[praboobolbode]

I wish I knew how to pan.

[gkihueonhjh]

You mean 'Ingot'.

[ThekvandoVideo]

Originally posted by Lancer
I wish I knew how to pan. My uncle used to spend just about every vacation up in the California gold country with a dredging machine which automatically sifted out the gold. He said gold prices fell so low it wasn't worth it any more (and my aunt kept bugging him saying she wanted to do something different with their vacations). The mountains east of San Diego produced the second biggest gold deposits in California so if we have a wet winter I might just head up there with my uncle's gold dredging equipment to see what I can find. You never know there might still be gold in them there hills.

[Creelaleps]

Man the Austrian Gold Philharmonic or the American Gold Eagle (both 1 troy OZ) are each going for just under $800 per coin. :\

[asSexate]

Gold coins are way more fun to put in a big bin and swim in than stock certificates.

[iodillalm]

Obviously you need to spend some of those gold coins on a guy in a super powered suit of armor to defend it.

[Alulursuifold]

Originally posted by DinoDoc
Kind of a stupid place to park money.

[markbila]

Originally posted by Oerdin


My uncle used to spend just about every vacation up in the California gold country with a dredging machine which automatically sifted out the gold. He said gold prices fell so low it wasn't worth it any more (and my aunt kept bugging him saying she wanted to do something different with their vacations). The mountains east of San Diego produced the second biggest gold deposits in California so if we have a wet winter I might just head up there with my uncle's gold dredging equipment to see what I can find. You never know there might still be gold in them there hills.
If you can make it pay its better than having a 9-5 by a long shot. I'd put my $ on a wet winter this year.

[tipokotap]

I would rather buy farm land than gold if I believe major crisis is on the horizon.

When chaos reigns, your gold is really useless unless you have the POWER to protect it.

[shemadagaswer]

1) The disconnect between the price of physical gold and 'paper' gold such as COMEX is becoming so drastic that it can't last much longer.

2) The coming US dollar problems, which are too extensive to go into here, must inevitably result in a US dollar devalution IMHO, and gold will, at a minimum, be the least punished asset class, just like it has been the least-punished asset to be in in the current deflationary environment.

3) I didn't start buying in 1980.

4) Gold stocks are being hammered to the point where company physical assets and day-to-day cash flow are worth more than the stock price, which indicates to me a suspiciously undervalued asset class. Example, platinum below 850 is no longer cost-effective to mine, and yet industry still uses it.

[soydaykam]

Originally posted by Seeker
1) The disconnect between the price of physical gold and 'paper' gold such as COMEX is becoming so drastic that it can't last much longer. Even it that's true, and you'll have to convince me, if one peaks the other peaks, no?
2) The coming US dollar problems, which are too extensive to go into here, must inevitably result in a US dollar devalution IMHO, and gold will, at a minimum, be the least punished asset class, just like it has been the least-punished asset to be in in the current deflationary environment. We aren't in a deflationary environment yet. You are suppose to sell before that happens.
3) I didn't start buying in 1980. Good, you weren't suppose to. You were suppose to sell, just like you are right now.
4) Gold stocks are being hammered to the point where company physical assets and day-to-day cash flow are worth more than the stock price, which indicates to me a suspiciously undervalued asset class. Example, platinum below 850 is no longer cost-effective to mine, and yet industry still uses it. The price of gold is based more on speculation than anything. It's just a repetative bubble forming market that pops everytime.

You can hold out in the long run for everything to go to hell, but you're going to be sorry on the next bust if you just think that hell is going to happen in the near future.

[Lgcjqxlw]

Gold is like dollars and cents should be. In the long run, all values that are not based on an underlying real value drop to their true worth, i.e. paper.

Obviously a disagreement.

And IRT Comex, one is going up (value of physical gold) while the other is declining (ETF gold). There is neither a peak nor a trough (inflation-adjusted) yet IMO.

We obviously have a disagreement that only time will reveal the truth of. Archive thread?

[TerAlelmlor]

Originally posted by VJ
It's not a horrible idea if you believe the US government is going bankrupt.

You would've more than doubled your money if you had bought in three years ago and sold yesterday. But if he's waiting for the US to go bankrupt he should never sell it until then. That's why he's not selling now. I wonder how possible it is to hold on to an investment indefinitely.

[Seeseeskeva]

Well I took profit over $1000 Oz. It was good. Thank god I did my own research instead of listening to the 'smart folk'.

Dumping into Silver and well capped undervalued gold producers like Sea Crest and Goldcorp.

I may buy gold again since I believe there will be a significant fall in the near-term due to profit-taking and central-banker panic.

I'm hoping it can get down to $925-50 when I can get in again. Given the policies of central bankers and governments the world over, I think I could see a rise to some psychologically significant round number like $1200 before I get out again.

I DON'T think we are likely to see gold down in the 700s again for 10 years given the current and likely future interventions. Unfortunately for late-buyers, the opportunity to buy gold at that price is gone for a long time.

I still have some gold, but just a smidgen because I like it and it goes 'cling' when I bang 'em together.



Gold Bugs of the World Unite!!

EDIT:

"Good, you weren't suppose to. You were suppose to sell, just like you are right now."

This quote is posted here, keeping in mind that the above poster was following the accepted wisdom and herd-mentality, advising investors to SELL when the value was in the 7s and 8s, instead of 1000. A gold investor following this advice would've been burned big-time. Don't always do what you're 'supposed' to.

If there is anyone thinking of investing in gold, I would say NOT NOW, whatever you do do not invest now. Government inflation will not work its way back into the system for many months. So we should see some downward movement after the psychologically significant $1000. I am setting a mark of $925 or 950, I may get a little burned but not too much. Into the fall I think we will see gold comfortably above 1000 for a long time, with room for upward expansion. While I don't believe in Fibonacci number mysticism, 1200 is another good round psychological number to 'take a look around' at since it is likely that central bankers would exert major downward pressure around that high a price.

Just my 2 cents. Oh and to reiterate I think buying gold in the form of coins, certs, or anything except the plain ole' metal bars that say '0.9999' is not a good idea. If I could tell the future I would've bought coins 2 years ago.

My next gamble is silver, and well-capitalized gold mining stocks. Why? There are pretty much as low as they can go (silver can maybe go a little further to $10), but I REFUSE to believe that the historical relationship between gold and silver prices is totally dead, what we are seeing is just lag, or so I am betting.

SILVERRRRR.

[eEwbYjOH]

Other question: WTF are stocks like AMEX: Seabridge so much underperforming my physical brick?? Surely a gold miner/explorer should at least somewhat track the price of gold...something smells fishy there.

Perhaps there are worries about nationalization of gold mines.

[Derrida]

Approaching another big selling point for goldielockses.

I don't think it will actually reach over 1000 again this year, but I'd say 980 is a good round number to get out again, and hope for another dip below 900 if the gods are very very kind.

Remember that you can have the equivalent of a 'stop loss' order with gold by just leaving instructions with whatever institution is holding your physically allocated gold.

A thousand was a good call last time, but I don't think we'll quite make it before it gets pasted again by that those silly IMF announcements (we're selling our gold; oh wait it needs Congressional approval which they haven't had in decades; it's ridiculous how they can dive the price just by announcing an intention to do something that they never actually follow through with).

Long term, Bernanke still hates the dollar, so that's good. I don't set price targets as a 'top' but fundamentally, given that investment demand has now outstripped jewelry demand I'd say that gold traditional function of being a way to say '**** off' to central bankers is still holding true at least 'til now.

My big signal to get out and stay out will be a return to 4%+ interest rates.....but it seems that won't be for a while!

[globjgtyf]

Gold was around 300-400 just a few years ago. I remember pointing out to a buddy that good weed was literally worth its weight in gold (well not exactly considering troy vs. avoirdupois ounces). I'm glad you made money off of it, but it's hardly a long term store of value.

I just looked up how to spell avoirdupois, and came on the wikipedia article for it. I decided I'm going to get into selling weed by the dram. Just to **** with people.

[Usendyduexy]

http://www.theglobeandmail.com/globe...rticle1166228/

For Canadians, gold isn't glittering

Now that gold is rising again, is it time to load up on the precious metal?

Gold bugs always seem convinced of two things: The financial world is on the brink of collapse, and the price of gold is about to shoot to $2,000 (U.S.) or $3,000 an ounce.

Now that gold is rising again, is it time to load up on the precious metal? And if you decide to buy gold, how much exposure should you have?

Before you stock your basement with gold bars and ammunition, let's provide some context by looking at how gold has performed over various periods.

GOLD IS SURGING - FOR SOME

With the U.S. dollar sinking amid fears that massive government spending will unleash inflation, gold - an inflation hedge - has been on a roll lately. It's up 11.3 per cent this year, with futures closing yesterday at $984.40.

But because gold is priced in U.S. dollars, which have been plunging relative to the loonie, Canadian investors have missed out on those gains. In Canadian dollars, gold is down 1.5 per cent this year.

If the loonie keeps rising as many analysts expect, that will blunt gold's rise for Canadians.

It's true that gold has delivered strong returns over longer periods, even after taking into account currency fluctuations. Gold has more than doubled in Canadian dollars in the past decade, and more than tripled in U.S. currency.

But over really long periods, gold hasn't exactly glittered.

In his book, Stocks for the Long Run, Wharton finance professor Jeremy Siegel calculated that a dollar (U.S.) invested in gold way back in 1802 would have grown to just $1.95 by 2006, adjusting for inflation.

A dollar invested in stocks, on the other hand, would have grown to an inflation-adjusted $755,163, including reinvested dividends. So, while gold has its moments, stocks are the clear winner over time.

"Whatever hedging property precious metals possess, holding these assets will exert a considerable drag on the return of a long-term investor's portfolio," Mr. Siegel concluded.

GOLD AS INSURANCE

Fans of gold point to trillions in stimulus and bailout spending around the world, which they say will ignite inflation and devalue paper currencies. In that case, they say, you'll want to own some gold to preserve your wealth.

"The main reason we're holding it is more or less as a hedge, or insurance, against what we perceive as being some of the massive problems that may be created from all the deficit spending globally," said Michael Sprung, president of Sprung & Co. Investment Counsel, which owns shares of gold miner Goldcorp.

But investors shouldn't go overboard with gold, he said. About 5 per cent of one's portfolio is "reasonable," he said.

Others see no reason for Canadians to invest in gold. Because Canada produces oil and other commodities that rise with inflation, "owning Canadian dollar assets is a bit of an inflation hedge longer term," said Todd Johnson, associate portfolio manager with BCV Asset Management.

What's more, for all the talk about paper currency becoming worthless, until people actually start buying and selling goods and services with gold he'll remain skeptical. "If you look at what you need in retirement, you need dollars," not gold, he said.

MANY OPTIONS

If owning some gold gives you that warm and fuzzy feeling as you brace for global calamity, there are a number of ways to get your fix, each with its own advantages and disadvantages. Next week we'll look at these options in detail.

[Unoloknovagog]

Gold's fine as a modest part of a large portfolio, depending on your investment goals and age. Physical gold has a lot of transaction costs and other attributes that make it hard to deal with for those with small portfolios.

Probably most Polytubbies should stay away.

[ThzinChang]

Are you saying there is a flaw in my plan?