Gold and silver. Discuss

Discussion in 'Business, Careers & Education' started by Valproate, Feb 20, 2011.

  1. Bill Smith

    Bill Smith Senior member

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    It only matters if you're a crank.

    +1
     


  2. chabe

    chabe New Member

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    Gold is a formerly precious metal with little real value underlying it's high price. We'll never return to the gold standard and frankly I'd rather have a barrel of sweet crude oil in my cupboard than an ounce of Gold. And also a while back when the entire financial system almost ground to a halt - why didn't gold go to $4000 an ounce?, if its such a safe haven.

    Silver however has economic uses underpinning its price and there is becoming more demand for the products that use silver.

    With both products however - beware of the widely differing and unreliable data about the amounts of both metals in and out of the ground vs demand.

    One last thing - when (not if) the bubble bursts - make sure you are standing REALLY close to the exit door.
     


  3. asdf

    asdf Senior member

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    "Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."
     


  4. Milpool

    Milpool Senior member

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  5. ginlimetonic

    ginlimetonic Senior member

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    Gold is a formerly precious metal with little real value underlying it's high price. We'll never return to the gold standard and frankly I'd rather have a barrel of sweet crude oil in my cupboard than an ounce of Gold. And also a while back when the entire financial system almost ground to a halt - why didn't gold go to $4000 an ounce?, if its such a safe haven. Silver however has economic uses underpinning its price and there is becoming more demand for the products that use silver. With both products however - beware of the widely differing and unreliable data about the amounts of both metals in and out of the ground vs demand. One last thing - when (not if) the bubble bursts - make sure you are standing REALLY close to the exit door.
    So frankly, you prefer something that has a market value of $150, over something that has a market value of $1400... smart.... your analogies aren't very good..what does standing REALLY close to the exit door mean.. Does it mean if you're invested in a Gold tracking ETF, that its very liquid? Or if you hold gold bullion that you can readily liquidate them incurring large transaction costs?
    "Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."
    nice... apart from ancient kings, indians and dragons hoarding gold, uses of gold are primarily in electronics being a good conductor
     


  6. mkarim

    mkarim Senior member

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    So frankly, you prefer something that has a market value of $150, over something that has a market value of $1400...

    smart....


    So, frankly, you prefer something just because its market value is higher...

    even smarter...
     


  7. Viktri

    Viktri Senior member

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    So, frankly, you prefer something just because its market value is higher... even smarter...
    You completely misunderstood ginlimetonic's post. chabe said he'd prefer $150 over $1,400 (1 barrel VS 1 ounce) which makes no sense unless you think oil will increase to 10x the price with gold staying flat or declining.
     


  8. Valproate

    Valproate Senior member

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    "Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

    Buffett said this in his 2009 shareholder letter. However, he also made a nice amount of money when he bought silver for $4 and change around 1997. He sold it sometime ago, however.
     


  9. cretaceous_cretin

    cretaceous_cretin Senior member

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  10. asdf

    asdf Senior member

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    nice...
    apart from ancient kings, indians and dragons hoarding gold, uses of gold are primarily in electronics being a good conductor


    So little of the world's gold production is used in industrial uses that it is almost irrelevant. approximately half goes into jewellery, and almost half goes into investments, buried in the ground with people guarding it like buffet says.
     


  11. alvinkim14

    alvinkim14 Member

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    gold and silver will continue to increase nominally as long as central banks print more fiat into oblivion (qe3 anybody?) we are only beginning to see the effects in food price inflation
    the entire monetary system is clearly unsustainable and we will experience a systemic crash somewhere down the road.
    when that happens you wont be able to buy gold or silver even if you wanted to
    with that said im bullish on both metals but my position is heavily biased towards the yellow stuff - the reason being: silver's industrial applications and demand actually hurt its candidacy as a monetary metal; supply stability is way more important than scarcity imo!
    plus, how many central banks hold silver?
     


  12. javyn

    javyn Senior member

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    I was poo-pooing precious metals for a while, but after seeing what QE is doing to food and energy prices, as well as seeing the govs topple in the middle east, not to mention the shitstorm going on in WI, which is just the beginning as far as austerity goes here...

    I'm convinced. Intend to by 6 or 7 kg of silver bars ASAP for starters.

    Also, China currently trying to buy ALL the gold in the world has many thinking they are considering going to a gold standard and pulling the rug out from everyone.
     


  13. Crane's

    Crane's Senior member

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    I was poo-pooing precious metals for a while, but after seeing what QE is doing to food and energy prices, as well as seeing the govs topple in the middle east, not to mention the shitstorm going on in WI, which is just the beginning as far as austerity goes here... I'm convinced. Intend to by 6 or 7 kg of silver bars ASAP for starters. Also, China currently trying to buy ALL the gold in the world has many thinking they are considering going to a gold standard and pulling the rug out from everyone.
    I'm guessing gold will hit around 1900 an ounce and silver around 50 in a year or so. You got a little room to work with.
     


  14. javyn

    javyn Senior member

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    I have no idea honestly, but I have a strong gut feeling a fiat fiasco is on the horizon.
     


  15. dunkin

    dunkin Senior member

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    i have gold and silver coins taped to my body...just in case.....just in case............
     


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