Sell my gold now?

[Raavak]

Gold up $50 an ounce since Monday, $165 since the end of the 2nd quarter. Should I sell and make big monies?

I'm thinking we are still in for a storm... Let it ride!

What do you think?

[EkireiTheNecro]

I'm thinking I couldn't care less.

[Feachie]

yet you cared enough to type a reply and hit post. you show your apathy in stupid ways.

op, it's still on an upwards trend.

[Messianic]

it's still on an upwards trend.

^

I won't do the math for anyone who's too lazy to do it, but compare the 1980 high to the recent highs in 1980 dollars. We're not there yet.

[Feachie]

i'm not invested in gold. if you have that much info on the subject why are you quoting me, why not help the op that asked?

[Raavak]

I won't do the math for anyone who's too lazy to do it, but compare the 1980 high to the recent highs in 1980 dollars. We're not there yet.

That's probably a good level to watch for. Looking at SPRD etf the price is over on 30 day and 200 day moving average which would tend to predict a leveling off or decline.

i'm not invested in gold. if you have that much info on the subject why are you quoting me, why not help the op that asked?
He's agreeing with ya bro.

[JenJen]

definitely wait and keep your gold.

example ; in the last year or two a tiny gold sovereign coin u.k was worth £60-80.

Now? try £230 FOR ONE. I've inherited a lot of sovereigns recently. im chuffed to say the least :)

[Pico]

don't wait too long, gold is a huge bubble right now and will burst like every other bubble

[Feachie]

That's probably a good level to watch for. Looking at SPRD etf the price is over on 30 day and 200 day moving average which would tend to predict a leveling off or decline.


He's agreeing with ya bro.

he's not really. the buying power of a dollar in 1980 was a few times greater than it is today, i think that's what he was trying to vaguely say.

his point is moot because I doubt you invested your money in 1980. You probably did less than 10 years ago, which saw roughly 2% inflation annually from 2000-2011.

i'm not an economist or a financial advisor, i play with plants.

[deakolt]

you mean you smoke a lot of weed

[Feachie]

those are called fringe benefits.

[Polixenes]

It's not so much that gold is getting more valuable, it's that every other liquid investment right now is crap.

So if you think a global economic recovery is on the horizon then sell your gold. If you think the worst is yet to come buy more gold.

[Prince]

don't wait too long, gold is a huge bubble right now and will burst like every other bubble

[Spud]

hows plat doing?

[deakolt]

It's not so much that gold is getting more valuable, it's that every other liquid investment right now is crap.

So if you think a global economic recovery is on the horizon then sell your gold. If you think the worst is yet to come buy more gold.

but if the worst comes gold will be worthless

[deakolt]

so will pp for that matter

[naez]

beans and bullets are a better investment

[Tewaz]

Hold your gold. The market is still going down, and if it does start to go up, your gold will still climb, just at a slower rate than it is now. It has turned into a fantastic investment as our dollar plummets.

[Raavak]

I originally bought gold as a way of shorting the dollar after Obama was elected, and its done me well to this point (but I'm afraid of a bubble burst, hence the thread). A friend is big into silver and that has outperformed gold, as has like platinum and palladium i think. Even commodities like copper and aluminum are up good I think, due to all the construction in China & India.

[Messianic]

Yeah, Feachie - I was agreeing with you. I just quoted you to save us all redundancy.

Gold's performance is directly related to central bank activity worldwide. At the moment, most major players refuse to allow any deflation because of how much reality it would bring to the world. They have to keep the economy in a constant state of delusion to keep the debt game going.

It's like if every time you feel like sleeping to rest and recover, you just slammed a red bull. Eventually a single red bull isn't enough - you need two, or three, or four. The US has been playing this game for some time, and every time the Red bull wears off and the markets need to sleep, they just slam another one - this occurred on a small level in the early 90s and in the early 2000s - and the most recent incarnation is the equivalent of hooking up the guy with a buttload of speed:

http://research.stlouisfed.org/fred2/graph/?s%5B1%5D%5Bid%5D=AMBNS

Eventually it'll stop. Red bulls can't keep you awake forever. And the longer you've been awake, the more damage you've done to yourself and the longer you'll need to rest when you finally do.


So, that means most of the currencies worldwide are in a race to the floor as long as people are as overleveraged as they are. Once individuals and governments start changing course and reducing their debt in real terms, Gold will probably stabilize. Where it stabilizes, no one knows.

It might be or could become a bubble...but just because it's up nominally as much as it is doesn't mean it's currently a bubble. I don't really think it is, yet. It's simply not high enough.

[Messianic]

It's not so much that gold is getting more valuable, it's that every other liquid investment right now is crap.

So if you think a global economic recovery is on the horizon then sell your gold. If you think the worst is yet to come buy more gold.

^

Hold your gold. The market is still going down, and if it does start to go up, your gold will still climb, just at a slower rate than it is now. It has turned into a fantastic investment as our dollar plummets.

I'm hesitant to call gold an actual "investment" in the sense that you invest to increase or preserve wealth. Investing in gold might do that, but you'd primarily "invest" in gold to mitigate against loss. If you're actually looking to increase or even maintain wealth, there are still far better alternatives out there depending on your time horizon.

[Tewaz]

Most people invest in companies through mutual funds, but with the stock market plummeting, people are investing in physical things like land, gold, platinum, or my favorite, barrels of oil. I say hold it. If the economy completely crashes and the dollar becomes worthless, gold speaks in any country.

[nalkin]

Isn't it kind of weird how gold has value?

[Skope]

Isn't it kind of weird how gold has value?

I strictly barter. coins/currency has no value to me

[Prince]

Hold your gold. The market is still going down, and if it does start to go up, your gold will still climb, just at a slower rate than it is now. It has turned into a fantastic investment as our dollar plummets.


just as a note for any observers, please take any investment advice that basically says "IT'S GONNA GO UP FAST OR GO UP SLOW BUT NO WAY IT CAN FALL" with a giant, giant grain of salt

[Messianic]

Isn't it kind of weird how gold has value?

Gold always emerges as a voluntary money in civilization - i.e. when legal tender laws or their equivalent do not exist. Always - it may emerge among competing currencies (and this is usually the case), but it's always one of the monies people prefer to use in a free system.

Often some king or ruler gets control of the money, starts shaving off the edges of coins and reducing their weight so he can pay for something they want but doesn't want to pay the exact amount requested...So he pays for it in diluted money. Since he's the first person to use this and individuals haven't had time to realize it, he gets addicted to it and does it until a crisis unfolds.

The odd thing isn't why Gold has value - it's why Gold has been so low in perceived value, or why people trust paper money (a notion people laughed at 150 years ago) based on the promises of an institution that has the power to make as many of that paper money as they want without even having to print it or tie that money to some kind of solid standard.

Since the 1970s the US was able to twist or break the trend of a few millenia of history...My guess is it's probably because oil continued to be denominated in dollars so there was kind of a de facto oil standard...

[Raavak]

... why people trust paper money (a notion people laughed at 150 years ago) based on the promises of an institution that has the power to make as many of that paper money as they want without even having to print it or tie that money to some kind of solid standard.

Whenever I think about this it kinda blows my mind. The only reason paper money (fiat) has a value is because of a perception, and everyone is on board with it. Or even worse, money in the bank: Its just a number on a register or a computer, yet someone will give me real stuff for this vaporous number. Its kind of a big system of trust.

Scary part is when the trust goes away (i.e. faith in US or any currency) so does that perceived value. You could conceivably be a multimillionare and wake up one day and not be able to buy anything if the system crashed overnight.

[Messianic]

Whenever I think about this it kinda blows my mind. The only reason paper money (fiat) has a value is because of a perception, and everyone is on board with it. Or even worse, money in the bank: Its just a number on a register or a computer, yet someone will give me real stuff for this vaporous number. Its kind of a big system of trust.

Scary part is when the trust goes away (i.e. faith in US or any currency) so does that perceived value. You could conceivably be a multimillionare and wake up one day and not be able to buy anything if the system crashed overnight.

Notice that the kind of system you're recognizing only exists as a post-gold standard system. It usually doesn't grow organically among voluntary transactions (and if it does, it dies quickly) - gold has always emerged as one of the primary competing currencies when people are allowed to use whatever they want as currency. Fiat money always emerges via coercion and legal tender laws. So enshrining it as the only currency people may trade with ultimately creates imbalances.

And it only works for a short time - because it relies on the goodness of those in power not to abuse the awesome power they have (essentially free money to spend on whatever you want for a short time, since you're spending dollars you just created). I can't say i'm surprised that the privilege was abused. After you abuse the privilege of creating the world's currency enough, it gets taken away (if over a period of time) and given to someone else. It happened to Britain before the US - now it happens to us. And the living standard of Americans will dramatically decrease when that happens.

Hence China's recent statements, echoing Russia's sentiment for some time...

[Feachie]

Looking @ markets

Aren't you glad you didn't sell your shinies? :)

[deakolt]

audit the federal reserve

[Prince]

just as a note for any observers, please take any investment advice that basically says "IT'S GONNA GO UP FAST OR GO UP SLOW BUT NO WAY IT CAN FALL" with a giant, giant grain of salt