buried in your backyard is earning nothing; but it isn’t depreciating either. It is maintaining the buying power of the wealth you have already earned. In the long run, that has the apparent effect of earning the 10% per year that the banked currency is losing.

      In the current financial situation, ANY paper asset is extremely risky. If you cannot see, touch, and guard it with a shotgun, you don’t own it. A time is coming, sooner rather than later, when the Dollar price of an oz. of gold will be in the thousands, and you will be grateful for every oz. you own; but it won’t mean your cash has increased in buying power one bit. It will only mean that the fiat Dollar has crashed, and on its way to becoming as worthless as Monopoly money. ◄Dave►

  4. “In the current financial situation, ANY paper asset is extremely risky. If you cannot see, touch, and guard it with a shotgun, you don’t own it.”

    Can I get an Amen?

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