Question about GOLD: whats the real deal?

[Widder, SASS #59054]

O.K., I admit that I stay confused about all this buy/sell GOLD advertisements.

 

Can someone please explain the commercials:

 

The commercials claim that some of the big banks are buying Gold reserves for a reason. BUT, in the same commercials, it is suggested that we all need to invest in GOLD because it will our 'life saver' (my words, not theirs). But its implied.

 

Here's my thoughts: If GOLD is so important, why are the banks doing the advertising to sell it?

 

if the SHTF and paper money looks useless, how is Gold going to help someone?

 

OPINION: if paper money becomes worthless and it takes real GOLD to have buying power, it would appear to me that OUR situation would already be in dire straits. When Gold is the only thing that will buy a loaf of bread, there won't be any bread on the store shelfs.

 

So, I really don't get it.

Why are those banks 'supposedly' stocking up on gold but at the same time, selling it?

 

 

..........Widder

 

[Spades Hanlin SASS#66204]

 

A pondering question indeed? All I know is that I will take any extra gold you have no need of!! I believe when they speak of owning gold it's about inflation and devaluing of paper money because of it...

 

Of course I could wrong as I have been numerous times in my life.. But I am sure I would be willing to take any you want to rid yer self of...

 

 

Spades H . Collector of yellow metal.. LOL....

[River Jordan, SASS 18742]

More precisely---nations are buying or taking back their Gold as it is the "gold standard of intrinsic value"

 

An individual would do well to have at least some silver in case there is a short term interruption. Gold would be a good hedge against inflation.

 

Consider this: in the late 1800's ---what would a $20 Gold piece be worth? maybe a very nice suit of clothes, hat, shoes etc to completely outfit a gentlemen.

 

Today---the same one ounce $20 Gold piece would be worth about $1400 and would finely dress a well dressed person. ( and then some)

 

Perhaps a $20 Gold piece would buy 2 average firearms in 1890. Today --the same analogy would be valid.

 

It is lucrative for brokers to sell Gold at a premium above its value because it has real value.

 

 

Bottom line ---Gold has never been worth zero.

[McCandless]

In a truly SHTF post-apocalyptic world, Medications would be the real universal currency. Antibiotics, Heart Meds, Insulin, the real can't-live-without-it stuff. As far as civilized hedges against inflation, Gold and Silver will do, once the resale value rises above what you paid for it. The most realistic of the preppers (realistic, not doomsday-sayers) caution that you should have some cash on hand should there be a short-term bank closure, and silver perhaps some gold, in case of longer term financial crumbles. Like has been said, silver and gold will never be worth nothing. (unless the Apocalypse happens.)

[Badlands Bob #61228]

A couple of years ago when gold was running $1,800 an ounce, the TV commercials were telling us to buy gold before it goes to $3,000 an ounce. Well, now it's gone back down to a little over $1,000 an ounce. I recon I'll just keep investing in lead.

[Conestoga Smith, SASS #18219]

Howdy-

I've seen the same ads on TV that y'all have. The thing that comes to mind is that these firms ALL make money on EVERY sale of gold, regardless of the current price. How? Easy. They sell it for more than the going rate. Otherwise, there would be no profit in it, and that's no way to run a business. All metal salesmen make money, even the guy running a scrap yard, where he could not give you what he gets for your scrap and stay in business. YOU could get that much, too, IF you opened a scrap yard with all the overhead involved.

ON THE OTHER HAND- If TSHTF, people won't be able to eat gold, silver, gasoline, or ammo. They will be having riots in the street, and be displaying predatory behavior, over FOOD. ( Of course, having guns and ammo may help you keep YOUR food, or help you get more food. )

Jus' Sayin'

[Colorado Coffinmaker]

It's called ....... Hype. Management by ........ FEAR First you convince everyone to sell their existing gold at a wholesale or lesser offer. Of course, stating we are giving you "Top Dollar." Then we apply "FEAR." The Sky is Going to Fall. The Sky is Going to Fall. Hedge your bets and buy our gold at full value, plus a 5 - 10% "premium" You can't go wrong. SO:

 

If you seriously contemplate buying "Gold" ......... Write the Check to me instead. At least that way, One of us will be happy with your purchase. Currently, there is no way to "spend" actual gold.

 

Coffinmaker

[Birdgun Quail, SASS #63663]

General rule of thumb in investment portfolio: 5% to 10% of portfolio in precious metals. Others will disagree.

[C. W. Knight # 47289L]

Hey Bill your mail box must be full again. Tried to PM you. C.W. Knight

[Capt. James H. Callahan]

Best way to buy it (or silver) is to find a reputable dealer who charges small commission. We have some metals just in case, don't have a fortune tied up in it. If TSHTF the price of metals will go thru the roof. If not, it's kinda like trading stocks. No, it won't be worthless, but the price fluctuates just like stocks, you can lose money if you buy and sell at the wrong time. Small denominations would be best, along with lots of silver for barter. If the banks and dealerships go belly up, your 1 oz. gold Eagle may be worth $4000, but if no one has the bucks to buy it selling could be a problem. If you find a reputable dealer you can buy old silver coins for very little over spot. Some are surprisingly nice coins, but depending how many were minted and the condition, they may be worth little over bullion price. The big outfits that do all the advertising are gonna charge you a higher premium than a good private dealer. I'm still kicking myself for not stocking up when gold was $600 per ounce and I thought it was way to high and would never stay that way for long.

JHC

[J-BAR #18287]

Stuff that can be bartered, like food, fuel, drugs, guns , ammo, clothing, books, would be better than gold in a really bad situation, IMO. Hope we never have to find out.

[ShadowCatcher]

O.K., I admit that I stay confused about all this buy/sell GOLD advertisements.

 

<SNIP>

 

Why are those banks 'supposedly' stocking up on gold but at the same time, selling it?

 

 

..........Widder

 

There are a few possibilities to keep in mind -

 

1) You buy it and in some few years it has gone back up enough to make it worth selling. Say you buy it now around 1300 per oz., and in 5 years can sell it at 1750 per oz. The net is around a 33 percent growth. Better than any bank. Conversely, it may drop to 800 per oz. Now you've lost money . . . so like any commodity bought as an investment, it can win or lose.

 

2) Major solar flare or SHTF breakdown due to an EMP. All your electronics are fried, and the bank has all your virtual money tied up in it's now dead memory devices. The only money you have is in your wallet, or in commodities that you can trade for other things. Even if the electric companies can restore the grid in 6 months (current estimates are more like two years), that's a long time to live out of your wallet. Having items you can barter with, like stocks of .22 LR or 12 gauge ammo are great, but Gold is also very useful, whether it's trading it the hardware store for equipment, or at the farmers for a cow or a horse.

 

3) There are some who will always feel safer having a historically sound physical commodity versus a paper, or soon to be electronic means of doing commerce. Your transactions are not traceable using gold, generally speaking. For some that will matter.

 

It's not stupid, it's not panic, and it's a useful commodity. Like all investments and like insurance, some things pay off, and others are just a hedge. If we knew what we would need, and what things would be worth, there's be no need to invest or have insurance - would there?

 

While I do not have any gold at this time it is up there on my list of "must get soon items", mostly because of item 2 above.

If you're going to have gold around, ingots or slugs make sense, coins only have the value of their content, numismatic value goes to zero.

Smaller pieces, 10 grams or so, are easier to utilize, with a face value around 350 - 450, versus 1350 or more for an ounce.

Silver is handy too.

 

Just a few points to consider,

 

SC

[Sedalia Dave]

It's called ....... Hype. Management by ........ FEAR First you convince everyone to sell their existing gold at a wholesale or lesser offer. Of course, stating we are giving you "Top Dollar." Then we apply "FEAR." The Sky is Going to Fall. The Sky is Going to Fall. Hedge your bets and buy our gold at full value, plus a 5 - 10% "premium" You can't go wrong. SO:

 

If you seriously contemplate buying "Gold" ......... Write the Check to me instead. At least that way, One of us will be happy with your purchase. Currently, there is no way to "spend" actual gold.

 

Coffinmaker

+1000000

 

Having something of real value to barter is worth infinitely more than gold. You gunsmithing skills can be traded for food and water and will not run out.

[Capt. James H. Callahan]

It's called ....... Hype. Management by ........ FEAR First you convince everyone to sell their existing gold at a wholesale or lesser offer. Of course, stating we are giving you "Top Dollar." Then we apply "FEAR." The Sky is Going to Fall. The Sky is Going to Fall. Hedge your bets and buy our gold at full value, plus a 5 - 10% "premium" You can't go wrong. SO:

 

If you seriously contemplate buying "Gold" ......... Write the Check to me instead. At least that way, One of us will be happy with your purchase. Currently, there is no way to "spend" actual gold.

 

Coffinmaker

The US gold coins (eagles, buffaloes, etc) are marked with a denomination. I suppose you could "spend" a 1 oz. Eagle for $50. Heck, I'd give ya $55!

[Sedalia Dave]

If you do have a lapse of sanity and do decide to buy gold. Only buy what you physically take possession of and can hold in your hand. Do not buy gold certificates they are a waste of money.

[Curley Cole, SASS #56849]

BQ was right. 10% of portfolio. buy if you can afford to. Buy when it is down. sell when it is up. when I visit my coin/gold dealer, I see folks walking out with 1000oz gold and silver. Most of my gold was bought at levels of 2-300. I don't think I will lose much. I also buy cuz I like it. but if you are buying for the big bust think about size of pieces. I have some gold/silver in 3-4 oz with able to break off in one gram pieces. you don't have to spend an oz. foe a roll of tp.

 

another thought that is late is to find your gold in the ground. I have about 4 oz in various sizes of nuggets. Panned in local canyons. but our gov. is blocking us and we can't mine for it anymore.

 

One final thought, and this is MOST important. KNOW your dealer. weather you buy nuggets, coins, bars, or any form. You can and will be cheated. on any given day places like ebuy will be at least 40% FAKE. know your dealer. I have collected gold and silver for at least 40 years, and this is the worst period for cheats ever. gues the profits are high.

 

just be cautious when you shop.

 

curley

[Cat Brules]

My thinking is this:

A Troy Ounce of gold will never be worth less than you pay for it.

Never sell your gold.

[Chili Ron]

Howdy,

Gold is used in electronics.

Right now there are thousands of obsolete devices in closets and drawers.

Collect those out of date items and melt out the gold.

More gold there than in most so called gold ore.

Go get it.

Best

CR

[Pat Riot]

Never had money for gold...but I do have money for other "precious metals"...lead, brass, chrome moly steel, etc...

 

I am not trying to be flippant but I honestly see no use for gold unless you have other bases covered, like water, food, shelter, first aid, medications, and self protection.

 

If ever the "SHTF" and "barter" became necessary gold won't do for me what a hand full of ammo or a bag of canned goods could do, I am sure.

 

If it comes to survival, the ones with the guns will be the ones with the gold if ethics and morals become the "S" that hits the fan.

 

Now as for ads? Hype!

[Trigger Mike]

no store nor bank in town will take gold and most people think it is a curiosity and have never seen it and don't know its value. the pawn shops or coin shops if you have one know but they pay much less than its value. if the world falls apart how are you going to get change for your gold that is worth $3,000? are you going to hand over a $3,000 gold piece for a loaf of bread? if someone has the change will they want to give you that change for the gold? central banks are not still buying gold and if anything will sell it. i remember when gold was 232 and ounce got a Gold Eagle coin around 1997 or so. it was that cheap because the central banks were selling their gold holdings only to buy it during the economic crisis at a much higher price. s for inflation there are some economist who say that there can not be any inflation due to the global economy and trade. if you buy gold, get it where you can hold it but don't buy a lot. it is dropping lately and will drop more when interest rates go up as along with central banks you now have hedge funds who hold a lot of gold and once the gold rush is played out and bonds pay better interest (not just govt but corporate bonds as well) they will go there instead with their money leaving us in the lurch.

[Yellowhouse Sam # 25171]

I hear people will bout trade you anything for toilet paper!

[Assassin]

Silver is a better trading commodity than gold. Never throw away an old phone book, it can be used to start fires, used for toilet paper, and stores easily. Phone books would also be a trading commodity. Gold is good for long term investment. I'm too poor to invest in precious metals, I only have old phone books.

[Frio Kid, SASS #31915]

In a SHTF situation precious metals will be virtually worthless. Why would anyone want it? A couple cases of cheap whiskey would be worth far more.

[Matthew Duncan]

IF gold was a great investment then why would anyone be willing to sell?

[Chili Ron]

Howdy

My bet is ammo will be the new currency.

Best

CR

[ShadowCatcher]

In a SHTF situation precious metals will be virtually worthless. Why would anyone want it? A couple cases of cheap whiskey would be worth far more.

Precious metals have always had some intrinsic value, since before recorded history.

Besides being attractive their ductile properties have led them to being used in making jewelry, as well as means of bartering

for goods and services. They also have value due to the fact that they do not rot, get consumed or waste away over time.

 

Banks don't recognize them now, because everything is digital or cash, and as long as the infrastructure is functioning that will be

the case. If, for example a solar flare took down the grid, you will be bartering for goods for a while. The general rule of thumb is

to have your metals in smaller denomination form, ie bars that weigh 10 grams or even five, for gold, and similar for silver.

 

Not everyone should have gold, it's all part and parcel of the idea of being prepared, being diversified, and being ready.

Some folks don't think it can ever happen, others live for the day it does!

 

It's like a Zombie apocalypse - it probably won't happen, but if it does what will you do?!

 

SC

[Wolfgang, SASS #53480]

Silver is a better trading commodity than gold. Never throw away an old phone book, it can be used to start fires, used for toilet paper, and stores easily. Phone books would also be a trading commodity. Gold is good for long term investment. I'm too poor to invest in precious metals, I only have old phone books.

 

. . . . . . hey . . . I like your attitude . . .

 

 

I keep some of my liquidity in gold. That came in very handy 4 years ago when I had the chance to buy some property. Gold was at 1650 an oz. so instead of paying the asking price ( with payments to the seller ) . . . I paid a lower price ( about 70% of the asking ) and sold a few oz. of gold to pay it off. So I owned the property outright immediately.

 

ps. for those interested it was 5 acres near the White Horse Movie Ranch. It had a derelict cabin on it that was built in 1960. I stripped the cabin down to the frame and over the past 4 years rebuilt it as a very livable old west frontier cottage. I'm happy

[Capt. James H. Callahan]

Sadly, the price of gold is out of many peoples' reach. Silver on the other hand is not . At this moment gold spot price is $1253 per ounce, while silver is $17.43. You can get some really beautiful Morgan (not to mention the later Liberty)

silver dollars for bullion price because they minted so many. In 1921 all three mints minted a total of 86.73 MILLION Morgan silver dollars. I recently bought a lot of "junk" silver coins for little over spot price (yes, dealers do charge a markup, they don't deal for free) and got a lot of really nice Morgans, Standing Liberty half dollars, Franklin and Kennedy halves. The most worn out piece of crap silver dollar that was worth $1 then is now worth a minimum of $17.43 just because it is 1 oz. of silver. If TSHTF a pocket full of US silver dollars would have as much buying power (or at least bartering power, everybody knows what a SILVER dollar is )or more than it did back in its day.

My 2 cents,

JHC

[Muleshoe Bill SASS #67022]

Invest in toilet paper. In an end of the world as we know it, that stuff will be more valuable than gold, silver and on a par with ammunition.

[Ramblin Gambler]

What's the expiration date on TP?

[Chili Ron]

Howdy,

I see wandering tribes.....primitive groups following herds of cows?

The new currency? CHEESE.

Best

CR

[Deadeye George]

I thought of investing in gold several years ago but the more I looked into it the less interested I became, finally to the point to where I just said to hell with it.

 

Buying gold is EASY, there are thousands of places eager to sell you some but selling it when you need to is the trick, which is much harder than most people realize. Call any gold broker and ask what they would sell and ship 5 ozs of bullion for. Then wait two minutes, call the same broker back and see what they will buy the same 5 ozs for. 99.999% of the time you will have lost a good bit of money simply because of the fees they charge to sell it and the more lucrative fees they charge to buy it back plus the shipping fees to ship it back. Most folks believe that "Spot" prices are what you buy and sell at, this can not be further from the truth.

 

Like someone above said, I am buying bullets! I believe there will come a day when those who have lots of lead will be glad they did and those who don't will hate the prices they have to pay to get it.

[Muleshoe Bill SASS #67022]

What's the expiration date on TP?

About .36 seconds after use.

[Chili Ron]

Howdy,

 

Cheese...well it is sorta gold colored....

 

 

Best

CR

[Trigger Mike]

to give an example, a cowboy on the wire was selling an original 1873 rifle that had a rough barrel etc for $800. at the time gold was $800. I offered my gold eagle for his rifle and he checked and could not sell it in town for its value so he turned me down. now gold after that went to 1900 so i sold it to a coin shop. i did not get the rifle but was able to pay bills with that extra 1100. pint being he could not sell it where he was and it took waiting and finding the one store that would pay me reasonable value to the spot price.

 

a friend needed brake pads installed but did not have the money but had a trailer that had wood that needed to be replaced. another friends dad needed wood for his trailer but not as much as his trailer is shorter. the first friend gave him her wood and he cut it to the size he needed, he installed her brake pads. BOOM. that is how it will likely work in a real hard time. the down side to hoarding toilet paper is if everyone finds out you have it will they invade your home to get it?